(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
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