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.

Proposed Rules Federal Register

66300 

Vol. 88, No. 186 

Wednesday, September 27, 2023 

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 pay-leave-policy@

opm.gov. 

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 labormanagement 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); 


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• 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-wagesystem/#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-todate 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 

■ 1. The authority citation for part 532 

continues to read as follows: 

Authority: 5 U.S.C. 5343, 5346; § 532.707 

also issued under 5 U.S.C. 552. 

■ 2. In § 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. 

§ 532.213 Industries included in regular 

appropriated fund wage surveys. 

(a) * * * 

2022 

NAICS 

codes 

2022 NAICS codes 

*****

516 ............. Broadcasting and content providers. 

*****

* * * * * 

■ 3. In § 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: 

§ 532.221 Industries included in regular 

nonappropriated fund surveys. 

(a) * * * 


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66302 Federal Register / Vol. 88, No. 186 / Wednesday, September 27, 2023 / Proposed Rules 

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. 

*******

* * * * * 

■ 4. In § 532.223, revise paragraph (a) to 

read as follows: 

§ 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. 

* * * * * 

■ 5. In § 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: 

§ 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. 

* * * * * * * 

* * * * * 

■ 6. In § 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: 

§ 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. 

*******

* * * * * 

§ 532.287 [Amended] 

■ 7. In § 532.287, amend the table in 

paragraph (c)(4) by: 

■ a. Removing the column heading 

‘‘2017 NAICS codes’’ and adding in its 

place ‘‘2022 NAICS codes’’; 

■ b. Removing the column heading 

‘‘2017 NAICS industry titles’’ and 

adding in its place ‘‘2022 NAICS 

industry titles’’; and 

■ c. Removing the entry for NAICS code 

441310. 

■ 8. In § 532.313, amend the table in 

paragraph (a) by: 

■ a. Revising the column headings; 

■ b. Under the heading ‘‘Artillery and 

Combat Vehicle Specialized Industry’’: 

■ i. Revising the entry for NAICS Code 

4413; 

■ ii. Removing the entries for NAICS 

Codes 44421, 5173, and 517911; and 

■ iii. Adding in numerical order entries 

for NAICS Codes 44423, 5171, and 

517121; 

■ c. Under the heading 

‘‘Communications Specialized 

Industry’’: 

■ i. Removing the entries for NAICS 

Codes 5151, 5152, 5173, and 517911; 

and 

■ ii. Adding in numerical order entries 

for NAICS Codes 5161, 5162, 5171, and 

517121; 

■ d. Under the heading ‘‘Electronics 

Specialized Industry’’: 

■ i. Removing the entries for NAICS 

Codes 333316 and 334613; and 

■ ii. Adding in numerical order entries 

for NAICS Codes 333310 and 334610 

■ e. Under the heading ‘‘Guided 

Missiles Specialized Industry’’: 


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■ i. Removing the entries for NAICS 

Codes 333316 and 334613; and 

■ ii. Adding in numerical order entries 

for NAICS Codes 333310 and 334610; 

■ f. Under the heading ‘‘Sighting and 

Fire Control Equipment Specialized 

Industry’’: 

■ i. Removing the entries for NAICS 

Codes 333314, 333316, and 334613; and 

■ ii. Adding in numerical order entries 

for NAICS Codes 333310 and 334610. 

The revisions and additions read as 

follows: 

§ 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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