WSR 16-02-099 PROPOSED RULES
OFFICE OF
FINANCIAL MANAGEMENT
[Filed January 5, 2016, 12:09 p.m.]
Original Notice.
Title of Rule and Other Identifying Information: WAC 357-01-230 Performance management confirmation, 357-28-060 When does an employee receive an increment increase?, 357-28-075 Can an employer accelerate or defer increment increases based on performance?, 357-28-080 How does an employee allocated to a class with a special pay salary range progress through the range?, 357-28-295 Who may provide performance recognition pay to employees?, 357-37-050 May an employer factor in employee performance when granting recognition leave and when making layoff decisions?, 357-37-055 How does an employer receive performance management confirmation which enables them to factor in employee performance when granting recognition leave and when making layoff decisions?, 357-37-060 What elements will the director evaluate to determine if an employer should be granted performance management confirmation?, 357-58-065 Definitions for WMS, 357-58-095 May agencies provide salary increases for WMS employees?, 357-58-096 How often may agencies provide salary increases for WMS employees?, 357-58-100 Is there a limit for salary increases?, 357-58-105 When can exceptions to the salary increase limits be made?, 357-58-135 Who can provide lump sum performance recognition payment to employees?, 357-58-425 May an employer factor in employee performance when granting recognition leave and when making layoff decisions for WMS employees?, 357-58-430 How does an employer receive performance management confirmation which enables them to factor in performance when granting recognition leave and when making layoff decisions for WMS employees?, and 357-58-435 What elements will the director evaluate to determine if an employer should be granted performance management confirmation?
Hearing Location(s): Office of Financial Management (OFM), Capitol Court Building, 1110 Capitol Way South, Suite 120, Conference Room 110, Olympia, WA 98501, on February 11, 2016, at 8:30 a.m.
Date of Intended Adoption: February 11, 2016.
Submit Written Comments to: Kristie Wilson, OFM, P.O. Box 47500, e-mail Kristie.wilson@ofm.wa.gov, fax (360) 586-4694, by February 4, 2016. For OFM tracking purposes, please note on submitted comments "FORMAL COMMENT."
Assistance for Persons with Disabilities: Contact OFM by February 4, 2016, TTY (360) 753-4107 or (360) 586-8260.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: We are proposing to amend these rules due to a review of the performance management confirmation (PMC) program purpose and role. Current research on performance-based incentives and rewards and lessons learned since the program's inception were considered. This resulted in opportunities to improve the program's accountability and impact on agency performance. After considering the results of the review, we are proposing to amend and/or repeal these rules to remove performance-based compensation from the PMC program but keep the ability to factor in individual performance when granting recognition leave and when making layoff decisions.
Reasons Supporting Proposal: Current research done on the performance-based incentives and rewards and lessons learned since the program's inception have been considered and resulted in opportunities to improve the program's accountability and impact on agency performance.
Statutory Authority for Adoption: Chapter 41.06 RCW.
Statute Being Implemented: RCW 41.06.150.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: OFM, governmental.
Name of Agency Personnel Responsible for Drafting, Implementation, and Enforcement: Kristie Wilson, 128 10th Avenue S.W., Olympia, WA 98501, (360) 407-4139.
No small business economic impact statement has been prepared under chapter 19.85 RCW. Rules related only to internal government operations. No impact to businesses or industry.
A cost-benefit analysis is not required under RCW 34.05.328. Rules are related to internal government operations and are not subject to violation by a nongovernmental party. See RCW 34.05.328 (5)(b)(ii) for exemption.
January 5, 2016
Roselyn Marcus
Assistant Director of Legal
and Legislative Services
AMENDATORY SECTION (Amending WSR 05-01-204, filed 12/21/04, effective 7/1/05)
WAC 357-01-230 Performance management confirmation.
Approval granted by the director to an employer allowing the employer to ((link)) factor in individual employee performance ((to compensation or)) when granting recognition leave or when making layoff decisions.
AMENDATORY SECTION (Amending WSR 13-19-043, filed 9/13/13, effective 10/18/13)
WAC 357-28-060 When does an employee receive an increment increase?
Unless adjusted under the provisions of WAC 357-28-070 ((or 357-28-075)), an employee must receive a two step increase to base salary on the periodic increment date. Increment increases continue until the employee reaches step L of the salary range.
