BILL NUMBER: SB 216AMENDED BILL TEXT AMENDED IN SENATE APRIL 29, 2013 AMENDED IN SENATE APRIL 3, 2013 AMENDED IN SENATE MARCH 18, 2013 INTRODUCED BY Senator Beall (Principal coauthor: Senator Nielsen) ( Coauthor: Senator Gaines ) FEBRUARY 11, 2013 An act to add Section 18006 to the Government Code, relating to public employment. LEGISLATIVE COUNSEL'S DIGEST SB 216, as amended, Beall. Public employment: salary ranges. Existing law prescribes the duties of the Department of Human Resources, which include the administration of salaries, hours, and other aspects of the state's personnel system. Existing law requires the Department of Human Resources to establish and adjust salary ranges for each class of position in the state civil service, subject to merit limits and except as specified. Existing law requires the salary range to be based on the principle that like salaries be paid for comparable duties and responsibilities. This bill would require the Department of Human Resources to address salary compaction and parity in determining salaries for supervisory and managerial employees. The bill would also require the department, if it determines that revenues do not allow the department to implement a salary determination to increase any excluded and exempt employee salaries in a given year, to provide to the Legislature certain data on the salary determination. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares the following: (a) The Department of Human Resources is established in statutefor purposes of managingto manage the nonmerit aspects of the state's personnel system. (b) The Department of Human Resources, except as specified, establishes and adjusts salary ranges for each class of position in state civil service, subject to specified merit limits. (c) Salary ranges are based on the principle that like salaries should be paid for comparable duties and responsibilities. (d) Salary compaction and parity are significant issues facing the state in compensating its management team. Salary compaction occurs when the salaries of subordinate employees approach, and in some cases exceed, the salary of their supervisors. State policy is that supervisory and managerial employees receive salaries 10 percent above the pay of the classes supervised. (e) In performing the salary setting function for excluded and exempt employees, the Department of Human Resources is reluctant or unable to recommend appropriate salary increases for exempt and excluded employees when there is not a legislative appropriation to pay the increased salaries as the Department of Human Resources defers to the Department of Finance on these issues, even though the Department of Finance has no direct role in establishing or recommending the salaries of excluded employees. (f) The intent of this bill is to address salary compaction and parity concerns for supervisory and managerial employees and, if the Department of Human Resources determines that revenues do not allow it to implement a salary determination to increase any excluded and exempt employee salaries in a given year, to require the Department of Human Resources to provide certain data on the salary determination to the Legislature. SEC. 2. Section 18006 is added to the Government Code, to read: 18006. (a) In determining salaries for supervisory and managerial employees, the Department of Human Resources shall address salary compaction and parity concerns, consistent with the principle that a minimum 10 percent supervisory salary differential is appropriate for supervisory and managerial employees above the highest paid subordinate employees over whom the supervisor or manager has authority. (b) If the Department of Human Resources determines that revenues do not allow it to implement a salary determination to increase any excluded and exempt employee salaries in a given year, the department shall provide to the Legislature existing data on the salary determination, including all salary compaction and parity determinations for supervisory and managerial employees.