SECTION 5.35 SPECIAL PAY

Last Update: 10/06

There are a variety of pay options available for agencies to compensate employees for special work situations. These include the following.

SHIFT DIFFERENTIAL [DAS-HRE Rule 11 IAC—53.9(1)]

Non-contract overtime eligible employees (those whose job class has an overtime code of "2" in the Classification Plan) who regularly work other than a normal day shift are eligible for shift differential pay subject to the following conditions:

· Employees must work four or more hours between the hours of 6:00 p.m. and 6:00 a.m.

· The shift must be worked for two or more consecutive weeks or the employee must be regularly assigned to rotate shifts.

For split shifts, the amount paid is based on the number of hours worked in each shift, with the time period in which the employee works the most hours determining the rate. If equal, the higher rate is paid.

Non-contract covered, overtime-exempt employees (those in job classes that have an overtime code of "0" in the Classification Plan) may receive shift differential if a request is first submitted and approved by the Director of the Iowa Department of Administrative Services.

Shift differential may vary between collective bargaining agreements. For contract covered employees, check the applicable bargaining agreement for the terms/conditions.

CALL BACK [DAS-HRE Rule 11 IAC—53.9(2)]

Non-contract overtime eligible employees (those whose job class has an overtime code of "2" in the Classification Plan) are eligible for call back pay whenever an agency requires employees to return to work after their regularly scheduled shift, subject to the following conditions:

· The time worked may not be contiguous to the employee’s scheduled work hours.

· Employees must be paid a minimum of three hours when called back to work.

· Call back hours are considered as hours worked for purposes of determining overtime but do not count as standby hours if the employee is in standby status.

· Hours worked on a holiday and paid at the premium rate do not count towards the computation of overtime.

Non-contract overtime exempt employees (those whose job class has an overtime code of “0” in the Classification Plan) may receive call back pay if a request is first submitted and approved by the Director of the Iowa Department of Administrative Services.

Call back may vary between collective bargaining agreements. For contract covered employees, check the applicable bargaining agreement for the terms/conditions.

STANDBY [DAS-HRE Rule 11 IAC—53.9(3)]

Non-contract overtime eligible employees (those whose job class has an overtime code of “2” in the Classification Plan) are eligible for standby pay when directed by the appointing authority to be on standby subject to the following conditions:

· Employees must be compensated for all hours that they are required to be available and the employee must remain in an appropriate condition to report for work during off duty hours.

· Employees must be paid 10% of their hourly rate of pay for each hour in standby status with a minimum of one hour of standby pay.

· Time that the employee spends actually working or receiving call back pay is not counted in determining standby hours.

· Standby hours do not count for the purpose of determining overtime.

Non-contract overtime exempt employees (those whose job class has an overtime code of “0” in the Classification Plan) may receive standby pay if a request is first submitted and approved by the Director of the Iowa Department of Administrative Services.

Standby may vary between collective bargaining agreements. For contract covered employees, check the applicable bargaining agreement for the terms/conditions.

DISCRETIONARY PAYMENTS [DAS-HRE Rule 11 IAC—53.9(4)]

Discretionary pay is a lump sum payment for exceptional job performance given to employees when the appointing authority deems it appropriate. It is appropriate when the employee’s current performance far exceeds the standards for the job and assigned duties and responsibilities are accomplished at a level of quantity and quality significantly above and beyond normal expectations. It is an effective way to recognize the outstanding accomplishments of an employee under the right circumstances. The following guidelines are intended to assist you in making decisions about giving discretionary pay and in preparing the written justification that must be included on the “Special Pay/Appointment Action” form (CFN 552-0125) and the “Discretionary Pay” form (CFN 552-0667).

1. Review the normal expectations of the employee based on the employee’s most recent performance plan.

2. Describe (on the Discretionary Pay Justification form CFN 552-0667) how the employee’s performance exceeds those expectations. Be specific about how it contributes to enterprise goals and/or the agency’s mission, including establishing a renewed focus on customer service, linking performance to compensation and rewards, and adding value.

