[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 [www.gpo.gov]
[FR Doc No: 2023-21069]


 ========================================================================
 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.
 
 ========================================================================
 

  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:
     Federal Rulemaking Portal: https://www.regulations.gov. 
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 https://www.regulations.gov 
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 [email protected].

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:
     Section 532.213--Industries included in regular 
appropriated fund wage surveys.
     Section 532.221--Industries included in regular 
nonappropriated fund surveys.
     Section 532.223--Establishments included in regular 
nonappropriated fund surveys.
     Section 532.267--Special wage schedules for aircraft, 
electronic, and optical instrument overhaul and repair positions in 
Puerto Rico.
     Section 532.285--Special wage schedules for supervisors of 
negotiated rate Bureau of Reclamation employees.
     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:
     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);
     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);
     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);
     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);
     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);
     Delete NAICS code 441310 (Automotive parts and accessory 
stores) from the list of required NAICS codes in 5 CFR 532.287;
     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;
     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]]

     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);
     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
     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 https://www.opm.gov/policy-data-oversight/pay-leave/pay-systems/federal-wage-system/#url=FPRAC.

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