BILL ANALYSIS                                                                                                                                                                                                    





          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1058 (Pan) - State employment:  supervisors
          
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          |Version: April 4, 2016          |Policy Vote: P.E. & R. 5 - 0    |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: April 18, 2016    |Consultant: Robert Ingenito     |
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          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: SB 1058 would add peace officer supervisors of  
          employees in State Bargaining Unit  7 (California Statewide Law  
          Enforcement Association) to the group of peace officer  
          supervisors who are required to receive salary and benefits  
          changes that are at least generally equivalent to the salary and  
          benefits granted to employees they supervise.

          Fiscal Impact: The bill could result in unknown, potentially  
          significant costs associated with salary increases resulting  
          from addressing compaction. 
          
          Background:  Salary compaction and parity are key 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  








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          classes they supervise.

          The California Department of Human Resources (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. 

          Under current law, supervisors of employees represented by the  
          following state bargaining units (BU) shall receive salary and  
          benefits changes that are at least generally equivalent to the  
          salary and benefits provided to the employees they supervise:

                 State Bargaining Unit 5: California Association of  
               Highway Patrol
                 State Bargaining Unit 6: California Correctional Peace  
               Officers Association
                 State Bargaining Unit 8: California Department of  
               Forestry Firefighters


          Peace officers in Bargaining Unit 7 include state parks rangers  
          and fish and wildlife wardens, Alcoholic Beverage Control  
          agents, Department of State Hospitals officers, special agents  
          with the Department of Justice, deputy state fire marshals, and  
          inspectors and investigators in various state departments who  
          are designated as peace officers. Those who directly supervise  
          these represented peace officers are also designated as peace  
          officers.

          Proposed Law:  SB 1058 would add peace officer supervisors of  
          employees in Bargaining Unit 7 to those supervisors that shall  
          receive salary and benefits changes that are generally  
          equivalent to those provided to the employees they supervise.

          Related Legislation: SB 216 (Beall, 2013), would have required  
          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 percent over the salaries of their subordinate rank and  
          file employees.  The bill was vetoed by the Governor. 
          
          Staff Comments:  Salary and wage compaction is often an  
          unintended consequence of collective bargaining agreements that  







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          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.

          CalHR is still compiling the data needed to produce a refined  
          fiscal estimate for this bill. However, CalHR indicates that  
          Bargaining Unit 7 currently has 7,459 rank and file members. The  
          number of supervisors totals 1,147, comprised of over 70  
          supervisor classifications spanning 49 state departments. No  
          single department employs more than 16 percent of Bargaining  
          Unit 7 supervisors.


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