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HomeMy WebLinkAboutCompensation - SOPIdaho Department of Correction Standard Operating Procedure Title: Compensation Page: 1 of 10 Control Number: 202.07.01.001 Version: 2.0 Adopted: 03/10/2009 IDOC Data Sensitivity Classification - L3 Restricted Sharla Means, human resource manager, approved this document on 04/13/2018. Open to the public: Yes SCOPE This policy applies to Idaho Department of Correction (IDOC) classified employees, with the exception of the areas that specifically refer to non-classified employees. Revision Summary Revision date (04/13/2018) version 2.0: Reformatted document: Updated current process to ensure that it followed guidelines provided by Division of Human Resources (DHR). TABLE OF CONTENTS Board of Correction IDAPA Rule Number ............................................................................. 2 Policy Control Number 202................................................................................................... 2 Purpose ................................................................................................................................ 2 Responsibility ....................................................................................................................... 2 Employee Compensation Philosophy ................................................................................... 3 General Requirements ......................................................................................................... 3 1. Operation of the Compensation Procedure .................................................................. 3 2. Compensation Issues Eligible for Problem Solving ...................................................... 4 3. Determination of Pay for New Employees .................................................................... 4 4. Salary Savings ............................................................................................................. 4 5. Salary Increases .......................................................................................................... 4 6. Reclassification ............................................................................................................ 6 7. Laterals, Layoff Registers, and Returns from Military Duty ........................................... 6 8. Salary Decreases......................................................................................................... 7 9. Salary Calculations for Payroll Processing ................................................................... 8 10. Holiday Pay .................................................................................................................. 8 11. Shift Differential............................................................................................................ 9 12. On-Call and Call-Out Time ........................................................................................... 9 Definitions ............................................................................................................................ 9 Control Number: 202.07.01.001 Version: 2.0 Title: Compensation Page Number: 2 of 10 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted References ..........................................................................................................................10 BOARD OF CORRECTION IDAPA RULE NUMBER None POLICY CONTROL NUMBER 202 Compensation PURPOSE To facilitate an equitable pay system for Idaho Department of Correction (IDOC) classified employees that incorporate federal and state laws, and IDAPA r ules. The pay practices and philosophies must be in line with IDOC mission, vision, and values. RESPONSIBILITY Leadership Leadership is responsible for: • Approving compensation changes • Providing support and participation on compensation committee • Monitoring salary savings • Assessing payroll budget to determine if compensation is being spent appropriately • Approving or modifying managers’ recommendations Manager of Human Resource (HR) The manager of HR or designee is responsible for: • Ensuring that the compensation committee has cross-division representation and is meeting their responsibilities • Assuring compliance with all federal and state compensation laws • Communications regarding compensation processes • Authorizing changes that are not outlined in regular processes or are outside normal guidelines • Approving, and implementing authorized changes Manager and Supervisor Managers and supervisors are responsible for: • Following compensation guidelines • Providing accurate information for wage changes • Ensuring that performance evaluations are accurate and completed on time to correlate with pay changes • Completing compensation analysis request forms, where appropriate Control Number: 202.07.01.001 Version: 2.0 Title: Compensation Page Number: 3 of 10 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted Compensation Committee The compensation committee is responsible for • Making compensation recommendations to IDOC director • Monitoring salary