General Circular No. 001142

To: Heads of State Agencies and Human Resource Directors

Subject: Prop. Amendments To C.s. Rules 6.15, 6.10 And 19.3

Issue Date: March 10, 1994

The State Civil Service Commission will hold a public hearing on Wednesday, April 6, 1994, to consider the following rule proposals. The hearing will begin at 9:00 a.m. and will be held at the Department of Civil Service, Second Floor Hearing Room, DOTD Annex Building, 1201 Capitol Access Road, Baton Rouge, Louisiana.

The following will be considered at the meeting:

AMEND RULE 6.15

6.15 Red Circle Rates.

Rates that fall within the range become the employee's individual pay rate. Individual pay rates that fall above the maximum established for the grade become red circle rates and remain in effect for 5 years or until the range catches up with the rate, whichever comes first; however, eligibility for a red circle rate is lost upon separation from state service, or demotion except as provided in part (f) of this rule. Individuals whose salary rates are red circled shall not be eligible for any other pay adjustments provided for in the rules. Red circle rates are assigned under the conditions outlined below:

(a), (b), (c), (d), and (e) remain unchanged.

(f) When an employee is subject to a demotion in lieu of a layoff, and the layoff was not absolutely required because of budgetary cuts.

AMEND RULE 19.3

19.3 Pay Upon Movement of Jobs to New Structure Grades.

Subsection (a) remains unchanged.

(b) Subject to the provisions of Rule 19.3(e), if the employee's individual pay rate falls above the new range maximum, his pay shall be red circled. Individual pay rates that fall above the maximum established for the grade become Red Circle Rates and remain in effect for 5 years or until the range catches up with the rates, whichever comes first. Individuals whose salary rates are red circled shall not be eligible for any other pay adjustments.

(c), (d), (e), (f) and their subsections remain unchanged.

EXPLANATION
The two-year limit for red circle rates is extended to five years to prevent employee pay reductions which have been occurring during the present two-year period and to allow a longer period for future recipients to recoup pay that will otherwise be lost when the current red circle rate expires. When the rule was first adopted it was felt that, except in the most extreme cases, an employee would be able to recoup the money lost when their red circle rate expired (after 2 years) through annual increases in the pay plan, merit increases, promotions, etc. However, because of the adverse effect of the economy in recent years on pay plan changes and merit increases, and the affects of retrenchment, this is no longer the case. Many employees are being subject to a substantial loss at the end of two years. It is felt that an extension to five years is warranted to alleviate this problem.

Paragraph (f) is added to Rule 6.15 to prevent pay reductions when an employee is demoted in lieu of layoff for reasons other than budgetary cuts.

AMEND RULE 6.10

6.10 Rate of Pay Upon Demotion.

Subject to the provisions of Civil Service Rule 6.15, when an employee is demoted for any reason under any circumstances, his pay shall be reduced as follows:

(a), (b), (c) and (d) remain unchanged.

EXPLANATION
Rule 6.10 has been changed to conform with the addition of Rule 6.15(f).

Persons interested in making comments relative to these proposals may do so at the public hearing or by writing to the Director of State Civil Service at Post Office Box 94111, Baton Rouge, Louisiana 70804-9111.

If any special accommodations are needed, please notify us prior to this meeting.

Sincerely,

Herbert L. Sumrall
Director