AMENDATORY SECTION (Amending WSR 05-01-205, filed 12/21/04, effective 7/1/05)
WAC 357-28-080 How does an employee allocated to a class with a special pay salary range progress through the range?
Unless adjusted under WAC 357-28-070 ((or 357-28-075)), employees allocated to a class with a special pay salary range must progress through the special pay salary range as defined in the compensation plan.
AMENDATORY SECTION (Amending WSR 05-01-205, filed 12/21/04, effective 7/1/05)
WAC 357-28-295 Who may provide performance recognition pay to employees?
The director ((or employers who have received performance management confirmation for decentralized compensation administration)) may authorize additional pay to individuals or groups of employees on a lump sum basis to recognize outstanding accomplishments or the achievement of predefined work goals by individual employees or units. Any additional pay granted under this section is a premium that is not part of base salary.
REPEALER
The following section of the Washington Administrative Code is repealed:
AMENDATORY SECTION (Amending WSR 05-01-194, filed 12/21/04, effective 7/1/05)
WAC 357-37-050 ((Can)) May an employer factor ((performance into compensation and)) in employee performance when granting recognition leave and when making layoff decisions?
An employer may factor in an employee's performance ((into compensation and)) when granting recognition leave and when making layoff decisions if the employer has received performance management confirmation.
AMENDATORY SECTION (Amending WSR 05-01-194, filed 12/21/04, effective 7/1/05)
WAC 357-37-055 How does an employer receive performance management confirmation which enables them to factor in employee performance ((into compensation and)) when granting recognition leave and when making layoff decisions?
Employers may request performance management confirmation from the director. The director will use the elements listed in WAC 357-37-060 to assess and evaluate an employer's readiness to fairly and objectively factor in employee performance ((into compensation and)) when granting recognition leave and when making layoff decisions. If the director determines that the employer has developed a performance management program that encompasses the necessary elements, the employer will be granted performance management confirmation.
AMENDATORY SECTION (Amending WSR 05-01-194, filed 12/21/04, effective 7/1/05)
WAC 357-37-060 What elements will the director evaluate to determine if an employer should be granted performance management confirmation?
The director will evaluate the following elements to determine if an employer should receive performance management confirmation:
(1) Executive commitment to a performance-based culture;
(2) Present status of performance management in the organization;
(3) Defined roles and responsibilities for implementing and sustaining a performance management system;
(4) Policy and process for holding managers accountable for properly carrying out their roles and responsibilities in performance management;
(5) Internal policies and procedures for a performance management system;
(6) Strategy for communicating to employees regarding policies, procedures((,)) and timelines for performance management;
(7) Performance management orientation and training for managers and supervisors;
(8) Internal mechanisms for managing funding for performance-based ((compensation)) recognition leave;
(9) Implementation of a performance and development plan for all employees subject to performance factor decisions; and
(10) Process for monitoring and measuring success.
AMENDATORY SECTION (Amending WSR 11-23-054, filed 11/10/11, effective 12/13/11)
WAC 357-58-065 Definitions for WMS.
The following definitions apply to chapter 357-58 WAC:
(1) Competencies. Those measurable or observable knowledge, skills, abilities((,)) and behaviors critical to success in a key job role or function.
(2) Director. State human resources director within the office of financial management.
(3) Dismissal. The termination of an individual's employment for disciplinary purposes.
(4) Employee. An individual working in the classified service. Employee business unit members are defined in WAC 357-43-001.
(5) Evaluation points. Evaluation points are the points resulting from an evaluation of a position using the managerial job value assessment chart.
(6) Layoff unit. A clearly identified structure within an employer's organization within which layoff options are determined in accordance with the employer's layoff procedure. Layoff units may be a series of progressively larger units within an employer's organization.
(7) Management bands. Management bands are a series of management levels included in the Washington management service. Placement in a band reflects the nature of management, decision-making environment and policy impact((,)) and scope of management accountability and control assigned to the position.
(8) Performance management confirmation. Approval granted by the director to an employer allowing the employer to ((link)) factor in individual employee performance ((to compensation or)) when granting recognition leave and when making layoff decisions.
(9) Premium. Pay added to an employee's base salary on a contingent basis in recognition of special requirements, conditions((,)) or circumstances associated with the job.
(10) Reassignment. A reassignment is an employer initiated movement of:
(a) A WMS employee from one position to a different position within WMS with the same salary standard and/or evaluation points; or
(b) A WMS position and its incumbent from one section, department((,)) or geographical location to another section, department((,)) or geographical location.