savings to make recommendation on how to reinvest into staff • Developing and implementing processes for compensation decisions EMPLOYEE COMPENSATION PHILOSOPHY IDOC’s compensation philosophy is intended to guide a consistent and comprehensive compensation program to recruit, retain and reward IDOC employees and encourage them to achieve their career potential with the agency. IDOC’s compensation program will promote fairness and equity, support a culture of productivity and accountability, and be administered with sound fiscal discipline. This philosophy and its guiding principles should provide direction to IDOC managers when considering compensation issues, provide a tool to recruit and attract qualified prospective employees, and offer reasonable predictability and consistency for current and prospective employees to anticipate career development and progression. GENERAL REQUIREMENTS This compensation procedure is intended to guide IDOC in administering compensation fairly and equitably. Should any discrepancies between this standard operating procedure (SOP) and federal, state, or Idaho Division of Human Resources (DHR) rules arise, the higher rules will take precedence. Compensation for full-time, classified, non-classified, part-time, temporary, permanent, probationary, and limited service employees will be based on an hourly rate appropriate for the classification. 1. Operation of the Compensation Procedure Classified employees of IDOC cannot be paid at a rate less than the minimum or greater than the maximum of the pay grade, as set by the state pay schedule, except as provided in IDAPA 15.04.01. The State of Idaho pay schedule is based upon the relative point value (using the Hay System method of evaluating job positions numerically) of each job class in the state and the placement of those point value spreads into pay grades (i.e., positions with point values of 155 through 184 comprise pay grade ‘G’). Each pay grade is assigned hourly minimum, policy (mid-point), and maximum rates of pay based upon comparisons of similar positions within the relevant labor market; the pay grades and rates are provided by DHR. All decisions for changes in the rates established for pay grades are made by DHR. IDOC is responsible for establishing and maintaining a compensation plan which reflects the Idaho pay schedule and which outlines the compensation plan through which IDOC will operate, based upon legislative mandates and guidelines established by the DHR and Division of Financial Management (DFM). Non-discrimination in Pay Control Number: 202.07.01.001 Version: 2.0 Title: Compensation Page Number: 4 of 10 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted IDOC’s policy is to provide equal pay for equal work under similar working conditions, without regard for race, color, religion, sex, age, national origin, disability, veteran and/or citizenship status. USERRA - Uniformed Services Employment and Reemployment Rights Act, 38 U.S.C. Sections 4301 through 4333, prohibits employment discrimination against persons because of their service in the Armed Forces Reserve, the National Guard, or other uniformed services. 2. Compensation Issues Eligible for Problem Solving Compensation shall not be a proper subject for consideration under IDOC problem solving procedure (see policy 203, Problem Solving) except as it applies to alleged inequities within IDOC (i.e., equal pay for equal work as described in policy 203). For the purpose of the problem solving policy, alleged inequities occur when an employee (individually or as part of a group) in the same classification is allegedly treated unequally in compensation matters. 3. Determination of Pay for New Employees Security Staff The starting wage for new security staff (correctional officers, food service officers, and probation and parole officers) is set each year at the start of the state fiscal calendar year. All Other Staff New employees that are in the administrative/professional, clerical and trade areas will have entry pay determined by compensation analysis or 71% of policy. The compensation analysis is based upon experience, background and the relationship to the pay grade and internal equity. 4. Salary Savings Salary savings may be used for payment of compensatory time, bonuses, merit increases, market increases and other personnel related costs. IDOC shall determine the availability of funds resulting from salary savings to make compensation decisions. 