WSR 16-05-056 PERMANENT RULES OFFICE OF FINANCIAL MANAGEMENT [Filed February 12, 2016, 11:11 a.m., effective March 14, 2016] Effective Date of Rule: March 14, 2016.
Purpose: These rule amendments are due to a review of the performance management confirmation (PMC) program's 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. These rule amendments 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.
Citation of Existing Rules Affected by this Order: Repealing WAC 357-28-075; and amending WAC 357-01-230, 357-28-060, 357-28-080, 357-28-295, 357-37-050, 357-37-055, 357-37-060, 357-58-065, 357-58-095, 357-58-100, 357-58-105, 357-58-135, 357-58-425, 357-58-430, and 357-58-435.
Statutory Authority for Adoption: Chapter 41.06 RCW.
Adopted under notice filed as WSR 16-02-099 on January 5, 2016.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 1, Amended 15, Repealed 1.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 1, Amended 15, Repealed 1.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 1, Amended 15, Repealed 1.
Date Adopted: February 12, 2016.
Roselyn Marcus
Assistant Director for
Legal and Legislative Affairs
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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