Title 530
Office of Personnel Management
Chapter 10 -- Merit System of Personnel Administration Rules
 (OPM Full Text As Amended July 1, 2012 -- UNOFFICIAL)

SUBCHAPTER 7. SALARY AND PAYROLL

PART 1. SALARY AND RATES OF PAY

Section
530:10-7-1. Purpose and general provisions
530:10-7-1.1. Salary administration plan
530:10-7-1.2. Funding and reporting requirements
530:10-7-1.3. Calculation of rates of pay
530:10-7-2. Salary schedule
530:10-7-3. Entrance salary
530:10-7-4. Rate of pay upon reinstatement to the classified service
530:10-7-5. Salary upon return from military service
530:10-7-6. Sign-on pay incentive
530:10-7-7. Pay differential
530:10-7-8. Rate of pay upon recall to job family level from which removed by reduction-in-force
530:10-7-9. Rate of pay for positions that become classified
530:10-7-10. Rate of pay higher than maximum
530:10-7-11. Continuous Service Incentive Plan
530:10-7-12. Payment of overtime
530:10-7-13. Adjustments in rates of pay when pay bands are changed
530:10-7-14. Rate of pay upon reclassification, promotion, career progression, demotion, and transfer
530:10-7-15. Salary reduction
530:10-7-16. On-call pay
530:10-7-17. Rate of pay upon detail to special duty
530:10-7-18. Discretionary performance pay increases [REVOKED]
530:10-7-19. OK Health Incentive Pay
530:10-7-20. Market adjustments
530:10-7-21. Relocation Incentive
530:10-7-22. Salary adjustments upon completion of initial probation or trial period
530:10-7-23. [RESERVED]
530:10-7-24. Skill-based pay adjustments
530:10-7-25. [RESERVED]
530:10-7-26. Equity-based pay adjustments
530:10-7-27. Performance-based adjustments

PART 3. PAYROLL

530:10-7-30. [RESERVED]
530:10-7-31. Certification of payrolls
[Authority: Sections 840 1.6A, 840 4.6, and 840-2.17 of Title 74 of the Oklahoma Statutes]

PART 1. SALARY AND RATES OF PAY

530:10-7-1. Purpose and general provisions
(a) The purpose of the rules in this Part is to establish pay regulations, regulations for performance pay increases, rates for pay differentials, on-call pay, and other types of pay incentives and salary adjustments [74:840-1.6A].

(b) Pay raises are prohibited unless specifically authorized by legislation or the Merit Rules. A cost-of-living raise or any other type of raise that would be given to state employees on an across-the-board basis is prohibited unless specifically authorized by the Legislature [74:840 2.17].

(c) The rules in this subchapter provide for market adjustments, increases upon lateral transfer, skill-based adjustments, equity-based adjustments, career progression increases, salary adjustments upon completion of the initial probationary period or trial period, and performance-based adjustments. Appointing Authorities may use these pay mechanisms only if funds are available in the agency’s budget for the current and subsequent fiscal year without the need for additional funding to increase the personal services budget of the agency. Upon certification from the Director of State Finance that an Appointing Authority has exceeded the agency’s budget for the current or subsequent fiscal year due to the use of the pay movement mechanisms listed in this subsection, the Administrator may withdraw authorization for the agency to use the following pay movement mechanisms during the next appropriations cycle: market adjustments, increases upon lateral transfer, equity-based adjustments, performance-based adjustments, and career progression increases [74:840-2.17].

(d) The rules in this subchapter do not apply to employees and positions in the unclassified service unless stated otherwise.

530:10-7-1.1. Salary administration plan
An Appointing Authority shall adopt a salary administration plan for the agency’s classified positions and submit the plan for the approval of the Administrator. The salary administration plan shall establish a hiring rate or range for each job family level within the agency’s classification plan. In the salary administration plan, the Appointing Authority may establish conditions under which the Appointing Authority may establish a hiring rate above the midpoint of the pay band, skill-based pay programs, and other pay movement mechanisms authorized by 74:840-2.17 except performance-based adjustments. Proposed amendments to the salary administration plan may be submitted to the Administrator for approval at any time.

