General Circular No. 001152

To: Heads of State Agencies and Human Resource Directors

Subject: Prop. C. S. Rule Changes For Base Supplement Pay

Issue Date: May 12, 1994

The State Civil Service Commission will hold a public hearing on Wednesday, June 8, 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:

PROPOSED ADOPTION OF RULE 1.5.02

1.5.02 'Base Supplement' means additional pay above the range maximum, when authorized by the Commission and approved by the Governor under limiting factors (e.g., by job titles, geographic areas, organizations, etc.) it deems appropriate when market and employment conditions require such supplement in order to maintain competent and experienced staff, which is treated as a part of base pay.

AMEND RULE 1.15.2.3

1.15.2.3 'Individual Pay Rate' . . . . Individual pay rates may vary on the
same job as a function of base supplement, of service in grade, performance or some other basis for establishing variation.

AMEND RULE 1.33.01

1.33.01 'Red Circle Rate' means an individual pay rate, excluding those that fall within the base supplement authorized for a position, that is above the maximum of a pay range for a grade; or, only under conditions as specified in Rule 6.15(d), an individual pay rate that is above the base supplement authorized for a position.

AMEND RULE 6.4

6.4 Rates in Pay Plan Plus Base Supplement.

(a) . . .

(b) . . . , or at a rate within the base supplement approved for his position in accordance with the provisions of Rule 6.16(f).

AMEND RULE 6.5

6.5 Hiring Rate.

(a) . . .

(b) When economic . . . within the range, or within the range plus base supplement authorized for the position, for the job . . . .

(c) The pay . . . , may be fixed at any rate in the range, or within the range plus base supplement authorized for the position in which he is being employed, that does not exceed . . . If the former salary is higher than the range maximum or range maximum plus authorized base supplement, his pay rate shall be set no higher than the range maximum, or range maximum plus base supplement if authorized for the position in which he is being employed. The appointing authority . .

(d) . . .
(e) . . .
(f) . . .
(g) . . .
(1) . . .
(2) . . .
(3) . . .

AMEND RULE 6.5.1

6.5.1 Pay Upon Appointment From a Department Preferred Reemployment List.

Subject . . . In no case shall the rate of pay be higher than the range maximum for the class to which appointed, or the highest rate within the base supplement authorized for the position to which appointed.

AMEND RULE 6.7

6.7 Rate of Pay Upon Promotion.
(a) Subject to the provisions of subsections (e) and (f) of this rule, . . . .

(b) Subject to the provisions of subsections (e) and (f) of this rule, . . . .

(c) . . .

(d) . . .

(e) Subject to the provisions of subsection (f) of this rule, when an employee is promoted . . . .

(f) When an employee, whose rate of pay falls within the base supplement for his current position, promotes to a position which has no base supplement, his salary for purposes of pay calculation upon promotion shall be the range maximum of his current position for which the base supplement is authorized.

AMEND RULE 6.8

6.8 Pay Upon Grade Assignment.

(a) . . .

(b) Subject to the provisions of subsection (d) of this rule, . . . .

(c) Subject to the provisions of subsection (d) of this rule, . . . .

(d) If the position is reallocated or job corrected to the same pay range or downward in such a way that the current base supplement rate of pay authorized for the position is lost or reduced, the affected employee's pay shall be set no higher than his current salary and at the higher of the following:

1. the range maximum (this is a red circle rate) of the position from which he is being job changed or reallocated, or

2. within the range maximum plus the base supplement (this is not a red circle rate) authorized for the position to which he is to be reallocated or job changed.

AMEND RULE 6.9

6.9 Pay Upon Transfer or Reassignment.

(a) Subject to the provisions of Subsection (f) of this Rule, when . . .

(b) . . .

(c) . . .

(d) Subject to the provisions of Subsection (f) of this Rule, when . . .

(e) . . .

(f) Notwithstanding the provisions of Subsections (a) and (d) of this Rule, if an employee is transferred without promotion, demotion, or change in duty station or is reassigned from a position with an authorized base supplement to a position for which a lower or no base supplement is authorized, the affected employee's current base supplement pay shall be reduced to the range maximum or to a rate within the new position's base supplement no higher than his current salary.

AMEND RULE 6.14

6.14 Merit Increases.

(a) . . .
(b) . . .
(c) . . .
(d) . . .
(e) All increases . . . for the job, or the highest rate within the base supplement authorized for the position occupied.
(f) . . .
(g) . . .
(h) . . .
(i) . . .
(j) . . .
(k) . . .

AMEND RULE 6.15

6.15 Red Circle Rates.

Rates that fall within the range or within the base supplement authorized for a position become the employee's authorized individual pay rate. Excluding those that fall within the base supplement authorized for a position, individual pay rates that fall above the maximum established for the grade become red circle rates; or, under the conditions outlined below in subsection (d) of this rule, individual pay rates that fall above the base supplement authorized for a position become red circle rates. Such red circle rates remain in effect until the range or range plus authorized base supplement for a position catches up with the rate; 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 as outlined below:

(a) . . .

(b) Except as provided in Rule 6.8(d), when . . . .

(c) When an adjustment (this does not include base supplement.) to the pay . . . .

