25 NCAC 01D .0611. REALLOCATION/SALARY RATE FOR GRADED POSITIONS

(a)  When an employee in a graded position is assigned to a higher grade as a result of reallocation, subject to the availability of funds and satisfactory employee performance, salary increases, not to exceed the maximum of the range, may be given in accordance with the following:

(1)           Salaries at the minimum rate shall be increased to the minimum rate of the new range, and may be increased further in accordance with Subparagraph (2) of this Rule.

(2)           If it is determined that a salary increase is justified, with the exception of Paragraph (b) of this Rule, the salary may be established as follows:

(A)          in accordance with the rules for New Appointments (See 25 NCAC 01D .0200), or

(B)          up to five percent for each grade provided by the reallocation, if reallocated to a position within the same classification series or occupational group.

The amount of increase shall be determined consistent with the employee's related training and experience and the nature and magnitude of the change in jobs, and take into consideration prior performance increases, work unit equity, and any other salary related considerations.  When establishing salaries in accordance with the New Appointment Rules (See 25 NCAC 01D .0200), the comments section of the personnel action reallocation entry made by the agency in the human resources information system must include the justification for the salary decision.

(b)  If an employee has been reduced to a lower salary grade through demotion, reassignment, reallocation or salary range revision, but without a corresponding reduction in salary, and within 12 months of the reduction the employee is reallocated:

(1)           The employee shall not be entitled to a reallocation increase unless the reallocation is to a grade higher than the grade held prior to the reduction.

(2)           If reallocated to a higher grade, the number of grades in the original reduction shall be considered to have been compensated and shall not be considered in setting the salary pursuant to Part (a)(2)(B) of this Rule.

(Example:  If an employee is demoted with no change in salary and reallocated back to the same level, the salary shall remain unchanged and treated as if the demotion had not occurred; or if reallocated back to a level higher than before the demotion, the difference in the grade before the demotion and the new higher grade will be the basis for determining the reallocation increase.)  Agency management is responsible for assuring that inequities are not created.

(c)  An agency shall only give salary increases greater than five percent for each grade increase resulting from the reallocation with the prior approval of the State Human Resources Director in circumstances where the reallocated position is critical and documented labor market conditions exist that support the necessity of the increase. The comments section of the personnel action reallocation entry made by the agency in the human resources information system must contain a description of the criticality of the position and the labor market conditions.

(d)  If the employee is to receive a performance salary increase on the same day as the reallocation, the performance increase shall be given before a reallocation increase is considered.

(e)  When an employee's position is assigned to a lower grade, one of the following options shall be implemented:

(1)           When reduction in level of the position results from management's removal of duties and responsibilities from the employee because of change in demonstrated motivation, capability, acceptance of responsibility, or lack of performance, the effect is the same as a demotion and the salary must be reduced at least to the maximum as required by Rule 25 NCAC 01D .0406.

(2)           When reduction in level of the position results from position redesign because of management decisions on program changes, reorganization, or other management needs not associated with the employee's demonstrated motivation, capability, acceptance of responsibility or lack of performance, the salary of the employee may remain above the new maximum as long as the employee remains in the same classification or is promoted to a higher level position.  No further increases, other than legislative increases, may be granted as long as the salary remains above the maximum.

(3)           When reduction in level of the position results from a change in the labor market or some other reason not related to change in the duties and responsibilities of the position, though the position must be reallocated to the approved classification and grade, management may elect to maintain the employee's current classification and grade by working the employee against the lower level position, so long as the employee continues to occupy the same position or is in the same classification.

Once the position is vacated, it shall be filled at the lower level.

(f)  Management shall avoid creation of salary inequities among employees.  Each case must be evaluated to determine which of the salary administration alternatives is most appropriate, based on the circumstances as documented to the Office of State Human Resources, on appropriate forms, by the employing agency.

(g)  When an employee's position is assigned to the same grade level, the employee's salary shall remain unchanged.

 

History Note:        Authority G.S. 126-4;

Eff. January 1, 1991;

Amended Eff. July 1, 2012; March 1, 1994; April 1, 1992; September 1, 1991.