Compensation Administration Guide
C H A P T E R 6 G U I D E L I N E S This document contains guidelines for the purpose of applying Chapter 6 of the State Civil Service (SCS) Rules. This guide shall be used in conjunction with Chapter 6 of the SCS Rules and agency policies for the state classified workforce.
Byron P. Decoteau, Jr., Director Louisiana State Civil Service October 1, 2025
TABLE OF CONTENTS
OVERVIEW HR IMPACT
2 2 2 3 3 3 3 4 8 8 8 9 9 9
SCS RULE 6.1 PHILOSOPHY
SCS RULE 6.2 PREPARATION OF PAY PLAN SCS RULE 6.3 ADOPTION OF PAY PLAN SCS RULE 6.3.1 OTHER COMPENSATION SCS RULE 6.4 RATES OF PAY IN THE PAY PLAN
SCS RULE 6.5 HIRING RATE
SCS RULE 6.5.1 PAY UPON APPOINTMENT FROM A DPRL SCS RULE 6.6 MARKET GRADE ADJUSTMENT SCS RULE 6.7 RATE OF PAY UPON PROMOTION
SCS RULE 6.8 PAY UPON REALLOCATION
SCS RULE 6.8.1 PAY UPON JOB CORRECTION OR GRADE ASSIGNMENT
SCS RULE 6.8.2 PAY UPON RELOCATION
SCS RULE 6.9 PAY UPON TRANSFER OR REASSIGNMENT SCS RULE 6.10 RATE OF PAY UPON DEMOTION SCS RULE 6.11 RATE OF PAY ON DETAIL TO SPECIAL DUTY SCS RULE 6.12 COMPENSATION FOR PART-TIME SERVICES SCS RULE 6.12.1 COMPENSATION FOR HOLIDAYS SCS RULE 6.13 CERTIFICATION AND PAYMENT
10 10 11 12 12 12 12 13 15 17 20 20 21 22 23 24 26
SCS RULE 6.15 RED CIRCLE RATES
SCS RULE 6.16 SPECIAL PAY PROVISIONS SCS RULE 6.16.1 REWARDS AND RECOGNITION SCS RULE 6.16.2 OPTIONAL PAY ADJUSTMENTS
SCS RULE 6.17 PAY ON ENTERING THE CLASSIFIED SERVICE UNDER THE PROVISIONS OF RULE 24.2 SCS RULE 6.28 COMPENSATION FOR ON-CALL DUTY/SHIFT WORK
SCS RULE 6.29 CORRECTIVE PAY ACTIONS SCS RULE 6.32 MARKET ADJUSTMENTS APPENDIX A: Flex Tools and Policy Requirements APPENDIX B: Formulas for Calculating Pay
APPENDIX C: DOCUMENTS AND FORMS
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Compensation Administration Guide C H A P T E R 6 G U I D E L I N E S OVERVIEW
The authority for the establishment and administration of a uniform pay plan is contained in Article X , Section 10(A)(a) of the Louisiana Constitution and in Chapter 6 of the SCS Rules. The uniform pay plan regulates the compensation of all classified state employees. It is developed after taking into consideration several factors, including market conditions and practices of market competitors. Changes to Chapter 6 Pay Rules, because they affect the compensation of state classified employees, require approval of both the SCS Commission and the Governor. This chapter contains both operational and optional pay provisions and provides information regarding all of the mechanisms and pay flexibilities available for compensating state classified employees. HR IMPACT Chapter 6 Pay Rules is one of the most important chapters to the HR professional. The various pay options available within these rules allow the appointing authority to strategically plan compensation for classified employees, as well as develop and establish programs to motivate and reward employees. These pay rules address recruitment and retention issues, market conditions, pay for performance, pay for special conditions and situations, in addition to the regular compensation provided to employees for hiring, promotion, reallocation, etc. It is incumbent upon the HR professional to thoroughly understand the purpose, use and application of the various compensation rules in order to provide sound recommendations to the appointing authority. SCS Rules provide the framework and parameters for compensating classified employees. HR professionals are responsible for ensuring accuracy and timeliness in compensating employees, as well as, understanding the impact of payment errors. SCS RULE 6.1 PHILOSOPHY It is the policy of the State to maintain labor market competitiveness within the boundaries of financial feasibility. The State is committed to attracting and retaining a diverse workforce of high performing employees with the competencies, knowledge, skills, abilities and dedication needed to consistently provide state services.
There are four elements of maintaining market competitiveness: • The pay range structures must be at a competitive position relative to the market. • The actual salaries of employees must move within their assigned pay ranges to maintain pace with the market as those employees gain experience, skills and competencies. • The jobs assigned to those pay ranges must be regularly evaluated to ensure that the pay ranges continue to be appropriate as the jobs evolve and the market for those jobs change. • The compensation philosophy is applied when developing pay solutions to appropriately and conservatively meet the
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SCS RULE 6.2 PREPARATION OF PAY PLAN The Director conducts a review of the six pay schedules at least annually and makes recommendations regarding any necessary changes to the SCS Commission for its approval resulting in a uniform pay plan. Before submitting the plan, the Director consults with appointing authorities and the state fiscal officer while also conducting necessary research. SCS RULE 6.3 ADOPTION OF PAY PLAN This rule requires that any changes recommended by the Director impacting the structure of the pay plan are to be submitted to the SCS Commission for consideration at a public hearing. Notice of the public hearing must comply with SCS Rule 2.5 . Upon adoption, the SCS Commission specifies the manner in which the pay plan is to be implemented. When the SCS Commission adopts a pay plan or amendment to the plan, it can only become effective after approval in its entirety by the Governor. If the Governor rejects any portion of the plan sent by the SCS Commission, the plan is not approved. The SCS pay structures are also known as the “pay schedules.” There are six pay schedules within the SCS Pay Plan. Each pay schedule contains jobs that have similar occupational characteristics.
