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Policy and Procedures Manual
Topics
Salaries of Classified Employees
- Class Downgrade
- Pay Plan Implementation
- Special Rates of Pay
- Exceptionally Well-Qualified Special Entry Rates
- Prevailing Labor Market Rates
- Moving Employees to Approved Labor Market Entry Rate
- Shift Differential
- Administrative Errors Involving Pay
- Extra Help
- Re-employment of Retirees by State Agencies
Section 220.0.0 Salaries of Classified Employees
(Arkansas Code Annotated §§ 21-5-201 et seq., as amended by Act 22 of 2003, First Extraordinary Session, effective 07/01/2003)

Section 220.13.0 Class Downgrade

Section 220.13.1
The enactment of legislation which has the effect of lowering the grade level assigned to a specific classification.

Section 220.13.2
An employee's rate of pay shall not change upon a class downgrade and the employee's salary shall remain constant until that employee's assigned grade maximum is equal to or exceeds the employee's established salary. If the employee's rate of pay in the higher grade falls above Pay Level IV in the lower grade, the employee will continue to receive the same rate of pay as that in the higher grade.

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Section 220.14.0 Pay Plan Implementation

Section 220.14.1
The maximum rate of compensation for which an employee shall be eligible on July 1 of each fiscal year, shall be determined by increasing the employee's previous fiscal year's June 30th salary as follows:For employees whose annual salary rate on June 30 is:
(a)
Twenty-one thousand one hundred twenty-eight dollars ($21,128) or less, the employee is eligible for an annual increase of five hundred seventy dollars ($570);
(b)
Twenty-one thousand one hundred twenty-eight dollars ($21,128) to fifty thousand dollars ($50,000), the employee is eligible for an annual salary increase of five hundred seventy dollars ($570) plus two and seven-tenth's percent (2.7%) of the amount that the employee's June 30 salary exceeds twenty-one thousand one hundred twenty-eight dollars ($21,128);
(c)
Fifty thousand and one dollars ($50,001) to ninety thousand dollars ($90,000), the employee is eligible for an annual increase of one thousand three hundred fifty dollars ($1,350) plus one and nine tenths percent (1.9%) of the amount that the employee's June 30 salary exceeds fifty thousand dollars ($50,000); and,
(d)
Ninety thousand and one dollars ($90,001) and above, the employee is eligible for an annual increase of two thousand one hundred ten dollars ($2,110) plus one and four tenths percent (1.4%) of the amount that the employee's June 30 salary exceeds ninety thousand dollars ($90,000.)
An employee whose salary falls below Pay Level 1 for the grade assigned to his classification may be adjusted to Pay Level I. All other employees shall be adjusted to their appropriate pay range for the grade assigned to their classification byt may not exceed the maximum rate provided for that grade.

Employees whose June 30 annual salary rate is at Pay Level IV shall be eligible for the increase provided in subdivisions (a) through (d) of this section, but the increase shall be paid as a lump sum on June 30 of the year in which the increase is to occur.

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Section 220.15.0 Special Rates of Pay

Section 220.15.1
Special rates of pay are provided to attract employees to state service where it has been demonstrated that market conditions make it difficult to recruit at the normal entry rate, or where the applicant has exceptional qualifications.

Section 220.15.2
Any employee whose specific job assignment requires the skill to communicate in a language other than English, including American Sign Language, and which skill is required as a secondary minimum qualification by the classification specification for the position occupied by the employee, shall be eligible to be paid up to an additional ten percent (10%) of the employee's salary.

In those instances where the granting of the additional compensation would have the effect of exceeding the maximum annual rate for the grade assigned to the employee's classification, the additional compensation shall not be considered as exceeding the maximum allowable rate for that grade.

An employee who is receiving additional compensation under the provisions of this section and who moves into a position that does not require the skill to communicate in a language other than English, or whose position no longer requires the use of the skill, shall revert, on the effective date of the change, to the rate of pay for which the employee would otherwise receive.

Authority to implement special rates of pay for required language skills may be approved by the Office of Personnel Management, after review of the Legislative Council, for specific positions identified by the agencies and institutions of higher education.

