Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
18A.110,
18A.155,
18A.202,
199.555
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
18A.155 requires the Secretary of Personnel
to promulgate administrative regulations for persons in positions enumerated in
KRS
18A.115(1)(g), (h), (i), (j), (k), (p), (t), and
(u).
KRS
18A.110 requires the secretary to promulgate
comprehensive administrative regulations for the unclassified service.
KRS
18A.202 authorizes the secretary to implement
work-related incentive programs for state employees. This administrative
regulation establishes the compensation plan and pay incentives for employees
in unclassified service.
Section 1.
New Appointments. An appointing authority shall appoint a new employee at a
salary not to exceed the midpoint of the pay grade.
Section 2. Reentrance to State 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 Public Pensions Authority or Kentucky Teachers
Retirement System, shall be appointed in accordance with the provisions for new
appointments in this administrative regulation.
(2) Other reentering employees. An appointing
authority shall set the salary of a former classified or unclassified employee,
other than a returning retiree:
(a) In
accordance with the standards used for making new appointments in this
administrative regulation; or
(b)
Up to a salary formerly paid in the classified or unclassified
service.
Section
3. Salary Adjustments.
(1)
Promotion.
(a)
1. An employee who is promoted shall receive
a five (5) percent increase or an increase to the minimum of the new grade,
whichever is greater; or
2. An
appointing authority may grant a salary increase of five (5) percent per grade
upon promotion.
(b) If
sufficient funds are available, an appointing authority may adjust the
employee's salary up to the midpoint of the pay grade as long as the increase
is greater than the increase specified in subparagraph 1. of subsection (1)(a)
of this section.
(2)
Demotion. If an employee is demoted, the appointing authority shall determine
the salary in one (1) of the following ways:
(a) The employee's salary shall be reduced to
a rate that is not below the minimum for the job classification to which the
demotion is made;
(b) The employee
shall retain the salary received prior to the 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;
or
(c) In the event of a salary
schedule adjustment of an entry level wage of a pay grade, if an employee
demoted to a lower pay grade, retained his or her salary, and was subsequently
promoted and on promotional probation on the effective date of the new salary
schedule, if the employee's salary is less than five (5) percent above the new
entry level salary of the pay grade assigned to that employee on the effective
date, the Personnel Cabinet shall adjust that employee's salary to five (5)
percent above the new entry level wage.
(3) Reclassification.
(a) An appointing authority shall adjust the
salary of an employee who is advanced to a higher pay grade through
reclassification in one (1) of the following ways:
1. The greater of five (5) percent or the new
grade minimum;
2. The greater of
five (5) percent for each grade or the new grade minimum; or
3. If sufficient funds are available, up to
the midpoint of the pay grade as long as the increase is greater than the
increase specified in subparagraph 1. of this paragraph.
(b) An employee who is placed in a lower pay
grade through reclassification shall receive the same salary received prior to
reclassification.
(c) If sufficient
funds are available, an appointing authority may adjust up to the midpoint of
the pay grade the salary of an employee who is placed in the same pay grade
through reclassification.
(d) An
employee shall not be reclassified from a job classification that does not
require the supervision of employees to a job classification that requires the
supervision of employees as mandated within the job class
specification.
(4)
Reallocation.
(a) An employee who is advanced
to a higher pay grade through reallocation shall receive a five (5) percent
increase or an increase to the new grade minimum, whichever is greater. An
appointing authority may grant a five (5) percent increase per grade upon
reallocation to a higher grade.
(b)
An employee who is placed in a lower pay grade through reallocation shall
receive the same salary received prior to reallocation.
(5) Detail to special duty.
(a) An employee who is detailed to special
duty in a higher grade shall receive a five (5) percent increase or an increase
to the minimum of the grade, whichever is greater, for the duration of the
period of the detail. An appointing authority may grant a salary increase of
five (5) percent per grade for the duration of the detail.
(b) If sufficient funds are available, an
appointing authority may adjust the salary of an employee who is placed in the
same pay grade or higher pay grade through detail to special duty, up to the
midpoint of the pay grade, as long as the increase is greater than the increase
specified in paragraph (a) of this subsection.
(c) An employee who is detailed to special
duty to the same or lower grade shall continue to receive the same salary
except as provided under paragraph (b) of this subsection.
(6) Reversion.
(a) The salary of an employee who is reverted
following detail to special duty in a higher pay grade shall be adjusted to:
1. The salary received prior to the detail;
and
2. All salary advancements and
adjustments which would have been awarded if the 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 per pay grade;
2.
The greater of the new grade minimum or ten (10) percent per pay grade;
or
3. At a percentage determined by
the Personnel Cabinet.
(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, on the same date as the establishment
of the special entrance rate, an appointing authority may also grant a salary
adjustment equal to the difference between the entrance of the pay grade and
the new special entrance rate to other employees in that job classification,
except those employees who are on initial probation.
(9) Other salary adjustments.
