[Federal Register Volume 63, Number 251 (Thursday, December 31, 1998)]
[Rules and Regulations]
[Pages 72097-72098]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34394]
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OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 532
RIN 3206-AI48
Prevailing Rate Systems; Lead Agency Responsibility
AGENCY: Office of Personnel Management.
ACTION: Final rule.
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SUMMARY: The Office of Personnel Management (OPM) is issuing a final
rule that will change the lead agency responsibility for certain
Federal Wage System (FWS) appropriated fund wage areas from the
Department of Veterans Affairs (VA) to the Department of Defense (DOD).
VA requested that OPM designate DOD as the lead agency in all of the
wage areas where VA currently has lead agency responsibility. This
change will make DOD the lead agency in all FWS wage areas and will
make more efficient use of the resources devoted by agencies to
determining FWS pay rates.
DATES: This final rule is effective on January 1, 1999, except that VA
will retain lead agency responsibility for the Roanoke, Virginia, wage
area until the next wage schedule for that wage area is established on
January 17, 1999.
FOR FURTHER INFORMATION CONTACT: Jennifer Hopkins at (202) 606-2848, or
send an email message to jdhopkin@opm.gov.
SUPPLEMENTARY INFORMATION: On November 2, 1998, the Office of Personnel
Management (OPM) published a proposed rule (63 FR 58659) to transfer
lead agency responsibility for the New Haven-Hartford, Connecticut;
Miami, Florida; Tampa-St. Petersburg, Florida; Champaign-Urbana,
Illinois; Chicago, Illinois; Cedar Rapids-Iowa City, Iowa; Des Moines,
Iowa; Augusta, Maine; Boston, Massachusetts; Southwestern Michigan;
Minneapolis-St. Paul, Minnesota; New York, New York; Rochester, New
York; Asheville, North Carolina; Charlotte, North Carolina; Cincinnati,
Ohio; Cleveland, Ohio; Southwestern Oregon; Pittsburgh, Pennsylvania;
Eastern Tennessee; Houston-Galveston-Texas City, Texas; Roanoke,
Virginia; and Milwaukee, Wisconsin, FWS wage areas from the Department
of Veterans Affairs (VA) to the Department of Defense (DOD).
The proposed rule provided a 30-day period for public comment,
during which OPM received one comment from a labor organization, which
requested that OPM pursue enactment of appropriations legislation that
would specifically designate funds for VA to conduct local FWS wage
surveys. However, the commenter recognized that under present
conditions there is no acceptable alternative but to make the proposed
changes in lead agency responsibility effective. The possibility of
requesting that Congress appropriate funds to VA specifically for
conducting FWS wage surveys was raised and considered by the members of
FPRAC. However, the Committee did not adopt this suggestion (which is
outside the scope of our regulatory authority) as part of its
recommendation to OPM.
Under 5 U.S.C. 5343(a)(2), OPM is responsible for designating lead
agencies in Federal Wage System (FWS) wage areas. Lead agencies are
responsible for conducting surveys of private sector employers to
establish wage schedules for FWS employees based on local prevailing
rates. The Department of Defense (DOD) is the lead agency in 110 FWS
wage areas, and the Department of Veterans Affairs (VA) is the lead
agency in 23 FWS wage areas. VA is currently the lead agency in the New
Haven-Hartford, Connecticut; Miami, Florida; Tampa-St. Petersburg,
Florida; Champaign-Urbana, Illinois; Chicago, Illinois; Cedar Rapids-
Iowa
[[Page 72098]]
City, Iowa; Des Moines, Iowa; Augusta, Maine; Boston, Massachusetts;
Southwestern Michigan; Minneapolis-St. Paul, Minnesota; New York, New
York; Rochester, New York; Asheville, North Carolina; Charlotte, North
Carolina; Cincinnati, Ohio; Cleveland, Ohio; Southwestern Oregon;
Pittsburgh, Pennsylvania; Eastern Tennessee; Houston-Galveston-Texas
City, Texas; Roanoke, Virginia; and Milwaukee, Wisconsin, FWS wage
areas.
VA requested that OPM designate DOD as the lead agency in the wage
areas where VA is currently designated as the lead agency. Since the
establishment of the FWS in 1972, VA has played a key role in the
administration of the pay program for FWS employees. However, during
the past few years, VA has experienced reductions in overall employment
in the human resources management areas both in field and headquarters
activities. At the headquarters level, two out of three experienced
specialists assigned to oversee FWS wage surveys are no longer
available to work in that area because of retirements and
reassignments. VA believes a consolidation of the FWS survey function
within one agency will be more efficient and will provide a level of
consistency in the survey process that will strengthen the FWS program
nationwide. DOD expressed its willingness and indicated its ability to
assume lead agency responsibility in the wage areas where VA is
currently assigned lead agency responsibility.
The proposed change was reviewed by the Federal Prevailing Rate
Advisory Committee (FPRAC), the national labor-management committee
responsible for advising OPM on matters that affect the pay of FWS
employees. The management members of FPRAC proposed this change because
diminishing staff resources within VA headquarters make it very
difficult for VA to accomplish its wage survey work in an effective
manner, and because DOD expressed its ability and willingness to assume
lead agency responsibility in all FWS wage areas. After considering all
possible alternatives, the Committee recommended approval of the change
in lead agency by majority vote. All Committee members voted for the
proposal except for the National Federation of Federal Employees, which
abstained. The remaining labor members of FPRAC supported the proposed
change with reservations, stating that although no reasonable
alternative exists, they are concerned about the placement of
Governmentwide FWS wage determinations within a single agency.
Pursuant to section 553(d)(3) of title 5, United States Code, I
find that good cause exists to make this regulation effective in less
than 30 days. This regulation is being made effective in less than 30
days because of the recommendation of FPRAC that DOD assume lead agency
responsibility for all FWS wage areas where practical at the start of
the calendar year.
Regulatory Flexibility Act
I certify that these regulations will not have a significant
economic impact on a substantial number of small entities because they
will affect only Federal agencies and employees.
List of Subjects in 5 CFR Part 532
Administrative practice and procedure, Freedom of information,
Government employees, Reporting and recordkeeping requirements, Wages.
U.S. Office of Personnel Management.
Janice R. Lachance,
Director.
Accordingly, the Office of Personnel Management is amending 5 CFR
part 532 as follows:
PART 532--PREVAILING RATE SYSTEMS
1. The authority citation for part 532 continues to read as
follows:
Authority: 5 U.S.C. 5343, 5346; Sec. 532.707 also issued under 5
U.S.C. 552.
Appendix A to Subpart B of Part 532 [Amended]
2. Appendix A to subpart B is amended for the New Haven-Hartford,
Connecticut; Miami, Florida; Tampa-St. Petersburg, Florida; Champaign-
Urbana, Illinois; Chicago, Illinois; Cedar Rapids-Iowa City, Iowa; Des
Moines, Iowa; Augusta, Maine; Boston, Massachusetts; Southwestern
Michigan; Minneapolis-St. Paul, Minnesota; New York, New York;
Rochester, New York; Asheville, North Carolina; Charlotte, North
Carolina; Cincinnati, Ohio; Cleveland, Ohio; Southwestern Oregon;
Pittsburgh, Pennsylvania; Eastern Tennessee; Houston-Galveston-Texas
City, Texas; Roanoke, Virginia; and Milwaukee, Wisconsin, wage areas by
revising the lead agency listings from ``VA'' to ``DOD''.
[FR Doc. 98-34394 Filed 12-30-98; 8:45 am]
BILLING CODE 6325-01-P
