Locality Pay Equity Act of 2023

This bill limits the number of local pay zones (called "local wage areas") that can be defined within a single federal pay locality to just one, with an exception for the "Rest of United States" area. It directly affects federal employees covered under the General Schedule pay system, particularly those working in locations that previously had multiple pay zones. The key mechanism requires the Office of Personnel Management (OPM) to consolidate these zones, ensuring only one pay rate applies per geographic area, while preventing any reduction in current employees' basic pay. The law takes effect 180 days after enactment, applying to all relevant federal pay periods.