SECTION 5.40 PAY CORRECTIONS

Last Update: 9/05

Agencies have the responsibility to insure that employees are paid properly. All possible pay errors must be investigated.

Steps in correcting pay errors:

1) Investigate the facts - what action(s) should have taken place versus what action(s) actually took place?

Resources available include:

· Employee's personnel file maintained by the agency's personnel assistant

· Personnel assistant

· Employee's supervisor

· Personnel officer

· DAS-HRE Rules

· Applicable Collective Bargaining Agreement

· Classification and Pay Plans

2) Review the facts and determine if a pay error has occurred. If the employee had been involved in the

investigation and it is determined that an error did not occur, communicate the decision to the employee.

3) If a pay error has occurred, determine what corrective action, if any, should take place. Corrections

of pay errors are divided into two groups [DAS-HRE Rule 53.4(7)]:

a) Errors that agencies are required to correct (nondiscretionary) regardless of the time that has

elapsed.

b) Errors that agencies have an option to correct (discretionary). Must be corrected within 12 pay

periods following the date of the error.

A) Nondiscretionary errors (agency must correct) include:

· Automatic pay increases for contract-covered employees

· Pay grade revisions

· Pay adjustments mandated by legislation

· Certain promotional pay increases

· Shift differential

· Call back pay

· Standby pay

· FLSA required premium overtime

B) Discretionary errors (agency correction is optional) include:

· Advanced appointment rates for new employees

· Adjustment of current employees’ pay based on an advanced appointment rate

· Pay increases that are not automatic

· Certain promotional pay increases

· Additional step under certain intragency transfer provisions

· Salary upon reinstatement

· Employees for whom the agency wishes to rescind a termination under certain circumstances

· Appointments when the agency fails to submit a "Report of Personnel Action" form before the

expiration date of a certificate

4) If it is determined that the pay error is discretionary and will not be corrected, notify the personnel assistant

and the employee of the decision. Employees may have the right to grieve the decision.

5) If it has been determined that the pay error will be corrected, notify the personnel assistant and the

employee.

Correction of pay errors other than those listed are handled on a case-by-case basis. Correction will not be allowed in any instance that would require the backdating of a "Position Change Request" form (M-5) in the Human Resource Information System (HRIS).

Correction of Pay Errors Involving Retroactive Pay

The department's personnel assistant must submit personnel document(s) to correct errors as soon as possible. If the time period over which the error occurred is more than 90 days, retroactive pay will be approved for the 90 calendar day period prior to the correction. Retroactive pay for any time beyond the 90 calendar day period must be submitted to and approved by the State Appeal Board before payment can be made. The employee will need to complete an appeal board claim and submit it to the State Appeal Board to request the retroactive pay. Further corrections to the employee's pay record must be made in accordance with the State Appeal Board decision.

Correction of Pay Errors Involving Overpayment of Wages

Overpayment of wages must be collected in one of the following ways:

· Repay in a lump sum

· Repay from succeeding pay periods not to exceed the number of pay periods during which the error occurred. Alternatively, the appointing authority may submit an alternate repayment plan to the director of the Iowa Department of Administrative Services, including a written schedule explaining the method by which the money will be recovered. The Director of the Iowa Department of Administrative Services will notify the appointing authority of the decision on the alternate repayment plan.