WASHINGTON, D.C. — After years of advocacy and persistence, U.S. Senator John Fetterman (D-PA) has secured a long-awaited victory for federal workers, as the Office of Personnel Management (OPM) finalized a rule to end a nearly 30-year pay disparity impacting thousands of hourly federal employees across the country. Effective October 1, 2025, the rule will bring significant wage increases for more than 2,100 Pennsylvania workers and nearly 14,500 employees nationwide, funneling $23.1 million in increased pay into the pockets of Pennsylvanians in the first year alone.
“For three decades, hourly federal workers across Pennsylvania have been shortchanged by a system that pays them differently than their salaried coworkers,” Senator Fetterman declared, celebrating the landmark achievement. “This is about so much more than just a paycheck––this is about treating workers with the dignity and respect they deserve. I’m proud to stand with the union members across our commonwealth who have fought for years to make this happen. I made a commitment to join them in this fight, and I’m proud that we finally got it done.”
A Long Road to Wage Equity
The culmination of this new rule represents more than a year of dedicated pressure and collaboration led by Senator Fetterman, alongside unions and other advocates for labor rights. For decades, federal hourly workers under the Federal Wage System (FWS) were paid according to different locality pay standards than their salaried General Schedule (GS) colleagues in the same regions, leading to significant wage disparities.
Senator Fetterman brought the issue to the forefront upon taking office, spearheading a focused campaign that involved strategic pressure on policymakers and coalition-building with labor unions. His effort marked a shift in the federal government’s approach to treating its wage-grade employees.
The timeline of events reveals the determination behind this achievement:
- September 18, 2023: Fetterman urged the Federal Prevailing Rate Advisory Committee (FPRAC) to address the inequities between FWS and GS pay.
- December 21, 2023: FPRAC recommended aligning wage areas for both systems.
- February 29, 2024: Fetterman pressed OPM for immediate action.
- October 11, 2024: The Biden-Harris Administration proposed the rule.
- January 21, 2025: OPM finalized the change, ensuring implementation by October 1, 2025.
This change is significant for Pennsylvania facilities like Tobyhanna Army Depot, Letterkenny Army Depot, and United States Penitentiary (USP) Canaan, where high turnover and recruitment challenges have plagued operations due to unfair pay structures. Starting October 2025, FWS employees at these installations will be paid using the same locality pay standards as their GS coworkers, establishing long-overdue equity.
Impacts of the Reform
The elimination of the pay disparity promises to improve conditions for thousands of federal employees, many of whom have struggled under outdated compensation systems that fail to reward their expertise and dedication. Advocates praised the move as a necessary correction to decades of systemic inequity that undermined morale and hampered the federal government’s ability to attract and retain qualified workers.
“By refining the criteria, the policy will better reflect regional economic conditions, align wages more accurately with local labor markets, and address disparities that have persisted under the current system,” said Ned George, President of AFGE Local 1647 at Tobyhanna Army Depot. “This change will not only enhance employee morale but also strengthen the ability of federal agencies to attract and retain skilled workers.”
David J. Demas, President of AFGE CPL-33 Local 3003 at USP Canaan, emphasized the critical nature of the reform for his workforce. “Ensuring that our wage grade employees receive equal locality pay is a crucial step in recognizing their skill and dedication. It is important to recruit and retain quality staff, especially because they work in one of the most dangerous penitentiaries in the country. They deserve wages that reflect the risks they take and the expertise they possess.”
Fetterman’s Ongoing Commitment
Looking forward, Senator Fetterman is positioned to oversee the rule’s implementation as the Ranking Member of the Homeland Security and Governmental Affairs Subcommittee on Border Management, Federal Workforce, and Regulatory Affairs. He has vowed to ensure the change is administered as planned while fighting for its expansion to include additional facilities such as Gettysburg National Military Park and Defense Logistics Agency New Cumberland.
Fetterman emphasized that the effort to ensure fair treatment for workers is far from over. He stated that this change marks the beginning of a larger movement to guarantee fairness and respect for all federal workers, regardless of their role or location.
The Senator’s relentless advocacy has garnered support from labor unions and government agencies alike, marking a major step forward in addressing systemic inequities that have long plagued the federal workforce. For thousands of Pennsylvania workers, October 1, 2025, will mark the beginning of a fairer, brighter future.
Delivering Justice to Federal Workers Nationwide
“This adjustment is a necessary step to ensure greater equity and fairness in wage determinations for federal employees,” George added, reflecting widespread sentiment among advocates. The rule signals a clear commitment to prioritizing the needs of federal workers and correcting historical wrongs.
With Senator Fetterman at the forefront, this legislative victory spotlights the power of persistence and collaboration in achieving meaningful change, giving federal workers the respect and financial recognition they’ve long deserved.
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