BILL ANALYSIS Ó
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: SB 216
Jim Beall, Chair HEARING DATE: April 8, 2013
SB 216 (Beall) as amended 4/03/13 FISCAL: YES
STATE MANAGERS & SUPERVISORS: SALARY COMPACTION
HISTORY :
Sponsor: Association of California State Supervisors
(ACSS), Sponsor
Other legislation: SB 1113 (Evans) 2012
Died in Assembly Appropriations
SUMMARY :
SB 216 requires the Department of Human Resources (CalHR) to
address salary compaction for managerial and supervisorial
employees and provide data to the Legislature when
insufficient revenue is available to implement a salary
determination to increase managerial and supervisorial
salaries by 10 percent over the salaries of their subordinate
rank and file employees.
BACKGROUND AND ANALYSIS :
1) Existing law :
a) effective July 1, 2012, merged the Department of
Personnel Administration (DPA) and the administrative
functions of the State Personnel Board (SPB) to form
CalHR, which among other duties serves as the
representative for the Governor in all state collective
bargaining activities.
b) requires that CalHR and each of the state's 21
collective bargaining units meet and confer and enter
into contracts over wages and working conditions for
represented employees.
c) requires that CalHR set salaries for excluded and
Glenn A. Miles
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exempt employees, and allows excluded employee
representatives to meet and confer with CalHR, but does
not otherwise make the state employer or excluded
employees subject to collective bargaining requirements.
2) This bill :
a) makes findings and declarations regarding the roll of
CalHR in setting salaries for excluded employees and
managing the nonmerit aspects of the state's personnel
system, and declares that CalHR is unable or reluctant
to recommend appropriate salary increases for excluded
employees when there is no legislative appropriation to
pay for the increases, and in such cases defers to the
Department of Finance even though the Department of
Finance has no direct role in establishing or
recommending salaries for excluded employees.
b) requires CalHR to address salary compaction and
parity concerns consistent with the principle that it is
appropriate to provide managerial/supervisory employees
a salary at least 10 percent higher than the salary of
rank and file employees they supervise.
c) requires CalHR to provide the Legislature with data
on salary compaction as specified whenever the
department determines there is insufficient revenue to
fund a salary determination to increase
managerial/supervisorial salaries pursuant to the
State's compaction differential policy.
COMMENTS :
1) What is salary compaction ?
Salary compaction refers to the condition where
managerial/supervisorial (excluded) employees do not earn
enough in relation to their subordinate employees. This is
problematic because excluded employee candidates may be
dis-incentivized from seeking promotions, or after promoting,
may later decide to demote to non-managerial/supervisorial
positions.
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CalHR sets excluded employees' compensation. There is no
statutory requirement to extend a pay package that was
bargained for represented employees to related excluded
employees. CalHR is not currently required to study the
impact of the rank and file MOU on related excluded classes
and provide data to the Legislature. Excluded employees do
not generally receive overtime pay and other protections
provided to represented employees through collective
bargaining. Moreover, excluded employees may have higher
levels of stress and responsibility due to their
managerial/supervisorial role.
2) Arguments in Support :
The Association of California Supervisors states that "after
years of?cuts to state employees, supervisors, managers, and
confidential employees now often make less than the employees
who work for them. In fact, according to a recent survey, 43
percent of state supervisors and managers earn the same or
less than the employees who report to them."
According to the California Correctional Supervisor
Organization, "Compaction issues, left unaddressed, create a
disincentive for qualified line officers to seek promotion.
This in turn, weakens the structure of the entire
organization."
3) SUPPORT :
Association of California State Supervisors (ACSS), Sponsor
California Association of Professional Scientists (CAPS),
Co-sponsor
California Correctional Supervisor Organization, Co-sponsor
Professional Engineers in California Government (PECG),
Co-sponsor
4) OPPOSITION :
None to date
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