Legislation introduced by Rep. Dan Newhouse, R-Wash., would bar federal workers from receiving locality pay if they telework at least once per week, a move that could amount to a 30% pay cut for many feds.
Federal officials in Alaska, Hawaii and the United States’ various offshore territories said they struggle to combat high attrition at federal jobs in the non-contiguous U.S., despite some agencies’ efforts.
For years, federal employee unions have bemoaned that the pay systems’ differing maps of high-cost regions created pay inequity within agency workforces.
Foreign Service officers stationed outside the U.S. could see an average pay cut of 22% if the provision undergirding legislation aimed at ensuring commensurate pay between overseas federal workers and their domestically located counterparts is not reauthorized.
The president each August must declare an “economic emergency” to prevent large automatic increases to locality pay from taking effect, in accordance with the Federal Employees Pay Comparability Act.
Labor leaders at Federal Correctional Institute Thomson said the Bureau of Prisons’ termination of a short-lived initiative to retain employees at the rural facility with a 25% boost to pay will cause hundreds to leave the agency.
The combination of creating four new locality pay areas and a broad update to underlying maps means that around 33,300 federal workers will see larger pay raises beginning next year.
The Locality Pay Equity Act would ensure that locality pay determinations, currently bifurcated between the General Schedule and Federal Wage System pay scales, would be consistent for most federal employees.
“The relatively low pay for very skilled, very experienced workers is a serious problem,” says James L. Perry, professor emeritus of public administration at the University of Indiana.
The Pay Compression Relief Act would effectively allow General Schedule employees to receive annual increases to both basic and locality pay, even if they have already hit the federal pay cap.
The Office of Personnel Management has proposed regulations to create four new locality pay areas, along with a comprehensive map update adding dozens of jurisdictions to existing pay regions.
The annual list of recommendations, made in February but made public this month, did not alter the map of locality pay areas, but reiterated the importance of proposals already tentatively approved by the Biden administration.
AFGE called on the Biden administration and Congress to align the Federal Wage System’s locality pay map with that of the General Schedule and advance legislation to improve Defense Department civilian police pay.
The annual report from the leaders of OMB, OPM and the Labor Department also authorized a number of tweaks to the criteria that govern which regions are eligible to be added to the map of locality pay areas.
Although there’s only a month left in the year, there are still a number of things that must be done to finalize an average 4.6% pay hike for civilian federal workers in January.