360. Correcting Misallocated Positions

Definition and Background

A misallocation is defined as duties of a position that are inconsistent with the scope of duties listed in the State Personnel Board (SPB) classification specification. Causes of misallocations may include program changes, increases/decreases in duties/responsibilities, restructures, allocation changes, or organizational changes. The identification of a misallocation can come from numerous sources. Misallocations can be found by the department, Personnel Management Division (PMD), in the course of a job audit or a PMD Human Resources Quality Review (HRQR). Once a misallocation has been identified, the next step is to correct the misallocation; this is accomplished through the development and implementation of a Corrective Action Plan (CAP).

Guiding Principles

Resolving misallocations to the satisfaction of those who are affected is often difficult. The overall goal is to apply problem-solving skills and find legitimate alternatives that create the least impact within the department and the affected employee.

Corrective Action Policy

As primary administrator of the classification plan, the appointing authority has primary responsibility for ensuring that positions are assigned duties appropriate for their classifications and for identifying and correcting misallocations. PMD participates by monitoring departmental compliance with the classification plan and ensuring that appropriate corrective action is taken when a misallocated position is identified.

PMD's policy is that misallocated positions should be corrected as soon as possible and within 60 days of the date the department identifies a misallocated position or is notified by PMD of the need for corrective action. Departments are required to use the CAP form to document the plan to correct and if necessary, submit to PMD for approval. This required form captures all necessary and relevant information regarding the plan. Failure to submit a Corrective Action Plan, implement approved plans, or submitting untimely plans may result in the department being added to PMD's HRQR list for future reviews and may be subject to a review of the department's current delegation.

Identifying a Misallocation

Misallocation is Identified by the Department

  • Is the misallocation correctable within 60 days? If yes, refer to Attachment 1: Corrective Action Plan Flowchart, Department Level for a step-by-step guide to the process. The department is required to complete a CAP form, obtain the proper signatures, and implement corrective action. Submission of the form to PMD for approval is not required.
  • In a limited number of cases, misallocations may not be correctable within 60 days. This may be because of the unusual nature or level of the class, a lack of vacant positions, and/or a large number of misallocations needing correction. When this occurs, the appointing authority must have a CAP form approved by PMD within 60 days of the date the misallocated position is identified. Refer to Attachment 2: Corrective Action Plan Flowchart, Personnel Management Division for a step-by-step guide to the process.

Misallocation is Identified by Personnel Management Division

  • Is the misallocation correctable within 60 days? If yes, the department is not required to obtain their PMD analyst's signature on the CAP form. However, the department is still required to complete a CAP form, send a copy to PMD, and retain a copy of the form for four years for HRQR purposes. Departments should contact their individual PMD analyst to determine the necessary documents they will require for final verification purposes. Refer to Attachment 2: Corrective Action Plan Flowchart, Personnel Management Division for a step-by-step guide to the process.
  • In a limited number of cases, misallocations may not be correctable within 60 days. This may be because of the unusual nature or level of the class, a lack of vacant positions, and/or a large number of misallocations needing correction. When this occurs, the appointing authority must have a CAP form approved by PMD within 60 days of the date the misallocated position is identified. Refer to Attachment 2: Corrective Action Plan Flowchart, Personnel Management Division for a step-by-step guide to the process.

The Corrective Action Plan (CAP)

Corrective Action Plans should present a clear course of action to resolve the misallocation at the earliest opportunity. All CAPs should include the concept of 'making the employee whole' by offering the employee a reasonable alternative before an involuntary correction action is implemented. When developing the CAP, special considerations should be paid to the impacted incumbent's employee status issues, such as merit issues, SPB, and MOUs. A CAP to resolve the misallocation(s) may address positions individually or collectively, depending upon the nature of the misallocation problem.

CAP Form

The CAP form consists of four sections. Further explanation of each section is provided below as well as on the second page of the form.

Section 1 - Misallocation Information

Section 1 gathers all of the general information such as the date the misallocation was identified, the misallocated position number, the division where the position exists, the correct class, and establishes a target date for the CAP to take place. The departmental contact information is also listed in this section.

Section 2 - Type of Corrective Action

Section 2 of the form lists the twelve corrective action options that are available to correct misallocated positions. The following (A through L) are possible options when correcting misallocated positions:

A. Restructure Duties to Support Allocation

This is the most common way of correcting a misallocation(s). When developing a plan involving the restructuring of duties and the new duties are coming from another position, ensure that the loss of duties does not weaken the other position to the point that it also becomes misallocated.

