[Federal Register Volume 89, Number 16 (Wednesday, January 24, 2024)]
[Rules and Regulations]
[Pages 4539-4542]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-01086]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
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 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
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 The Code of Federal Regulations is sold by the Superintendent of Documents. 
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  Federal Register / Vol. 89, No. 16 / Wednesday, January 24, 2024 / 
Rules and Regulations  

[[Page 4539]]



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: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Office of Personnel Management (OPM) is issuing this final 
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: 
    Effective date: This rule is effective February 23, 2024.
    Applicability date: This rule applies for local wage surveys 
beginning on or after May 8, 2024.

FOR FURTHER INFORMATION CONTACT: Ana Paunoiu, by telephone at (202) 
606-2858, or by email at [email protected].

SUPPLEMENTARY INFORMATION: On September 27, 2023, OPM issued a proposed 
rule (88 FR 66300) to update the 2017 NAICS codes used in FWS wage 
survey industry regulations with the 2022 NAICS revisions published by 
OMB. The Federal Prevailing Rate Advisory Committee (FPRAC), the 
national labor-management committee responsible for advising OPM on 
matters concerning the pay of FWS employees, 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.
    The 30-day comment period ended on October 27, 2023. OPM received 
one comment in reference to the impact of the NAICS revisions on the 
existing wage schedules and FWS wage areas. We note, however, that this 
final regulation will have no impact on the existing wage schedules and 
FWS wage areas because there will be no changes in the types of 
industrial establishments already included in FWS wage surveys. This 
final rule updates the wage survey industry regulations by adopting the 
2022 NAICS codes published by OMB.
    The commenter also stated that no guidance or criteria for 
selecting the NAICS codes were provided. In 1997, OMB developed NAICS 
and required its use for Federal statistical purposes. NAICS replaced 
the 1987 Standard Industrial Classification (SIC) industry 
classification system. On June 20, 2006, OPM published final 
regulations (71 FR 35373) replacing SIC codes with NAICS codes, 
following an FPRAC recommendation. This recommendation was based on 
FPRAC's Wage Survey Methodology Work Group (Work Group) study of the 
desirability and feasibility of replacing the SIC codes used in FWS 
regulations at the time with NAICS codes and the effect of this change 
on industry coverage for FWS wage surveys. The Work Group recommended 
to FPRAC that OPM replace all SIC codes in the FWS regulations with the 
most closely corresponding NAICS codes, while making as few changes as 
possible in the types of industrial establishments that were already 
included in FWS wage surveys under the SIC system.
    We have not made any changes to the final regulations based on this 
comment. This final regulation is effective February 23, 2024. However, 
to provide the Department of Defense (DOD) with sufficient time for 
planning surveys and implementing changes required by OMB's 2022 NAICS 
revisions, the regulation is applicable for wage surveys ordered to 
begin on or after May 8, 2024.
    As OMB continues to update NAICS codes periodically, OPM will 
update these regulations to correspond to the updated NAICS codes after 
consideration of any recommendations submitted by FPRAC.

Expected Impact of This Rule

    OPM is issuing this final rule so that its FWS wage survey industry 
regulations remain consistent and up to date with OMB's NAICS codes. 
OPM expects this rule to have no significant impact on whether 
companies are included or excluded from wage surveys. The expected 
costs would be de minimis since DOD, 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 rule will have a substantial impact on the local 
economies or a large impact in the local labor markets. 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

    OPM has examined the impact of this rule as required by Executive 
Orders 13563, 12866, and 14094, which 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 rule 
is not considered a ``significant regulatory action'' under section 
3(f) of Executive Order 12866.

Regulatory Flexibility Act

    The Director of OPM certifies that this rule will not have a 
significant economic impact on a substantial number of small entities 
because this rule will affect only Federal agencies and employees.

Federalism

    OPM examined this rule 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 rule will not result in the expenditure by State, local, and 
tribal

[[Page 4540]]

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.