530:10-7-1.2. Funding and reporting requirements
(a) Use of pay movement mechanisms involving market adjustments, lateral transfers, skill-based pay adjustments, equity-based adjustments, career progression increases, probationary increases, increases upon the completion of trial periods, and performance-based adjustments are limited to those possible using funds available in the agency’s budget for the current and subsequent fiscal year without the need for additional funding. [74:840-2.17]

(b) All Appointing Authorities shall, no later than August 1 of each year, report to the Office of Personnel Management the cost of the pay movement mechanisms listed in subsection (a) used during the previous fiscal year. [74:840-2.17]

530:10-7-1.3. Calculation of rates of pay
(a) The basis for expressing base rates of pay shall be the annualized salary. Annualized salary shall be computed by multiplying the monthly rate of pay by 12 months or by multiplying the hourly rate of pay by 2,080 hours.

(b) Before calculating any changes in monthly or hourly rates of pay, the base rate of pay shall be converted to an annualized salary.

(c) In making multiple calculations to arrive at a final figure, five decimal places shall be retained throughout all intermediate calculations: only the final figure shall be rounded.

(d) In mathematical calculations of rates of pay, calculations to convert remainders to cents shall be carried five decimal places and rounded to two decimal places (cents). Any number greater than or equal to 0.005 shall be rounded to the next higher cent.

    (1) Example 1: $22,718.00 ÷ 12 = 1,893.16666 or $1,893.17
    (2) Example 2: $25,432.00 ÷ 12 = 2119.33333 or $2,119.33

(e) The formula for converting an annualized salary to a monthly rate of pay shall be:

Monthly Rate of Pay = Annualized Salary ÷ 12.
        Example: Monthly Rate of Pay = $22,718.00 ÷ 12 = 1,893.16666 or $1,893.17

(f) The formula for converting an annualized salary to an hourly rate of pay shall be:

Hourly Rate of Pay = Annualized Salary ÷ 2080.
        Example: Hourly Rate of Pay = $23,241.00 ÷ 2080 = 11.17355 or $11.17

530:10-7-2. Salary schedule
(a) The rate of pay of employees shall be maintained within the pay band for the job family level and kept within the established minimum and maximum rates of pay, except as provided by law or Merit Rule.

(b) The table in Appendix A of this Chapter lists the minimum, midpoint, and maximum annual rates of pay for each established pay band, which shall be used by Appointing Authorities in establishing hiring rates and making other decisions concerning rates of pay and individual pay adjustments.

NOTE: Appendix A is reprinted below as a convenience for our readers:

APPENDIX A. PAY BAND SCHEDULE

530:10-7-3. Entrance salary
(a) Appointing Authorities may establish the hiring rate for a classified job at any point between the minimum and midpoint of the pay band for the job family level without prior approval of the Administrator. Upon approval of the salary administration plan by the Administrator, the Appointing Authority may establish hiring rates above the midpoint in accordance with the plan. Hiring rates shall not be established below the minimum or above the maximum rate of pay established for a pay band.

(b) Appointing Authorities shall establish hiring rates for jobs included in a pay band based on the work performed, the duties and responsibilities assigned, and other relevant factors. This may include consideration of recruitment and retention issues, internal pay equity, market rates, previous hiring rates, and the training and qualifications of the employee being appointed.

530:10-7-4. Rate of pay upon reinstatement to the classified service
(a) When an Appointing Authority reinstates a person to the classified service in accordance with 530:10 9 102, the Appointing Authority may set the person’s salary at any point within the pay band for the job to which the person is reinstated which is consistent with the hiring range established for the job, salaries paid to other individuals performing similar work, or other relevant factors, except as provided in Subsection (b).

(b) When an Appointing Authority reinstates a person to the classified service in accordance with 530:10-9-102 to a position in the same job family level as the employee's previous position after less than a 30-day break in service, the Appointing Authority shall set the employee's salary at any rate within the pay band that does not exceed the employee's previous salary.

