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 job classification;
(b) Is in the same work county; and
(c) Has a similar combination of
education and experience relating to the relevant job class specification.
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 in this administrative
regulation.
(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 in this administrative regulation; 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,
reallocation, or pay grade change until he is moved to a job classification
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 classification 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 classification 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 pay grade, 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 job classification to:
1. The greater of the new grade minimum
or five (5) percent;
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 job classification 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 job 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 job
classification 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 job
classification 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 job classification, 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.
(10) Conversion rule. The salary of an
employee whose position changes from a thirty-seven and five-tenths (37.5) hour
workweek to a forty (40) hour workweek, or vice versa, shall be converted to accurately
reflect the employee’s hourly rate of base pay. This conversion shall be
applied before applying any other salary adjustment to which the employee is
entitled pursuant to this section.
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 Sections 3(2)(b), 3(3)(b), and 3(4)(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
if 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) For a high school diploma, high
school equivalency certificate, or a passing score on the GED test, the
qualifying conditions shall be met if:
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) For postsecondary education or
training, the qualifying conditions shall be met if:
1. The employee has completed 260 hours
of job-related instruction, or the equivalent;
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) For the Kentucky Certified Public
Manager Program, the qualifying conditions shall be met if:
1. The employee has successfully
completed the Kentucky Certified Public Manager Program offered by the
Governmental Services 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 job classification 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 job classification who is regularly assigned to work on
Saturdays, Sundays, or state holidays as part of the usual work week.
(b) Once authorized, the premium shall
apply to all employees in the specified job classifications in that agency who
are regularly assigned to work Saturdays, Sundays, or 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 classifications.
(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. An employee in a job classification
that includes interpreting services as a characteristic of the job on the job class
specification shall not be eligible for this premium.
(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, or ERA, in the form of a lump sum payment of up
to ten (10) 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
job 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. 8-25-1999; 28 Ky.R. 1169; 1600; eff. 1-14-2002; 34
Ky.R. 1519; 2085; eff. 4-4-2008; 42 Ky.R. 78; 1126; eff. 11-6-2015.)