3. Describe how the employee’s exceptional accomplishments were measured. This may include written material, direct observations, information from customers, etc. Include the length of time that the employee has been performing at the higher level.

Although an employee may, from time to time, deserve or require extra pay, discretionary pay may not be the appropriate vehicle. Some examples of inappropriate use include:

1. The employee has completed a work-related course of study.

2. The employee’s position is thought to be inappropriately classified.

3. The employee has limited responsibility over work of others.

4. The employee’s pay grade seems to be too low.

5. The employee is overqualified.

6. The employee is temporarily performing the work of a higher job class.

7. The employee is at the maximum of the pay range.

There are several ways to properly compensate employees in situations listed above. They include:

1. Leadworker pay

2. Classification review

3. Special duty pay

4. Extra duty pay

5. Position audit

6. Pay grade review

RECRUITMENT OR RETENTION PAYMENTS [DAS-HRE Rule 11—53.9(5)]

A lump sum payment may be requested on the “Special Pay/Appointment Action” form and be given to an applicant as a recruitment incentive or to retain a current employee subject to the following conditions:

· A written explanation providing the reasons for the request must first be submitted and reviewed by the Director of the Iowa Department of Administrative Services.

· As a condition of receiving a recruitment or retention payment, an applicant/employee must sign an agreement to continue employment with the agency for a period of time commensurate with the payment received.

· If the applicant/employee voluntarily leaves the agency of employment or is terminated for cause, they are required to repay a proportionate amount of the payment.

· When the change in employment involves movement from one state agency to another state agency, the Director of the Iowa Department of Administrative Services must approve the repayment schedule.

INCREASED CREDENTIALS [DAS-HRE Rule 11 IAC—53.9(6)]

Employees assigned to non-contract job classifications are eligible to receive pay for increased credentials. The employee must successfully complete a course of study, a certificate program, or any educational program directly related to the employee’s current employment, subject to the following conditions:

• A written explanation providing the reason for the request must first be submitted to and reviewed and approved by the personnel officer assigned from the Iowa Department of Administrative Services – Human Resources Enterprise.
• Increases must be a percentage of the employee’s base pay.
• The employee’s total pay may not exceed the maximum pay rate for his or her job class.

Note: Pay for increased credentials is granted at the discretion of the appointing authority and will not affect an employee’s pay increase eligibility date.

RED-CIRCLING [DAS-HRE Rule 11 IAC—53.6(3)]

If, as a result of a payroll transaction, a non-contract employee’s pay exceeds the maximum pay rate of the class to which assigned, the employee’s pay may be red-circled above the maximum for up to one year subject to the following conditions:

· The request to change the period of time or red-circled rate must be approved by the Director of the Iowa Department of Administrative Services.

· If a change request is approved, the agency must notify the employee in writing of the change.

· If an employee’s classification or agency changes, a request to rescind the red-circling may be submitted to the Director of the Iowa Department of Administrative Services.

· The Director of the Iowa Department of Administrative Services may require red-circling in certain instances. The period of red-circling may be extended by approval of the Director of the Iowa Department of Administrative Services.

CHANGE OF DUTY STATION [DAS-HRE Rule 11 IAC—53.6(13)]

If an employee is promoted, reassigned or voluntarily demoted at the convenience of the appointing authority and a change in duty station beyond 25 miles is required, and the employee does not change his or her place of residence, the employee may receive extra pay subject to the following conditions:

· The extra pay must be one step or up to 5% of base pay, depending on the pay plan from which the employee is paid.

· The employee’s total pay may exceed the maximum pay rate for the employee’s job class.

· If there is a subsequent change in duty station, the extra pay may be removed.

DOCUMENT PROCESSING

The “Special Pay/Appointment Action” form (CFN 552-0125) must be completed for an employee to receive extra pay for one of the above temporary assignments. Contact the agency’s personnel assistant for document processing and provide him/her with the following information:

· Type of action requested and if it is an original or an extension of an earlier request.

· Employee’s name and social security number.

· Amount of the additional pay.

· Written explanation describing the reasons for the extra pay.

The personnel assistant will submit the Special Pay/Appointment Action form to the personnel officer for review.