101 KAR 2:034. Classified compensation administrative regulations.

 

      RELATES TO: KRS 18A.030(2), 18A.110, 18A.165

      STATUTORY AUTHORITY: KRS 18A.110(1)(c), (d), (g), (7)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 18A.110 requires the Secretary of Personnel to promulgate administrative regulations which govern the pay plan for all employees in the classified service. This administrative regulation establishes requirements to assure uniformity and equity in administration of the pay plan in accordance with statutory requirements.

 

      Section 1. New Appointments. (1) An appointing authority shall appoint a new employee at a salary not to exceed the midpoint of the pay grade.

      (2) The appointing authority shall adjust to that salary an employee who is earning less than the new appointee’s salary, if the appointing authority determines that the incumbent employee:

      (a) Is in the same class;

      (b) Is in the same work county; and

      (c) Has a similar combination of education and experience relating to the job classification.

 

      Section 2. Reentrance to Classified Service. (1) Returning retirees. An employee who was formerly employed under KRS Chapter 18A and who is appointed to a position covered by the provisions of KRS Chapter 18A while receiving retirement payments through the Kentucky Retirement Systems or Kentucky Teachers Retirement System shall be appointed in accordance with the provisions for new appointments.

      (2) Other reentering employees.

      (a) Former classified employees. An appointing authority shall set the salary of a former classified employee, other than a returning retiree, who is being reemployed, reinstated, or probationarily appointed in one (1) of the following ways:

      1. In accordance with the standards used for making new appointments; or

      2. Up to the same salary as that paid at the time of separation from the classified service, if that salary does not exceed the midpoint salary plus the difference, in dollars, between the entry level salary and the midpoint salary.

      (b) Former unclassified employees with prior classified service. An appointing authority shall set the salary of a former classified employee who moved to the unclassified service and who is reinstated, reemployed or probationarily appointed to a position in the classified service in one (1) of the following ways:

      1. In accordance with the standards for making new appointments;

      2. Up to the same salary as that paid at the time of separation from the classified service, if that salary does not exceed the midpoint salary plus the difference, in dollars, between the entry level salary and the midpoint salary;

      3. At a salary that is the same as the salary the employee last received in the classified service with adjustments for increases that would have been received if the employee had remained in the classified service prior to resignation if the salary does not exceed the midpoint salary plus the difference, in dollars, between the entry level salary and the midpoint salary; or

      4, At a salary up to five (5) percent above the grade entry level wage for each year of service in the KRS Chapter 18A system, if the salary does not exceed the midpoint salary plus the difference, in dollars, between the entry level salary and the midpoint salary.

      (c) Former unclassified employees with no previous classified service. An appointing authority shall set the salary of a former unclassified employee with no previous classified service, who is probationarily appointed or reemployed, in one of the following ways:

      1. In accordance with the standards for making new appointments; or

      2. At five (5) percent above the minimum salary for each year of service in the unclassified service, if the salary does not exceed the midpoint salary plus the difference, in dollars, between the entry level salary and the midpoint salary.

      (d) Laid off employees. A former employee, separated from the classified service by layoff and reinstated or reemployed in the same or similar job classification within five (5) years from the date of layoff, may receive the salary they were receiving at the time of layoff, even if the salary is above the maximum of the pay grade.

      (3) Probationary increments upon reentrance to state service.

      (a) A former employee who is probationarily appointed at a salary below the midpoint of the pay grade shall receive a probationary increment upon successful completion of the probationary period.

      (b) A former employee who is probationarily appointed at a salary that equals or exceeds the midpoint of the pay grade may, at the discretion of the appointing authority, receive a probationary increment at the time of successful completion of the probationary period. If the employee is not granted a probationary increment at the time of completion of the probationary period, an increment shall be awarded at the beginning of the month following completion of twelve (12) months of service from the date of appointment.

 

      Section 3. Salary Adjustments. (1) Promotion. An employee who is promoted shall receive the greater of five (5) percent for each grade, or an increase to the minimum of the new grade except as provided under subsection (2)(b) of this section.

      (2) Demotion.

