BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 1058 (Pan) - State employment: supervisors ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 4, 2016 |Policy Vote: P.E. & R. 5 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: April 18, 2016 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- 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 SB 1058 (Pan) Page 1 of ? 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 SB 1058 (Pan) Page 2 of ? 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. -- END --