Proposed Rule2023-21069
Prevailing Rate Systems; North American Industry Classification System Based Federal Wage System Wage Surveys
Primary source
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Published
September 27, 2023
Issuing agencies
Personnel Management Office
Abstract
The Office of Personnel Management (OPM) is issuing a proposed rule to update the 2017 North American Industry Classification System (NAICS) codes currently used in Federal Wage System (FWS) wage survey industry regulations with the 2022 NAICS revisions published by the Office of Management and Budget (OMB).
Full Text
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<title>Federal Register, Volume 88 Issue 186 (Wednesday, September 27, 2023)</title>
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[Federal Register Volume 88, Number 186 (Wednesday, September 27, 2023)]
[Proposed Rules]
[Pages 66300-66303]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-21069]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 88, No. 186 / Wednesday, September 27, 2023 /
Proposed Rules
[[Page 66300]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 532
[Docket ID: OPM-2023-0028]
RIN 3206-AO64
Prevailing Rate Systems; North American Industry Classification
System Based Federal Wage System Wage Surveys
AGENCY: Office of Personnel Management.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Office of Personnel Management (OPM) is issuing a proposed
rule to update the 2017 North American Industry Classification System
(NAICS) codes currently used in Federal Wage System (FWS) wage survey
industry regulations with the 2022 NAICS revisions published by the
Office of Management and Budget (OMB).
DATES: Send comments on or before October 27, 2023.
ADDRESSES: You may submit comments, identified by docket number and/or
Regulation Identifier Number (RIN) and title, by the following method:
<bullet> Federal Rulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Follow the instructions for submitting comments.
All submissions received must include the agency name and docket
number or RIN for this document. The general policy for comments and
other submissions from members of the public is to make these
submissions available for public viewing at <a href="https://www.regulations.gov">https://www.regulations.gov</a>
as they are received without change, including any personal identifiers
or contact information.
FOR FURTHER INFORMATION CONTACT: Ana Paunoiu, by telephone at (202)
606-2858, or by email at <a href="/cdn-cgi/l/email-protection#0a7a6b7327666f6b7c6f277a65666369734a657a67246d657c"><span class="__cf_email__" data-cfemail="4838293165242d293e2d65382724212b3108273825662f273e">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Section 5343 of title 5, U.S. Code, provides OPM with the authority
and responsibility to prescribe practices and procedures for conducting
wage surveys. Beginning in November 2006, based on recommendations of
the Federal Prevailing Rate Advisory Committee (FPRAC), the national
labor-management committee responsible for advising OPM on matters
concerning the pay of FWS employees, full scale surveys have been using
NAICS codes as the method of determining if an industry is appropriate
for survey. OMB updates the NAICS codes every five years, at which time
OPM also updates the list of NAICS codes covered by OPM wage survey
regulations. On July 30, 2019, OPM issued a final rule (84 FR 36813) to
update the 2012 NAICS codes used in FWS wage survey industry
regulations with the 2017 NAICS revisions published by OMB. OPM's
current regulations use 2017 NAICS codes. OMB has now published the
NAICS revisions for 2022, which result in certain changes in industry
coverage for FWS wage surveys. This rulemaking proposes to update OPM's
regulations with the 2022 NAICS codes revisions.
The following sections of 5 CFR part 532 list the industries
included in the FWS wage surveys by 2017 NAICS codes:
<bullet> Section 532.213--Industries included in regular
appropriated fund wage surveys.
<bullet> Section 532.221--Industries included in regular
nonappropriated fund surveys.
<bullet> Section 532.223--Establishments included in regular
nonappropriated fund surveys.
<bullet> Section 532.267--Special wage schedules for aircraft,
electronic, and optical instrument overhaul and repair positions in
Puerto Rico.
<bullet> Section 532.285--Special wage schedules for supervisors of
negotiated rate Bureau of Reclamation employees.
<bullet> Section 532.313--Private sector industries.
