General Circular 1348

General Circular No. 001348

To: Heads of State Agencies and Human Resource Directors

Subject: Proposed Changes To Chapter Six Pay Rules

Issue Date: April 23, 1999

The State Civil Service Commission will hold a public hearing on Wednesday, June 9, 1999 to consider the adoption of Civil Service Rules 6.5(h), 6.10(e), 6.16 (g) and 6.16.2. Consideration will also be given to the amendment of Civil Service Rules 6.4(b), 6.5(g), 6.6, 6.10(d), 6.16(a), 6.16(b), 6.16(c) and 6.28. The hearing will begin at 9:00 a.m. and will be held in the Department of State Civil Service 2nd floor Hearing Room, DOTD Annex Building, 1201 Capitol Access Road, Baton Rouge, Louisiana.

Consideration will be given to the following:

Amend Rule 6.4

6.4 Rates of Pay in the Pay Plan Plus Base Supplement

(a) ...

(b) Subject to the provisions of Rules 6.11, 6.15, 6.16, 17.11(e) and 17.19(a) each employee shall be paid at a rate within the range for the grade to which his position is allocated, or at a rate within the base supplement approved for his position in accordance with the provisions of Rule 6.16(f).

Explanation

Reference to Rule 6.10(c) is removed from and reference to 17.19(a) is added to this rule.

Amend Rule 6.5(g) and Adopt Rule 6.5(h)

6.5 Hiring Rate

Pay upon employment shall be at the minimum of the range established for the grade of the job to which the position is allocated except:

a) through f)...

g) Subject to provisions of Rule 6.29, if an applicant who is eligible for appointment under provisions of Chapters 7 and 8 of the Rules possesses extraordinary or superior qualifications/credentials above and beyond the minimum qualifications/credentials, the appointing authority may, at his own discretion, pay the employee upon hiring at a rate above the minimum provided that

1) such superior qualifications/credentials are verified and documented as job related,

2) the rate does not exceed the midpoint of the range for the affected job,

3) the rate is implemented in accordance with written policies and procedures established by the department; such policies shall be posted in a manner which assures their availability to all employees.

The salaries of all current probational and permanent employees who occupy positions in affected jobs and possess the same or equivalent qualifications/credentials may be adjusted up to but not to exceed the amount of the percent difference between the special hiring rate and the regular hiring rate provided that the qualifications/credentials are also verified and documented as job related and that the rate is implemented in accordance with written policies and procedures established by the department; such policies shall be posted in a manner which assures their availability to all employees.

(h) Reentering the Classified Service Without a Break In Service

When an Appointing Authority requires an employee to resign a permanent position in order to accept a probational appointment, and the employee accepts such an appointment without a break in service, and the appointment would have been considered a promotion according to Rule 6.7 the employee shall retain eligibility for the promotional increase for a period not to exceed 1 year. The Appointing Authority may grant any increase for which the employee would have been eligible under Rule 6.7. This Rule shall not apply to an employee who was dismissed or resigned to avoid dismissal.

Explanation

The change in (g)3 will allow for corresponding increases to be given to those employees currently on-board when a new applicant with superior qualifications is hired above the minimum. This change will mitigate salary compression caused by implementation of this rule in its current form. The addition of (h) will allow those employees who are currently forced to resign a permanent position in order to accept a promotion on a probationary basis but are denied the normal promotional increase to receive the promotional increase. This rule would allow appointing authorities to give the employee the promotional increase either at the time of hire or at a later date after the probation has been served.

Amend Rule 6.6

6.6 Market Grade Adjustment

Explanation

This is simply a change in the title of the rule from "Market Rate Job Assignment" to "Market Grade Adjustment." There is no change to the rule itself. Since its inception, actions taken under this rule have always been referred to as Market Grade Adjustments, not market rate job assignments. The definition associated with this rule also refers to a market grade job (1.20.001).

Amend Rule 6.10(d) and Adopt Rule 6.10(e)

6.10 Rate of Pay Upon Demotion

(a) through (c) ...

(d) An appointing authority may grant exceptions to this rule for voluntary demotions. Exceptions shall not be granted by the Appointing Authority in an arbitrary manner as a means to increase an employee's rate of pay.

(e) If an employee is allowed to take a voluntary demotion without at least a 7% cut in pay and if the employee accepts a promotion, reallocation, or detail to special duty within six months of the demotion, the employee will not be eligible for any pay increase usually associated with the movement.