B. Transfer Incumbent to a Vacant Position in The Same Class*

In accordance with Government Code Section 19994.1** and 19994.2, the appointing authority has discretion to reassign an incumbent to a position in the same class at any location within the State without respect to the original geographic area of recruitment.

*Affected departments should consider establishing a hiring freeze within that class whenever such a freeze would benefit the expeditious correction of the misallocation.

**If this section is in conflict with a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the memorandum of understanding requires the expenditure of funds, it shall not become effective unless approved by the Legislature in the annual Budget Act.

C. Pending a Future Vacancy in the Same Class*

If a position in the correct class will become vacant within 120 days, the appointing authority may allow the correction to take effect when the position is vacated. Under certain circumstances, it may be possible to request approval for a corrective action of up to 12 months in the future, providing a future vacancy is certain.

*Affected departments should consider establishing a hiring freeze within that class whenever such a freeze would benefit the expeditious correction of the misallocation.

D. Voluntarily Transfer Incumbent to a Different Class

Transfer may be in a class at substantially the same salary level in an appropriate class as designated by SPB. However, because it requires a change in status, a transfer to a different class must be voluntary.

E. Pending Reorganization*

When a reorganization is to be accomplished within 120 days, it may be appropriate to schedule one of the corrective actions described in this section to coincide with the effective date of the reorganization.

*Affected departments should consider establishing a hiring freeze within that class whenever such a freeze would benefit the expeditious correction of the misallocation.

F. Pending Specification Revision or Establishment of a New Class*

PMD will allow up to 12 months from date of notice for a corrective action to be accomplished through a classification change. In order for this to be a possible option for corrective action, PMD approval of the specification revision must come first.

As referenced in C&P Guide: Section 105: Board Items, the proper process for submitting a classification specification change or establishment of a new class begins with the department submitting a concept proposal to PMD for approval (Part A: Classification Proposal Concept). This allows the PMD Analyst to review and approve the concept. Once the concept of the change is approved, the department can then utilize the approved concept as a corrective action proposal and submit a CAP form to PMD for approval. In approving such a plan, PMD will determine whether the proposed classification plan change is feasible and an appropriate method of correcting the misallocation.

*Affected departments should consider establishing a hiring freeze within that class whenever such a freeze would benefit the expeditious correction of the misallocation.

G. Pending Retirement or Resignation of Incumbent*

If the incumbent in a misallocated position will be separated (retirement, etc.) from the position within the next 24 months, and it is not possible in the near future to correct the misallocation, a request may be made to PMD to allow the incumbent to remain in the misallocated class until the projected retirement or resignation. In the interim, however, the misallocation should be corrected if the opportunity arises.

*Affected departments should consider establishing a hiring freeze within that class whenever such a freeze would benefit the expeditious correction of the misallocation.

H. Voluntarily Demote Incumbent to a Lower Class*

An employee may request a voluntary demotion to a lower class in order to avoid a mandatory transfer or other undesirable placement. This should be permitted if the downward movement does not displace another incumbent. In this case, this may be considered a management-initiated change and the employee may be eligible for a red circle rate to ease any financial adjustment resulting from this movement as described in GC 19837*** and Section 260 in the C&P Guide. Applying a red circle rate means the incumbent is allowed to retain the salary step he/she had on the date of reallocation to a lower class. The employee cannot receive any further salary adjustments while his/her salary remains above the maximum rate of pay for his/her new class. The employee may retain the red circle rate until the salary range of the new class reaches the rate established under the red circle rate policy.

Important Note: Under limited circumstances, a red circle rate to lessen the financial effect may be offered with an effective date that coincides with the effective date of a general salary increase, giving the employee the benefit of the general increase before 'locking in' his or her salary with the red circle. Departments should note the use of red circle rates represent a higher cost to the State for the work performed. For more information on Red Circle rates, refer to Section 260 of the C&P Guide: Red Circle Rates.

*Affected departments should consider establishing a hiring freeze within that class whenever such a freeze would benefit the expeditious correction of the misallocation.

***This GC Section is supersedable by MOU; be sure to review appropriate MOUs prior to approving a red circle rate to ensure that they do not contain provisions contrary to those in GC 19837.

I. Placement on State Restriction of Appointment (SROA)*

In situations where the department is unlikely to have a vacancy for the affected class in the near future, but there may be turnover within the geographic area of recruitment, the employee's class should be placed on the SROA list. This will require other appointing authorities with vacant positions to consider the employee in the position requiring correction. Requests for SROA list placement must be approved by PMD.