SCS RULE 6.3.1 OTHER COMPENSATION The purpose of this rule is to provide for the regulation of all monetary payments to classified employees, such as cell phone allowances, uniform allowances, housing allowances, food allowances, and other similar allowances. This rule is also used when an appointing authority would like to provide compensation not specifically covered by either Chapter 6 or by the classification and pay plan. An appointing authority will need to establish a policy with the approval of the SCS Commission to make payments under this rule. SCS RULE 6.4 RATES OF PAY IN THE PAY PLAN This rule provides for each job having a range minimum and range maximum. Each employee shall be paid at a rate within the range for the grade assigned to his/her position. 3 Compensation Administration Guide
SCS RULE 6.5 HIRING RATE This rule requires that all pay at the time of hire be set at the minimum of the pay range established for the grade of the job to which the position is allocated. There are exceptions to this general rule. They are: (a) Job or Probational Appointment — The pay of an employee who is serving in a job or probational appointment shall not be reduced when the employee is earning more than the minimum of the job he occupies, and is then probationally appointed to a position in the same job, or a different job with the same maximum rate of pay, in the same department without a break in service. (b) Special Entrance Rate — When economic or employment conditions cause substantial recruitment or retention difficulties, the Director may authorize the use of a special entrance rate. In order to establish special entrance rates above the new minimum, agencies must submit a request to the Compensation Division for review and recommendation to the SCS Director. The Director may authorize the rates and present these actions at the next scheduled SCS Commission meeting or the Director may defer the request to the SCS Commission for review and approval. In order to request establishing an SER rate above the new minimum, agencies must first contact State Civil Service to discuss the problems the agency is experiencing. An agency must be able to demonstrate how not having an SER would be detrimental to the agency and be able to explain why the new minimum is not adequate. After consultation, agencies will be requested to submit a formal request, which would include a signed policy by the appointing authority and the SER questionnaire prior to the date of implementation. An agency may request a corresponding adjustment for current employees to alleviate compression caused by the SER. Special Entrance Rates (SER) are not a means to give all employees in your agency a raise. Not all jobs in all schedules need to have an SER to attract and retain qualified employees. In order to request establishing an SER rate above the new minimum, agencies must first contact SCS to discuss the problems the agency is experiencing. An agency must be able to demonstrate how not having an SER would be detrimental to the agency and be able to explain why the new minimum is not adequate.
There are two ways that agencies can implement an SER policy – with or without a corresponding adjustment. Here are two examples:
See Appendix B for more information on calculating the amount of the corresponding adjustment.
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(c) Reemployment Eligibility Rate — This allows an appointing authority to compensate an individual at any amount in the pay range that does not exceed the highest salary that the employee previously earned while serving with permanent status in a classified position. In other words, an employee who resigns with permanent status retains eligibility to the highest pay the employee held with permanent status. When the employee returns to state service and is hired in a classified job, the pay may be set anywhere in the range assigned to the job in which the employee is employed as long as the rate does not exceed the highest rate earned while serving with permanent status. However, the rate cannot exceed range maximum and there must have been a break in service of at least 30 days. An appointing authority may request an exception to 6.5(c) from the SCS Director by submittal of the Exception to 6.5(c) Form.
(d) Classified When Actually Employed (WAE) Appointment — When an appointing authority hires a classified WAE, the pay may be set at any rate within the range for the grade assigned to the position. An appointing authority may amend the rate of pay for a classified WAE at any time after the initial appointment, as long as that rate falls within the assigned pay range.
(e) Return From Military — For the purpose of setting a rate of pay, an employee who leaves state service for military service should be treated upon return as though they had never left. If the employee’s position has undergone any pay adjustments, the pay must be adjusted accordingly. This rule specifies conditions in which the appointing authority is authorized to pay the minimum wage prescribed and required by federal rules, statutes, regulations, and/or judicial decisions when this rate exceeds the minimum rate provided for elsewhere in the SCS Rules. For example, if a certain U.S. Housing and Urban Development (HUD) minimum hiring rate is above the State Civil Service minimum for a job, a Housing Authority must pay the higher minimum as Federal law supersedes SCS Rules. The pay shall not be set higher than the maximum of the pay range. (f) Agencies Administering Federal Funds — This rule specifies conditions in which the appointing authority is authorized to pay the minimum wage prescribed and required by federal rules, statutes, regulations, and/or judicial decisions when this rate exceeds the minimum rate provided for elsewhere in the SCS Rules. For example, if a certain U.S. Housing and Urban Development (HUD) minimum hiring rate is above the State Civil Service minimum for a job, a Housing Authority must pay the higher minimum as Federal law supersedes SCS Rules.
