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State Personnel Director Official Communication 15-04

State Personnel Director Official Communication 15-04

APRIL 22, 2015
TO: ALL APPOINTING AUTHORITIES, HUMAN RESOURCES OFFICERS, AND RECOGNIZED EMPLOYEE ORGANIZATIONS

FROM: MATT FEDORCHUK, ACTING STATE PERSONNEL DIRECTOR
SUBJECT: PROPOSED AMENDMENTS TO CIVIL SERVICE COMMISSION RULES 1-4, 5-5, 5-6, AND 5-9
Staff proposes several amendments to the rules:

1. Rule 5-6.14 would be added to implement the recommendation of the coordinated compensation panel adopted by the commission last December:

5-6.14 Financial Institution Classification Incentive Payment Program

(a)  Incentive Payment Program. Effective October 1, 2015, the department of insurance and financial services may implement an incentive program to enhance employee retention subject to the following conditions:

(1) Classifications. Employees in the Financial Institution Examiner 12, Financial Institution Specialist 13, and Financial Institution Manager 13, 14, and 15 classifications may be eligible for incentive payments.

(2) Criteria. The department shall propose criteria to determine when incentive payments are payable. The proposed criteria are not effective until approved by the state personnel director.

(3) Payments. The timing and amount of incentive payments are at the department's discretion, but total payments to an employee in a fiscal year cannot exceed 10% of the employee's annual base rate of pay.

Staff has drafted the attached amendments to Rule 5-6.4 [Premium for Department of Treasury Auditors Working and Residing out of State]. If approved, these amendments would authorize the changes requested by the Department of Treasury.
2. Annual Leave

Currently, a newly-hired employee is granted 16 hours of annual leave that can be used immediately and also begins to accrue annual leave of 4 hours per pay period. However, the employee cannot use the accruing annual leave until the employee has completed 720 hours (18 weeks) of employment.

A recommendation has been received that Rule 5-10 be amended to delete the 720 hour waiting period and permit newly-hired employees to use annual leave as it accrues.

Staff has drafted the attached amendment to Rule 5-10.2 [Paid Leave]. If approved, the amendment would delete the 720-hour waiting period and permit newly-hired employees to immediately use annual leave credits as they accrue.
3. Back-pay Awards

Currently, no rule or regulation addresses back-pay awards. In a recent case, MDOC v Ybarra, CSC 2009-005, the Commission approved the inclusion of lost overtime pay premium in a back-pay award. The Commission noted that there was no rule or regulation that addressed overtime and asked staff to review how back-pay awards are generally computed and what pay premiums are and should be included.

Staff has prepared the attached amendments to Rule 8-2.4 [Civil Service Grievance Appeal Procedures]. If approved, the amendments would restore the pre-Ybarra status in which overtime was not included in back-pay awards and would prohibit inclusion of overtime in future back-pay awards.

In addition, the amendments address a variety of related factors but retain the current practices. The amendments:

  • detail which premiums may be included (shift differential and prison employee premiums) and which other premiums cannot be included (on-call, callback, explosives duty, out-of-state location, and emergency response.)

  • specify the deductions from back-pay awards (e.g., workers' compensation.)

  • authorize a hearing officer to award lost sick and annual leave credits, longevity pay, and seniority credits.
Comments regarding the proposed amendments may be addressed to Janet McClelland, Chief Deputy Director, Civil Service Commission, P.O. Box 30002, Lansing, Michigan, 48909, or e mail at McClellandJ@michigan.gov. Comments must be received by Wednesday, May 6, 2009.