OPM has reviewed these regulations in light of OMB's NAICS
revisions for 2022 and is proposing the following changes:
<bullet> Delete NAICS code 515 (Broadcasting (except internet))
from the list of required NAICS codes in 5 CFR 532.213 and add NAICS
code 516 (Broadcasting and content providers);
<bullet> Delete NAICS codes 44132 (Tire dealers), 443 (Electronics
and appliance stores), 44611(Pharmacies and drug stores), 4471
(Gasoline stations), 44814 (Family clothing stores), 4522 (Department
stores), 4523 (All other general merchandise stores), 45321 (Office
supplies and stationery stores) and 4542 (Vending machine operators)
from the list of required NAICS codes in 5 CFR 532.221 and add NAICS
codes 44134 (Tire dealers), 449210 (Electronics and appliance
retailers), 45611 (Pharmacies and drug stores), 4571 (Gasoline
stations), 45811 (Clothing and clothing accessories retailers), 4551
(Department stores), 4552 (Warehouse clubs, supercenters, and other
general merchandise retailers), and 45941 (Office supplies and
stationery retailers);
<bullet> Delete NAICS codes 4471 (Gasoline stations) and 4542
(Vending machine operators) from the list of required NAICS codes in 5
CFR 532.223 and add NAICS code 4571 (Gasoline stations);
<bullet> Delete NAICS codes 333316 (Photographic and photocopying
equipment manufacturing) and 334613 (Blank magnetic and optical
recording media manufacturing) from the list of required NAICS codes in
5 CFR 532.267 and add NAICS codes 333310 (Commercial and service
industry machinery manufacturing) and 334610 (Manufacturing and
reproducing magnetic and optical media);
<bullet> Delete NAICS code 515 (Broadcasting (except internet))
from the list of required NAICS codes in 5 CFR 532.285 and add NAICS
code 516 (Broadcasting and content providers);
<bullet> Delete NAICS code 441310 (Automotive parts and accessory
stores) from the list of required NAICS codes in 5 CFR 532.287;
<bullet> Revise the title of NAICS code 4413 to read ``Automotive
parts, accessories, and tire retailers'' in the list of required NAICS
codes in the Artillery and combat vehicles specialized industry in 5
CFR 532.313;
<bullet> Delete NAICS codes 44421 (Outdoor power equipment stores),
5173 (Wired and wireless telecommunications carriers), and 517911
(Telecommunications resellers) from the list of required NAICS codes in
the Artillery and combat vehicle specialized industry in 5 CFR 532.313
and add NAICS codes 44423 (Outdoor power equipment retailers), 5171
(Wired and wireless telecommunications carriers (except Satellite)) and
517121 (Telecommunications resellers);
[[Page 66301]]
<bullet> Delete NAICS codes 5151 (Radio and television
broadcasting), 5152 (Cable and other subscription programming), 5173
(Wired and wireless telecommunications carriers) and 517911
(Telecommunications resellers) from the list of required NAICS codes in
the Communications specialized industry in 5 CFR 532.313 and add NAICS
codes 5161 (Radio and television broadcasting stations), 5162 (Media
streaming distribution services, social networks, and other media
networks and content providers), 5171 (Wired and wireless
telecommunications carriers(except Satellite)), and 517121
(Telecommunications resellers);
<bullet> Delete NAICS codes 333316 (Photographic and photocopying
equipment manufacturing) and 334613 (Blank magnetic and optical
recording media manufacturing) from the list of required NAICS codes in
the Electronics specialized industry and Guided missiles specialized
industry in 5 CFR 532.313 and add NAICS codes 333310 (Commercial and
service industry machinery manufacturing) and 334610 (Manufacturing and
reproducing magnetic and optical media); and
<bullet> Delete NAICS codes 333314 (Optical instrument and lens
manufacturing), 333316 (Photographic and photocopying equipment
manufacturing) and 334613 (Blank magnetic and optical recording media
manufacturing) from the list of required NAICS codes in the Sighting
and fire control equipment specialized industry in 5 CFR 532.313 and
add NAICS codes 333310 (Commercial and service industry machinery
manufacturing) and 334610 (Manufacturing and reproducing magnetic and
optical media).
No other sections are affected by 2022 changes in NAICS codes. OPM
is also proposing to replace the year ``2017'' with ``2022'' in the
table titles of all applicable sections.
FPRAC recommended these changes by consensus at its May 18, 2023,
meeting. The transcript of this meeting can be found on the Federal
Wage System website, available at <a href="https://www.opm.gov/policy-data-oversight/pay-leave/pay-systems/federal-wage-system/#url=FPRAC">https://www.opm.gov/policy-data-oversight/pay-leave/pay-systems/federal-wage-system/#url=FPRAC</a>.
Expected Impact of This Proposed Rule
OPM is issuing this proposed rule so that its FWS wage survey
industry regulations remain consistent and up-to-date with OMB's NAICS
codes. OPM expects this rulemaking to have no significant impact on
whether companies are included or excluded from wage surveys. The
expected costs would be de minimis since the Department of Defense, the
lead agency responsible for conducting FWS wage surveys, will only have
to make some minor changes in their computer systems to follow the
updated NAICS codes. OPM does not anticipate this rulemaking will have
a substantial impact on the local economies or a large impact in the
local labor markets. However, OPM is requesting comment on this
proposed rule regarding the impact. OPM is particularly interested in
receiving comments on its use of NAICS codes in FWS wage survey
industry regulations. OPM will continue to study the implications of
such impacts of this or future rules as needed, as this and future
changes in OMB's NAICS codes may have higher impact on wage survey
methodology.
