On June 28, the Office of Personnel Management proposed new regulations on behalf of the President’s Pay Agent to change the geographic boundaries of General Schedule locality pay areas. The proposed changes would take effect on January 1, 2024. Ultimately, the regulations would implement four new locality pay areas:

• Fresno-Madera-Hanford, Calif.;

• Reno-Fernley, Nev.;

• Rochester-Batavia-Seneca Falls, N.Y.; and,

• Spokane-Spokane Valley-Coeur d’Alene, Wash. and Idaho.

These locations have been recommended by the Federal Salary Council and the President’s Pay Agent. The boundary changes included in the proposed regulations would add Dukes and Nantucket counties in Massachusetts, to the Boston locality pay area; Huron County, Michigan, to the Detroit locality pay area; Pacific and San Juan counties in Washington to the Seattle locality pay area, and Greensville County and the City of Emporia, Virginia, to the Richmond, VA, locality pay area.

OPM expects the changes in the proposed rule would “most directly impact approximately 32,900 GS employees. Modifying existing locality pay areas would affect approximately 16,700 GS employees, and establishing the four new locality pay areas proposed would affect approximately 16,200 GS employees.”

In the regulations, OPM states it does not expect a major impact on local economies or local labor markets. The comment period is open from now through July 28, 2023. To view the proposed rule, click here.