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(g) Extraordinary Qualifications/Credentials — When an applicant possesses extraordinary or superior qualifications/credentials above and beyond the minimum qualifications/credentials, the appointing authority may pay the applicant at a rate above the minimum, not to exceed the midpoint, under a 6.5(g) policy that has been approved by SCS, provided that:
In accordance with the agency’s policy, the employee may be paid upon hiring or at any time within one year of the hire date while probational/job appointment. If paid after the hiring date, the pay change must be prospective. The salaries of all current probational, job appointment, and permanent employees who occupy positions in the same job title and who possess the same or equivalent qualifications/ credentials may be adjusted up to but not to exceed the amount of the percent difference between the special hiring rate and the regular hiring rate provided that the qualifications/credentials are also verified and documented as job related and that the rate is implemented in accordance with written policies and procedures established by the department; such policies shall be posted in a manner which assures their availability to all employees. Such adjustments shall be effective on the same date that the higher pay rate is given to the newly hired employee. In accordance with SCS Rule 15.3(a), these actions and changes must be reported within 30 calendar days of their effective date. If paid after the hiring date, the pay change must be prospective, and the employee must still be on probation or job appointment. If an employee with permanent status resigns and is then rehired into either the same position or into the same job title or a job with a lower maximum at the same agency, the employee shall not be eligible for an increase under this rule unless there has been a break in state service of at least 30 days. If an employee with permanent status resigns and is then rehired into a job with a lower maximum at any other agency, the employee shall not be eligible for an increase under this rule unless there has been a break in service of at least 30 days Reminder The midpoint is the highest rate an appointing authority can offer under their policy’s authority. An appointing authority may request an exception to 6.5(g) from the SCS Director for a rate above the midpoint by submittal of the Exception to 6.5(g) Form. When determining and setting an appropriate salary upon hire, the following factors shall be taken into consideration: • Market Relativity: a comparison of the new hire’s pay relative to the midpoint or market rate for the position; • Internal Equity: a criterion that takes into consideration the relationship of the new hire’s salary to the salaries of other employees who have comparable levels of education and experience and who perform similar duties and responsibilities within a work unit, division or agency; • Work Experience/Education: a new hire’s relevant work history and academic qualifications as related to the job;
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• Knowledge, Skills, and Abilities: special qualifications, competencies, and prerequisites needed to successfully perform the tasks required of a job; • Recruitment/Retention Issues: issues related to jobs that may warrant higher rate of paybecause of difficulty in recruiting or retaining employees with qualifications or credentials that are highly sought after. Pay ranges are divided into quartiles in order to aid in determining employee hiring rate placement within the prescribed salary range. There are four points in the range to consider: • Minimum: is the entry point for a grade and is appropriate for someone who is new to the position, when there is an abundant supply of talent and low turnover; • First Quartile: is the progress point within the pay range and is usually appropriate for someone who is experienced and performing all the duties of the position, or when there are challenges in the supply of talent and some turnover; • Midpoint: is the advanced point (or market rate) and is usually appropriate for a seasoned employee who is performing competently in their job over several years or when there is a limited supply of talent and significant turnover; • Above Midpoint: hiring above the midpoint up to the maximum of the pay range may be appropriate for an employee with a level of experience and expected performance that will significantly exceed both the requirements of the job and the performance of most other employees. Hiring at this rate should be rare and factors such as a scarce supply of talent and critical turnover should be present if an exception is requested to pay at this point.
Employees hired at the first level of a career progression group should not typically be hired on 6.5(g) since the minimum qualifications for the majority of first level jobs require no experience. In order to justify a 6.5(g) payment, an applicant must have extraordinary job-related qualifications, which would likely qualify the applicant for the cap of the career progression group. Agencies are encouraged to verify all employment. When verification of past employment is not possible, however, agencies must, at a minimum, ensure that the experience used to justify the 6.5(g) hire rate is included in the employment application. All experience listed in the employee memo used to justify the 6.5(g) payment must be verified by documenting that the experience used for the payment is included in the employment application and is job related. Agencies may choose to document this information via a personnel action form, hiring memo, or other documentation that must be maintained in the employment file. When using education to justify the 6.5(g) payment, the official transcript must meet the criteria outlined in Chapter 22 under Job Aids, Interpreting Educational Requirements. When using a license or certificate to justify the 6.5(g) payment, a copy of the active license or certificate must be on file. Agencies are encouraged to use the sample policy (See Appendix C), as it contains all of the required elements for approval. (h) Pay Upon Accepting Probational Appointment in Lieu of Promotion — Permanent employees who are required to accept probational appointments in lieu of a promotion shall receive the promotional pay at the time of appointment.