530:10-7-5. Salary upon return from military service
Any employee who returns from military service shall be paid at a rate as provided in Sections 25.4, 25.5 and 25.7 of Title 51 of the Oklahoma Statutes and the Uniformed Services Employment and Reemployment Rights Act (38 U.S.C., 4301 et seq.).

530:10-7-6. Sign-on pay incentive
(a) Appointing Authorities may implement a pay incentive for the following individuals who are appointed to positions in job families for which there are critical recruitment and retention problems as identified by the Appointing Authority [74:840 1.6A(11)]:

(1) individuals not currently employed in state government;
(2) Carl Albert Executive Fellows and other professional trainees and students employed pursuant to paragraphs 10 and 11(a) and (b) of Section 840 5.5(A) of Title 74 of the Oklahoma Statutes; and
(3) individuals employed pursuant to the Cooperative Engineering Trainee Program.

(b) Appointing Authorities who choose to implement the pay incentive shall file a plan with the Administrator of the Office of Personnel Management and the Director of the Office of State Finance which contains information related to the implementation of the pay incentive within the agency. The plan shall provide documentation of the critical recruitment and retention problems and shall include a project description, specific prerequisites that each employee shall meet in order to receive the pay incentive, and information concerning the funding of the incentive from the agency’s existing budget. The plan shall be signed by the Appointing Authority, and this signature requirement may not be delegated. No payment shall be made under this Section until the plan has been reviewed and accepted by the Administrator.

(c) The pay incentive shall not exceed $5,000.00 and is payable to eligible individuals as a lump sum payment or in two equal payments during the first six months of state employment. Former state employees may be eligible for the pay incentive following a break-in-service of at least 180 days.

(d) To receive the pay incentive, an eligible individual shall be required to sign an agreement form acknowledging that the individual is obligated to repay the entire incentive, including tax withholdings on the incentive, if the individual leaves state employment or accepts employment with another state agency within 1 year after he or she receives the pay incentive. Appointing Authorities may use the agreement form developed by the Administrator or any other agreement form which is consistent with the provisions of this Section.

(e) An individual may receive only one sign-on pay incentive during his or her state employment.

530:10-7-7. Pay differential
(a) The Administrator may authorize a pay differential [74:840 1.6A(11)]for a position within a job family because of special duty requirements related to the position. This may include shift pay, on-call pay, skill-based pay adjustments, and other types of differentials based on special work requirements, as approved by the Administrator. These payments shall be over and above the employee’s base pay and shall be paid only as long as the employee occupies the particular position under the circumstances which have necessitated the differential. The request for the differential shall be submitted in writing by the requesting agency and shall adequately identify the need.

(b) An Appointing Authority shall determine whether pay differentials will be paid while employees are in paid leave status or provided only for hours actually worked. Appointing Authorities shall apply such practices uniformly. Pay differentials shall not be provided for hours that an employee is not in pay status.

530:10-7-8. Rate of pay upon recall to job family level from which removed by reduction-in-force
The base rate of pay of an employee who has been recalled to the job family level from which removed by a reduction-in-force in accordance with OAC 530:10 13, Part 5, shall be fixed at the rate of pay received immediately before the reduction-in-force. The employee’s rate of pay shall be adjusted according to any across-the-board increases for agency employees in that job family level made in the interim. If the pay band for the job family level has been changed in the interim, the employee's rate of pay shall be adjusted in accordance with 530:10 7 13.

530:10-7-9. Rate of pay for positions that become classified
Whenever a position in an agency is brought under the classified service, the rate of pay of the continuing incumbent shall be placed in the pay band for the job family and level to which the position is allocated, without adjustment, if such rate is equal to or greater than the minimum rate of pay established for that job. If it is not, the rate of pay shall be increased to the minimum rate established by the agency for that job. Unless otherwise provided by statute, pay adjustments and required classification actions for incumbent employees shall be retroactive to the effective date of the placement of the employee in the classified service. No employee's rate of pay shall be reduced as a direct result of becoming classified.

530:10-7-10. Rate of pay higher than maximum
Where the rate of pay of an employee is higher than the maximum rate of pay for the pay band to which the job is assigned, the rate will remain the same as long as the employee retains the present classification, but no further increases will be approved unless provided by statute.

