1101 Classification and Compensation

Aligns the Vision, Mission, Core Values and Strategic Goals to its classification and compensation practices;

Supports current and future workforce initiatives in areas such as recruitment, diversity and retention;

Prioritizes compensation decisions to ensure effective use of fiscal resources;

Provides a resource for educating employees about classification and compensation;

The fundamentals of the classification and compensation system.

The legal constraints and requirements that govern compensation decisions.

How to make sound decisions when hiring, managing, and rewarding employees.

How to effectively use the tools available to them.

The roles and responsibilities of Division/Office leadership and OHR when implementing compensation initiatives.

Knowledge, skills and competencies required to perform the job;

The level of responsibility and accountability for programs, resources and service delivery required of the job;

The degree of direction/supervision each job task requires;

The degree of planning required to perform the job ranging from the responsibility of planning one’s own work up to planning the work of an entire agency;

The complexity of the work which includes, but is not limited to difficulty of problems to be solved, creativity, and analytical capabilities;

How a job impacts the whole agency and the lives of the citizens served by the job;

Challenge or difficulty of working conditions;

External requirements, market factors and other considerations outside the control or influence of DHS.

The purpose of the job defined by the reason it exists and the need it is designed to fill.

The occupational group to which it belongs (general support, social services, financial, human resources, etc.).

The essential functions to be performed.

Level of authority within an organization.

Qualifications which are defined as education/training, experience, and competencies necessary to perform job duties successfully.

Lateral Job Change – change in an established position from one job title to another on the same pay grade; position can be filled or vacant.

Grade/Job Change – change in an established position from one job title to another on a lower or higher pay grade; position is vacant.

Promotion – the reclassification of a filled position from a job on a lower pay grade to a job on a higher pay grade.

Demotion – the reclassification of a filled position from a job on a higher pay grade to a job on a lower pay grade.

Job Reclassification – the reclassification of a filled position to a lateral, higher, or lower job based on changes in duties or scope of work. Job reclassification does not automatically result in a salary increase or decrease.

Job Analysis Requests should go through the Division/Office internal approval process.

If Division/Office leadership approves the review request, it should be submitted to the assigned Compensation Specialist. The request should include:

The review request must be submitted in writing and received by the Deputy Commissioner of Human Resources Director or designee within ten (10) calendar days of receipt of the written notification of the position level reduction. A copy of the Performance Management Plan (PMP) provided to the employee must be included with the request for review.

The request for review must include the reasons why the employee believes that the PMP does not accurately reflect the responsibilities and expectations of the position.

A review will be conducted only to determine if the PMP developed for the employee accurately reflects responsibilities and expectations consistent with the lower job to which the position is reallocated.

A decision will be issued in writing by the Deputy Commissioner of Human Resources Director or designee to the employee within fifteen (15) calendar days of receiving the request for review and all other documentation needed to make an accurate determination.

This method is the only process for review of a position level reduction. A position level reduction is not appealable to the State Personnel Board or grievable through the DHS Grievance Procedure.

Non-exempt employees are covered by the Wage and Hour provisions of FLSA. If a non-exempt employee works more than 40 hours in a work period, the employee is to receive FLSA compensatory at the rate of time and a half for overtime worked.

FLSA compensatory time is not granted to non-exempt employees who may have been in pay status for more than 40 hours during a work period due to a holiday or use of accrued leave, but who did not work more than 40 hours.

All the following criteria must be met in order to qualify for the executive employee exemption:

All of the following criteria must be met in order to qualify for the administrative employee exemption:

All of the following criteria must be met in order to qualify for the learned professional employee exemption:

All of the following criteria must be met in order to qualify for the creative professional employee exemption:

All of the following criteria must be met in order to qualify for the computer employee exemption:

Highly compensated employees performing office or non-manual work and paid a total annual compensation of $107,432 or more (which must include at least $684* per week paid on a salary or fee basis) are exempt from the FLSA, if they customarily and regularly perform at least one of the duties of an exempt executive, administrative or professional employee identified in the standard tests for exemption.

Monetary compensation: base pay, performance increases, pay supplements, and other pay;

Indirect compensation: healthcare coverage, retirement plans, paid leave, and State holidays; and,

Non-monetary rewards and recognition: training and development opportunities, flexible or alternative work schedules, positive work environment, and the opportunity to serve its constituents.

The relative mission’s critical nature of the job differences;

Individual qualifications and competencies;

The potential impact of the compensation difference on others in the immediate organization.

Determines the appropriate classification and pay grade assignment of jobs.

Develops and maintains DHS’s overall compensation guidelines, policies, and procedures.

