OPMFinal Rule
Prevailing Rate Systems: Change in Criteria for Defining Appropriated Fund Federal Wage System Wage Areas
Labor & WorkplaceFinance & Banking
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Summary
The federal government is changing how it determines pay areas for federal workers who earn hourly wages. This update affects which regions are grouped together for wage-setting purposes, which can influence how much federal employees in different locations get paid.
Key Points
- 1The government is revising the criteria used to define geographic wage areas for federal hourly workers paid from appropriated funds (regular government budgets)
- 2These wage areas determine local pay rates for federal employees, so changes could affect salary levels for workers in different regions
- 3The new criteria will determine how cities and regions are grouped together when setting prevailing wage rates for federal jobs
- 4This primarily affects federal agencies and their hourly wage employees, particularly in construction, maintenance, and trade positions
- 5The regulation was published on January 21, 2025, and establishes new standards for how the government decides fair local wages going forward
Impact Assessment
If you are a federal wage system employee, this means your pay area grouping may change, which could affect your salary level depending on where you work.
Impact Level
Moderate
Geographic Scope
National
Compliance Cost
Minimal
Who is Affected
Federal EmployeesState Governments
Key Dates
Published
January 21, 2025
Regulatory Connections
Amends CFR Sections
5 CFR Part 532
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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