1715 - Employee Compensation Request Policy

Category

Compensation

Audience List

• Budget Officers
• Employee Relations Officers
• Labor Relations Officers
• Personnel Officers
• Personnel Transactions Supervisors

Synopsis

This policy:

• Defines parameters for departments to submit employee compensation requests.
• Describes the process for departments to submit employee compensation requests.
• Identifies the timeframes for departments to submit employee compensation requests.
• Provides resources for departments to submit employee compensation requests.

Introduction

Government Code section 19826 authorizes CalHR to “establish and adjust salary ranges for each classification of position in the state civil service subject to any merit limits contained in Article VII of the California Constitution.” Pursuant to Government Code section 3517, the Ralph C. Dills Act, changes to the wages, hours, and other terms and conditions of employment for rank-and-file employees must be negotiated with representatives of recognized employee organizations. By law, CalHR represents the Governor as the state employer in such negotiations.

Statement

This policy outlines the process for departments to submit employee compensation requests for bargaining units with contracts expiring in 2026. This policy also applies to employee compensation requests for related excluded employees tied to those bargaining units. Departments are responsible for reviewing this policy each year as parameters may change.

Requests for employee compensation must be driven by a critical program need to be considered and may require the department to certify availability of funding for the request.

This policy outlines the process for departments to request employee compensation for classifications to address any of the following critical needs:

• Recruitment and retention difficulties, including:
  • Significantly high vacancy or turnover rates
  • Location-based challenges
  • Upward Mobility
  • Alternate shift assignments
• Pay equity concerns
• Special professional or educational certification
• Performance of atypical duties
• Recognition of special but temporary responsibilities
• Acquisition or possession of special licenses, skills, or training
• Incentive-based pay
• Compaction issues
• Benefits and allowances such as safety footwear, professional dues, etc.
• Other special compensation-related considerations that impact a classification or subgroup within a classification series

It is vitally important that state government is efficient, effective, and only expends funds that are necessary to the critical operation and security of the state. As such, departments should exhaust all non-compensation solutions prior to submission.

Employee Compensation Requests for Upcoming Bargaining

For bargaining contracts expiring in calendar year 2026, departments must submit requests to EmployeeComp@calhr.ca.gov no later than May 1, 2025. Failure to submit a complete request may result in delays in reviewing the request or possible denial of the request.

The following bargaining unit contracts will expire on or around June 30, 2026:

• Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 - Service Employees International Union, Local 1000 (SEIU)
• Unit 7 - California Statewide Law Enforcement Association (CSLEA)
• Unit 8 - Cal Fire Local 2881 (Local 2881)
• Unit 12 - International Union of Operating Engineers (IUOE)

Employee Compensation Requests Outside Normal Bargaining Timeframes

During the term of an existing contract, a critical need may arise that requires submission of an employee compensation request prior to the expiration of the contract. These requests are considered “off cycle” and must meet at least one of the criteria below:

• Legislative mandate
• Executive Order
• Health or safety emergency
• Loss of funding/increase of funding
• Critical need to fulfill department’s primary mission/objective
• Potential failure of business operations
• Other urgent need as demonstrated by the department

Requests Not Subject to this Policy

Requests for items that do not involve employee compensation should be submitted to either the CalHR Personnel Management Division or CalHR Labor Relations Division as follows:

Personnel Management Division (PMD): Classification requests that do not include changes to employee compensation should continue to be directed to PMD via email at PMD@calhr.ca.gov or the department’s assigned PMD Consultant. If the department is unsure if the request falls into this category, please reach out to the PMD Consultant in advance of submitting any requests. Examples of non-compensation items for PMD include classification specification changes, alternate range criteria changes, classification consolidations, or questions regarding allocations, delegated personnel functions, etc.

Labor Relations Division (LRD): Other items for bargaining should be submitted to CalHR’s LRD via email at LR.info@calhr.ca.gov as part of the annual Harvest Memo process. These items may include contract language changes or changes related to other terms and conditions of employment.  The Harvest Memo process does not involve employee compensation, reimbursements, allowance, or any other monetary subjects.

Application

Departments interested in submitting a request are required to complete the CalHR 142 and email it to EmployeeComp@calhr.ca.gov. For more information on the Employee Compensation Request process, please review the Employee Compensation Training presentation located on HR Net, linked under “Web Pages” at the bottom of this policy.      

Please note: A separate request package should be submitted for each problem needing to be addressed with compensation. CalHR will confirm receipt via email once the request has been received and will provide the department with a CalHR tracking number for each request submitted. Departments must use this number in all future correspondence with CalHR pertaining to the request. 

Departments should seek approval from their Directors and/or Agency Secretaries prior to submitting any requests.

The following timeline provides a general overview of the Employee Compensation request cycle and may change depending on a variety of factors:

• February - April: CalHR issues annual policy around February which identifies the applicable bargaining unit contracts expiring the following year. Departments will draft their requests and should consult with the Employee Compensation Unit if guidance is needed. During this time, departments can discuss their requests with CalHR and receive feedback and/or respond to any preliminary questions. 

• May 1: Employee Compensation requests are due to CalHR. All requests submitted will be considered unless otherwise specified.

• May – November: CalHR will review all requests submitted from departments during this time and reach out if additional information is needed to support a request.

CalHR will not be able to provide a status update on items submitted since they will be considered for bargaining which does not occur until the following year.

• November – the following year: CalHR prepares for upcoming bargaining and will consider compensation requests submitted through this process. Collective bargaining will also occur during this period. CalHR will notify each department of the outcome of their request after the collective bargaining period ends.

Authorities

• California Budget Act, Item 9800
• Government Code section 19826
• Government Code section 3517.5
• Government Code sections 3512 to 3524
• Government Code section 19819.7
• Government Code section 3517.63
• Government Code section 3517

Resources

Forms

• CalHR-142: CalHR-142 Employee Compensation Request
• CalHR-142 Instructions: CalHR-142 Instructions
• CalHR-142 Spreadsheet Template: CalHR-142 Spreadsheet Template

Related Policies

• Policy 1707: Hiring Above Minimum (HAM)

Web Pages

• Bargaining / Contracts: Bargaining Unit Memoranda of Understanding
• Civil Service Pay Scales: Civil Service Pay Scales
• Hiring Above Minimum: Civil Service Pay Scales, Section 5, Hiring Above Minimum Authorization
• HR Net: Employee Compensation Training Video
• Pay Differentials: List of Pay Differentials

Authorized By

Stephan Higginbotham
Chief
Financial Management Division

Contact Person

Financial Management Division
Employee Compensation Unit
Email: employeecomp@calhr.ca.gov

Superseded Policies

History

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