Department of Management Services s1

Program Guidelines

Department of Management Services

Division of Human Resource Management

PROGRAM GUIDELINES

SUBJECT:
Rate of Pay - Includible Payment Types
STATUTORY/RULE REFERENCE:
Sections 110.219(5), 110.403(1)(c), and 110.605(1) Florida Statutes (F.S.)
Rule 60L-32.0012, Compensation and Benefits, Florida Administrative Code (F.A.C.) / EFFECTIVE DATE:
April 2, 2008
Revised: November 25, 2008
FORMS:
N/A / ADDITIONAL REFERENCE MATERIAL:
Rule Interpretation, 60L-34-2008-#004, Leave Payouts – Rate of Pay Calculation

I. SCOPE AND PURPOSE.

This document clarifies the payment types that are included in the rate of pay used to calculate overtime payments, leave payouts, and life insurance premium amounts.

II. DEFINITIONS.

For the purposes of this document, the following definitions apply:

Base Rate of Pay:

An employee's salary excluding all salary additives, as provided in Rule 60L-32.0012, F.A.C or elsewhere in rule or law, and excluding all other incentive payments, perquisites, reimbursements, or bonuses.

CJIP: Criminal Justice Incentive Pay, as authorized in Section 943.22, F.S.

FFIP: Fire Fighter Incentive Pay, as authorized in Section 633.382, F.S.

People First Time and Attendance Codes:

1015 – Florida Nurses Association (FNA) Disaster Pay

1016 – Regular Comp Payable

1017 – Selected Exempt Service (SES) Extraordinary Pay

1018 – FNA Hours

III. APPLICABLE STATUTORY AND RULE PROVISIONS.

A. Statutory Provisions

Section 110.219, F.S., Attendance and leave.

(5) Rules shall be adopted by the department in cooperation and consultation with the agencies to implement the provisions of this section; however, such rules must be approved by the Administration Commission prior to their adoption. Such rules must provide for, but need not be limited to:

(a) The maximum responsibility and authority resting with each agency head to administer attendance and leave matters in the agency within the parameters of the rules adopted by the department.

Section 110.403, F.S., Powers and duties of the department.

(1) In order to implement the purposes of this part, the Department of Management Services, after approval by the Administration Commission, shall adopt and amend rules providing for:

(c) A classification plan and a salary and benefit plan that provides appropriate incentives for the recruitment and retention of outstanding management personnel and provides for salary increases based on performance.

Section 110.605, F.S., Powers and duties; personnel rules, records, reports and performance appraisal.

(1) The department shall adopt and administer uniform personnel rules, records, and reports relating to employees and positions in the Selected Exempt Service, as well as any other rules and procedures relating to personnel administration which are necessary to carry out the purposes of this part.

B. Rule Provisions

Rule 60L–32.0012, F.A.C., Salary Additives.

(1) Salary additives are temporary increases to the base rate of pay. Employees filling positions for which a salary additive has been approved shall receive the salary additive. A salary additive shall be removed or adjusted upon a change in the conditions upon which it was granted.

(2) For career service employees, salary additives include the following:

(a) Shift Differential Additive – Agencies may approve this additive for a position when `justified by competitive labor practices.

(b) On-Call Additive – Agencies may approve positions to be placed on-call. Agencies may assign individual positions this additive when all of the following conditions are satisfied.

1. The employee has been instructed by the appropriate management to remain available to work during an off duty period.

2. The employee must leave word where the employee may be reached by phone or electronic signaling device.

3. The employee is available to return to the work location on short notice to perform assigned duties.

(c) Hazardous Duty Additive – An agency may approve this additive for specific positions when it can be demonstrated that such positions are required to perform duties and responsibilities that are exceptionally hazardous or dangerous. Such duties and responsibilities shall not be customarily associated with all positions in the broadband level.

(d) Leadworker Additive – An agency may approve this additive for individuals with sufficient knowledge and experience to lead others when assigned such responsibilities on a continuing basis. The leadership does not include evaluating other’s performance or administering disciplinary actions, and it does not justify reclassification. Duties must be reflected on the position description and in accordance with Chapter 60L-31, F.A.C.

(e) Temporary Special Duty Additive – An agency may approve this additive, for a period of ninety days, when a position has been assigned temporary duties and responsibilities not customarily assigned to the position. An agency shall not extend the period without Department approval.

(f) Trainer Additive – An agency may approve this additive when an employee is assigned the responsibility to provide on-the-job training to other employees as part of an agency-approved formalized training program; provided, that such training is not part of the customarily assigned duties of the position.

