The Locality Pay Equity Act of 2023 would change how federal employee wages are determined by limiting the number of local wage areas within each General Schedule pay locality to just one, with the exception of the "Rest of United States" designation. Currently, the federal government can define multiple local wage areas within a single pay locality, which can result in different pay rates for federal employees in nearby geographic areas. The bill affects federal employees covered by the General Schedule pay system across the country. The Office of Personnel Management would be responsible for implementing the changes through new regulations, with a requirement that no federal employee's current pay rate would be reduced as a result of these changes. The amendments would take effect 180 days after the bill becomes law.
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