285. Exceptions to the Salary Rules

Introduction

DPA Rules 599.674 and 599.676 allow employees to receive a salary rate up to one step (5%) above the salary rate they last received. When these rules do not provide employees with the equivalent rate last received (1) upon transfer to a deep class or (2) in their former class, then under the authority of GC Section 19836, an exception to these salary rules can be made. Exceptions to these rules should be applied uniformly for all employees.

Salary Loss Upon Transfer to a Deep Class

[[DPA88-12|Management Memo 88-12]] recommends placing employees who would incur a salary loss upon transfer to a deep class on a T&D Assignment for a period of time sufficient to meet the higher alternate range criteria. Upon successful completion of the T&D Assignment the employee is transferred to the transferable range, and then moved to the next higher alternate range effective the same day. If this does not provide the employee their current salary, departments can process an exception so the employee does not incur a salary loss.

Exception Process:

  1. Department determines if an exception to one of DPA salary rules is necessary after salary determination and places employee on a T&D Assignment.
  2. After successful completion of T&D Assignment department completes Exception to DPA Salary Rules Upon Transfer to Deep Class - MM 88 12 Worksheet Attachment 2.
  3. Analyst/Manager approves by signing form.
  4. File completed package for DPA review purposes. Completed package includes:
    • Copy of T&D Assignment
    • Completed Exception to Salary Rules Upon Transfer to Deep Class Worksheet.
    • Copy of Employment History after PAR has been processed reflecting transfer, range change and SAL transactions.
Example:

The employee was appointed from a list to Executive Assistant and is transferring to Staff Services Analyst (SSA) effective 11/01/04.

Based on the transfer calculation below, transfer to Range C is not allowed; the range differential is more than 9.9%. Therefore, the employee was placed on a T&D assignment so he can gain the experience needed to meet ARC 069.

Salaries of SSA and Executive Assistant, as of 10/01/03
Class Title Salary Range
From Class: Executive Assistant (1728) $3072–3734
To Class: Staff Services Analyst (5157) A $2632–3201
B $2850–3465
C $3418–4155

For discretionary movement to a deep class, comparison is made to all ranges.

Compare the maximum salary rates of all ranges.
Range “To” Salary − “From” Salary Difference Divide by lower class Range Differential
A $3201 − 3734 −533 ÷ 3201 −16.7%
B $3465 − 3734 −269 ÷ 3465 −7.8%
C $4155 − 3734 +421 ÷ 3734 +11.3%

At the expiration of the T&D, the employee was transferred to Range B, $3465. The employee is now eligible for movement to Range C and receives a 5% increase under DPA Rule 599.676 per Alternate Range Criteria 069 (3465 × 1.05 = 3638). This is $96 less than their current salary; therefore, per Management Memo 88-12 the department may approve an exception to DPA Rule 599.676. The exception is to allow a SAL transaction to be processed for the employee to retain their current salary of $3734. All transactions are effective on the same day.

Rate Upon Reappointment or Reinstatement – No Break In Service

When an employee is reappointed or reinstated without a break in service to a class which they previously held permanent or probationary status, or to a class substantially the same, DPA Rules 599.674 or 599.676 allow employees to receive up to 1 step above the rate last received. When this does not provide employees the rate last received in the former class, departments are authorized to make exceptions to these rules. This is accomplished by reconstructing the former class and adjusting for any salary range changes ( GENs) since the employee last held appointment.

Situations when this may occur:

  • Permanent separation followed by reinstatement to a lower class then reinstatement to the former class or a class substantially the same as the former class.
  • Demotion in lieu of layoff and reinstatement to a different class.
  • Voluntary demotion and reinstatement to the same class or to a class substantially the same.

Exception process:

  1. Determine whether an exception to DPA salary rules 599.674 or 599.676 is needed for reappointment or reinstatement, no break in service.
  2. Complete No Break in Service Worksheet.
  3. Analyst/Manager approves exception by signing form.
  4. File completed package for DPA review purposes. Completed package includes:
    • Exception to Salary Rules, Rate Upon Reappointment or Reinstatement, No Break in Service, Worksheet.
    • Copy of employment history reflecting prior permanent appointment to the former class to which the exception is made.

Example:

An employee separated from State service on September 30, 1996, as a Program Technician II at the maximum salary rate of the class ($2477). Effective August 1, 2003, the employee reinstates as an Office Assistant (Typing), Range B, to the maximum salary rate of the class ($2641). On September 1, 2004, the employee reinstates to Program Technician II with eligibility based on her prior status in the class.

Salary determination (For salary determination use the current maximum salary rates):
From OA T, Range B Max $2641
To PT II Max $2998
Result +$357
Divide by Lower Max $2641
Range Differential: +13.5
Salary Regulation: 599.676
Salary Calculation: $2641 × 1.05 = $2773

Adjust for salary range changes since the employee last held appointment:

Salary at separation $2477:

Reconstruction of salary rate for Program Technician II
Effective Date Transaction (amount) Base Rate Multiplier New Rate
04/01/99 GEN (5.5%) $2477 × 1.055 $2613
07/01/99 GEN (5.04%) $2613 × 1.0504 $2745
08/31/00 GEN (4%) $2745 × 1.04 $2855
07/01/03 GEN (5%) $2855 × 1.05 $2998
  • Salary without exception: $2773
  • Salary with exception: $2998

The calculated salary of $2773 does not provide the employee with the rate last received in her former class ($2998); therefore, department may approve an exception to DPA Rule 599.676.