(a) On the 16th of a month, an appointing
authority may grant a five (5) percent salary adjustment to an employee who was
eligible for, but did not receive, an increase upon the completion of six (6)
months service following promotion.
(b) On the 16th of a month, an appointing
authority may grant a salary adjustment to an employee within an agency who was
eligible for, but did not receive, at least a five (5) percent per pay grade
increase or ten (10) percent per pay grade increase as a result of a grade
change on or after January 1, 1999. The total adjustment under this provision
when combined with an increase at the time of the grade change shall equal a
five (5) percent per pay grade increase or ten (10) percent per pay grade
increase to the employee's salary immediately prior to the grade change. The
adjustment shall not be retroactive.
(c) If sufficient funds are available, an
appointing authority may adjust the salary of one (1) or more unclassified
employees in an office or department due to internal pay equity issues within a
job classification or sustained retention issues impacting the mission of the
agency.
1. The appointing authority shall
substantiate in writing to the secretary the need for adjustment and include
the proposed adjustment for each employee.
2.
a. An
adjustment shall be any amount that does not cause an employee's hourly rate to
exceed the midpoint of the pay grade; or
b. An adjustment that causes an employee's
hourly rate to exceed the midpoint of the pay grade shall not exceed
twenty-five (25) percent of the employee's hourly pay rate.
(10)
Conversion rule. The salary of an employee whose position changes from a
thirty-seven and one-half (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 appointment
increase. An appointing authority may grant a five (5) percent increase to an
employee, except an interim employee, on the first day of the month following
completion of the greater of six (6) months of service or the months of service
required by
101 KAR 1:325 Section
1(2).
(2) Six (6) month promotional
increase. An employee may receive a five (5) percent increase following the
completion of the greater of six (6) months service after promotion or the
months of service required by
101 KAR 1:325 Section
1(2).
(3) Annual increment dates
shall be established as follows:
(a) On the
first day of the month following completion of the initial probation period;
or
(b) On the first day of the
month following completion of twelve (12) months service since receiving the
last annual increment for an employee, other than an interim employee, who
returns from leave without pay.
(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 his position being reallocated;
(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 an increase six (6)
months following promotion.
(5) Return from leave without pay. An
employee, other than an interim employee, returning to duty from leave without
pay shall receive an annual increment on the first of the month after receiving
compensation in any twelve (12) months since the last increment was
received.
(6) Service computation.
Full-time and part-time service shall be counted when computing service for
purposes of determining increment eligibility. Service as an interim employee,
or in the former seasonal, temporary, or emergency categories shall not be
considered.
(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 reversion, pay grade change, a salary schedule change,
or establishment of a special entrance rate.
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 in subsection (5) of 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. After establishing an
increment date.
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.
Section 6. Salary
Schedule Adjustment.
(1) If the secretary
authorizes an adjustment of a salary schedule, an appointing authority shall
adjust the salaries of all employees below the new schedule entry level wage
for the pay grade to the new schedule entry level wage for the pay grade. 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 entry level wage for the grade and the new schedule entry
level wage for the grade.
(2) After
consultation with the state budget director, if sufficient funds are available,
and the Secretary of Personnel determines that an increase in the entry level
wage of one (1) or more pay grades is warranted, the Personnel Cabinet shall
identify each currently active employee in the pay grade(s), other than an
interim employee, who is not on initial or promotional probation at the time
the revised salary schedule becomes effective. For an employee whose salary is
less than five (5) percent above the new entry level salary of the pay grade
assigned to that employee on the effective date, the Personnel Cabinet shall
adjust that employee's salary to five (5) percent above the new entry level
wage.
Section 7.
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 8.
Supplemental Premiums.
(1) Locality premium.
(a)
1. Upon
request by an appointing authority, the secretary may authorize and establish
the amount of the payment of a locality premium for an employee who is
regularly, temporarily, or intermittently assigned to work in a job
classification, work county, and organizational unit where the agency can
demonstrate sustained recruitment and retention issues impacting the mission of
the agency; or
2. The secretary may
direct the payment of a locality premium for an employee who is regularly,
temporarily, or intermittently assigned to work in a job classification, work
county, and organizational unit where there are demonstrated sustained
recruitment and retention issues impacting the mission of the agency.
(b) Once authorized or directed,
this premium shall apply to all employees in that organizational unit who are
regularly or temporarily assigned to work in the job classification and work
county for which the locality premium is approved.
(c) An employee shall not receive a locality
premium after transfer, reclassification, reallocation, detail to special duty,
promotion, or demotion to a position in a job classification, organizational
unit, or work county that is ineligible for a locality premium.
(d) The secretary may rescind authorization
to pay a locality premium for a job classification at any time.
(e) Locality premium pay shall not be
considered a part of base pay or wages and shall not be applied to any leave
time usage.
(2) 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 and
shall not be applied to any leave time usage.
(3) 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 and shall not be applied
to any leave time usage.
