1715 - Employee Compensation Request Policy (Historical View)

Status: Active

Change Notes

Revisions made to Employee Compensation Request Policy.

Category

Compensation

Audience List

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

Synopsis

This policy:

• Describes parameters for requests for employee compensation that will be considered based on annual budget conditions.
• Explains the process for departments to submit requests for changes to employee compensation.
• Identifies the deadline to submit requests for employee compensation.
• Provides guidance to departments on how to complete the request form.
• Explains what supporting data is required to be submitted with any employee compensation request.

Introduction

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

This policy addresses the two different processes.  This policy replaces the employee compensation request process outlined in the Classification and Pay Guide Sections 230 and 280 as well as the “Harvest Memo” process for items that result in a change to the level of compensation or compensable benefits for state employees.

Statement

This policy outlines the process for departments to submit employee compensation requests for bargaining units with contracts expiring in 2024. This policy also applies to employee compensation requests for related excluded employees tied to those bargaining units. In order for employee compensation requests to be considered, requests must be supported by a critical program need, and may require the requesting department(s) to certify availability of departmental funding for the request.

Submitting an employee compensation request pursuant to this policy may be necessary for a department to address any of the following critical needs:

• Recruitment and retention difficulties
• Special professional or educational certification
• Difficult to recruit work location or shift assignment
• 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

Employee Compensation Requests for Upcoming Bargaining

For bargaining contracts expiring in calendar year 2024, departments are required to submit these requests to EmployeeComp@calhr.ca.gov no later than May 1, 2023. Failure to submit a complete package will result in delays in reviewing the package or possible denial of the package.

The following bargaining unit contracts will expire on or around July 1, 2024:

• Unit 5 – California Association of Highway Patrolmen (CAHP)
• Unit 8 – CAL FIRE Local 2881 (Local 2881)

Other Employee Compensation Requests

In years where there are multiyear bargaining contracts, there may be a need to address compensation issues prior to the expiration of the contract. These requests must meet the specific criteria set forth 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

Departments are required to submit these requests to EmployeeComp@calhr.ca.gov no later than May 1, 2023. Failure to submit a complete package will result in delays in reviewing the package or possible denial of the package.

Requests Not Subject to this Policy

Requests for non-employee compensation items should be submitted to either the CalHR Personnel Management Division (PMD) or CalHR’s Labor Relations Division as follows:

Classification requests that do not result in employee compensation increases 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-employee compensation items for PMD include specification changes, alternate range criteria changes, class consolidations, etc.

Non-employee compensation requests should be directed to LRD via email at LR.info@calhr.ca.gov as part of the annual Harvest Memo process. This would include contract language changes that do not include changes in employee compensation or reimbursable benefits.

Application

If departments have a request to submit pursuant to this policy, the departments are required to complete the information on the CalHR 142 and submit the request to EmployeeComp@calhr.ca.gov no later than May 1, 2023. Departments must include all supporting documentation related to the request. Submission of a complete package, providing all the relevant and requested information and analysis assists CalHR in a timely review, analysis, and decision.    

Submission of requests to EmployeeComp@calhr.ca.gov must include the following:

• Separate email for each compensation request.
• All documents should be in one PDF, except for excel files.
• If multiple documents are needed, please ensure they are sequentially numbered.
• Subject line of the email should reflect:
  • Department acronym, type of request (i.e., SSA, Pay Diff), classification or classification series

CalHR will confirm receipt of the package with a CalHR number. Please use this number in all further correspondence and emails regarding the package. 

Requests which include multiple compensation items for the same classification series should be consolidated into one package. Example: Do not submit separate packages when requesting a Special Salary Adjustment and Pay Differential for the same classification series (including rank & file and excludeds).

CalHR will review all requests and work closely with departments throughout the process.

Department Directors and/or Agency Secretaries should approve and be aware of requests submitted pursuant to this policy. The CalHR determinations will be provided to the Department Directors and/or Agency Secretaries.

Timeline

CalHR will be working directly with departments impacted by this policy to ensure understanding of the process and requirements and to support each department’s ability to be responsive to the needs of CalHR for review of their requests. Below is a summary of the timeline for this cycle:

• March 2023 through April 2023 – CalHR will meet with departments with bargaining units covered within this policy. These meetings will be to ensure departments understand the policy, allow departments to discuss specific concepts they are considering, and allow CalHR to provide specific direction on requests departments anticipate submitting.

• May 1, 2023 – Department requests are due to CalHR.
   
• May 2023 through October 2023 – CalHR will analyze and discuss packages internally. During this time, departments will be given an opportunity to present on their requests and answer initial questions from CalHR. CalHR will communicate with departments if additional data or information is needed. 

• November 2023 – CalHR will communicate the status of the requests to the Department Director and/or Agency Secretary. This communication must remain confidential.

Authorities

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

Resources

Forms

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

Web Pages

• Civil Service Pay Scales: Civil Service Pay Scales
• Pay Differentials: List of Pay Differentials

Authorized By

Anthony Crawford
Deputy Director, Financial Management Division

Contact Person

Stephan Higginbotham
Fiscal Program Manager, , Financial Management Division
Phone: 916-323-8485
Fax: 916-322-8376
Email: EmployeeComp@calhr.ca.gov

Superseded Policies