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SENATE FLOOR VERSION
April 12, 2023
ENGROSSED HOUSE
BILL NO. 1798 By: Osburn, Menz, and Deck of
the House
and
Thompson (Roger) of the
Senate
[ state government - Oklahoma Personnel Act - pay
structures - studies of compensation - adjustment
percentage cap - effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 840 -2.15A,
is amended to read as follows:
Section 840-2.15A There is hereby established the "State
Employee Compensation Program " within the executive branch. The
State Employee Compensation Program will attract, retain and reward
quality employees with competi tive total compensation based on
relevant labor markets. The Office of Management and Enterprise
Services will be responsible for coordinat ing the implementation of
the compensation program. The compensation program will establish
pay structures with a goal of compensating which compensate state
employees at a level of at least a ninety percent (90%) of
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compensation for comparable private se ctor positions. This shall be
done by a gradual in crease over the following fiscal years :
1. Eighty-five percent (85%) for the f iscal year beginning July
1, 2024;
2. Eighty-seven percent (87%) for the fiscal year beginning
July 1, 2025; and
3. Ninety percent (90%) for the fiscal year beginning July 1,
2026.
Upon reaching the ninety -percent threshold, the Office of
Management and Enterprise Services s hall maintain the compensation
levels at such a percentage based upon the fiscal year 2023 Market-
Based Pay Study and subsequent pay studies funded and performed
every four (4) years therea fter. These studies shall be funded to
examine the overall compens ation for all positions covered by the
Office of Management and Enterprise Services under the Civil Service
and Human Capital Management Act. The studies shall include an
analysis of the overall state workforce and recommendations for any
increase or decrease in specific areas of the workforce. The
studies shall be completed, and the findings submitted to t he
Offices of the Governor, the Speaker of the Oklahoma House of
Representatives, and th e President Pro Tempore of the Oklahoma State
Senate, by December 31 of each required year.
The compensation program will reinforce a productive work
climate and culture of accountability and make the State of Oklahoma
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an employer of choice. Pay structures will be implemented with
fairness and equity throughout the e xecutive branch. Pay delivery
mechanisms will be based on a combination of establishing and
maintaining relativity to market, achievement of performance
objectives, recognition of differences in job content, acquisition
and application of further skill an d education. The Legislature
will be accountable for the funding of the pay structures
established pursuant to the compensation program.
SECTION 2. AMENDATORY 74 O.S. 2021, Section 840 -2.17, as
amended by Section 1, Chapter 244, O.S.L. 2022 (74 O.S. Supp. 2022,
Section 840-2.17), is amended to read as follows:
Section 840-2.17 A. Unless otherwise provided by the Oklahoma
Constitution, statutory authority to set o r fix compensation, pay or
salary of state officers a nd employees shall not be construed to
authorize any agency, board, commission, department, institution,
bureau, executive officer or other entity of the executive br anch of
state government to award, gr ant, give, authorize, or promise any
officer or employee of the State of Oklahoma a raise that is
inconsistent with the compensation schedules established by the
Office of Management and Enterprise Services for all stat e officers
and employees in the execu tive branch pursuant to Section 840-4.6 of
this title, including, but not limited to, a cost-of-living raise or
any other type of raise that would be given to state e mployees on an
across-the-board basis, except as here in provided. Such raises are
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prohibited unless authorized by the Legislature and b y rules
promulgated by the Director of the Office of Management and
Enterprise Services. This prohibition applies to al l officers and
employees in the executive branch of state government, excludin g
institutions under the administrative authority of the Oklahoma
State Regents for Higher Education.
B. However, nothing in this section shall be construed to
prohibit the following actions if the action is made in good faith
and not for the purpose of c ircumventing subsection A of this
section, and if the appointing auth ority certifies that the action
can be implemented for the current fiscal year and the subsequent
fiscal year without the need for additional funding to increase the
personal services bud get of the agency, and if the Office of
Management and Enterprise Ser vices certifies that the action is
consistent with the compensation schedules established pursuan t to
the provisions of Section 840-4.6 of this title:
1. Salary advancements on promotio n to a job family level or
class with a higher salary band;
2. Salary adjustments resulting from a pay band change for a
job family level or class adopted by the Office of Mana gement and
Enterprise Services;
3. Increases in longevity payments pursuant to Section 840 -2.18
of this title;
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4. Payment of overtime, special entrance rates , pay
differentials;
5. Payment of wages, salaries, or rates of pay established and
mandated by law;
6. Market adjustments for job family levels tie d to market
competitiveness;
7. Intra-agency lateral transfers, prov ided that the adjustment
does not exceed five percent (5%) and the adjustment is based on the
needs of the agency;
8. Skill-based adjustments. Such adjustments, which are
implemented before November 1, 2006, other than lump -sum payments,
shall become permanent after twenty-four (24) months from the date
such salary adjustment is implemented and may not later be removed
from an employee's base salary if a furlough or reduction-in-force
is implemented by the appoin ting authority granting such salary
adjustment. Skill-based pay adjustments, wh ich are implemented on
or after November 1, 2006, and which are paid to an employee, shall
be paid as long as the employee remains employed in the pos ition and
performs the skills for whic h the differential is due, but shall not
be included as a part of th e employee's base salary;
9. Equity-based adjustments;
10. Performance-based adjustments for em ployees who received at
least a "meets standards" rating on their most current performanc e
rating;
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11. Career progression increases as an employee advances
through job family levels; or
12. Salary adjustments not to exceed five percent (5%) for
probationary employees achieving permanent status following the
initial probationary period and permanent employees successfully
completing trial periods after i ntra-agency lateral transfer or
promotion to a different job family level or following car eer
progression to a different job family level.
C. The pay movement mechanisms described in paragraphs 6
through 11 in of subsection B of this section shall be implemented
pursuant to rules promulgated by the Director of the Office of
Management and Enterprise Services.
D. Appointing authorities may implement the pay movement
mechanisms in paragraphs 6 through 12 in of subsection B of this
section subject to the availabili ty of funds within the agency's
budget for the current fiscal year and subsequent fiscal ye ar
without the need for additional funding to increase the personal
services budget of the agency . Failure by the appointing authority
to follow the provisions of t his subsection may cause the withdrawal
of the use of the pay movement mechanisms provided in paragraphs 6,
7, 9, 10 and 11 of subsection B of this section within the agency
during the next appropriations cycle.
E. The provisions in of subsection B of this section shall not
apply to chief executive officers of any agency, board, commission,
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department or program except for paragraphs 3 and 5 of subsection B
of this section.
F. The Office of Management and Enterprise Services shall file
a quarterly report with the Offices of the Governor, Speaker of the
Oklahoma House of Representatives, and President Pro Tempore of the
Oklahoma State Senate listing, by agency, all increases in wages,
salaries or rates of pay and any changes to ti tle or classification
of each employee.
SECTION 3. This act shall become effective November 1, 2023.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
April 12, 2023 - DO PASS