5. Salary Increases Eligibility for salary increases and bonuses will be directly linked to job performance and determined on the basis of job related performance factors and include a current employee performance evaluation (see SOP 222.07.01.001, Performance Management). No employee shall advance in a salary range without a performance evaluation certifying that the employee meets performance criteria. (Idaho Code Section 67-5309B). An employee whose pay is at the maximum of the range for that pay grade is not eligible for pay increases, unless DHR increases the payline of that pay grade. However, the employee may qualify for a lump sum bonus payment. Any lump sum bonuses must be based upon budgetary availability and be approved by the director. Permanent Merit Increases The merit increase budgets are determined by the legislature. The compensation committee will be responsible for developing an equitable plan for merit increases; this Control Number: 202.07.01.001 Version: 2.0 Title: Compensation Page Number: 5 of 10 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted plan will then be presented to the IDOC director, DHR and DFM analyst for review and approval. The size of individual merit increases will be based upon job-related performance and available personnel budget. An approved merit matrix will be used. Short-term Merit Short-term merit is typically used as a salary increase for a set period of time to compensate an employee for performance of duties outside the normal job duties. The employee shall sign a memorandum of agreement, signifying that their salary shall be moved to a specified rate for a set period of time. The agreement must state when the short-term merit starts and when it ends and agree that the salary rate shall be returned at the end of the time period to the rate held prior to the short-term merit increase. The time period for each short-term merit will be no greater than six months. A new memorandum will need to be executed at the end of that period if it is determined the employee should continue short-term merit. Acting Appointment A classified, permanent employee may be appointed to a position in a higher pay grade in an acting capacity. The employee must meet the minimum qualifications for that position. The employee must sign a memorandum of agreement, signifying that their salary shall be moved to a specified rate for a set period of time. That rate would be based upon the same rules as promotions. Such appointments shall be limited to the time necessary to fill the vacancy or until the incumbent returns from leave. The appointment should not continue beyond one thousand forty (1,040) hours unless specifically extended by the HR Manager. (IDAPA 115.04.01 (130). Bonuses When bonus funds are identified and available, a supervisor, manager, or division leadership may recommend a bonus for employees holding permanent status. The bonus can be awarded for a one-time event during a fiscal year or multiple times but shall not exceed two thousand dollars ($2,000) aggregate for the fiscal year. The supervisor or manager must justify in writing why they are recommending the employee for a bonus and justify the amount. The director has final approval of the bonus submission. The bonus should be based on either a series of outstanding performances or a major performance that has had a positive impact on the work unit. A merit increase and a bonus should not be based on the same event. However, an employee may be awarded a merit increase and a bonus for different reasons. The last performance evaluation must have occurred within the most recent 12-month period and a rating of at least ‘achieves performance standards’ (APS) must have been achieved in order to be eligible. (IDAPA 15.04.01(075). Other Wage Considerations Requests for salary increases (those granted outside of general review for fiscal year or not related to payline changes) must be addressed separately by written request to the division chief and human resource manager. Control Number: 202.07.01.001 Version: 2.0 Title: Compensation Page Number: 6 of 10 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted Promotions Security (Prisons) The Job Title with Pay Grade Chart (found on EDOC) outlines the increases for promotions within the security positions. Promotions receive either an increase of 8% or the minimum of the new pay grade, whichever is greater. Security (Probation and Parole) The Job Title with Pay Grade Chart (found on EDOC) outlines the increases for promotions within the probation and parole security positions. Promotions receive either an increase of 8% or the minimum of the new pay grade, whichever is greater. Non-Security When an employee is selected for promotion to a higher pay grade, the salary rate will be based upon 8% increase, 71% of policy or the rate determined by compensation analysis; whichever is greater. 6. Reclassification To a Higher Pay Grade It is recommended that upward reclassification of a position be completed when the position is vacant. If the position being upgraded is occupied, the incumbent must meet the minimum qualifications of the reclassified position and may need to compete through the state hiring process. The incumbent shall be paid no less than 71% of policy, 8% increase or the rate determined by compensation analysis, whichever is greater. Reclassification within the Same Pay Grade The salary rate of an employee whose position is reclassified and remains within the same pay grade will remain the same. Downward Reclassification It is recommended that downward reclassification of a position be completed while the position is vacant. If the position being reclassified is occupied, the pay rate will be determined by the same guidelines as a voluntary demotion. 