(11) Review period. The review period is a period of time that allows the employer an opportunity to ensure the WMS employee meets the requirements and performance standards of the position.
(12) Salary standard. Within a management band a salary standard is the maximum dollar amount assigned to a position in those agencies that use a salary standard in addition to, or in place of, evaluation points.
(13) Separation. Separation from state employment for nondisciplinary purposes.
(14) Suspension. An absence without pay for disciplinary purposes.
(15) Transfer. A WMS transfer is an employee initiated movement from one position to a different position with the same salary standard and/or same evaluation points.
AMENDATORY SECTION (Amending WSR 05-12-068, filed 5/27/05, effective 7/1/05)
WAC 357-58-095 May agencies provide ((progression)) salary increases for WMS employees?
Employers may ((grant progression adjustments)) provide salary increases to WMS employees ((as follows:
(1))) in recognition of the employee's demonstrated growth and development((; and/or
(2) If the employer has received performance management confirmation, in recognition of the employee's sustained excellence)).
NEW SECTION
WAC 357-58-096 How often may agencies provide salary increases for WMS employees?
Salary increases for WMS employees are not on a predetermined schedule. Salary increases are granted in recognition of the employee's demonstrated growth and development.
AMENDATORY SECTION (Amending WSR 05-12-068, filed 5/27/05, effective 7/1/05)
WAC 357-58-100 Is there a limit for ((annual progression)) salary increases?
((Progression)) Salary increases initiated by the agency normally will not exceed a total of twenty-five percent during the tenure of an employee's appointment to a position as long as the position's duties are unchanged or would not evaluate higher if new duties were assigned.
AMENDATORY SECTION (Amending WSR 11-23-054, filed 11/10/11, effective 12/13/11)
WAC 357-58-105 When can exceptions to the ((progression)) salary increase limits be made?
Only the director may grant requests for exception to the ((progression)) salary increase limit.
AMENDATORY SECTION (Amending WSR 11-23-054, filed 11/10/11, effective 12/13/11)
WAC 357-58-135 Who can provide lump sum performance recognition payment to employees?
The director ((or an agency that has received performance management confirmation for decentralized compensation administration)) may provide additional pay to employees on a lump sum basis. Such payment to an individual or group of employees is to recognize outstanding performance or the achievement of predefined work goals. Any pay granted under this section is a premium that is not part of the base salary.
AMENDATORY SECTION (Amending WSR 05-12-071, filed 5/27/05, effective 7/1/05)
WAC 357-58-425 ((Can)) May an employer factor in employee performance ((into compensation and)) when granting recognition leave and when making layoff decisions for WMS employees?
A general government employer may factor in an employee's performance ((into compensation and)) when granting recognition leave and when making layoff decisions if the employer has received performance management confirmation.
AMENDATORY SECTION (Amending WSR 11-23-054, filed 11/10/11, effective 12/13/11)
WAC 357-58-430 How does an employer receive performance management confirmation which enables them to factor in performance ((into compensation and)) when granting recognition leave and when making layoff decisions for WMS employees?
Employers may request performance management confirmation from the director for WMS employees. The director will use the elements listed in WAC 357-58-435 to assess and evaluate an employer's readiness to fairly and objectively factor in performance ((into compensation,)) when granting recognition leave and when making layoff decisions. If the director determines that the employer has developed a performance management program that encompasses the necessary elements, the employer will be granted performance management confirmation.
AMENDATORY SECTION (Amending WSR 11-23-054, filed 11/10/11, effective 12/13/11)
WAC 357-58-435 What elements will the director evaluate to determine if an employer should be granted performance management confirmation?
The director will evaluate the following elements to determine if an employer should receive performance management confirmation:
(1) Executive commitment to a performance-based culture;
(2) Present status of performance management in the organization;
(3) Defined roles and responsibilities for implementing and sustaining a performance management system;
(4) Policy and process for holding managers accountable for properly carrying out their roles and responsibilities in performance management;
(5) Internal policies and procedures for a performance management system;
(6) Strategy for communicating to employees regarding policies, procedures((,)) and timelines for performance management;
(7) Performance management orientation and training for managers and supervisors;
(8) Internal mechanisms for managing funding for performance-based ((compensation)) recognition leave;
(9) Implementation of a performance and development plan for all employees subject to performance factor decisions; and
(10) Process for monitoring and measuring success.
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