S. 1561Senate117th Congress (2021-2023)In Committee

Locality Pay Equity Act of 2021

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Updated February 8, 2026 at 2:43 AM UTC

The Locality Pay Equity Act of 2021 changes how federal locality pay is set up by limiting each General Schedule pay locality to just one local wage area, except for the “Rest of United States” area. This affects federal employees covered by the General Schedule by altering the way the Office of Personnel Management (OPM) defines wage areas and ensures their basic pay isn’t reduced. The bill also requires OPM to issue regulations to carry out these changes.

Key Provisions

Adds a rule that OPM may define no more than one local wage area within any pay locality, with the exception of the “Rest of United States” locality.
Amends existing sections of Title 5 to remove outdated wording and to define “pay locality” by reference to the existing definition in section 5302.
Directs the OPM Director to issue regulations needed to implement the Act and to protect prevailing‑rate employees from any reduction in basic pay.
Sets the changes to take effect on the first full pay period that begins at least 180 days after the law is enacted.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Homeland Security and Governmental Affairs Committee

May 11, 2021

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SenateIntro Referral

Introduced in Senate

May 11, 2021

SenateIntro Referral

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Homeland Security and Governmental Affairs Committee

May 11, 2021

Bill Text

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Introduced in SenateIssued May 11, 2021

117th CONGRESS

1st Session

S. 1561

IN THE SENATE OF THE UNITED STATES

May 11, 2021

Mr. Casey (for himself, Ms. Warren, Mr. Brown, and Mr. Murphy) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

A BILL

To amend title 5, United States Code, to limit the number of local wage areas allowable within a General Schedule pay locality.

Short title

This Act may be cited as the Locality Pay Equity Act of 2021.

Limiting the number of local wage areas defined within a General Schedule pay locality

(a)

Local wage area limitation

Section 5343(a) of title 5, United States Code, is amended—

(1)

in paragraph (1)(B)(i), by striking (but such and all that follows through are employed);

(2)

in paragraph (4), by striking and after the semicolon;

(3)

in paragraph (5), by striking the period after Islands and inserting ; and; and

(4)

by adding at the end the following:

(6)

the Office of Personnel Management shall define not more than 1 local wage area within a pay locality, except that this paragraph shall not apply to the pay locality designated as Rest of United States.

(b)

General Schedule pay locality defined

Section 5342(a) of title 5, United States Code, is amended—

(1)

in paragraph (2)(C), by striking and after the semicolon;

(2)

in paragraph (3), by striking the period after employee and inserting ; and; and

(3)

by adding at the end the following:

(4)

pay locality has the meaning given that term under section 5302.

Regulations

The Director of the Office of Personnel Management shall prescribe any regulations necessary to carry out the purpose of this Act, including regulations to ensure that the enactment of this Act shall not have the effect of reducing any rate of basic pay payable to any individual who is serving as a prevailing rate employee (as defined under section 5342(a)(2) of title 5, United States Code).

Applicability

The amendments made by this Act shall apply on and after the first day of the first full pay period beginning at least 180 days after the date of enactment of this Act.