California Code of Regulations
Title 2 - Administration
Division 1 - Administrative Personnel
Chapter 3 - Department of Human Resources
Subchapter 1 - General Civil Service Rules
Article 4 - Employee Merit Award Program
Section 599.664 - Cash Awards

Universal Citation: 2 CA Code of Regs 599.664

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

The following criteria shall apply to cash awards:

(a) Cash awards for adopted suggestions shall not be less than $50, or more than $50,000. Where the provisions of this regulation would otherwise result in an award of greater than $50,000, the award shall be $50,000. Awards of more than $5,000 will be granted only upon approval by concurrent resolution of the Legislature.

(b) Cash awards will be calculated in the following manner:

(1) Where annual net savings or increased revenues cannot be determined, or are calculated as less than $500, a cash award may be recommended in accordance with the Improved Procedures or Improved Safety Scales.

(2) Where annual net savings or increased revenues are calculated as at least $500, but not more than $1,000, the recommended cash award shall be $100.

(3) Where annual net savings or increased revenues exceed $1,000, the recommended cash award shall be 20 percent of the net savings or increased earnings realized by the agency during the first year following adoption of the suggestion, subject to subsection (c) below.

(c) Awards computed under subsection (b)(3) will be calculated at 5 percent of the net savings or increased earnings realized during the first year following adoption of the suggestion where the proposal required substantial refinement for implementation, and/or where an alternative solution was adopted as a result of the proposal, and/or where the proposal results in one-time savings or benefits.

(d) If savings or benefits during the first year following adoption do not equitably measure the merits of a suggestion, savings or benefits over a different period of time may be used as an award standard.

(e) The decision of the Department as to the amount of awards shall be final except for those awards requiring approval of the Legislature.

(f) If more than one agency benefits from the adoption of an employee suggestion, the award shall be prorated between the agencies receiving the benefit. The Department shall be responsible for prorating the award amount. The agency that currently employs the suggester will be responsible for requesting reimbursement from the other agencies. In cases where an Improved Safety or Improved Procedure award is recommended, the Department shall arrive at one award amount based upon the evaluating agencies' recommendations. If a dispute arises between agencies regarding prorating or reimbursement of the award, the Board shall act as mediator.

(g) Awards to employees for adopted suggestions shall be paid from the funds or appropriations available to the agency(s) benefiting from the adopted suggestion unless payment from some other source is authorized by the Department of Finance.

(h) Except for awards for Improved Safety, a cash award of $1,000 or more shall require the respective agency(s) to identify such savings (reduced expenditures or increased revenues) and submit to the Department an Identification and Recovery of Savings form (DPA-134 New 8/87) reflecting how the recovery will be accomplished. A copy of this form shall be transmitted to the Department of Finance by the agency for appropriate action. For awards requiring the Board's approval, the Identification and Recovery of Savings form shall be forwarded to the Department.

(i) Awards for a Special Act, Special Service or Superior Accomplishment shall be:

(1) Special Act and Special Service awards are honorary and consist of a certificate, a citation, medal and lapel pin. The certificate, medal and lapel pin are available from the Merit Award Program. The Merit Award Program shall be reimbursed for the cost of the medal and lapel pin. Citations shall be the responsibility of the awarding agency.

(2) Superior Accomplishment awards consist of an engraved walnut plaque or a certificate, and/or a cash or gift award. This award includes two levels of cash awards: Gold/from $50 to $500 per individual or team, and Silver/from $25 to $250 per individual or team. Agencies have the option of providing cash or equivalent gift awards.

(3) Superior Accomplishment awards for sustained superior performance over a period of twenty-four months consist of a framed certificate and/or a gift or cash award of up to $250 per individual or team. Agencies have the option of providing cash or equivalent gift awards.

1. New section filed 2-9-84 (corrected copy refiled 2-27-84); effective thirtieth day thereafter (Register 84, No. 8).
2. Editorial correction of HISTORY NOTES printed in error in Register 84, Nos. 8 and 12 (Register 84, No. 15).
3. Amendment of subsections (a) and (b) and repealer of subsection (j) filed 11-13-90; operative 12-13-90 (Register 90, No. 52).
4. Amendment filed 12-2-92; operative 1-2-93 (Register 94, No. 8).
5. Amendment filed 9-19-96; operative 10-19-96 (Register 96, No. 38).
6. Amendment of subsection (b)(3) filed 5-14-2007; operative 6-13-2007 (Register 2007, No. 20).
7. Change without regulatory effect amending section and NOTE filed 10-13-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 42).

Note: Authority cited: Sections 18502, 19815.4(d) and 19823, Government Code. Reference: Section 19823, Government Code.

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