The Locality Pay Equity Act of 2023 would change how the federal government sets wages for federal employees by limiting the number of local wage areas within each pay locality. Currently, the Office of Personnel Management can create multiple local wage areas within a single pay locality, which can result in different pay rates for federal employees doing similar work in the same geographic region. This bill would restrict the Office of Personnel Management to defining no more than one local wage area per pay locality, with the exception of the "Rest of United States" designation. The legislation would take effect 180 days after passage and includes protections to ensure that no federal employee currently receiving prevailing wage rates would see their pay reduced. This change would primarily affect federal employees and the federal government's human resources and payroll systems.
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