      (a) If an employee is demoted, the appointing authority shall determine the salary in one (1) of the following ways:

      1. The employee’s salary shall be reduced by five (5) percent for each grade the employee is reduced; or

      2. The employee shall retain the salary received prior to demotion. If the employee’s salary is not reduced upon demotion, the appointing authority shall explain the reason in writing and place the explanation in the employee’s personnel files.

      (b) An employee whose salary is not reduced by five (5) percent per grade upon demotion shall not be eligible for a salary increase upon promotion, reclassification, detail to special duty or reallocation until he is moved to a job class with a higher pay grade than that from which he was demoted. If a promotion, reclassification, detail to special duty or reallocation occurs, it shall be deemed as having been made from the grade from which the employee had been demoted.

      (3) Reclassification.

      (a) An employee who is advanced to a higher pay grade through reclassification shall receive the greater of five (5) percent for each grade or the new grade minimum except as provided under subsection (2)(b) of this section.

      (b) An employee who is placed in a lower pay grade through reclassification shall receive the same salary received prior to reclassification but shall not be eligible for a salary increase upon promotion, reclassification, detail to special duty or reallocation until he is moved to a job class with a higher pay grade than that from which he was reclassified. If a promotion, reclassification, detail to special duty or reallocation occurs, it shall be deemed as having been made from the grade from which the employee had been reclassified.

      (4) Reallocation.

      (a) An employee who is advanced to a higher pay grade through reallocation shall receive the greater of five (5) percent for each grade or the new grade minimum except as provided under subsection (2)(b) of this section.

      (b) An employee who is placed in a lower pay grade through reallocation shall receive the same salary received prior to reallocation but shall not be eligible for a salary increase upon promotion, reclassification, detail to special duty or reallocation until he is moved to a job class with a higher pay grade than that from which he was reallocated. If a promotion, reclassification, detail to special duty or reallocation occurs, it shall be deemed as having been made from the grade from which the employee had been reallocated.

      (5) Detail to special duty.

      (a) An employee who is approved for detail to special duty shall receive, during the period of detail, the greater of five (5) percent for each grade or the new grade minimum except as provided under subsection (2)(b) of this section.

      (b) An employee who is approved for detail to the same or lower pay grade shall receive the same salary received prior to detail.

      (6) Reversion.

      (a) The salary of an employee who is reverted while serving a promotional probationary period, or following detail to special duty in a higher class, shall be adjusted to:

      1. The salary received prior to the promotion or detail; and

      2. All salary advancements and adjustments which would have been awarded if the promotion or detail had not occurred.

      (b) The salary of an employee who is reverted from a position in the unclassified service to a position in the classified service shall be adjusted to:

      1. The salary received prior to leaving the classified service; and

      2. All salary advancements and adjustments which would have been awarded if the individual had remained in the classified service.

      (7) Pay grade changes.

      (a) If a job classification is assigned to a higher pay grade, the appointing authority shall raise the salary of an employee below the new grade minimum to the new grade minimum. If sufficient funds are available, an appointing authority may uniformly adjust the salary of all employees in that agency in that class to:

      1. The greater of the new grade minimum or five (5) percent; or

      2. The greater of the new grade minimum or ten (10) percent; or

      3. The greater of the new grade minimum or a dollar amount approved by the secretary.

      (b) If a job classification is assigned to a lower pay grade, an employee in that class shall retain his current salary.

      (8) Special entrance rates. If a special entrance rate is established for a job classification, an appointing authority shall adjust the salary of an employee in that classification who is below the special entrance rate to the new rate. If sufficient funds are available, an appointing authority may uniformly grant to all employees in that class a salary adjustment equal to the difference between the former entrance rate and the new entrance rate.

      (9) Other salary adjustments.

      (a) On the 16th of a month, an appointing authority may grant a salary adjustment to all employees in a class within an agency who were eligible for, but did not receive, a five (5) percent salary adjustment as a result of a grade change applicable to the class, on or after January 1, 1999. The total adjustment granted at the time of the grade change and under this paragraph shall equal five (5) percent of the employee’s salary immediately prior to the grade change.