*Affected departments should consider establishing a hiring freeze within that class whenever such a freeze would benefit the expeditious correction of the misallocation.

J. Involuntarily Geographic Transfer Incumbent*

An involuntary geographic transfer is costly to the State and potentially disruptive to the employee. In accordance with GC Section 19994.1(b), the affected employee should be given a written notice of the transfer 60 days in advance of the effective date of the transfer. The employee's personal situation should also be considered in order to avoid hardship. The need for special schools, unique medical requirements, and spousal employment are examples to be considered. This action is appropriate when:

  • The area of recruitment of the employee's class includes the new location.
  • The employee has been unwilling to transfer to a different class at the same level in the same location.
  • The employee is unwilling to geographically relocate to a vacant position in his/her class.
  • The employee is unwilling to voluntarily demote to a lower class and accept a red circle rate in the same location.
  • The employee is unwilling to voluntarily demote to a lower class and accept a red circle rate in the same location.
  • The appointing authority will pay moving expenses.

*Affected departments should consider establishing a hiring freeze within that class whenever such a freeze would benefit the expeditious correction of the misallocation.

K. Transfer Incumbent to a Different Class in Lieu of Demotion Through Layoff*

This action is appropriate under the following circumstances:

  • No corrective action options described earlier in this section (A through J) will correct the misallocation.
  • It is offered as an alternative to demotion.
  • A new probationary period would not be required under SPB Rule 322.

*Affected departments should consider establishing a hiring freeze within that class whenever such a freeze would benefit the expeditious correction of the misallocation.

L. Demote Incumbent Through Layoff*

Important Note: A corrective action implemented under this option always requires prior approval by PMD. This is the least desirable and most difficult corrective action and should be a last resort, considered when the misallocation cannot be corrected in a reasonable period of time by using the various options already described in this section (A through K). Keep in mind that the employee should have been, if at all possible, offered a position that would have made him/her whole. Examples would be a transfer to a position in the same or different class at the employee's level in the same or different location or a voluntary demotion. In addition, the following requirement should be met:

  • The affected employee(s) must be the least senior and should be the one(s) in the misallocated position(s). This plan normally would not involve demoting a noninvolved employee in a position or class not identified as misallocated.

*Affected departments should consider establishing a hiring freeze within that class whenever such a freeze would benefit the expeditious correction of the misallocation.

Section 3 - Summary of Corrective Action and Contingency Plan

Once the department determines which option (A through L) from Section 2 they will use to correct the misallocated position, Section 3 of the form is reserved for departments to use to write the plan's narrative. This includes a summary of the proposed Corrective Action Plan. The narrative should describe the details of how the specific action will be taken and should provide as many details as possible.

Narratives should include consideration of the following:

  • Identify where duties were taken from and where current duties are going to when corrective action involves the restructuring of duties (option A).
  • Identify the potential for, and planned use of, voluntary placement of employees within the department in closely-related classes at the same salary level.
  • Describe the department's commitment to place each misallocated employee in the first available vacancy in the employee's classification and geographic area of recruitment.
  • Describe the option and proposed use of mandatory geographic transfers, if such transfers are reasonable in view of the level of the class and its area of recruitment.
  • Assess the potential for placement of misallocated employees in other departments within the agency or departments outside the agency. (In cases where a substantial problem exists and a plan is proposed to avoid a layoff which would otherwise be necessary, the plan must propose the use of the SROA process).
  • Avoid continued use of any misallocated position in a work area subject to possible layoff.
  • Assess any other options that the department can make available to employees on a voluntary basis.
  • Address any necessary contingency plan, should the original plan fail to correct the misallocation.

Section 4 - Approval Section

Section 4 of the CAP form is the approval area. For those misallocations where PMD approval is required, departments submit the form to their PMD analyst for their review, approval, and signature following the process as described below:

  • Once a CAP has been properly developed and is ready for PMD's approval, it requires the Classification Manager and Personnel Officer's signatures.
  • The form is then routed to the appropriate PMD analyst for review.
  • Once reviewed the PMD analyst, if approved or approved with modifications, will indicate approval, make any necessary comments, and return a copy of the signed form to the department, prompting the implementation of the approved plan in the agreed upon timeframe.
  • If the plan is not approved, the PMD analyst will return the form and the department will have 30 days to amend and resubmit to PMD for re-review.
  • At the completion of the corrective action process, the department is required to provide a final signature confirming action has occurred.
  • If there are any changes from the original plan, the department is required to include a new organizational chart and duty statement with final signatures.
  • The PMD analyst will conduct a final review and verify that the misallocation has been properly corrected.