101 KAR 2:034. Classified compensation administrative regulations

Link to law: http://www.lrc.ky.gov/kar/101/002/034.htm
Published: 2015

      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.)
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