      (b) On the 16th of a month, an appointing authority may grant a salary adjustment based on the establishment of a special entrance rate, under the following provisions:

      1. The adjustment shall be uniformly granted to all employees within the agency who were eligible for, but did not receive, a salary adjustment equal to the difference in the former entrance rate and the new entrance rate at the time a special entrance rate was established; and

      2. The total adjustment granted at the time of the special entrance rate and under this paragraph shall equal the difference in the former entrance rate and the new entrance rate.

 

      Section 4. Salary Advancements. (1) Initial probation increase. A full-time or part-time employee who completes an initial probationary period shall be granted a five (5) percent salary advancement on the first of the month following completion of the probationary period, except as specified under Section 2(3) of this administrative regulation.

      (2) Promotional probation increase. An employee shall receive a five (5) percent salary advancement on the first of the month following completion of the promotional probationary period except as provided under Section 3(2)(b) of this administrative regulation.

      (3) Annual increment dates shall be established as follows:

      (a) Upon completion of an initial probationary period;

      (b) When a former employee has been probationarily appointed and has completed a total of twelve (12) months of service without receiving an increment; or

      (c) When an employee returns from leave without pay under the provisions of subsection (5) of this section.

      (4) Annual increment dates shall not change when an employee:

      (a) Is in a position which is assigned a new or different pay grade;

      (b) Receives a salary adjustment as a result of a reallocation;

      (c) Is promoted;

      (d) Is transferred;

      (e) Is demoted;

      (f) Is detailed to special duty;

      (g) Receives an educational achievement award;

      (h) Returns from military leave;

      (i) Is reclassified; or

      (j) Receives a promotional increase after completion of a promotional probationary period.

      (5) Return from leave without pay. An employee returning to duty from leave without pay shall receive an annual increment on the first of the month after completing twelve (12) months of service since the last increment was received.

      (6) Service computation. Full-time and part-time service shall be counted in computing service for the purpose of determining increment eligibility.

      (7) Order of calculating increments and other salary increases which occur at the same time. If an employee’s increment date occurs on the same date that a salary adjustment or advancement is granted, the increment shall be applied before the adjustment or advancement is added to the employee's salary except if the adjustment is based on a pay grade change or a salary schedule change.

 

      Section 5. Educational Achievement Award. (1) On the 16th of a month, an appointing authority may grant a five (5) percent increase to an employee’s base salary based on educational achievement as specified in this section.

      (2) An agency may elect not to participate in the educational achievement program if sufficient funds are not available.

      (3) An employee shall not receive more than one (1) educational achievement award in a fiscal year.

      (4) An employee shall not receive an educational achievement award and an adjustment for continuing excellence (ACE) based on the same training.

      (5) By submitting a personnel action to grant an educational achievement award, the appointing authority shall certify that all of the qualifying conditions established by this section for the appropriate type of educational achievement award have been met:

      (a) High school diploma, high school equivalency certificate, or a passing score on the GED test.

      1. The employee has obtained the high school diploma, equivalency certificate, or passing score on the GED test:

      a. Outside of work hours;

      b. While in state service; and

      c. On or after January 1, 1984;

      2. The employee has not previously attained a high school diploma, equivalency certificate, or passing score on the GED test; and

      3. The employee has not completed college coursework on the undergraduate or graduate level prior to obtaining the high school diploma, equivalency certificate or a passing score on the GED test.

      (b) Postsecondary education or training.

      1. The employee has completed 260 hours of job related instruction (or the equivalent as determined by the Secretary of Personnel);

      2. The employee began the course work after becoming a state employee and completed the course work after establishing an increment date;

      3. The employee has completed the course work within five (5) years of the date on which it was begun;

      4. The course work has not previously been applied toward an educational achievement award;

      5. The agency has not paid for the course work or costs associated with it, in whole or in part; and

      6. The employee was not on educational or extended sick leave when the courses were taken.

      (c) Kentucky Certified Public Manager Program.

      1. The employee has successfully completed the Kentucky Certified Public Manager Program offered by the Governmental Ser vices Center at Kentucky State University; and

      2. The employee has not previously received an educational achievement award for completing the Kentucky Certified Manager Program.