Regulatory Review
Executive Orders 13563, 12866, and 14094 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). This
rulemaking is not a ``significant regulatory action'' under the
provisions of Executive Order 12866 and, therefore, was not reviewed by
OMB.
Regulatory Flexibility Act
The Director of OPM certifies that this rulemaking will not have a
significant economic impact on a substantial number of small entities
because this rulemaking will affect only Federal agencies and
employees.
Federalism
OPM examined this rulemaking in accordance with Executive Order
13132, Federalism, and determined that it will not have any negative
impact on the rights, roles and responsibilities of State, local, or
tribal governments.
Civil Justice Reform
This regulation meets the applicable standard set forth in
Executive Order 12988.
Unfunded Mandates Act of 1995
This rulemaking will not result in the expenditure by State, local,
and tribal governments, in the aggregate, or by the private sector, of
$100 million or more in any year and it will not significantly or
uniquely affect small governments. Therefore, no actions were deemed
necessary under the provisions of the Unfunded Mandates Reform Act of
1995.
Paperwork Reduction Act
This rulemaking does not impose any reporting or record-keeping
requirements subject to the Paperwork Reduction Act.
List of Subjects in 5 CFR Part 532
Administrative practice and procedure, Freedom of information,
Government employees, Reporting and recordkeeping requirements, Wages.
Office of Personnel Management.
Kayyonne Marston,
Federal Register Liaison.
Accordingly, OPM is proposing to amend 5 CFR part 532 as follows:
PART 532--PREVAILING RATE SYSTEMS
0
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.
0
2. In Sec. 532.213, amend the table in paragraph (a) by revising the
column headings, removing the entry for NAICS code 515, and adding in
numerical order an entry for NAICS code 516 to read as follows.
Sec. 532.213 Industries included in regular appropriated fund wage
surveys.
(a) * * *
------------------------------------------------------------------------
2022 NAICS codes 2022 NAICS codes
------------------------------------------------------------------------
* * * * *
516............................... Broadcasting and content providers.
* * * * *
------------------------------------------------------------------------
* * * * *
0
3. In Sec. 532.221, amend the table in paragraph (a) by revising the
column headings, removing the entries for NAICS codes 44132, 443,
44611, 4471, 44814, 4522, 4523, 45321, 4542, and adding in numerical
order entries for NAICS codes 44134, 449210, 4551, 4552, 45611, 4571,
45811, 45941 to read as follows:
Sec. 532.221 Industries included in regular nonappropriated fund
surveys.
(a) * * *
[[Page 66302]]
------------------------------------------------------------------------
2022 NAICS codes 2022 NAICS codes
------------------------------------------------------------------------
* * * * * * *
44134...................... Tire dealers.
* * * * * * *
449210..................... Electronics and appliance retailers.
4551....................... Department stores.
4552....................... Warehouse clubs, supercenters, and other
general merchandise retailers.
45611...................... Pharmacies and drug stores.
4571....................... Gasoline stations.
45811...................... Clothing and clothing accessories
retailers.
45941...................... Office supplies and stationery retailers.
* * * * * * *
------------------------------------------------------------------------
* * * * *
0
4. In Sec. 532.223, revise paragraph (a) to read as follows:
Sec. 532.223 Establishments included in regular nonappropriated fund
surveys.
(a) All establishments having 20 or more employees in the
prescribed industries within a survey area must be included in the
survey universe. Establishments in NAICS codes 4571, 71391, and 71395
must be included in the survey universe if they have eight or more
employees.
* * * * *
0
5. In Sec. 532.267, amend the table in paragraph (c)(1) by revising
the column headings, removing the entries for NAICS codes 333316 and
334613, and adding in numerical order entries for NAICS codes 333310
and 334610 to read as follows:
Sec. 532.267 Special wage schedules for aircraft, electronic, and
optical instrument overhaul and repair positions in Puerto Rico.
* * * * *
(c) * * *
(1) * * *
------------------------------------------------------------------------
2022 NAICS codes 2022 NAICS codes
------------------------------------------------------------------------
333310..................... Commercial and service industry machinery
manufacturing.
* * * * * * *
334610..................... Manufacturing and reproducing magnetic and
optical media.