Partners with DHS Divisions and Offices to:

Understand how DHS’s classification and compensation system works.

Understand the tools, guidelines, and processes available to support sound salary administration decisions.

Identify and evaluate potential risks.

Explore alternative rewards and work arrangements that contribute to total compensation.

Identify opportunities for employee development that are beneficial to employees, DHS, and DHS’s customers.

Maintains an awareness and understanding of the Classification and Compensation Philosophy.

Makes responsible salary administration choices in hiring, employee rewards, and career planning and development that are consistent with the Classification and Compensation Philosophy.

Ensures that managers and supervisors within their respective Division/Office are informed and trained in their roles and responsibilities related to compensation policies and procedures.

Documents the business case for salary administration decisions.

Salary Administration addresses how employees are paid within jobs and when they move from one job to another. DHS uses available tools and strategies to attract employees whose skills and interests are well suited to jobs.

The salary structure identifies the minimum, market average, and maximum salary per pay grade. An employee is paid a salary between the minimum and maximum of his or her pay grade. This salary is dependent on:

DHS may pay hiring salaries above the minimum of the established pay grade for a job when the following conditions exist:

Decisions on hiring salaries must be made in the overall interest of the Department and not solely on the desires of the hiring Division/Office. All compensation decisions are based on the availability of funding.

The hiring Division/Office must demonstrate that the following conditions exist:

Division/Office Directors may:

Managers should review several factors when considering hiring salaries:

Division/Office Directors (or designee) must consult with OHR Compensation when requesting hiring salaries above market average salary unless under a “pre-approved” protocol; however, the OHR Director, in conjunction with the Division/Office Director, makes the final decision.

Documentation of the rationale for approving hiring salaries above the market average for the pay grade is required and should accompany any other selection documentation submitted. OHR Compensation is available to evaluate requests or provide consultation prior to Division/Office Director or designee submitting for final approvals.

To hire a candidate above the salary approved on the requisition, the documentation referenced above, and an approval workflow which includes Budget and Compensation, must be added to the Hire Form of the HR PASS requisition.

A salary adjustment is an in-grade, permanent increase to an employee’s base salary based on various criteria not included in compensation options authorized elsewhere in policy (e.g. promotions, performance-based increases, temporary salary supplements).

Salary adjustments may be used to address specific business or organization needs or to support departmental objectives. Examples of appropriate circumstances for requesting salary adjustments include the following:

Salary adjustments should not be used as a performance-based increase (PBI), although performance may be one of several factors considered in recommendations. A salary adjustment may not result in base salary exceeding the pay level maximum for the assigned job. Consideration should be given to other staff who may be affected by the action (internal salary equity).

A promotion is the advancement of an employee from a job on a lower pay grade to a job on a higher pay grade. It is DHS practice to provide promotional opportunities for current employees and to increase the number of leadership positions filled from within the Department.

When an employee is promoted, the employee’s salary should be raised to any salary in the new pay range that provides an increase of at least 5%, with the following exceptions:

It is DHS practice to compensate promotional increases as follows:

If the promotional increase will result in an employee’s salary exceeding the pay grade maximum, the employee’s salary may only be adjusted to the pay grade maximum in compliance with State Personnel Board Rules.

In certain circumstances, approval may be requested in writing from OHR for additional salary adjustment upon promotion (e-mail is acceptable). The Salary Request Form may be used for this purpose. Salary adjustments should be based on 5%, 10%, 15%, etc. increments for processing purposes, if possible.

Divisions/Offices must:

OHR Compensation is available to evaluate requests or provide consultation prior to Division/Office Director or designee submitting for final approvals.

A demotion is the movement of an employee to a job on a lower pay grade. A demotion may be voluntary or involuntary. The employee must meet the minimum qualifications for the job and any approved special qualifications established for the position. Unless a demotion directly benefits the Department and is specifically approved for implementation without loss in pay, it will result in a loss in pay.

When an employee is demoted:

Approval of the request for voluntary demotion, or confirmation of the agreement to accept a demotion, should be put in writing. The notification must include the specific circumstances involved in the voluntary demotion, the effective date, salary, classified/unclassified status, location of position, etc.

It is DHS practice to process pay decreases, as a result of a demotion as follows:

In all cases, the new salary may not be more than the pay range maximum of the new job; thus, a demotion may result in a reduction in pay of more than what is indicated above.

An employee may be voluntarily demoted without a loss in pay or with a salary reduction of less than 10% in certain circumstances when the employee accepts a demotion that benefits the Department. The circumstances may involve, but are not limited to, the following:

Demotions associated with failure to meet performance expectations or conduct standards must result in a loss in pay despite any benefit to the Department. The appropriate OHR Field Manager must be consulted for involuntary/disciplinary demotions.