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SCS RULE 6.6 MARKET GRADE ADJUSTMENT This rule allows the SCS Director to assign a job to a different pay grade with a more competitive pay range when the current pay grade is either not sufficient to compete with prevailing market conditions or is found to exceed prevailing market rates. The SCS Commission must ratify all Market Grade Adjustments in accordance with SCS Rule 3.1(n) and Governor approval of these pay plan changes is required in accordance with SCS Rule 6.3(d). Market Grade Adjustments cannot be limited to certain positions, locations or agencies; implementation This rule addresses the pay of employees upon promotion. If an employee is promoted to a job with a higher range maximum in the same pay schedule, the amount of the pay increase is determined by agency policy in accordance with this rule. (a) This rule requires at least a 7% increase in base salary when there is a promotion to a higher grade, regardless if it is one grade or more. (b) This rule establishes the following: must include all employees in the specified job title, statewide. SCS RULE 6.7 RATE OF PAY UPON PROMOTION (c) Three-year eligibility rule — If an employee is not paid the maximum amount for which he is eligible, the employee retains eligibility for a period of three years from the effective date of the promotion. Payments granted under this rule may only be paid prospectively and not retroactively. (d) Promotion Following Detail — When an employee has been detailed with pay to a job with a higher maximum and then is promoted directly from detail to the same job or to a job with an equivalent or higher maximum, the employee shall not be paid less than he earned on detail. (e) Promotion Between Schedules — If the promotion is to a job in another pay schedule that has a higher range maximum, the promotional increase is based upon the percent difference of the range maximums as calculated with the following formula: Percentage Difference = (New Maximum divided by the Old Maximum) – 1 • If the percent difference is less than 14%, the employee shall receive a 7% increase to the base salary. • If the percent difference is at least 14% but less than 21%, the employee shall receive a 7% increase and may receive an amount not to exceed 10.5% of the base salary. • If the percent difference is 21% or greater, the employee shall receive a 7% increase and may receive an amount not to exceed 14% of the base salary. • Refer to APPENDIX B: Formulas for Calculating Pay for a specific example. (g) When an employee has taken a voluntary demotion without a reduction in pay, promotional pay shall be in accordance with SCS Rule 6.10(d). Compensation Administration Guide 8 SCS RULE 6.5.1 PAY UPON APPOINTMENT FROM A DPRL This rule addresses the pay of an individual appointed to a job from a department preferred reemployment list (SCS Rule 1.13). This rule states that the pay for an employee hired under this rule shall not be set higher than the pay at the time of the layoff or displacement action, or at their current rate if such rate is higher based on other provisions of SCS rules. The pay shall not be set higher than the maximum of the pay range.
SCS RULE 6.8 PAY UPON REALLOCATION Reallocation is defined by SCS Rule 1.32 as a change in the allocation of a position from one job to another. This rule applies when an employee’s job allocation changes, but the position number remains the same. (a) Reallocation to a Higher Grade — Subject to SCS Rule 6.10(d), if an employee’s position is reallocated to a job with a higher maximum, the employee’s pay is determined as though it were a promotion under SCS Rule 6.7. (b) Reallocation to a Lower Grade — If an employee’s position is reallocated to a job with a lower maximum, the employee’s pay will not change. If the employee’s pay is above the maximum of the lower range, the employee will be “red circled” in accordance with SCS Rule 6.15. (c) Reallocation to an Equivalent Grade — If the employee’s position is reallocated to a job with an equivalent maximum, the employee’s pay will remain the same. SCS RULE 6.8.1 PAY UPON JOB CORRECTION OR GRADE ASSIGNMENT This rule applies when an employee’s position is assigned to a different pay grade by SCS through mechanisms such as a job correction or market grade adjustment. (a) Job Correction or Grade Assignment to a Higher Grade — An employee’s pay shall not change if a job is assigned to a higher grade or allocated to another job with a higher range maximum in the same or different pay schedule. However, the employee must not be paid below the minimum of the higher range. (b) Job Correction or Grade Assignment to a Lower Grade — An employee’s pay shall not change if a job is assigned to a lower grade or allocated to another job with a lower range maximum in the same or different pay schedule. This rule is subject to SCS Rule 6.15. (c) Job Correction or Grade Assignment to an Equivalent Grade — An employee’s pay shall not change if a job is assigned to an equivalent grade or allocated to another job with the same range maximum in the same or different. SCS RULE 6.8.2 PAY UPON RELOCATION Pay may be reduced upon movement to lower jobs as a result of a layoff. If an appointing authority chooses to do so, pay reductions must be uniform in their percentage for all affected employees. For example, if a 15% pay reduction is proposed, then all employees who are relocating to lower-level positions must have a 15% reduction in pay. An employee’s pay shall not be reduced to an amount that is below the range minimum for that position or the current Federal Minimum Wage. However, when an employee’s pay is above the maximum of the range, the appointing authority has two (2) options for employees who are similarly situated in a layoff as follows: 1. The pay of affected employees may be reduced to the range maximum, or 2. The pay of affected employees may be set at the red-circle rate. Application different than what is allowed in this rule requires an exception to be approved by the SCS Commission. 9 Compensation Administration Guide