* * * * * * *
------------------------------------------------------------------------
* * * * *
0
6. In Sec. 532.285, amend the table in paragraph (c)(1) by revising
the column headings, removing the entry for NAICS code 515, and adding
in numerical order an entry for NAICS code 516 to read as read as
follows:
Sec. 532.285 Special wage schedules for supervisors of negotiated
rate Bureau of Reclamation employees.
* * * * *
(c) * * *
(1) * * *
------------------------------------------------------------------------
2022 NAICS codes 2022 NAICS industry titles
------------------------------------------------------------------------
* * * * * * *
516........................ Broadcasting and content providers.
* * * * * * *
------------------------------------------------------------------------
* * * * *
Sec. 532.287 [Amended]
0
7. In Sec. 532.287, amend the table in paragraph (c)(4) by:
0
a. Removing the column heading ``2017 NAICS codes'' and adding in its
place ``2022 NAICS codes'';
0
b. Removing the column heading ``2017 NAICS industry titles'' and
adding in its place ``2022 NAICS industry titles''; and
0
c. Removing the entry for NAICS code 441310.
0
8. In Sec. 532.313, amend the table in paragraph (a) by:
0
a. Revising the column headings;
0
b. Under the heading ``Artillery and Combat Vehicle Specialized
Industry'':
0
i. Revising the entry for NAICS Code 4413;
0
ii. Removing the entries for NAICS Codes 44421, 5173, and 517911; and
0
iii. Adding in numerical order entries for NAICS Codes 44423, 5171, and
517121;
0
c. Under the heading ``Communications Specialized Industry'':
0
i. Removing the entries for NAICS Codes 5151, 5152, 5173, and 517911;
and
0
ii. Adding in numerical order entries for NAICS Codes 5161, 5162, 5171,
and 517121;
0
d. Under the heading ``Electronics Specialized Industry'':
0
i. Removing the entries for NAICS Codes 333316 and 334613; and
0
ii. Adding in numerical order entries for NAICS Codes 333310 and 334610
0
e. Under the heading ``Guided Missiles Specialized Industry'':
[[Page 66303]]
0
i. Removing the entries for NAICS Codes 333316 and 334613; and
0
ii. Adding in numerical order entries for NAICS Codes 333310 and
334610;
0
f. Under the heading ``Sighting and Fire Control Equipment Specialized
Industry'':
0
i. Removing the entries for NAICS Codes 333314, 333316, and 334613; and
0
ii. Adding in numerical order entries for NAICS Codes 333310 and
334610.
The revisions and additions read as follows:
Sec. 532.313 Private sector industries.
(a) * * *
------------------------------------------------------------------------
2022 NAICS codes 2022 NAICS industry titles
------------------------------------------------------------------------
* * * * * * *
------------------------------------------------------------------------
Artillery and Combat Vehicles Specialized Industry
------------------------------------------------------------------------
* * * * * * *
4413....................... Automotive parts, accessories, and tire
retailers.
44423...................... Outdoor power equipment retailers.
* * * * * * *
5171....................... Wired and wireless telecommunications
carriers (except Satellite).
517121..................... Telecommunications resellers.
* * * * * * *
------------------------------------------------------------------------
Communications Specialized Industry
------------------------------------------------------------------------
* * * * * * *
5161....................... Radio and television broadcasting stations.
5162....................... Media streaming distribution services,
social networks, and other media networks
and content providers.
5171....................... Wired and wireless telecommunications
carriers (except Satellite).
517121..................... Telecommunications resellers.
* * * * * * *
------------------------------------------------------------------------
Electronics Specialized Industry
------------------------------------------------------------------------
333310..................... Commercial and service industry machinery
manufacturing.
* * * * * * *
334610..................... Manufacturing and reproducing magnetic and
optical media.
* * * * * * *
------------------------------------------------------------------------
Guided Missiles Specialized Industry
------------------------------------------------------------------------
* * * * * * *
333310..................... Commercial and service industry machinery
manufacturing.
* * * * * * *
334610..................... Manufacturing and reproducing magnetic and
optical media.
* * * * * * *
------------------------------------------------------------------------
Sighting and Fire Control Equipment Specialized Industry
------------------------------------------------------------------------
333310..................... Commercial and service industry machinery
manufacturing.
* * * * * * *
334610..................... Manufacturing and reproducing magnetic and
optical media.
* * * * * * *
------------------------------------------------------------------------
* * * * *
[FR Doc. 2023-21069 Filed 9-26-23; 8:45 am]
BILLING CODE 6325-39-P
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