No. 30060: R477-6. Compensation

DAR File No.: 30060
Filed: 06/09/2007, 11:08
Received by: NL

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 67-19-12 requires the Department of Human Resource Management (DHRM) to work with the Governor to establish pay plans for each position in the classified service (Subsection 67-19-12(4)) and to issue rules for the administration of pay plans (Subsection 67-19-12(4)(c)(iii)). Section 67-19-12.5 defines the flexible benefit program authorized by the Internal Revenue Service and provides for DHRM to make rules for its administration.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

The Governor's Office of Planning and Budget (GOPB) and the Department of Human Services (DHS) requested language for salary increases in two situations. One was to limit salary step increases to only when appropriated by the legislature. The second request was to make employees on longevity eligible for across the board cost of living allowance's or other pay plan adjustments if authorized by the legislature for all employees. The Utah Public Employees' Association (UPEA) requested language requiring that administrative salary increases only be granted when they do not cause equity concerns. The Department of Natural Resources (DNR) human resources staff requested that DHRM allow a pay increase for an employee who transfers to be granted on the same day as the transfer be deleted and replaced with language allows management to decrease the salary of a transferring employee who moves to a position with a lower range.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

Section 67-19-12 provides the legal basis for the state compensation system and requires that DHRM design pay plans and write rules to implement the section. Due to the critical nature of employee compensation for the state budget and for the employee, this rule is monitored closely by all interested parties and is perhaps the most researched of the DHRM rules. Many provisions of this rule represent agreements made with interested parties over long periods of time. At the same time, DHRM is very sensitive to the budgetary and legal implications when considering proposed changes. Therefore, this rule should be continued. The request from GOPB and DHS to limit merit raises to those appropriated by the legislature was not accepted because language is already in rule limiting across the board merit raises contingent on legislative appropriation. This additional language would stop step increases when employees are promoted or rewarded for good performance. The second request from GOPB and DHS was not accepted because longevity status is well defined in the code which grants adjustments according to a fixed formula. The request from UPEA was not accepted because one of the primary purposes of administrative salary increases is to reward employees for good performance with a step increase. The suggestion from DNR was modified to allow a manager to adjust the salary of an employee who transfers to another position. All transfers do not include a salary increase. Some are lateral with no change in salary and others are downward and may require a salary decrease in defined situations.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Human Resource Management
Administration
Room 2120 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY UT 84114-1201

Direct questions regarding this rule to:

Lyle Almond at the above address, by phone at 801-538-3391, by FAX at 801538-3081, or by Internet E-mail at [e-mail]

Authorized by:

Jeff Herring, Executive Director