(a) Transfer to Equivalent Grade — This rule is intended to protect the salary of an employee who transfers without promotion or demotion. The employee’s salary remains the same and shall not be reduced without the employee’s permission. (b) Transfer to a Higher Grade — A transfer to a job with a higher maximum salary is considered a promotion for a permanent employee. In this situation, the employee’s pay shall be set in accordance with Rule 6.7. (c) Transfer to a Lower Grade — When an employee is transferred to a job with a lower maximum salary, it is considered a demotion. The employee’s pay shall be set in accordance with SCS Rule 6.10. (d) Pay Upon Reassignment — Reassignment is defined by SCS Rule 1.33 as “the change within the same department of a probationary or permanent employee from a position in one job to another position in a different job, both jobs of which have the same maximum rate of pay.” This rule provides that the rate of base pay shall not be changed when an employee is reassigned, unless the employee gives his permission. (e) Holiday and Leave Payments Upon Transfer — This rule designates that the employee’s former agency is responsible for payment of holidays and/or regular days off that fall between the transferred employee’s last day worked at the former department and his first day worked in his new department. SCS RULE 6.10 RATE OF PAY UPON DEMOTION This rule pertains to the demotion of employees for any reason under any circumstances. A demotion is defined by SCS Rule 1.11 as “a change of an employee from a position in one job title to a different position allocated to a job with a lower maximum.” This means that if an employee moves from one position to a position with a lower maximum, regardless of status or a change in status , this is considered a demotion. A demotion may occur internally, across agency offices or across agencies. The action reason “resignation/probational appointment” does not make the incumbent a new employee and eligible for other pay rules such as 6.5(g) when moving to a job with a lower maximum. The following actions are considered a demotion: SCS RULE 6.9 PAY UPON TRANSFER OR REASSIGNMENT This rule pertains to all transfers or reassignments affecting employees. Transfer is defined by SCS Rule 1.41 as “the change of an employee from a position in one department to a position in another depart- ment without a break in service of one or more working days.” The term “transfer” is used in a variety of ways when affecting employee movements. The SCS Rules clearly authorize transfers of classified employees in Chapter 22 and Chapter 23. Reminder Pay upon transfer of a classified employee is authorized in Chapter 6. Eligibility and authority for transfers are only applicable to the classified employees who have no break in service of one or more business days. It is recommended that when employ- ees transfer between agencies and a holiday occurs on the proposed effective date, agencies coordinate the movement in accordance with the rules and keep in mind agency liability for day-off and holiday compensation.
NOTE: Anyone currently in a Classified WAE or job appointment cannot be demoted under SCS Rule 23.14.
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Pay Upon Demotion All of the movements listed above shall be paid in accordance with SCS Rule 6.10, Pay Upon Demotion. This means that the employee’s pay shall be reduced by a minimum of 7%, provided it is not less than the minimum of the lower pay range or if an SER exists. If the appointing authority waives the reduction in pay in accordance with SCS Rule 6.10(d), any pay increases for promotion, reallocation, or detail to special duty must also be waived until the employee surpasses the pay level from which they demoted.
SCS RULE 6.11 RATE OF PAY ON DETAIL TO SPECIAL DUTY This rule governs the pay of employees who are detailed to special duty. A detail to special duty signifies the appointment of an employee to a “temporary” assignment with some anticipated end to the assignment. An appointing authority has the discretion to temporarily assign an employee to a higher-level position without compensation, not to exceed 30 days. If the detail continues beyond 30 days, the appointing authority is required to provide compensation in accordance with SCS Rule 6.7 when applicable. An employee’s pay remains the same when detailed to a job having an equivalent or lower pay grade maximum. Subject to SCS Rule 6.10(d), if the employee is detailed to a job with a higher pay grade maximum, the employee’s salary while on detail should be set in accordance with SCS Rule 6.7 and align with the agency’s policy on promotional pay. (a) Pay Increases in the Regular Position While on Detail to Special Duty — Temporary pay increases received by the employee while on detail do not affect the employee’s eligibility for pay increases that the employee would have acquired in their regular job had they not been on detail to special duty. For example, an employee may receive a market adjustment for his or her regular job while he or she is on detail to special duty in accordance with SCS Rule 6.32(f). (b) Pay Upon Conclusion of Detail to Special Duty — When a detail to special duty ends, the employee’s pay will revert back to the authorized rate of pay in the regular position. Detail Pay and Pay Level Changes If an employee is detailed, and either the regular position or the detail position is moved to a different pay level, the agency shall return the employee from detail for the pay to be recalculated. Detail Pay and SER If an employee is detailed, and their regular position is affected by the implementation of an SER policy, the agency shall return the employee from detail for the pay to be recalculated. 11 Compensation Administration Guide
SCS RULE 6.12 COMPENSATION FOR PART-TIME SERVICES Part-time employees (those who work fewer than 40 hours per week) must be paid the appropriate hourly rate for their job title. If employees start work in the middle of the pay period, they are to be paid for the number of days worked in that specified pay period. (a) This rule requires the part-time employee to receive compensation based on the appropriate hourly rate. (b) This rule requires the appointing authority to certify to the Director on each notice of appointment or change in status of the part-time employee the percent of full-time hours to be worked. (c) An employee paid on a monthly or semi-monthly basis who is employed for only part of a pay period shall be paid for the proportionate calendar days worked. SCS RULE 6.12.1 COMPENSATION FOR HOLIDAYS Employees are paid for observed holidays, unless one of the following provisions applies: (a) The employee’s regular work schedule averages less than 20 hours a week. (b) The employee is on a Classified WAE appointment. (c) The employee is on leave without pay immediately preceding AND following a holiday period. (d) The employee is on an intermittent work schedule. SCS RULE 6.13 CERTIFICATION AND PAYMENT When the Director applies a corrective action in accordance with SCS Rule 6.13(b), the Director will require the employee’s salary to be adjusted accordingly on the appropriate effective date to be in compliance with the appropriate rule. Overpayments as a result of the adjustment, however, and re- coupment of overpayments are governed by La. R.S. 42:460 and rules established by the Office of the Governor, Division of Administration, and the Office of State Uniform Payroll. Further information re- garding Recoupment of Overpayments can be found in LAC Title 4: Part III, Chapter 7 of