Under FEPCA, the Pay Agent is required to "give thorough consideration to the views and recommendations of the [Federal Salary] Council and .
The first pay adjustment under FEPCA was effective in January 1994.
Before the first FEPCA pay adjustments were effective, two issues emerged that proved to be persistent: occupational coverage and the appropriateness of the methodology used to set Federal white-collar workers' salaries.
Under FEPCA, general pay increases are based on changes in the Employment Cost Index (ECI).
One indicator of the success (or failure) of this FEPCA provision is the national average pay disparity between federal government workers and their non-federal counterparts.
The FEPCA made available several tools to address specific pay problems.
Even so, the tools provided by FEPCA are anemic and not readily usable to overcome the basic limitations and misimplementation of this legislation.
First, under short-run FEPCA authority, President Bush granted 8 percent raises to the New York, Los Angeles, and San Francisco metroplitan areas, which were perceived to face the most severe recruitment and retention problems.
Although FEPCA was not passed until 1990 and the BLS data are only now being collected, the general patterns for how the competitiveness of local labor markets affects federal recruitment and retention should not have changed since 1989.
It is certainly logical to expect labor markets to be more competitive where unemployment rates are low, in addition to nonfederal pay levels being high, but FEPCA makes no adjustments based on unemployment rates (as it probably should not, given the likely volatility of these rates).
While FEPCA calls for locality pay for all white-collar employees, the Wyatt Company had argued for locality pay only for technical, clerical, and 'other' (mostly protective service) occupations.