BILL ANALYSIS �
AB 208
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Date of Hearing: April 24, 2013
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Rob Bonta, Chair
AB 208 (Gorell) - As Introduced: January 30, 2013
SUBJECT : State employees: additional compensation.
SUMMARY : Prohibits a salaried state employee from taking an
additional hourly wage job in the same department or agency
unless agreed to in a Memorandum of Understanding.
EXISTING LAW charges the California Department of Human
Resources (CalHR) with the responsibility for all issues related
to salaries and benefits, job classifications, civil rights,
training, exams, recruiting, and retaining. For most employees,
many of these matters are determined through the collective
bargaining process.
FISCAL EFFECT : Unknown.
COMMENTS : In 1979, the State Personnel Board (SPB) issued
guidance to departments using additional appointments. As
outlined in the Personnel Management Policy and Procedures
Manual, "Additional appointment is the term used when a state
civil service employee is appointed to a second position in
state service. The term is descriptive only since the fact that
an appointment is held as an additional appointment does not
change the civil service law and rule provisions that would
otherwise apply to it." The Manual specifically states, "There
are no laws or rules that relate specifically to additional
appointments. The authorities for making additional
appointments are the same as for making any other appointment.
These include the provisions on list appointments, transfers,
reinstatements, etc."
According to the author, "On January 17, the Sacramento Bee
reported that the California Public Employees' Retirement System
(CalPERS) paid 50 managers an average $900 each in November to
work in hourly positions within the same department. After
further investigation, the Sacramento Bee later found that,
'?hundreds of nonunion employees - managers and supervisors - in
at least 11 state agencies are moonlighting with second jobs in
their own department.' What was initially believed to be an
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isolated practice at CalPERS, turned out to be a broader
practice across the state. The State Controller's office
revealed that in 2012 alone, 1,910 state workers were
moonlighting in both full and part time positions. For example,
within the California Medical Facility, records indicate that
salaried employees making over $200,000 were also earning over
$80,000 in their second position.
"Additionally, moonlighting is proving to be problematic for
accountability reasons. There are questions of when state
workers are clocking into their hourly paid job and whether
their hourly job duties are substantially different than their
salaried job. If the second appointment job is substantially
similar to the employee's first job, then he/she is taking
advantage of a loophole that is contrary to the purpose of a
salaried position and also circumvents the Legislature's intent
for salaried state employees."
CalPERS states that they used Additional Appointments to launch
the pension fund's state-of-the-art computer system, to reduce
backlogs and to improve customer service levels. However, once
it became apparent that there were various interpretations of
the use of Additional Appointments across all state departments,
CalPERS suspended their use effective January 1, 2013.
On January 30, 2013, CalHR issued a memorandum to all state
Personnel Management Liaisons stating that CalHR was in the
process of reviewing relevant laws, rules and prior procedures
that have been applied to the use of Additional Appointments to
date and that effective immediately, departments are no longer
authorized to make any new Additional Appointments. The
Committee is informed that the review is still being conducted.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957
AB 208
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