Congressional Review Act

    Subtitle E of the Small Business Regulatory Enforcement Fairness 
Act of 1996 (known as the Congressional Review Act or CRA) (5 U.S.C. 
801 et seq.) requires most final rules to be submitted to Congress 
before taking effect. OPM will submit to Congress and the Comptroller 
General of the United States a report regarding the issuance of this 
rule before its effective date. The Office of Information and 
Regulatory Affairs in the Office of Management and Budget has 
determined that this rule is not a major rule as defined by the CRA (5 
U.S.C. 804).

Paperwork Reduction Act

    This rule 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 amends 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 industry titles
------------------------------------------------------------------------
 
                                * * * * *
516.......................................  * Broadcasting and content
                                             providers.
 
                                * * * * *
------------------------------------------------------------------------

* * * * *

0
3. In Sec.  532.221, amend the table in paragraph (a) by:
0
a. Revising the column headings;
0
b. Removing the entry for NAICS code 44132;
0
c. Adding in numerical order an entry for NAICS code 44134;
0
d. Removing the entries for NAICS codes 443, 44611, 4471, 44814, 4522, 
4523, 45321, and 4542; and
0
e. Adding in numerical order entries for NAICS codes 449210, 4551, 
4552, 45611, 4571, 45811, and 45941.
    The revisions and additions read as follows:


Sec.  532.221  Industries included in regular nonappropriated fund 
surveys.

    (a) * * *

------------------------------------------------------------------------
           2022 NAICS codes                2022 NAICS industry titles
------------------------------------------------------------------------
 
                              * * * * * * *
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:
0
a. Revising the column headings;
0
b. Adding in numerical order an entry for NAICS code 333310;
0
c. Removing the entry for NAICS code 333316;
0
d. Adding in numerical order an entry for NAICS code 334610; and
0
e. Removing the entry for NAICS code 334613.
    The revisions and additions 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 industry titles
------------------------------------------------------------------------
333310...............................  Commercial and service industry
                                        machinery manufacturing.
 
                              * * * * * * *
334610...............................  Manufacturing and reproducing
                                        magnetic and optical media.
 
                              * * * * * * *
------------------------------------------------------------------------


[[Page 4541]]

* * * * *

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 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 Vehicles Specialized 
Industry'':
0
i. Revising the entry for NAICS Code 4413;
0
ii. Removing the entry for NAICS Code 44421;
0
iii. Adding in numerical order entries for NAICS Codes 44423 and 5171;
0
iv. Removing the entries for NAICS Codes 5173 and 517911; and
0
v. Adding in numerical order an entry for NAICS Code 517121;
0
c. Under the heading ``Communications Specialized Industry'':
0
i. Removing the entries for NAICS Codes 5151, 5152, and 5173;
0
ii. Adding in numerical order entries for NAICS Codes 5161, 5162, and 
5171;
0
iii. Removing the entry for NAICS Code 517911; and
0
iv. Adding in numerical order an entry for NAICS code 517121;
0
d. Under the heading ``Electronics Specialized Industry'':
0
i. Adding in numerical order an entry for NAICS Code 333310;
0
ii. Removing the entry for NAICS Code 333316;
0
iii. Adding in numerical order an entry for NAICS Code 334610; and
0
iv. Removing the entry for NAICS Code 334613;
0
e. Under the heading ``Guided Missiles Specialized Industry'':
0
i. Adding in numerical order an entry for NAICS Code 333310;
0
ii. Removing the entry for NAICS Code 333316;
0
iii. Adding in numerical order an entry for NAICS Code 334610; and
0
iv. Removing the entry for NAICS Code 334613; and
0
f. Under the heading ``Sighting and Fire Control Equipment Specialized 
Industry'':
0
i. Adding in numerical order an entry for NAICS Code 333310;
0
ii. Removing the entries for NAICS Codes 333314 and 333316;
0
iii. Adding in numerical order an entry for NAICS Code 334610; and
0
iv. Removing the entry for NAICS Code 334613.
    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.
 

[[Page 4542]]

 
                              * * * * * * *
------------------------------------------------------------------------
                    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. 2024-01086 Filed 1-23-24; 8:45 am]
BILLING CODE 6325-39-P