Circumstances involving situations such as staff reduction, reduction in force, shortage of work or funds, or reorganization, may support a demotion without a loss in pay. Each case will be reviewed on a case-by-case basis.

Divisions/Offices must:

OHR Compensation is available to evaluate requests or provide information and consultation prior to Division/Office Director or designee submitting for final approvals.

A transfer is when an employee or position has moved from one unit or department to another; inter or intra-agency. A vacant position may be filled at any time by the transfer of an employee from another position in the same job or from a position in another job on the same pay grade. The employee must meet the entry qualifications for the job and any approved special qualifications for the position.

Classified employees who transfer into unclassified positions become unclassified employees. They are not eligible to return to the classified service at any time.

Unclassified employees who transfer to other positions remain unclassified regardless of the status of the positions prior to transfer.

When an employee is transferred to another position (inter- or intra-agency) on a lateral basis (on the same pay grade) the employee’s base salary must be the same as the base salary prior to transfer, which may not be less than the pay range minimum for the new job. There should be no change in pay upon lateral transfer.

Transferred employees are not eligible for increases to base salary during their first six months in the new job other than those approved by the General Assembly. Additionally, an employee who transfers (inter- or intra-agency) is only eligible for an increase after a performance evaluation in the new position for which a “Successful Performer” rating or higher is received.

When applicable, an employee may receive a pay increase for a job change or lateral transfer on the same pay grade within DHS or if transferring from another state agency. Authorized officials may request approval from the Office of Human Resource (OHR) to adjust salaries upon transfer to meet the needs of the organization.

Examples of special circumstances for authorizing salary adjustments upon transfer include the following:

However, in all cases, the hiring or receiving work unit must demonstrate that consideration has been given to the salaries of employees within the unit who:

Salary adjustments cannot result in salaries that exceed the pay grade maximum.

Employees may be asked to perform additional duties for specified periods of time that are beyond the scope of their normal responsibilities. In addition to meeting temporary needs, assuming additional duties can afford an employee opportunity to learn new skills and gain experience that can be beneficial to the employee as well as the Department.

An employee taking on additional duties does not justify a pay increase, unless those additional duties substantially change the scope and level of responsibility already required as part of the employee’s current position.

When additional duties significantly increase the scope, level of responsibility, and/or volume of work required of an employee for a duration greater than 30 days, the employee may be eligible to receive a temporary salary supplement for the duration of the increased duties.

A temporary salary supplement is additional compensation to perform significant additional or replacement duties for a limited period of time.

Additional or replacement duties are when an employee is temporarily assigned the partial to full duties of another position in addition to their regular duties. This position would either be a lower-level, equivalent-level, or higher-level position.

If an employee is assigned partial duties of another position, the supplement would typically be half of the total supplement available.

An employee may be assigned a special project. Typically, these duties would be, in addition to their regular duties. The supplemental amount should be determined based on consideration of all factors and could range between 2.5% - 10%. Some considerations would be:

Supplements should not be given for normal and routine “additional duties as assigned,” but for significant additional tasks that are clearly above and beyond the normal range of expectations.

Temporary duties must be performed for at least one pay period.

Supplements (and all other salary actions) may not be retroactive, with the exception of cause due to administrative error. Consultation with OHR is required in such cases.

Supplements must be ended when the situation (vacancy, special project) is no longer applicable. To end a supplement, supervisor/manager must notify OHR by submitting a requisition in HR PASS.

Supplements should not be considered, when making base pay decisions.

Take careful consideration when requesting a TSS for FLSA non-exempt employees who will be performing temporary duties of an FLSA exempt position. Please consult with OHR for additional clarification in such cases.

Supplements should be reviewed on a minimum of a quarterly basis.

A supplement should not last more than 1 year without a written renewal request. Unless special circumstances exist, such as a grant.

Review should determine if additional duties have become permanent and if there is any impact on classification and/or base pay.

A conditional pay supplement may be provided to employees, who in addition to regular and typical duties, perform interpreter/translator services and/or work during night-shift hours.

A supplement should be discontinued when the person is no longer required to use/perform the additional duties.

Supplements are not transferrable and should be resubmitted for review and approval if a need exists to continue a supplement.

Supplements should be reviewed on a minimum of an annual basis.

A supplement should not last more than 1 year without a written renewal request.

Fair Labor Standards Act of 1938

Equal Pay Act

Title VII US Civil Rights Act of 1965, Amended 1991

The Social Security Act of 1935

Constitution of the State of Georgia

Rules of the State Personnel Board