 

      Section 6. Salary Schedule Adjustment. If the secretary authorizes an adjustment of all grades in the salary schedule, an appointing authority shall adjust the salaries of all employees below the new minimum rate to the new minimum rate. If sufficient funds are available, the secretary may authorize an appointing authority to grant a salary increase for all employees equal to the difference in the old schedule minimum for the grade and the new schedule minimum for the grade.

 

      Section 7. Paid Overtime. (1) Overtime for which pay is authorized shall be in accordance with 101 KAR 2:102, Section 5, and the Fair Labor Standards Act, 29 U.S.C. Section 201, et seq., as amended.

      (2) Eligibility for overtime pay shall be approved by the appointing authority, and shall be subject to review by the Secretary of Personnel and the Secretary of the Finance and Administration Cabinet.

      (3) An employee who is eligible for overtime shall request permission from or be directed in advance by the supervisor to work overtime.

      (4) An overtime payment shall not be added to base salary or wages.

 

      Section 8. Maintenance and Maintenance Allowance. If an employee, or the employee and family, is provided with full or partial maintenance, consisting of one (1) or more meals per day, lodging or living quarters, and domestic or other personal services, the maintenance shall be treated as partial payment of wages. The value of those services shall be deducted from the employee’s salary in accordance with a maintenance schedule developed by the appropriate appointing authority after consultation with the Secretary of the Finance and Administration Cabinet.

 

      Section 9. Supplemental Premiums. (1) Shift premium.

      (a) Upon request by an appointing authority, the secretary may authorize the payment of a supplemental premium for an employee who is regularly assigned to work an evening or night shift in that agency.

      (b) Once authorized, this premium shall apply to all employees in that agency who are regularly assigned to work an evening or night shift in a job classification for which the shift premium is approved.

      (c) An employee shall not receive a shift premium after shift reassignment, transfer, promotion or demotion to a position that is ineligible for a shift differential premium.

      (d) The secretary may rescind authorization to pay shift premium for a class at any time.

      (e) Shift differential pay shall not be considered a part of base pay or wages.

      (2) Weekend premium.

      (a) Upon request by an appointing authority, the secretary shall authorize the payment of a weekend premium for an employee in a specific class who is regularly assigned to work on Saturdays, Sundays, and state holidays as part of the usual work week.

      (b) Once authorized, the premium shall apply to all employees in the specified classes in that agency who are regularly assigned to work Saturdays, Sundays, and state holidays as part of their usual work week.

      (c) An employee shall not receive a weekend premium after reassignment, transfer, promotion, or demotion to a position that is ineligible for weekend premium.

      (d) The secretary may rescind authorization to pay weekend premium at any time.

      (e) Weekend premium pay shall not be considered part of the employee's base salary or wages.

      (f) An agency may request, and be authorized for, both shift premium and weekend premium for the same job classes.

      (3) Multilingual hourly premium.

      (a) Upon request by an appointing authority, the Secretary may authorize the payment of a supplemental multilingual hourly premium for an employee who is assigned to complete work duties in a specified foreign language. An employee completing work duties in a specified foreign language shall receive a multilingual hourly premium based on the percentage of time multilingual skills are performed.

      (b) Language proficiency testing shall be completed prior to an employee receiving the multilingual hourly premium. Testing shall indicate a standard level of multilingual proficiency as required by the appointing authority.

      (c) An appointing authority shall submit the multilingual premium request to the Personnel Cabinet in writing. The request shall contain, at a minimum:

      1. An explanation of the reason or reasons for granting the multilingual premium;

      2. The percentage of time the employee will use multilingual skills; and

      3. Certification by the appointing authority that the employee has completed multilingual testing and received a standard level of multilingual proficiency rating. This certification shall include the name of the testing facility or organization, the format of the test taken (oral, written, or a combination of oral and written), and the level of proficiency granted in the request for the multilingual premium.

      (d) Once authorized, the multilingual hourly premium shall apply to all employees in that agency who are regularly assigned to complete work in a specified foreign language once the employees are individually approved in accordance with this subsection.