the Louisiana Administrative Code. (a) No employee shall receive any compensation except as authorized by or pursuant to the provisions of Article X, the SCS Rules, the Uniform Classification and Pay Plans, and the policies and procedures issued by the Director. This means that classified employees are not allowed to receive any pay that is not authorized by one of these rules in Chapter 6. (b) If payments to an employee are found to have been made in violation of the provisions of Article X, the SCS Rules, the Uniform Classification and Pay Plans, or the policies and procedures issued by the Director, the Director may take any corrective action he deems appropriate or may direct the appoint- ing authority to take such corrective action. Corrective actions may include, but are not limited to, the rescinding of any actions and associated compensation, or restitution to the employee. SCS RULE 6.15 RED CIRCLE RATES A red circle rate is defined by SCS Rule 1.33.01 as “an authorized pay rate that exceeds the maximum of the range.” Compensation Administration Guide 12
An employee who has a red-circle rate remains above the maximum of the range until the range catches up with the employee’s pay and the employee is no longer above the maximum. Eligibility for a red circle rate is lost upon separation from state service or demotion. Pay is frozen at a red circle rate when: (a) The employee’s job is assigned to a pay grade with a lower maximum. (b) The employee’s position is reallocated or job corrected to a job that is assigned to a pay grade with a lower maximum. (c) An adjustment to the pay structure results in a lower maximum for an employee’s job. (d) An employee’s position is declared to be in the classified service through an acquisition, merger or consolidation under Chapter 24 rules, and the employee’s pay falls above the maximum of the range for the grade of the job into which allocated. A red circle rate that is given as a result of acquisition, merger, or consolidation which falls under Chapter 24 rules, and is greater than 28 percent above the range maximum, is reduced after two years (g) An appointing authority may request authority from the Commission to reinstate red circle rates (except when they occur as a result of an acquisition, merger or consolidation in accordance with Chapter 24 rules), awarded for two years which have expired when the employee’s pay continues to be lower than the previously authorized red circle rate. Any approval granted shall be prospective from the date of Commission action. Eligibility for reinstatement is lost upon separation from state service or demotion. (h) This rule means red circle rates which were in effect on June 8, 1994, (the date this rule was amended to provide for a continuous red circle rate) are extended to be continuous red circle rates until the range catches up for as long as that takes. SCS RULE 6.16 SPECIAL PAY PROVISIONS Under conditions described below, the SCS Commission may authorize special pay considerations, beyond those already prescribed in these rules. (a) Premium Pay This rule provides options for an appointing authority to consider premium pay to address a number of issues, such as recruiting, retention, hazardous duty, the application of educational and/or training credentials, and unusual working conditions such as difficult work environments, location, or market pay conditions. Premium pay is not generally included in retirement calculations, but that depends on the retirement system of which the employee is a member. Premium pay is not incorporated in base pay. 13 Compensation Administration Guide to a figure not more than 28 percent above the employee’s current maximum. This reduction is not eligible for reinstatement as discussed in SCS Rule 6.15(g). (e) An employee’s pay exceeds the maximum of an approved market grade. (f) Repealed effective April 2, 2014.
Additionally, an appointing authority may opt to grant rewards for the attainment of educational and/or training credentials under SCS Rule 6.16.1 for Rewards and Recognition. An appointing authority may request authority to establish Premium Pay policies up to $2.00 per hour, for all hours worked, by the SCS Director for the following reasons: Certification, Hazardous Duty, Recruitment, Retention, and Unusual Working Conditions. Policies should be submitted to SCS at least two weeks prior to the requested effective date. All policies approved by the SCS Director will be reported monthly to the SCS Commission. All policies above $2.00 per hour must be approved by the SCS Commission. Requirements for establishing a premium pay policy under SCS Rule 6.16(a) include the following: • Agencies should submit a letter, policy, and Premium Pay Questionnaire detailing the need and justification for the amount of premium pay to the Compensation Division for SCS Commission approval. See the Premium Pay Questionnaire. Agencies may choose to implement a flat rate or “up to” premium pay policy. All premium pay policies with a flat rate must contain the following language: • “This policy is not intended to create any property rights. The agency may re-assess “need” and the allocation of funding resources at any time and may rescind or change the amount given with prior SCS Commission approval. Sufficient notice must be provided to the employee.” All premium pay policies with “up to” must contain the following language: • “This policy is not intended to create any property rights. The agency may re-assess “need” and the allocation of funding resources at any time and may rescind or change the amount given at any time. Sufficient notice must be provided to the employee and notification must be sent to State Civil Service of any changes in the amount paid.” Agencies must be aware that premium pay is discontinued if an employee leaves the position authorized for the special pay or if the employee stops performing the associated hazardous or extraordinary duties. Agency personnel should put measures in place to ensure that only employees that occupy positions authorized for premium pay and employees actually performing the duties necessitating premium pay actually receive this additional payment. Premium pay rates may be for actual hours worked only or for all hours. Agencies should specify in their request how the rate will be implemented. Many agencies have found that restricting premium pay to hours worked only is a great tool to decrease absenteeism. SCS may also proactively establish premium pay rates in recognized problem areas. (b) Repealed, effective January 1, 2000. (c) Individual Pay Adjustment This rule addresses pay issues, which cannot otherwise be appropriately addressed under another SCS Rule. Proposed adjustments cannot extend beyond the range maximum and the SCS Commission must approve all Individual Pay Adjustments prior to implementation.