Explanation

This change would allow appointing authorities to approve routine exceptions to this rule that currently must be approved by the Commission. This change is part of our new initiative to empower appointing authorities to react to changing employment conditions as necessary. Part (e) will curtail instances of employee's demoting with no loss in pay, then immediately promoting and receiving an increase.

Amend Rule 6.16(a) and (b) and (c) and Adopt Rule 6.16(g)

6.16 Special Pay Provision

Under conditions described below, the Commission may authorize special pay considerations, beyond those already prescribed in these rules.

(a) Premium Pay

In order to remain competitive with the pay practices of market competitors, the Commission may authorize special pay for positions in a job where employment conditions are unusual. Additional pay may be authorized for an employee who performs extraordinary duty that is not an integral part of his regularly assigned duties. Such additional pay shall not be considered as part of the employee's base pay.

(b) Repeal

When an appointing authority requests and can present adequate justification with documentation before the Commission in public hearing, the Commission may grant special adjustments in pay for individual employees. Such adjustments shall be granted only within the pay range for the grade to which the employee's position is allocated, or at a rate within the base supplement approved for his position in accordance with the provisions of Rule 6.16(f).

(d) through (f) ...

(g) Pay for Employees at Range Maximum

Subject to the provisions of Rule 6.29, in order to reward those employees who have achieved at least 12 years of continuous State service and have reached the maximum of their pay range or the maximum plus maximum base supplement, have continued to exhibit satisfactory performance for a period of at least three years after reaching the maximum or maximum plus maximum base supplement, and who have been at the same maximum or maximum plus maximum base supplement pay rate for a period of three years, an appointing authority may, at his own discretion, grant a lump sum payment of up to 4% of the employee's base salary. Employees may not receive such an increase more frequently than every three years. Employees who are red circled shall not be eligible for a lump sum payment. Eligibilities gained but not received at the time of initial eligibility may be given prospectively at any time within three years of the initial eligibility.

Explanation

At the current time, no distinction is made between Premium Pay (6.16 (a) currently) and Extraordinary Duty (6.16 (b) currently) when granting special pay. This change will simplify the rule. The rule also now clearly states that Special Pay is not part of base pay. The change to part (c) of this rule clearly states that special pay adjustments shall be made within the range only. The establishment of part (g) will allow for the recognition of those employees who have exhibited a commitment to State service and who have been at range maximum for a period of at least three years to be rewarded for continued satisfactory job performance.

Adopt Rule 6.16.2

6.16.2 Optional Pay Adjustments

Subject to the provisions of Rule 6.29, an appointing authority may, at his own discretion, grant individual pay adjustments to permanent employees to provide for the retention of an employee whose loss would to be detrimental to the State service or to adjust pay differentials between comparable employees or to compensate employees for performing additional duties or to recruit employees into positions for which recruiting is difficult. Such increases shall not exceed 7% in a July 1 to June 30 period for an individual employee and shall not duplicate payment received pursuant to other pay rules. Such increases may be made as either a lump sum payment or a permanent addition to the employee's base salary. Such optional pay adjustments shall be implemented in accordance with written policies and procedures established by each department. Such policies must receive advance approval from the Civil Service Commission and shall be posted in a manner that assures their availability to all employees. Such policies shall also include a public posting of all recipients.

Explanation

This rule will allow appointing authorities the flexibility to adapt to changing employment conditions once a policy has been approved. Agencies have presented problems for which they desire an immediate response in order to properly compensate their employees. Examples of these types of situations would be as follows:

1. Granting an increase to long term employees whose salaries are compressed due to the mechanics of the pay plan.

2. Providing for the retention of a valued employed who is seeking employment elsewhere due to higher market salaries.

3. Providing a lump sum increase to an employee who performs duties outside of his job description for a short period of time provided that the duty change would not be properly compensated by a detail to special duty.

4. To entice employees into difficult to recruit for jobs.

Amend Rule 6.28

6.28 Compensation for On-Call Duty/Shift Work

Subject to the provisions of Rule 6.29,

a) and b) ...

Explanation

The beginning phrase "Subject to the provisions of Rule 6.29," is proposed because this is currently the only rule which allows for agency flexibility that does not provide for sanctions for misuse under Rule 6.29.

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 accommodations are needed, please notify the Civil Service Department prior to the meeting.

Sincerely,

Allen H. Reynolds

Director of State Civil Service