200. Salary Analysis for Board Items

Introduction

A Salary Analysis Form (Part C of the Classification Proposal Request Process) is required for all new classes or proposed changes to existing salary levels. The Salary Analysis is an essential source of information considered by the DPA LRO in negotiations over salary. This section describes the major considerations that need to be included in a salary analysis.

The CCD analyst must consult with the appropriate Labor Relations Division staff and the CCD analyst responsible for the affected bargaining unit prior to completion of salary analyses. Preliminary consultation is recommended prior to commencing classification work when represented or supervisory classes are involved. These consultation efforts serve the purpose of avoiding possible misunderstandings between DPA and employee unions, or conflicts with DPA’s negotiating strategy. Only the DPA LRO has the authority to negotiate the salary range for a classification.

The salary analysis and any supporting documents are confidential and are not to be submitted to, nor shared with, persons or organizations outside of DPA except as deemed appropriate by the DPA LRO. Salary-related material is not included in the Board Item package that is sent to the State Personnel Board for approval.

Salary Analysis for Revised Classes

The majority of classification revisions, such as updated specification language or minor changes to the minimum qualifications, are unlikely to impact salary. In these instances, the analysis (Part C) may not be required. However, if the proposed revisions substantially change the concept of the class(es) in a way that necessitates a salary change, the entire Salary Analysis Form must be completed. The analysis should address whatever changes have taken place since the last classification or salary action. The previous salary is typically accepted as having adequately addressed the level of responsibility and having identified appropriate salary ties at the time of the class establishment or last salary adjustment.

Salary Analysis for a New Class

New Class in an Existing Series

The salary for a new class in an existing series will typically be proposed based upon the relationship of the new class to other classes in the series and possibly to related classes in other class series.

Generally, classes within a series are recommended for establishment with approximately a 10 percent differential. Specialist-level classes within a series often will have a proposed salary at parity with the first and/or second supervisory level within the same series.

If the classification proposal results in a working-level class being supervised by a class at the same salary level, then consideration may be given to recommending a salary for the supervisory class at a level slightly higher than the nonsupervisory class (usually about 5 percent). See Section 335, Reporting Relationships, for additional discussion regarding this subject.

New Class, New Program

When trying to determine the correct salary for a new class in a new program area, departments should first attempt to find comparisons in related class series in State service. The salary analysis would include a description of how the proposed class is related to an existing class in the same bargaining unit. Internal equity/comparisons “tend” to take precedence over an outside salary tie.

If it is not feasible to establish salary relationships with State classes, but there are similar positions in public jurisdictions or private industry, a survey should be conducted to find what these entities pay for work similar to the proposed civil service class. The determination of the proposed salary should be based upon the following:

• The comparability of the duties in industry or public jurisdictions to the proposed class within State service.
• The salary relationship that exists in other jurisdictions and how this is similar/dissimilar to the proposed salary.
• Similar structures and salary relationships in State service, if applicable.

A direct match with outside salaries typically should not be made where the State service salaries for other related classes are generally lower. Otherwise, a proposed salary resulting from a direct outside match might cause internal salary relationship problems within the State compensation plan.

EXAMPLE: In reviewing the salary for a proposed class of Intensive Care Unit Nurse, the average percentage difference found outside State service between the Intensive Care Unit Nurses and the full journey level Registered Nurses would probably be the percentage difference recommended between the proposed class and Registered Nurse in State service.

Hourly and Daily Salary Rates (Excluding Trade Rates)

Hourly and daily salary rates (rather than monthly rates) are generally appropriate only for those classes where employees work on an irregular or intermittent basis such as Student Assistants, Examination Proctors, etc. (This does not apply to employees in a monthly salaried class who are paid by direct hourly conversion and receive corresponding holiday credits.)

Determine whether an hourly or daily salary rate should be established by application of the following general guide:

• An hourly rate is typically established for intermittent classes that are subject to the provisions of the Fair Labor Standards Act (FLSA), Work Week Group 2 (WWG2).
• A daily rate is typically established for intermittent classes that are exempt from FLSA (e.g., attorneys, doctors, or teachers). If it is likely that the FLSA-exempt employee would work changing increments of time on each scheduled work day, then the employee should be paid a proportion of the daily rate for hours worked. (See the Variable Compensation section in the Pay Scales for examples.)

Recommendations on the hourly or daily rate should be closely coordinated with the DPA LRO to address FLSA and benefit issues.

Salary for Managerial Classes

Essentially the same considerations used for rank-and-file and supervisory classes should be applied when preparing salary analyses for managerial classes. The salary placement of a managerial class will be based more often upon internal relationships than direct comparisons with salaries of related classes outside of State service.

Because of statutory ceilings on the pay of exempt and constitutional officer salaries, some civil service salaries tend to “bump” into the salaries of these top level positions. This compression of salary levels is called compaction. Frequently, there is not room for the typical 10 percent or 5 percent salary differential over salaries of subordinate classes.

EXAMPLE: If a newly proposed managerial class reporting to the department director creates a situation where there is only 5 percent between the Director and the next lower level, the Director may request that the new class be given as much “space” as possible between the new class and the immediate subordinate. This could result in only a few dollars per month differential between the Director and the newly proposed class. In such a situation, the proposed establishment of a salary that is clearly compacted may be appropriate.

Salaries for managerial classes should be three-quarters percent (.0075) above comparable supervisory or high-level specialist classes when such relationships exist.

The salary ranges for managerial classes are established with only three salary steps. Once the minimum rate is recommended, the two subsequent steps should be in 5 percent increments.

The DPA LRO will use the Salary Analysis to make a decision on the salary rate for the excluded class.

Work Week Group Considerations (Overtime Compensation)

See Section 275. The DPA LRO has the final authority to negotiate (if necessary) or establish the classification’s assigned work week group in consultation with the CCD analyst, DPA policy, and FLSA considerations.