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(d) Incentive Awards An appointing authority may, after presenting justifiable reasons in writing to the SCS Commission, and with the SCS Commission’s approval, pay an incentive award at any time that the justifications have been shown. (e) Special pay rates authorized by this Rule shall not be effective until after approval by the SCS Commission at a public hearing.
(f) Repealed effective July 1, 2018. (g) Repealed effective July 1, 2018. (h) Payment for Attainment of Advanced Degree This rule allows an appointing authority to grant an award of up to 10% of a
permanent employee’s base salary for attaining a job-related Master’s or Ph.D. degree. Requirements for establishing an Advanced Degree Policy under SCS Rule 6.16(h) include: • The Advanced Degree policy must be submitted to the SCS Compensation Division for approval by the SCS Commission prior to implementation. • Advanced Degrees eligible for this payment must be job-related and stated in your policy. • The names of recipients and the amounts granted must be posted at the agency. • Agencies must submit an annual report by July 31 to SCS detailing payments made to employees under this policy during the previous fiscal year ending June 30. No payments shall be made under this rule until the employee has submitted proof of the degree, in the form of an official transcript, to the agency. If an employee earned a job-related advanced degree while employed by the agency prior to the effective date of the agency’s policy, the agency may grant a prospective increase to the employee on the effective date of the agency’s policy. Proof and verification of the degree, in the form of an official transcript, is required prior to payment. Awards granted under this rule shall not exceed the employee’s pay grade maximum. Agencies may opt to grant a lump sum payment under SCS Rule 6.16.1 for Rewards and Recognition, in accordance with an SCS Commission approved policy, in lieu of a base pay adjustment under SCS Rule 6.16(h). If the employee has already been compensated for the advanced degree under any other SCS Rule, such as 6.5(g), the employee is not eligible for additional payments under SCS Rule 6.16(h). SCS RULE 6.16.1 REWARDS AND RECOGNITION This rule assists agencies with the recruiting and retention of employees by providing monetary and non-monetary rewards for specific, work-related achievements. Non-monetary awards, such as certificates of recognition, pins, plaques, etc. may be granted for years of service or other categories as defined by the agency. Monetary rewards may be provided for achievements that further the mission of the agency for categories such as: • Innovations and special projects
• Spot awards for employees • Exceptional performance evaluations
• Attainment of job-related education and/or training credentials • Employee recognition (employee of the month, quarter, year) 15
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Additional Guidelines for Exceptional Performance Rewards • Monetary rewards for employees who receive Exceptional performance evaluations shall be limited to a lump sum of up to 3% of the employee’s base pay, not to exceed $2,500. • The reward may be less than 3%, but every employee receiving an Exceptional performance rating must receive either the same percentage or the same flat dollar amount. • The agency must identify in the policy whether a percentage or flat dollar amount will be granted. Flat dollar amounts cannot exceed 3% of an employee’s base salary. • For the Exceptional performance rating effective on January 1st, any rewards granted shall have an effective date within the same calendar year from March 2nd through December 31st. • All classified employees of the agency with an Exceptional performance rating shall receive the reward on the same effective date. • The agency shall ensure that all pending actions affecting the employee’s base salary have been applied to the employee’s record prior to calculating the reward. Otherwise, the employee’s reward shall be recalculated as necessary. • For percentage rewards, the reward amount shall be calculated based on the employee’s hourly salary as of the effective date of the reward payment and annualized according to the employee’s regular work schedule. See examples for calculating this figure, below. NOTE: Awarding gift cards or gift certificates to employees is allowable. However, these rewards are considered monetary, and as such, are taxable. Rewards and Recognition programs established under SCS Rule 6.16.1 shall be implemented in accordance with written policies and procedures established by each agency. Requirements for establishing a Rewards and Recognition policy include: • The Rewards and Recognition policy must be submitted to SCS for approval by the SCS Commission prior to implementation. • The policy must state the specific work-related requirements for the reward, and ensure consistency in implementation and compliance. • The achievements to be rewarded must be listed in the policy along with the amounts of the rewards to be given. For non-monetary rewards, the policy must specify an estimated value of such rewards. • The names of recipients and the amounts granted must be posted at the agency. • Agencies must submit an annual report by July 31 to SCS detailing payments made to employees under this policy during the previous fiscal year ending June 30. • The policy must be posted in a manner which ensures availability to all employees.