7. Laterals, Layoff Registers, and Returns from Military Duty Lateral Interagency (between agencies) Transfers and Reinstatements When an employee is reinstated or transfers laterally from another state agency, a voluntary probationary period shall be negotiated (typically 2080 hours for security positions and 1040 hours for others). Lateral Intragency (within IDOC) Employees who transfer to another position at the same pay grade within the IDOC shall receive no change in compensation. Some positions will have a special compensation increase that occurred for retention purposes. This increase may be forfeited if moved to a new position and/or division. Control Number: 202.07.01.001 Version: 2.0 Title: Compensation Page Number: 7 of 10 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted Appointment from Layoff Register When an employee is appointed from a layoff register, their rate of pay shall be their last rate of pay when they previously held that position and any change in employee compensation (CEC) awarded. When an employee is appointed from a layoff register to a different position in a lower pay grade, the wage will be set based upon voluntary demotion guidelines. Return from Military Duty An employee who returns from active military duty will be paid at the comparable rate in the current pay grade to which they were assigned prior to leaving for military. They will also be eligible for any CEC awarded while out on official military leave. (Idaho Code Section 65- 508, and USERRA) 8. Salary Decreases An employee’s salary may be decreased when moving to a lower pay grade or a disciplinary action. Voluntary Demotion If the incumbent has held the position previously the salary will be calculated based upon the previous salary in the position and any non-class specific CEC’s, that the employee received or 71% of policy, whichever is greater. If the incumbent has not held a position in the same pay grade as the lower level position, the salary rate will be calculated based upon 71% of policy for that pay grade and any CEC’s that they have received. Demotion in Lieu of Layoff An employee with permanent status, may, in lieu of layoff, elect voluntary demotion to a class, or if the classification has been deleted, its successor in which the employee held permanent status. Pay rate would be established through the same calculations as a voluntary demotion. Disciplinary Salary Reduction A temporary disciplinary salary reduction shall be utilized to equate to a certain number of days without pay. In these instances, the salary reduction is limited to a total dollar amount which equates to days off without pay. Disciplinary Salary Suspension Employees may be suspended without pay for disciplinary reasons for a set period of time. An employee may be suspended up to a total of 30 days. Disciplinary Demotions An employee may receive a demotion for disciplinary reasons. The salary rate will be determined the same as a voluntary demotion. Failure to Complete Promotional Probation Period Employees who fail to complete the promotional probation will revert to their previous salary in which they held permanent status. Control Number: 202.07.01.001 Version: 2.0 Title: Compensation Page Number: 8 of 10 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted 9. Salary Calculations for Payroll Processing Salary Calculations for Non-Security Staff For IDOC employees, according to DHR rule, section 073.01, the standard calculation of pay, not including security staff, shall be calculated in the following order: • Holiday pay • All hours worked on holiday as overtime at once and one-half (1.5) times the hourly rate (This would not include non-covered employees who receive straight time.) • All hours worked over 40 in the work week as overtime (excluding occasional or sporadic work and traded time) • Vacation, sick, and other paid or unpaid leaves • Then all remaining hours worked at the employee’s regular rate of pay (including shift differential, if applicable) Salary Calculations for Security Staff and Probation and Parole Officers (PPOs) According to DHR rule, section 073.03, for correctional officers (which includes corporals, sergeants, food service supervisors, and PPO’s seniors), salary shall be calculated on a 28-day work schedule in the following order: • Holiday pay • All hours worked on a holiday as overtime • All hours worked over 160 hours in a 28-day period as overtime (excluding occasional or sporadic work and traded time) • Vacation, sick and other paid or unpaid leaves • Then, all remaining hours at the employee’s regular rate of pay (including shift differential, if applicable) 10. Holiday Pay All classified employees of like classification shall be treated equally with reference to hours of employment, holidays, and vacation time. Paid time off for holidays is a benefit and must be allocated in a substantially similar manner to all employees in the same classification. A full -time employee shall receive holiday pay in accordance with the number of hours the employee works on a regular workday up to a maximum of eight hours per holiday. If a regular workday is so irregular that it cannot be