BILL ANALYSIS �
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THIRD READING
Bill No: SB 216
Author: Beall (D)
Amended: 4/29/13
Vote: 21
SENATE PUBLIC EMPLOY.& RETIRE. COMM. : 5-0, 4/8/13
AYES: Beall, Walters, Block, Gaines, Yee
SENATE APPROPRIATIONS COMMITTEE : 6-0, 5/23/13
AYES: De Le�n, Walters, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Gaines
SUBJECT : Public employment: salary ranges
SOURCE : Association of California State Supervisors
California Association of Professional Scientists
California Correctional Supervisor Organization
Professional Engineers in California Government
DIGEST : This bill 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% over the salaries of their subordinate rank and file
employees.
ANALYSIS :
Existing law:
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1.Effective July 1, 2012, merged the Department of Personnel
Administration and the administrative functions of the State
Personnel Board to form CalHR, which among other duties serves
as the representative for the Governor in all state collective
bargaining activities.
2.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.
3.Requires that CalHR set salaries for excluded and 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.
This bill:
1.Makes findings and declarations regarding the roll of CalHR in
setting salaries for excluded employees and managing the
non-merit 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.
2.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% higher than the salary of rank and file employees they
supervise.
3.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.
Background
Salary compaction and parity are significant issues facing the
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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% above the pay of the classes they supervise.
The 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.
Comments
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.
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 Memorandum of Understanding 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
CalHR estimates costs of approximately $200,000 for two
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)
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SUPPORT : (Verified 5/23/13)
Association of California State Supervisors (co-source)
California Association of Professional Scientists (co-source)
California Correctional Supervisor Organization (co-source)
Professional Engineers in California Government (co-source)
OPPOSITION : (Verified 5/23/13)
Department of Finance
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% 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."
JL:ej 5/24/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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