200 KAR 12:030.
Computing compensation due a state employee after adjudicated penalization.
RELATES TO: KRS
AUTHORITY: KRS 18A.105
FUNCTION, AND CONFORMITY: This administrative regulation repeals 200 KAR
12:010, relating to the calculation of compensation due a state employee
following the Personnel Board's or a court's adjudication of an appealed
personnel action. This administrative regulation also establishes a modified
procedure for calculating the foregoing compensation. Furthermore, this
administrative regulation repeals 200 KAR 6:035, pertaining to the leasing of
real property on behalf of various state agencies. The provisions of that
administrative regulation have been codified under KRS 56.830.
Section 1. Definitions.
The following terms, words or phrases shall have the meaning assigned herein,
unless the context indicates otherwise:
"Adjudicated penalization" shall include, but not be limited to, the
demotion, dismissal, suspension, fine or any other personnel action for which,
after appeal, an employee is ordered either by the Personnel Board or by a
court of competent jurisdiction to be reinstated to his former position or like
position without loss of pay.
"Corrective dates or corrective period" are synonymous terms for the
period between the date of adjudicated penalization or removal from the payroll
and the date of reinstatement to a former position or a position of like status
and pay as provided by KRS 18A.095.
pay" means the gross amount of pay which an employee would have earned
during the corrective period.
Section 2. Time
of Payment. When the Personnel Board or a court of competent jurisdiction has
ordered an employee reinstated to his former position or a like position without
loss of pay, the appointing authority shall within a reasonable time thereafter
cause the amount of compensation to which such employee is entitled for the
corrective period to be calculated as provided in this administrative
Section 3. Calculation
of Gross Pay. (1) Calculation of gross pay shall be limited to the amount of
gross salary or wages which would have been earned by the employee during the
corrective period. If the employee dies or becomes permanently and totally
disabled for the performance of duties of the position to which he is entitled
to be reinstated prior to his reinstatement, the date of death or the date of
total disability shall be deemed to be the last date to which such employee
shall be entitled to be paid. In the case of a permanently and totally disabled
employee, the last date may be extended by the number of days of sick or annual
leave days accrued and to which he is entitled as provided in Section 7 of this
(2) Gross pay
for a full-time employee shall be based on the following:
(a) The grade,
classification and monthly pay rate in effect at the time of the adjudicated
(b) Changes in
classification in employee's position or the pay rate by reason of wage
surveys, administrative action or legislation;
increments for which the employee could have been considered eligible by the
appointing authority during the corrective period;
(d) Any other
changes which would affect the amount of compensation which the employee would
otherwise have received if the adjudicated penalization had not occurred.
employees shall be entitled to all pay increases applicable to full-time
employees as set out in paragraph (2) of this subsection, if such employee would
otherwise have been eligible to receive them during the corrective period under
the administrative regulations of the Department of Personnel.
(4) Gross pay
for a part-time employee shall be determined by one (1) of the following
the number of hours worked by other employees of the agency in the same
locality under the same type of appointment, performing the same kind of work
that the employee would have performed during the corrective period;
the hours per week the employee worked during the calendar year preceding the
(5) An employee
demoted in grade, and consequently, ordered reinstated to his former position
or to a position of like status and pay pursuant to KRS 18A.095, shall be eligible
to be paid the difference in salary that he would have earned at his former pay
rate and the salary that he earned at the pay rate to which he was demoted for
all the entire period of his demotion.
Retirement Calculations. (1) Employer and employee contributions to the
Kentucky Employees' Retirement System shall be calculated on the basis of the
employee's gross pay. Reductions in the amount due the retirement system shall
be made if a portion of these costs were paid during the corrective period, as
in the case of a demoted employee.
(2) An employee
ordered reinstated by the Personnel Board or a court of competent jurisdiction
and who has previously withdrawn his contributions to the retirement system,
may elect after reinstatement, to repay the amount withdrawn by deduction from
any compensation due him; or, if no compensation is due the employee, then the
employee may pay this amount by check. The appointing authority shall in any
event pay the employer's share of contributions to the retirement system plus
interest at the current legal rate on the employer-employee contributions
provided that the employer's share has not previously been paid to the system
during the corrective period.
Setoff Income. (1) Except as provided in this subsection, the employee's gross
earnings from other employment during the corrective period, shall be setoff
against his gross pay as determined in Section 3 of this administrative
regulation, to the extent that this income was earned in a number of hours not
in excess of the hours the employee would have worked prior to the adjudicated
penalization. Furthermore, the income earned during the corrective period shall
not be setoff against an employee's gross earnings from other employment, if
the income was being earned prior to the corrective period.
(2) In order to
determine an employee's gross earnings from other employment during the
corrective period, the employee shall furnish the appointing authority with an
employee's affidavit, on that form to be provided by the Department of
Personnel stating the amounts and sources of all his income during the
(3) The income,
property or assets of the spouse of the employee shall not be considered in
determining the amount of the employee's income to be setoff against the
employee's gross pay.
Deductions. The appointing authority shall make deductions for the following:
(a) Federal and
state income taxes;
applicable local payroll and occupational license taxes;
(c) Social Security
taxes required by federal and state laws and the applicable regulations of the
federal Internal Revenue Service, the Kentucky Revenue Cabinet, and Social
Security Administration; and
(d) The amount
required to reimburse the state unemployment fund for those unemployment
compensation benefits received by the employee during the corrective period.
Annual and Sick Leave. (1) The appointing authority shall calculate the number
of days of annual and sick leave that the employee would have accumulated
during the corrective period.
(2) When an
employee has been ordered reinstated to his former position or a like position,
all annual leave and sick leave and compensatory time that the employee accrued
and for which he was not paid at the time of dismissal, shall be reinstated.
(3) An employee
who does not desire to be reinstated, but who seeks only compensation, may be
paid for annual leave time which would have accrued to him during the
corrective period based on the Department of Personnel administrative
regulations governing the accumulation of annual leave time in effect during
the corrective period. (15 Ky.R. 1986; Am. 2149; eff. 3-8-89.)