(g) Competitive Area Differential Additive – An agency shall not grant this additive without Department approval. This additive is justified for specific positions within an agency when it can be demonstrated that the additive is based on geographical, localized recruitment, turnover, or competitive pay problems. If requested by the agency, this additive may apply to positions within the requesting agency with similar duties and responsibilities in the approved broadband level within the geographical area for which the Department approves the additive.

(h) Critical Market Pay Additive – An agency shall not grant this additive without Department approval. This additive is justified when pay for a position is substantially below the prevailing market rate, resulting in hiring and retention difficulties. In considering requests for this additive, the Department shall conduct all relevant analyses to determine the need for a pay adjustment for the position. An agency requesting this additive shall assist the Department in any analyses the Department requests.

Rule Chapter 60L-34, F.A.C., Attendance and Leave.

This rule governs attendance and leave policies, as well as eligibility criteria and other conditions for payments of leave credits. Various terms are used through Rule Chapter 60L-34, F.A.C., in reference to the rate of pay at which leave payments are made.

C. Other Provisions

1. The Fair Labor Standards Act (FLSA) 29 U.S.C. 201, et seq., stipulates the pay requirements for covered (“included”) employees. Under FLSA, employers must compensate covered employees for all hours worked or permitted to work, and the compensation for all overtime hours must be at the rate of one and one-half times the employees’ “regular rate of pay”.

FLSA also requires that when a bonus is non-discretionary, it must also be included in the “regular rate of pay” for the purpose of calculating overtime payments. Generally, when non-recurring bonuses are appropriated to state employees on an across the board basis, they are considered “non-discretionary” within the meaning of the FLSA.

The calculation of leave payouts is not controlled by the FLSA. Therefore, in determining what should constitute the rate of pay for leave payouts, the State takes into consideration the public interest of fairness by not including sporadic or non-recurring payment types that may unreasonably skew the rate of pay in the pay period in which payment is being processed. For this reason, on-call fees and all bonuses are to be excluded.

2. The State Group Life Insurance Plan, currently underwritten by Minnesota Life, insures earnings based on a “pay period rate of pay”.

IV. PROCEDURE.

A. Included Payment Types for Overtime Rate of Pay

1. Base Pay

2. Salary Additives (all additives listed in Rule 60L-32.0012(2), F.A.C.)

3. Other Legislatively Authorized Agency Additives (as approved)

4. Incentive Payments (CJIP or FFIP)

5. Non-discretionary bonuses

B. Included Payment Types for Leave Payout Rate of Pay

1. Base Pay

2. Salary Additives (All additives listed in Rule 60L-32.0012(2), F.A.C., except on-call fees)

3. Other Legislatively Authorized Agency Additives (as approved)

4. Incentive Payments (CJIP or FFIP)

C. Included Payment Types for Life Insurance Premium Pay Period Rate of Pay

1. Base Pay

2. Salary Additives (All additives listed in Rule 60L-32.0012(2), F.A.C., except on-call fees)

3. Other Legislatively Authorized Agency Additives (as approved)

D. Included Payment Types for Other Rates of Pay

1. 1015 FNA Disaster Pay (As negotiated in the FNA Contract)

a. Base Pay

b. Salary Additives (All additives listed in Rule 60L-32.0012(2), F.A.C., except on-call fees)

c. Other Legislatively Authorized Agency Additives (as approved)

2. 1016 Regular Compensatory Payable

a. Base Pay

b. Salary Additives (All additives listed in Rule 60L-32.0012(2), F.A.C., except on-call fees)

c. Other Legislatively Authorized Agency Additives (as approved)

d. Incentive Payments (CJIP or FFIP)*

*Note: The People First system does not currently include CJIP/FFIP when calculating payments via Code 1016. To include CJIP or FFIP in the calculation, manual processing is necessary.

3. Call Back Pay

a. Base Pay

b. Salary Additives (All additives listed in Rule 60L-32.0012(2), F.A.C., except on-call fees)

c. Other Legislatively Authorized Agency Additives (as approved)

4. 1017 SES Extraordinary Pay

This payment type is only for SES employees; therefore, rate of pay is always base rate of pay.**

**Note: Although some SES employees are eligible for CJIP/FFIP, these additional forms of compensation were not intended to be included for purposes of extraordinary pay.

5. 1018 FNA Hours

This is a form of shift differential. It is a fixed amount additive and “rate of pay” is not applicable for payment.

Division of Human Resource Management 2