      (e) An employee shall not receive a multilingual hourly premium after reassignment, reclassification, transfer, promotion, reallocation, or demotion to a position which no longer requires work in a specified foreign language.

      (f) An employee who ceases to perform work duties in a specified foreign language shall not be eligible to receive a multilingual hourly premium.

      (g) The secretary may rescind the multilingual hourly premium authorization provided to an agency or individual employee at any time.

      (h) The multilingual hourly premium shall not be considered a part of base pay or wages.

 

      Section 10. Employee Recognition Award. (1) On the 16th day of a month, an appointing authority may grant an employee an employee recognition award (ERA) in the form of a lump sum payment of up to five (5) percent of midpoint under the following conditions:

      (a) The employee has established an annual increment date and has worked at least twenty-four (24) consecutive months in state service, twelve (12) consecutive months of which is in the department granting the award;

      (b) The employee has not received an ERA or a distinguished service award in the preceding twenty four (24) months, nor an Adjustment for continuing excellence (ACE) award in the preceding twelve (12) months; and

      (c)1. The appointing authority determines that the employee’s acts or ideas have resulted in significant financial savings or improvements in services to the Commonwealth and its citizens; or

      2. The employee has exhibited distinguished performance during participation in special projects that have had a significant beneficial impact on the department or governmental operations.

      (2) An employee shall not be eligible for an ERA under this section for an act or idea that has been approved or submitted for consideration as an Employee Suggestion System Award. An employee who has received an ERA shall not be eligible to be considered for an Employee Suggestion System Award for those acts or ideas upon which the ERA is based.

      (3) The granting of an ERA shall be within the sole discretion of the appointing authority.

      (4) If an appointing authority grants an ERA, the justification for the award shall be stated in writing, and placed in the employee’s personnel files.

      (5) An appointing authority shall not grant an ERA to more than twenty-five (25) percent of the total number of full-time employees in the department in a calendar year.

      (6) An appointing authority shall submit a letter or memorandum to the cabinet to award an ERA. The letter or memorandum shall:

      (a) Explain the reason or reasons for the granting of the award; and

      (b) Include a certification by the appointing authority that:

      1. Sufficient funds are available within the department; and

      2. The criteria and limitations established in this section have been met.

 

      Section 11. Adjustment for Continuing Excellence (ACE) Award. (1) On the 16th day of a month, an appointing authority may grant a salary adjustment of up to ten (10) percent of the grade midpoint to a full-time employee’s base pay as an adjustment for continuing excellence award (ACE) under the following conditions:

      (a) The employee has an established annual increment date;

      (b) The employee has worked at least twenty-four (24) consecutive months, twelve (12) consecutive months of which shall have been served in the department granting the award;

      (c) The employee has not received an ACE award or a distinguished service award in the preceding twenty-four (24) months or an employee recognition award (ERA) in the preceding twelve (12) months; and

      (d)1. The employee has demonstrated a sustained level of exceptional job performance;

      2. The employee has assumed a significant level of additional job responsibilities or duties consistent with the assigned classification, and has performed them in an exceptional manner; or

      3. The employee has acquired professional or technical skills or knowledge through department directed or authorized attainment of a job related licensure, certification, or formal training that will substantially improve job performance.

      (2) An employee shall not be eligible for an ACE award under this section if an educational achievement award has been granted for the same training.

      (3) The granting of an ACE award shall be within the sole discretion of the appointing authority.

      (4) More than twenty-five (25) percent of the total number of full-time employees in a department, in a calendar year, shall not receive an ACE award.

      (5) An appointing authority shall submit a letter or memorandum to the cabinet to grant an ACE award. The letter or memorandum shall:

      (a) Explain the reason or reasons for the granting of the award; and

      (b) Include a certification by the appointing authority that:

      1. The criteria and limitations established in this section have been met; and

      2. Funds are available within the department's current recurring base budget to support the award. (26 Ky.R. 257; Am. 559; eff. 8-25-99; 28 Ky.R. 1169; 1600; eff. 1-14-2002; 34 Ky.R. 1519; 2085; eff. 4-4-08.)