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Section 220.16.0 Exceptionally Well-Qualified Special Entry Rates

Section 220.16.1
In those instances where an applicant's background and experience qualifies him/her to perform the job with very little or substantially less orientation and training than other qualified applicants, agency directors, and presidents and chancellors of institutions of higher education, may approve starting salaries within a "Hiring Range" for new employees up to the level equal to fifty percent (50%) of the range between Pay Level II and Pay Level III of the appropriate grade. The use of the "hiring range" shall be in accordance with the guidelines as follows:
(a)
The "hiring range" shall be used only for establishing a starting salary for an employee in an individual position.
(b)
Any person hired at or above Pay Level I shall meet or exceed the minimum qualifications for the job classification.
(c)
Salary determination within the "hiring range" shall be based on the applicant's qualifications, competitive compensation rates, and effect on internal equity within the agency or institution.
(d)
The hiring of a new employee under the provision of this section shall not affect the salary level or salary eligibility of any existing employee within the agency or institution.
(e) Agencies and institutions shall not utilize the "hiring range" until authorized to do so by the Office of Personel Management. Authorization for salaries within the "hiring range" for new appointments referenced in this section shall require the approval of the Chief Fiscal Officer until such time that the agency or institution is authorized to do so by the Office of Personnel Management.
(f) Quarterly audits of the use of the "hiring range" by agencies and institutions of higher education shall be performed by the Office of Personnel Management. Agencies and institutions of higher education that are not in compliance with the use of the "hiring range" authority shall be reported to the Legislative Council and may have its "hiring range" authority suspended or revoked pending further investigation by the Office of Personnel Management.
(g) A monthly report of new hires above Pay Level I shall be prepared by the agencies and institutions and presented to the Office of Personel Management for review by the Legislative Council.
The Office of Personnel Management, with the review of the Arkansas Legislative Council, may approve special entry rates up to Pay Level IV.

However, requests may be approved only after an agency provides documentation that no current employee, (1) applied for promotion or (2) any current employee applying for promotion was determined by the agency to not be an equivalent alternative to the exceptionally well-qualified applicant. Agencies and institutions must follow the procedures established by the Office of Personnel Management in requesting special entry rates for exceptionally well-qualified applicants.

The provisions of this section shall apply to both current and prospective state employees. The provisions of this section shall apply to current employees only in instances where the job has been advertised and the employee has competitively applied for the promotion by submitting a state application for consideration for the position. Otherwise, employees accepting internal promotions shall be compensated in accordance with Section 220.7.0

Forms:
Exceptionally Well Qualified Entry Rate Form - OPM Form 080
Applicant Summary Sheet - OPM Form 81

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Section 220.17.0 Prevailing Labor Market Rates - Special Entry Rates

Section 220.17.1
The Office of Personnel Management may recommend and the Chief Fiscal Officer of the State may approve special entry rates up to Pay Level IIM where an agency is unable to competitively recruit at the entry level for a specific classification title. The Office of Personnel Management, with the review of the Arkansas Legislative Council, may approve special entry rates up to the maximum Pay Level of the grade. Agencies and institutions must follow the procedures established by the Office of Personnel Management before requesting labor market special entry rates.

Forms:
Labor Market Rate Form - OPM Form 085

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Section 220.18.0 Moving Current Employees To An Approved Labor Market Special Entry Rate - State Agencies and Institutions of Higher Education

Section 220.18.1
In all instances where a special rate of compensation has been approved by the Chief Fiscal Officer of the State for a specific classification, due to prevailing market rates of compensation or an acute shortage of qualified applicants, current employees within the state agency or institution allocated to the affected classifications of Grade 13 and below shall be adjusted to that new rate by the agency or institution if sufficient revenues exist to do so.

The Office of Personnel Management with the review of the Arkansas Legislative Council may approve movement of Grade 14 and above current employees of state agencies and institutions of higher education to an approved labor market special entry rate up to Pay Level IV. A current state employee who is promoted or demoted without prejudice to a classification with a labor market special entry rate must first be adjusted into the new grade following normal procedures. If this adjustment places the employee at a rate of pay lower than the rate provided for by the special entry rate, the agency or institution may move the employee to the special entry rate.

