22 U.S. Code § 3951 - United States citizens hired abroad
(a) Appointment of family members
The Secretary, under section 3943 of this title, may appoint United States citizens, who are family members of government employees assigned abroad or are hired for service at their post of residence, for employment in positions customarily filled by Foreign Service officers, Foreign Service personnel, and foreign national employees.
(b) Family nexus as affirmative hiring factor
The fact that an applicant for employment in a position referred to in subsection (a) of this section is a family member of a Government employee assigned abroad shall be considered an affirmative factor in employing such person.
(c) Compensation of family and non-family member employees
(1) Non-family members employed under this section for service at their post of residence shall be paid in accordance with local compensation plans established under section 3968 of this title.
(2) Family members employed under this section shall be paid in accordance with the Foreign Service Schedule or the salary rates established under section 3967 of this title.
(3) In exceptional circumstances, non-family members may be paid in accordance with the Foreign Service Schedule or the salary rates established under section 3967 of this title, if the Secretary determines that the national interest would be served by such payments.
(d) Non-family member employees ineligible for certain benefits
Nonfamily member United States citizens employed under this section shall not be eligible by reason of such employment for benefits under subchapter VIII of this chapter, or under chapters  83 or 84 of title 5.
 So in original. Probably should be “chapter”.
Source(Pub. L. 96–465, title I, § 311,Oct. 17, 1980, 94 Stat. 2087; Pub. L. 103–236, title I, § 180(a)(2),Apr. 30, 1994, 108 Stat. 415; Pub. L. 103–415, § 1(h)(1),Oct. 25, 1994, 108 Stat. 4300.)
1994—Pub. L. 103–415substituted “United States citizens hired abroad” for “Employment of family members of Government employees” as section catchline and inserted “by reason of such employment” after “eligible” in subsec. (d).
Pub. L. 103–236amended section generally. Prior to amendment, section read as follows:
“(a) The Secretary, when employing individuals abroad in positions to which career members of the Service are not customarily assigned (including, when continuity over a long term is not a significant consideration, vacant positions normally filled by foreign national employees), shall give equal consideration to employing available qualified family members of members of the Service or of other Government employees assigned abroad. Family members so employed shall serve under renewable limited appointments in the Service and may be paid either in accordance with the Foreign Service Schedule or a local compensation plan established under section 3968 of this title.
“(b) Employment of family members in accordance with this section may not be used to avoid fulfilling the need for full-time career positions.”