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The Office of Personnel Management (OPM) is issuing proposed regulations to clarify the applicability of the superior qualifications and special needs pay-setting authority for certain categories of General Schedule employees in the excepted service.

Statement of Need:

OPM believes it is necessary to clarify whether the superior qualifications and special needs pay-setting authority apply to certain categories of General Schedule positions in the excepted service, especially as new categories of excepted service positions are created. On July 23, 2025, President Trump issued Executive Order 14317 titled Creating Schedule G in the Excepted Service (90 FR 34753). OPM also issued guidance to agencies on April 10, 2025, on Schedule C terms of employment flexibilities. OPM proposes revising the regulations to reference that agencies may use their authority under 5 CFR 6.3 to set pay for General Schedule employees in the excepted service instead of using the superior qualifications and special needs pay-setting authority.

Summary of the Legal Basis:

OPM is issuing this proposed rule pursuant to its authority to issue regulations under 5 U.S.C. 5333.

Alternatives:

An alternative to this proposed rule would be to leave the current rules in place. However, OPM believes sensible changes are needed.

Anticipated Costs and Benefits:

This proposed rule would affect the operations of more than 90 Federal agencies ranging from cabinet-level departments to small independent agencies that have General Schedule employees. We estimate that this rule would require individuals employed by these agencies to spend time updating agency pay policies and procedures to implement the changes. To comply with the regulatory changes in the proposed rule, affected agencies would need to review the rule and update their policies and procedures.

Risks:

Employees who believe that their pay has been set incorrectly may file a claim with their agency. If the agency denies the claim, the employee may file a claim with OPM under 5 CFR part 178. Employees may also file a claim with the Equal Employment Opportunity Commission if they believe an agency has discriminated against them when setting pay.