Forms:
Movement of Current Employees - OPM Form 095

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Section 220.19.0 Shift Differential

Section 220.19.1
Agencies and institutions which routinely schedule more than one work shift per day may pay employees a Shift Differential. Unless Special Language in an agency or institution appropriation act permits otherwise, the following rules and restrictions shall govern the payment of Shift Differential:
A.
Shift Rate: Employees may be paid up to 5.5 percent above the normal rate of pay for which they are eligible. If an employee is paid at Pay Level IV for their grade as regular compensation, an additional percentage, not to exceed 5.5 percent, may be allowed and shall not be considered as exceeding the maximum allowable rate for the grade.
B.
Hours: For State agencies and institutions, shift work must begin not earlier than 2:30 p.m. and end no later than 8:00 a.m. the following day.
C.
Assignment to Shift: Employees must be regularly assigned to a late shift or regularly assigned to a late shift on a scheduled rotating basis. Employees assigned on a rotating basis may be compensated at the shift rate on a pro-rata basis equal to the percentage of time spent working shift.
D.
Removal from Shift: When an employee has been on the late shift and has been receiving the shift differential pay and is removed from shift work or reassigned to a normal shift, the employee's salary shall revert to the former rate of pay on the day of the change.
E. Authorization to Pay Shift Differential: The agency director or the president or chancellor of the institution of higher education may authorize Shift Differential pay.
Forms:
Shift Differential Form - OPM 60

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Section 220.20.0 Administrative Errors Involving Pay
as amended by Act 656 of 2003, effective 07/01/2003

Section 220.20.1
The Office of Personnel Management will, upon written request, review and, if justified, authorize supplemental pay to correct administrative errors. Such payment shall not be considered retroactive pay and can be made to correct administrative errors within a fiscal year. An administrative correction for a preceding fiscal year may be allowed if requested within twelve (12) months of the end of the fiscal year and the request is approved by the State Chief Fiscal Officer.

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Section 220.21.0 Extra Help

Section 220.21.1
An extra-help employee must be assigned a current classification by the agency or institution since rates of pay for such employees must not exceed those provided in the Uniform Classification and Compensation Act, or its successor, for the appropriate classification. An employee transferring from an extra-help to a regular position must be placed at the minimum rate of pay for the assigned classification with the following exceptions:
A.
The classification has a current labor market special entry rate.
B.
Hours: For State agencies and institutions, shift work must begin not earlier than 2:30 p.m. and end no later than 8:00 a.m. the following day.
C.
The applicant's adjustment is based on prior state service in a regular position.
D.
The Office of Personnel Management has granted an exception due to special circumstances.
 
Section 220.21.2
For extra help employees under the age of eighteen (18) see section 109.0.0, Employees under the age of Eighteen.

Section 220.21.3
Extra help employees of State Agencies may not exceed one thousand (1000) hours per fiscal year.

Section 220.21.4
Extra help employees of Institutions of Higher Education may not exceed fifteen hundred (1500) hours per fiscal year.

Sectionn 220.21.5
As a condition of employment, a person hired or appointed to a position in any agency in state government on or after August 12, 2005 shall be required to accept payment of salary or wages by electronic warrants transfer. See Section 236.0.0, Direct Deposit as a Condition of Employment.


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Section 220.22.0 Re-employment of Retirees by State Agencies

Section 220.22.1
Former employees who retired from state government pursuant to Act 187 of 1987 (the Early Retirement Incentive Program) may not be re-employed by a state agency, institution, board or commission.

Section 220.22.2
Any former employee who retired from a state agency, institution, board or commission and is rehired shall be paid the current entry rate for the classification in which they are hired unless the rehiring agency requests: (1) a special entry rate based on Labor Market conditions, or (2) an exceptionally well-qualified special entry rate. A retiree who is rehired and placed in a regular position may be rehired at his/her exit salary as long as the salary does not exceed pay level IV of the position they are re-employed. The retiree shall be considered a new hire or a rehire and eligible for benefits (insurance, sick leave, annual leave, career service bonus, etc.), consistent with state policy. Participation in one of the State-sponsored retirement systems is excluded unless specifically requested by the rehired retiree and approved by the appropriate retirement system.

Section 220.22.3
Any former employee who retired from a state agency, institution, board, or commission and is rehired in an extra-help position is ineligible for benefits except holiday pay if in pay status on the last scheduled work day before the holiday and at least one hour on the first scheduled day after the holiday.

Section 220.22.4
If an employee receives compensation for unused sick leave at retirement pursuant to § 21-4-501 and returns to state employment, the employee shall not be required to wait until the expiration of the number of days for which he or she received additional compensation before returning to state employment or to repay the amount of the compensation.

 

Section 220.22.5
As a condition of employment, a person hired or appointed to a position in any agency in state government on or after August 12, 2005 shall be required to accept payment of salary or wages by electronic warrants transfer. See Section 236.0.0, Direct Deposit as a Condition of Employment.



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