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SCS RULE 6.16.2 OPTIONAL PAY This rule assists agencies with recruiting and retention issues by allowing agencies to grant pay increas- es to permanent employees to match a job offer, to address salary compression, for additional duties, or to recruit into difficult-to-fill positions. Please see the following table for the maximum amounts that may be granted in accordance with this rule.
Requirements for establishing an Optional Pay policy include: • The Optional Pay policy must be submitted to State Civil Service for approval by the SCS Commission prior to implementation. • The policy must state the rule provisions that the agency will use. The agency does not have to include all four rule provisions in the policy. • The names of recipients and the amounts granted must be posted at the agency. • Agencies must submit an annual report by July 31 to SCS detailing payments made to employees under this policy during the previous fiscal year ending June 30. • The policy must be posted in a manner which ensures availability to all employees. (a) Matching a Job Offer SCS Rule 6.16.2(a) allows an appointing authority to provide for the retention of a permanent employee whose loss would be detrimental to the agency. The agency cannot exceed the amount of the verified job offer under this rule. If the 10% Optional Pay adjustment does not match the offer, the agency may ask the SCS Commission to authorize an increase greater than 10% under SCS Rule 6.16(c), Individual Pay Adjustment. • The job offer must be from a private employer, a non-state governmental entity, or for an unclassified position in another state department. • The agency must verify the job offer before granting the optional pay adjustment. In some cases, it may not be possible for the employee to obtain a written job offer. In those rare cases, if the agency is able to verify the job and salary offer by telephone, it is permissible to grant an adjustment as long as the agency’s policy allows for such situations. • Employees at range maximum are not eligible for this payment. 17 Compensation Administration Guide Payments under this rule are limited to permanent employees and cannot duplicate payments received pursuant to other pay rules. The sum of multiple payments under this rule shall not exceed a total of 10% of the employee’s base salary in a single fiscal year.
(b) Compression Pay SCS Rule 6.16.2(b) allows an appointing authority to address salary compression affecting a permanent employee. Salary compression occurs when new hires are hired at levels similar to employees who have been with the state for many years. There is no SCS rule that says that an employee who either has more state service than another employee or is in a higher position than another employee must have a higher salary. However, when significant salary compression issues arise as a result of adjustments to the pay structure or from use of other pay rules, this rule may be used to alleviate these issues. When evaluating instances of salary compression, merit factors should always be taken into consideration Typical merit factors may include:
Only employees at your agency should be compared. Common comparisons include supervisor/ subordinate relationships and employees in the same job series. If an agency is planning to pay a large group of employees (10 or more), grant compression pay to the same employee in consecutive fiscal years or would like to compare employees in other situations, the agency must contact SCS prior to making the payment. Employees at range maximum are not eligible for this payment. (c) Additional Duties SCS Rule 6.16.2(c) allows an appointing authority to compensate permanent employees for performing additional duties of either a permanent or temporary nature. To be compensable under this rule, the new duties should be in addition to the employee’s existing responsibilities. Employees who are at range maximum are only eligible for a lump sum payment and cannot receive lump sum payments in consecutive years, even if the reasons for the adjustment are different. Guidelines for Permanent Duties • Base pay or lump sum payment of up to 5% • The additional duties must be added to the official position description and affirmed by SCS prior to granting the payment. Employees whose positions are reallocated upward are ineligible for optional pay for the additional duties. • The effective date of the payment must be the same effective date as the official position description. • Approvals of the appointing authority are allowed to have a retroactive effective date within the same fiscal year in order to align with the effective date of the official position description; however, all approvals must be made and actions entered before the reporting deadline for the fiscal year (July 31). • An employee cannot receive more than 10% in base pay increases for additional duties within three consecutive fiscal years. Compensation Administration Guide 18
A lump sum may be used in conjunction with a base pay increase, as long as the total Optional Pay dol- lar amount does not exceed the maximum allowed by the rule. However, under no circumstances may the agency award multiple base pay increases that exceed the percentages allowed by the rule. See the following examples for more guidance on these types of situations. • If the employee stops performing the duties, the recurring payments shall be stopped by the agency. Agencies shall ensure that recurring payments are ended if the employee transfers to another agency. Guidelines for Temporary Duties • Lump sum payment of up to 5% • Payment should be commensurate with the time the duties are actually performed • May be granted as a one-time lump sum at the end of the time period the duties were performed or as a recurring lump sum amount during the time period to be dispersed on each paycheck • All calculations for lump sum payments must be based on the employee’s base pay at the time the duties were assigned. Recalculating the lump sum amount to reflect pay increases (i.e. reallocations, market adjustments, etc.) that may occur throughout the duration of the duties is not permitted. • For recurring lump sum amounts, an end date should be established in the payroll system not to exceed a one-year period. o If the recurring payments need to be extended beyond one year, an updated appointing authority approval is necessary. At the time of the reauthorization, the lump sum amount may be recalculated if desired.
The example below illustrates the use of optional pay while adhering to the base pay or lump sum pay- ment of up to 5% within a fiscal year. Additionally, this example illustrates the restriction of an employee receiving no more than 10% in base pay increases for additional duties within three consecutive years.
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