determined, the employee shall receive eight hours of holiday pay. An employee must receive some paid leave, wages, or salary for the pay period in which the holiday occurs to receive the holiday benefit. A benefit eligible, part-time employee shall receive holiday pay. If the holiday falls on a regularly scheduled workday, the employee shall be compensated for the hours the employee would have worked, up to eight hours. If the employee does not have the day scheduled as a regular workday, then the hours compensated shall be calculated as two- tenths (.20) times the hours the employee is scheduled in a regular workweek. If the hourly Control Number: 202.07.01.001 Version: 2.0 Title: Compensation Page Number: 9 of 10 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted schedule is so irregular that a normal workweek cannot be determined, the holiday benefit is in the same proportion that the hours the employee works during a week in which a holiday relates to forty. DHR rule, section 073.03. 11. Shift Differential Shift differential is additional compensation which is paid to employees (including temporary or part-time employees) who work specific, designated hours. Shift differential compensation shall be paid to eligible employees at a rate of five percent (5%) of the base hourly rate of pay and shall be calculated for all regular hours reported in that week. Eligibility Regular Work Schedules Employees who have 50% or more of their scheduled hours in a work week occurring between the hours of 6:00 PM and 7:00 AM are eligible to earn a shift differential for all the hours reported that week. Leave hours taken shall be regarded as having been assigned during the same hours the employee would normally have worked. Irregular Work Schedules Employees whose primary responsibility is to work in place of absent employees (RFM – relief factor management) and whose assigned eight-hour shift varies at least once between night, day, and/or swing, shall be eligible for shift differential compensation for all hours reported in that week. 12. On-Call and Call-Out Time On-Call Time Refer to policy 208, On-Call; and SOP 208.07.01.001, On-Call Scheduling and Reporting. Call-Out Time If an employee, whether identified as on-call or not, is contacted before or after normal working hours and asked to respond for a job-related task, the period of time from call- out request to returning home is considered actual time worked. DEFINITIONS Appointing Authority: Pursuant to Idaho Code, the director (1) is the appointing authority for the Idaho Department of Correction (IDOC) and is authorized to hire, dismiss, determine salary, or significantly impact the employment status of individuals in any department; (2) delegates appointing authority responsibilities to the following IDOC managers: division chiefs, wardens, community reentry center (CRC) managers, district managers, deputy chiefs, or equivalents; and (3) can also delegate appointing authority responsibilities to deputy wardens, lieutenants, managers or supervisors. Change in Employee Compensation (CEC) Committee: The legislative committee charged with making State of Idaho employee compensation recommendations to the Legislature. Control Number: 202.07.01.001 Version: 2.0 Title: Compensation Page Number: 10 of 10 Idaho Department of Correction IDOC Data Sensitivity Classification - L3 Restricted Classified Employees: Permanent employees that are deemed by Idaho Statute to be covered by the State system of personnel administration and have successfully completed entrance probation. Compa-Ratio: Relationship between actual pay and policy (midpoint). Compensation Committee: A group of employees representing the divisions of IDOC that review and make recommendations on compensation. Compensation Philosophy: Statement endorsed by IDOC leadership that describes the factors and philosophy that contribute to compensation within IDOC. Hay Method: Also knows as the ‘point-factor’ system, the Hay System evaluates a particular position in terms of universal factors (know-how, problem solving, and accountability) and assigns a numerical value to that position. Incumbent: Any person holding a classified or non-classified position. Matrix: A pay distribution tool used to advance employee pay based on performance and market data. Non-Classified Employees: Employees that aren’t covered under the personnel administration and are considered ‘at will’. Payline: The legislatively-approved adjustment of the salary range establishing a new minimum policy, and maximum salary rate for the pay grade. Permanent Merit Increase: The advancement of an employee’s compensation based on performance. Policy: Midpoint of pay grade. Probation for Classified Appointment: Work trail period that must be successfully completed for status to change to permanent classified. Salary Savings: Savings realized as a result of filling a position with a lower paid individual or as a result of a temporary vacancy in a position. Short Term Merit: A salary increase for a set period of time to compensate for duties outside the normal job description. REFERENCES None – End of Document –