(f) An
agency may request, and be authorized for, both shift premium and weekend
premium for the same job classifications.
(4) 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 and shall not be applied to any leave
time usage.
(5) Critical
position premium.
(a) Upon request by an
appointing authority, the secretary may authorize the payment of a premium for
a position held by an employee who has established an annual increment date and
is regularly assigned to perform job duties that are deemed critical to the
operation of the agency.
(b) A
critical position premium may be authorized for at least one (1) full-time
filled position in an office or department. The premium may be authorized for
additional full-time filled positions if the total number of premiums does not
exceed one (1) percent of the total number of full-time filled positions in an
office or department.
(c) The
premium shall not exceed twenty-five (25) percent of the employee's hourly
rate.
(d) The critical position
designation shall expire when the position becomes vacant.
(e) An employee shall not receive a critical
position premium after transfer, reclassification, reallocation, detail to
special duty, promotion, or demotion to a position in a different job
classification, organizational unit, or work county, unless the appointing
authority submits a new request, for approval by the secretary, to designate
the position in the different job classification, organizational unit, or work
county as critical prior to the personnel action at issue.
(f) The appointing authority or the secretary
may rescind authorization to pay a critical position premium at any
time.
(g) A critical position
premium shall not be considered a part of base pay or wages and shall not be
applied to any leave time usage.
(6) Sign-on bonus.
(a) Upon written request by an appointing
authority, the secretary may prospectively authorize a sign-on bonus for
full-time or part time unclassified positions if:
1. The positions are in the same job
classification, work county, and department or office where the appointing
authority can substantiate sustained recruitment and retention issues impacting
the mission of the agency;
2. The
total amount of the sign-on bonus is uniform and does not exceed $5,000 for the
job classification; and
3.
Eligibility for the sign-on bonus is limited to a newly appointed or rehired
employee who:
a. Has not been employed in a
KRS Chapter 18A classified position within ninety (90) calendar days preceding
the effective date of appointment or rehire;
b. Has not previously received any amount of
sign-on bonus pursuant to this subsection; and
c. Is working or on approved leave at the
time payment is scheduled to be issued.
(b) Once a sign-on bonus is authorized by the
secretary, an eligible employee shall receive:
1. Twenty-five (25) percent of the total
sign-on bonus on the first day of the month after appointment or
rehire;
2. Twenty-five (25) percent
of the total sign-on bonus on the first day of the month after completion of
six (6) months of active service in the position into which the employee was
appointed or rehired; and
3. Fifty
(50) percent of the total sign-on bonus on the first day of the month after
completion of twelve (12) months of active service in the position into which
the employee was appointed or rehired.
(c) An employee shall not receive future
payment of any portion of a sign-on bonus after transfer, promotion, or
demotion to a position in a job classification, department or office, or work
county other than the position into which the employee was appointed or
rehired.
(d) An employee who is
detailed to special duty or whose position is reclassified or reallocated shall
remain eligible for future payment of the original sign-on bonus
amount.
(e) The secretary may
rescind authorization to pay a sign-on bonus at any time prior to the effective
date of appointment or rehire.
(f)
A sign-on bonus shall not be considered a part of base pay or wages and shall
not be applied to any leave time usage.
Section 9. Employee Recognition Award (ERA).
(1) On the 16th day of a month, an appointing
authority may grant an employee an ERA in the form of a lump sum payment of any
whole percentage from one (1) to ten (10) percent of the employee's annual
salary under the following conditions:
(a) The
employee has not received an ERA in the preceding twenty four (24) months, nor
an Adjustment for Continuing Excellence (ACE) award in the preceding twelve
(12) months; and
(b)
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;
2. The employee has exhibited distinguished
performance during participation in special projects that have had a
significant beneficial impact on the department, office, or governmental
operations; or
3. The employee has
demonstrated a sustained level of exceptional job performance.
(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 submit a written justification to the Personnel
Cabinet to award an ERA. The justification 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 or office; and
2. The
criteria and limitations established in this section have been met.
Section 10.
Adjustment for Continuing Excellence (ACE) Award.
(1) On the 16th day of a month, an appointing
authority may grant a salary adjustment of any whole percentage from one (1) to
ten (10) percent of the employee's annual salary to a full-time employee's base
pay as an ACE award 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 in KRS Chapter 18A
state service, twelve (12) consecutive months of which shall have been served
in the department or office granting the award;
(c) The employee has not received an ACE
award in the preceding twenty-four (24) months or an 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 or office
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) An appointing authority shall submit a
written justification to the Personnel Cabinet to grant an ACE award. The
justification 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. Sufficient funds are available within the
department's or office's current recurring base budget to support the
award.
Section
11. Adoption Benefit Program. The provisions of the Adoption
Benefit Program established in
101 KAR 2:120 shall apply to an
employee in the unclassified service.
STATUTORY AUTHORITY:
KRS
18A.030(2),
18A.110(2),
18A.155(1)(b),
(e),
18A.202(1)