BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
SB 216 (Beall) - Public employees: salary ranges
Amended: April 3, 2013 Policy Vote: PE&R 5-0
Urgency: No Mandate: No
Hearing Date: April 22, 2013
Consultant: Maureen Ortiz
This bill meets the criteria for referral to the Suspense File.
Bill Summary: SB 216 requires the Department of Human Resources
(CalHR) to address salary compaction for managerial and
supervisorial employees, and to provide data to the Legislature
if the department determines that insufficient revenues exist to
fully implement a salary differential.
Fiscal Impact:
CalHR estimates costs of approximately $200,000 for 2 PYs
to compile and analyze the data (General)
Additionally, there will be unknown costs associated with salary
increases that may result from addressing compaction. A 1%
increase in the salaries of supervisors and managers would cost
approximately $35- $40 million. (General/Specials)
Background: Salary compaction and parity are significant issues
facing the state in compensating management employees. Salary
compaction occurs when the salaries of subordinate employees
approach, and in some cases exceed, the salary of their
supervisors. State policy is that supervisory and managerial
employees receive salaries 10 percent above the pay of the
classes they supervise.
CalHR is responsible for setting the salaries of exempt and
excluded state employees. There is no statutory requirement to
extend a pay package that was bargained for represented
employees to related excluded employees.
Proposed Law: SB 216 requires CalHR to determine salaries for
supervisory and managerial employees consistent with the
principle that a minimum 10 percent supervisory salary
SB 216 (Beall)
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differential. The bill further provides that if the department
determines that revenues do not allow it to implement a salary
determination to increase any excluded and exempt employee
salaries in a given year, the department shall provide to the
Legislature data on salary compaction.
Related Legislation: This bill is similar to SB 1113 (Evans)
which failed passed on the Assembly Floor in 2012.
Staff Comments: Salary and wage compaction is often an
unintended consequence of collective bargaining agreements that
result in increased salaries for rank and file employees, but do
not guarantee a correlating salary increase for the excluded and
exempt employees who supervise those covered under collective
bargaining agreements. Often, when an agreement or MOU is
reached with a state bargaining unit, certain provisions are
also extended to related classes of employees who are excluded
from bargaining. However, there is no statutory requirement to
extend a pay package that was bargained for represented
employees, or to study the impact of the MOU on related excluded
classes. Over many years of not extending salary increases to
managers and supervisors, the problem of salary compaction has
increased to the point where many departments have difficulty
filling excluded positions.
Existing law requires CalHR to establish and adjust salary
ranges for each class of position in the state civil service,
subject to merit limits. Salary ranges are to be based on the
principle that like salaries be paid for comparable duties and
responsibilities.