To amend subchapter IV of chapter 53 of title 5, United States Code, relating to prevailing rate systems for Federal employees.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Wage Worker Pay Fairness Act 
of 2001''.

SEC. 2. WAGE AREAS TO BE CONFORMED TO PAY LOCALITIES.

    Paragraph (1) of section 5343(a) of title 5, United States Code, is 
amended to read as follows:
            ``(1) the Office of Personnel Management shall define the 
        boundaries of local wage areas for prevailing rate employees so 
        as to be the same as the boundaries of the respective pay 
        localities under section 5304(f) (including as from time to 
        time modified), subject to such exceptions as the Office, with 
        the approval of the Federal Salary Council (described in 
        section 5304(e)), may find to be necessary;''.

SEC. 3. AGENCY RESPONSIBLE FOR CONDUCTING WAGE RATE SURVEYS.

    Paragraph (3) of section 5343(a) of title 5, United States Code, is 
amended to read as follows:
            ``(3) subject to paragraph (5), and subsections (c)(1)-(3) 
        and (d)--
                    ``(A) wage surveys under this section shall be 
                conducted by the same agency as is responsible under 
                section 5304(d)(1)(A) for conducting surveys of pay 
                localities; and
                    ``(B) the lead agency for a local wage area shall, 
                for purposes of the prevailing rate employees in that 
                area, analyze wage survey data, and develop and 
                establish appropriate wage schedules and rates;''.

SEC. 4. ANNUAL MINIMUM ADJUSTMENT.

    (a) In General.--Subsection (b) of section 5343 of title 5, United 
States Code, is amended by striking ``(b)'' and inserting ``(b)(1)'', 
and by adding at the end the following:
    ``(2)(A) Effective as of the first day of the first applicable pay 
period beginning on or after January 1 of each year, the rates of pay 
for the regular and special wage schedules shall be adjusted (by the 
lead agency or by the Office of Personnel Management, as appropriate) 
by the percentage equal to the overall average percentage adjustment 
taking effect on that same date, with respect to General Schedule 
positions within the pay locality corresponding (or, if none 
corresponds exactly, the pay locality most nearly corresponding, as 
determined by such agency or Office) to the local wage area involved, 
under sections 5303 and 5304-5304a.
    ``(B) Nothing in this paragraph shall prevent any adjustment in 
wage schedules from taking effect in a year, under any other provisions 
of this section (based on a wage survey or interim survey), to the 
extent that the adjustment taking effect under subparagraph (A) in such 
year does not, with respect to the local wage area involved, fully 
provide for the adjustment required under those other provisions with 
respect to such year.
    ``(C) No provision of law enacted after the date of the enactment 
of the Federal Wage Worker Pay Fairness Act of 2001 may be held to 
supersede, repeal, or modify this paragraph, except to the extent that 
it does so expressly.''.
    (b) Technical and Conforming Amendments.--(1) The first sentence of 
section 5343(a) of title 5, United States Code, is amended by striking 
``rates.'' and inserting ``rates, subject to succeeding provisions of 
this section.''.
    (2) Section 5348 of title 5, United States Code, is amended by 
adding at the end the following:
    ``(c) No provision of law enacted after the date of the enactment 
of the Federal Wage Worker Pay Fairness Act of 2001 may be held to 
supersede, repeal, or modify this section, except to the extent that it 
does so expressly.''.

SEC. 5. RESTORATION OF ``MONRONEY AMENDMENT'' PROTECTIONS.

    (a) In General.--Paragraph (2) of section 5343(d) of title 5, 
United States Code, is amended to read as follows:
    ``(2) When the agency specified in subsection (a)(3)(A) determines 
that there is a number of comparable positions in private industry 
insufficient to establish the wage schedules and rates, such agency 
shall establish the wage schedules and rates to be applicable to 
prevailing rate employees on the basis of--
            ``(A) local private industry rates; and
            ``(B) rates paid for comparable positions in private 
        industry in the nearest wage area that such agency determines 
        is most similar in the nature of its population, employment, 
        manpower, and industry to the local wage area for which the 
        wage survey is being made.''.
    (b) Conforming Amendment.--Section 5343(d)(1) of title 5, United 
States Code, is amended by striking ``A lead agency, in making a wage 
survey,'' and inserting ``In making a wage survey, the agency specified 
in subsection (a)(3)(A)''.

SEC. 6. PAY LOCALITY DEFINED.

    Section 5342(a) of title 5, United States Code, is amended by 
striking ``and'' at the end of paragraph (2), by striking the period at 
the end of paragraph (3) and inserting ``; and'', and by adding at the 
end the following:
            ``(4) `pay locality' has the meaning given that term by 
        section 5302.''.

SEC. 7. CONVERSION RULES.

    Rates of pay for employees subject to subchapter IV of chapter 53 
of title 5, United States Code, shall be initially adjusted, following 
the enactment of this Act, under conversion rules prescribed by the 
Office of Personnel Management in consultation with the Federal Salary 
Council (described in section 5304(e) of title 5, United States Code).

SEC. 8. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this Act and 
the amendments made by this Act shall take effect on October 1, 2001.
    (b) Reporting Requirements.--The Federal Prevailing Rate Advisory 
Committee (described in section 5347 of title 5, United States Code) 
shall submit to Congress a written report--
            (1) within 90 days after the date of the enactment of this 
        Act, describing any transfer of functions or duties, and any 
        administrative actions, that will be required in order to 
        implement this Act; and
            (2) within 180 days after the date of the enactment of this 
        Act, describing--
                    (A) the extent to which the transfers and actions 
                described under paragraph (1) have occurred; and
                    (B) to the extent that there remain any transfers 
                or actions (described under paragraph (1)) that have 
                not yet occurred, the anticipated timetable for their 
                completion.

Summary: Federal Wage Worker Pay Fairness Act of 2001 - Requires the Office of Personnel Management to define the boundaries of local wage areas for prevailing rate employees so as to be the same as the boundaries of the respective pay localities, subject to such exceptions as the Office, with the approval of the Federal Salary Council, may find to be necessary. Requires that wage surveys be conducted by the Bureau of Labor Statistics (BLS) responsible for conducting surveys of pay localities. Requires annual adjustment of the rates of pay for the regular and special wage schedules by the lead agencies or the Office, as appropriate, by the percentage equal to the overall average percentage adjustment taking effect with respect to General Schedule positions. Requires the BLS to establish the wage schedules and rates to be applicable to prevailing rate employees in that area when there are a number of comparable positions in private industry insufficient to establish such wage schedules and rates.