Chapter 19: Transition to New Pay Structure
19.1 Purpose and Scope
These rules are interim rules for the purpose of effecting transition from the old Wage Grade (WG)
and Grade Scale (GS) pay structure to a new pay structure. This Chapter temporarily supercedes all
other rules that are now in conflict.
19.2 Rates in the Pay Plan
(a) The pay range for each job shall consist of an interim minimum, minimum and maximum.
(b) Employees may be paid at rates below the interim minimum under provisions of Subsection 19.7
of this Rule.
(c) The interim minimum is a reduced minimum rate established 9.5% below the appropriate
minimum for purposes of implementation only.
19.3 Pay Upon Movement of Jobs to New Structure Grades
(a) If the employee's individual pay rate falls within the range of the new grade, his pay will not
(b) Subject to the provisions of Rule 19.3(e), if the employee's individual pay rate falls above the new
range maximum, his pay shall be red circled. Individual pay rates that fall above the maximum
established for the grade become Red Circle Rates and remain in effect until the range catches up with
the rates. Individuals whose salary rates are red circled shall not be eligible for any other pay
(c) If the employee's individual pay rate falls below the interim minimum for the new range, his pay
shall be established in accordance with either 1, 2 or 3 below.
- In accordance with Section 19.7 of these Rules; or
- Shall be immediately adjusted to the interim minimum.
- Shall be immediately adjusted to the minimum.
(d) In the event that funding is available, the provisions of Rule 19.2 will be suspended in favor of
establishing the recommended range minimum in lieu of interim minimums and provisions of Rule
19.3(c) shall apply.
The Commission shall stipulate which option is to be applied. Whichever option is selected will
be applied uniformly to all affected employees.
(e) If the employee's individual pay rate falls above the new range maximum as a direct result of the
implementation of the new pay plan and not as a result of the existence of a prior Red Circle Rate,
his pay shall be red circled until the range catches up with the rate. An individual whose salary rate
is red circled shall not be eligible for any other further adjustment to his base pay.
Special pay for hazardous duty, shift differential, etc. may be granted to individuals where
appropriate and in accordance with these Rules regardless of red circle status.
(f) An appointing authority may request that the Director grant an exception to Rule 19.3(e).
19.4 Hiring Rate
(a) Pay upon employment shall be at the established interim minimum under the following
- If the appointing authority has employees in the same job title of the position being filled whose
rate of pay is below the interim minimum, those employees' pay must be adjusted to the interim
minimum as of the date of the appointment.
- No appointments will be approved unless the official forms affecting the pay adjustment action
have been submitted.
(b) All special entrance rates in effect are cancelled with the implementation of the new structure.
- In order to reestablish special entrance rates above the interim minimum, the agency must make
their requests under established procedures.
- Upon approval of a special entrance rate, provisions of Rule 6.5(b) shall apply.
19.5 Pay on Promotion, Grade Assignment Change
When an employee is promoted to a position in a higher grade or his position is reallocated to a job
in a higher grade, he shall receive the amount to which he is entitled under Rule 6.7 and 6.8 or the
new range interim minimum, whichever is greater.
19.6 Merit Increases
The merit increase of 4% shall not be affected by these transition rules.
19.7 Schedule for Individual Pay Rate Adjustment to Interim Minimum
Beginning with the effective date of the new pay structure, no employee's pay rate will change, but
for a period of one year each will receive any merit steps for which they are eligible and granted by
their appointing authority and any adjustments due them under Chapter 17. At the end of that year,
all employees whose rate of pay is still below the interim minimum shall be brought to the interim
19.8 Schedule for Adjustment of the Range Minimums
(a) No later than two years after the effective date of the new pay plan, the interim minimum will be
replaced by the range minimums that restore the uniform 50% range spread.
(b) All employees whose rate of pay fall below that new minimum shall have their pay established
in accordance with Section 19.3(c) and 19.4 as applied to the new range minimum rather than the
19.9 Pay Upon Grade Assignment Changes
(a) Re-evaluation or Re-titling.
During the first year transition to the new pay structure, when the Director assigns jobs to a
different range based upon a re-evaluation and/or restructuring or re-titling of those jobs, the pay
range change will be made effective. The effective date of the new structure and an incumbent's pay
will be determined by following the Chapter 19 Transition Rules.
(b) Market Adjustment.
When the Director authorizes the use of a market grade, the individual pay rate of employees
occupying jobs which are affected shall not change except that, if the employee's pay is below the
market grade minimum, the employee's pay shall be adjusted to the minimum. Rates above the new
market grade maximum are subject to Rule 6.15.
(c) Change in Duties.
During the first year transition to the new pay structure, when the Director assigns a job to a
different range based on a change of duties and re-evaluation of that job, the employee's pay shall
be set in accordance with Rule 6.7. The change in duties must have taken place subsequent to the
effective date of the new structure.
19.10 Transition Problem Resolution
In order to resolve problems which arise as a result of transition to the new pay system, the Director
shall have authority to waive existing rules and approve personnel actions when he determines such
approval to be in the best interest of the State Service. The Director shall report all actions taken
under this Rule to the Commission.
19.11 Individual Pay Adjustments
(a) When an appointing authority determines that the relationship of individual pay rates resulting
from the implementation of the January 1, 1987 Pay Plan adversely affects the efficiency of a work
unit(s), the Director may grant a request for an individual pay adjustment. Each request must include
certfication that funds are available to implement the request, the proposed amount of adjustment,
a detailed explanation of the methodology used to determine the appropriate adjustment and explicit
reasons why an individual pay adjustment is necessary to correct the existing management problem.
The Director shall include a listing of all approved adjustments in his monthly report to the
(b) The Director's decision shall be final and shall only be appealable to the Commission pursuant to
19.12 Equalization Adjustment Authority
In order to correct problems associated with the implementation of the new pay system, the
Commission may order implementation of special pay adjustments.