(d) When . . . falls above the maximum of the range for the grade of the job into which the position(s) are allocated, or above the range plus base supplement authorized for the position allocated.

(e) . . .

(f) When an employee is subject to a demotion in a layoff, and the layoff was not absolutely required because of budgetary cuts, except that the pay upon demotion in such a layoff for an employee whose current pay rate within the base supplement exceeds the range or the range plus authorized base supplement for the position to which he is to demote shall be set no higher than his current salary and at the higher of the following:

1. the range maximum (this is a red circle rate) of the position from which he is to demote, or

2. within the range maximum plus the base supplement (this is not a red circle rate) authorized for the position to which he is to demote.

(g) An appointing authority may request authority from the Commission to reinstate red circle rates awarded for two years which have expired when the employee's pay continues to be lower than the previously authorized red circle rate. Any approval granted shall be prospective from the date of commission action. Eligibility for reinstatement is lost upon separation from state service or demotion.

(h) Red circle rates in effect on the effective date of the amendment to this rule providing for a continuing red circle rate shall be extended in accordance with the provisions of this rule.

AMEND RULE 6.16

6.16 Special Pay Provisions.

(a) . . .
(b) . . .
(c) . . .
(d) . . .
(e) . . .

(f) Rate of Pay Upon Approval of Base Supplement.

When market and employment conditions require additional pay above the range maximum in order to maintain competent and experienced staff, the Commission, upon request from the appointing authority, may authorize that employees occupying positions in selected job titles, geographic areas, organizations or other limiting factors deemed appropriate by the Commission, receive a base supplement. Any Commission-approved base supplement must also be approved by the Governor before it can become effective. Authority for such pay may be adjusted or rescinded by the Commission, with the approval of the Governor, should market and employment conditions change. When authorized, this base supplement shall be treated as a part of base pay and must be reported as such.

(1) Upon reaching the range maximum, the salary of an employee whose position has been authorized base supplement may receive additional pay based on other provisions of these rules up to the highest rate within the base supplement and in accordance with any special provisions and conditions specified by the Commission.

(2) An employee who occupies a position at the time its base supplement authority is rescinded or adjusted downward by the Commission shall have his salary set in accordance with the provisions and conditions specified by the Commission.

(3) An employee who occupies a position at the time its base supplement authority is moved upward shall have his salary remain the same, unless he retains eligibility for other adjustments authorized under other provisions of the Rules and unless the salary is set in accordance with any special provisions and conditions specified by the Commission.

AMEND RULE 6.17

6.17 Pay on Entering the Classified Service Under the Provisions of Rule 8.27.

(a) If the employee's rate of pay falls within the range or within the range plus the authorized base supplement for the position allocated, . . . .

(b) . . .

(c) If the employee's current rate of pay is above the range maximum or above the range maximum plus the base supplement authorized for the position allocated, Rule 6.15 shall apply.

AMEND RULE 6.19

6.19 Methods of Compensation for Overtime Hours Worked.

(a) Cash payment at the time and one-half rate (Base supplement shall be included in calculating the rate of pay at time and one-half; premium pay, shift differential, . . . .

(b) Cash payment at the regular rate (Base supplement shall be included in calculating the rate of pay at the regular rate; premium pay, shift differential, . . . .

(c) . . . .

(d) . . . .

AMEND RULE 6.30

6.30 In order . . . monthly range maximum or highest rate within the base supplement authorized for a position when any personnel transaction . . . within $20 of that monthly range maximum or highest rate within the base supplement.

AMEND RULE 11.10

11.10 Payment for Annual Leave Upon Separation.

(a) . . .
1. . . .
2. . . .

(b) No . . hourly rate of pay (includes base supplement) at the time of his separation.

AMEND RULE 17.19

17.19 Pay Reductions.

Percentage . . . Director. Such reductions shall not result in an employee's being paid above the range maximum or above the highest rate within the base supplement authorized for the position to which he is moved, or below the minimum of the range . . . .

EXPLANATION
The Rules are being changed to provide for additional pay above the range maximum, to be called base supplement, that is to be treated as base pay. Authority for the base supplement, which will be a percentage amount above the range maximum, must be requested by the appointing authority and granted by the Commission according to the limiting factors it deems appropriate (e.g., by job title, geographic area, domicile, a combination of factors, etc.). Any Commission-approved based supplement must also be approved by the Governor before it can become effective. Requests must offer proof that market and employment conditions require such supplement in order for the state to maintain competent and experienced staff. Once approved, the Commission, with the approval of the Governor, may adjust or rescind the authority as market conditions and other relevant factors dictate. Use of authorized base supplement must be reported on Standard Forms 1 and all other forms in the same manner as base pay.

Please note that the number of pay ranges and pay schedules and the range minimums and range maximums remain unchanged, and their definitions and contexts within the Rules stay the same. Base supplement is tied to positions rather than to job codes. Rules have been amended to provide direction concerning the operation of base supplement during the various types of personnel actions. Consequently, the majority of the Rule changes occur in Chapter 6 regarding pay.

Persons interested in making comments relative to these proposals may do so at the public hearing or by writing to the Director of 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