530:10-7-11. Continuous Service Incentive Plan
(a) Appointing Authorities may implement a pay incentive plan [74:840 1.6A(11)] intended to promote continuous service within the first two years of state employment. The plan shall be limited to job families for which there are critical recruitment and retention problems as identified by the Appointing Authority.

(b) The pay incentive shall consist of scheduled periodic payments over the employee's first two years of continuous service in the targeted job families, not to exceed a total of $2,500 in any 12-month period. Payments may not be made prospectively or prorated. No payment shall be made under the plan until the employee has completed at least six months of continuous service in the targeted job family.

(c) At the discretion of the Appointing Authority, the following persons filling positions in the targeted job families may be included in the plan:

(1) Persons not currently employed in state government;
(2) Current state employees during their first two years of continuous state employment in the targeted job family; and
(3) Former state employees following a break in service of at least 30 days.

(d) Appointing Authorities who choose to implement the pay incentive shall submit a written plan to the Administrator of the Office of Personnel Management and the Director of the Office of State Finance prior to implementation. The plan shall identify the job families to which the pay incentive will be applicable and shall document the critical recruitment and retention problems and the agency's rationale for the plan. The plan may provide for different pay incentives for different job families at the discretion of the Appointing Authority. The plan shall also identify the criteria for eligibility and shall include information concerning the funding of the pay incentive from the agency's existing budget. The plan shall be signed by the Appointing Authority, and this signature requirement may not be delegated. No payment shall be made under this Section until the plan has been reviewed and accepted by the Administrator.

530:10-7-12. Payment of overtime
(a) An Appointing Authority shall neither require nor allow FLSA Non-Exempt employees to work in excess of 40 hours a week without establishing and implementing a comprehensive policy for compensation. Such policy shall be in compliance with the Fair Labor Standards Act (29 U.S.C. 201 et seq.). The policy shall be made available by the Appointing Authority to interested persons upon request and the Appointing Authority shall so notify employees. Copies of such policy shall be forwarded to the Office of Personnel Management. This section is not a comprehensive listing of the provisions of the Fair Labor Standards Act (29 U.S.C, 201 et seq.) and regulations promulgated thereunder, and is not intended to conflict with either the Act or the regulations.

(b) FLSA Non-Exempt (as defined by the Fair Labor Standards Act) employees shall be paid 1 1/2 times their regular hourly rate for each overtime hour worked.

(c) The Executive Branch of the State of Oklahoma is one employer for FLSA purposes; therefore, concurrent employment in more than one agency is considered joint employment.  Employees working in one or more nonexempt positions in Executive Branch agencies and who work more than 40 total hours per week shall be eligible for overtime.  Employees shall be required to notify their current agency upon accepting employment with another Executive Branch agency.  It will be the responsibility of all agencies involved to insure that all FLSA requirements associated with multiple agency appointments are met.

(d) Compensatory time in lieu of overtime payment at the rate of time and one-half may be given to FLSA Non-Exempt employees (as defined by the Fair Labor Standards Act) subject to the following conditions:

(1) Prior to the performance of overtime work, the Appointing Authority and the employee shall agree in writing that the employee may be required to take compensatory time in lieu of overtime pay. A written agreement is not required with respect to employees hired prior to April 15, 1986, if the employer had a regular practice in effect on April 15, 1986, of granting compensatory time off in lieu of overtime pay (29 U.S.C. 553.23).
(2) An employee shall be permitted to use accrued compensatory time within 180 days following the pay period in which it was accrued. The balance of any unused compensatory time earned but not taken during this time period shall be paid to the employee. An Appointing Authority may request an extension of this time period for taking compensatory time off up to an additional 180 days providing the Appointing Authority submits proper documentation to the Office of Personnel Management justifying the extension. Agencies shall not be allowed to extend the initial 180-day time period for employees working in an institutional setting as defined by 74:840-2.15(D) [74:840-2.15(C)]. All extensions are subject to the approval of the Office of Personnel Management.
(3) The maximum compensatory time which may be accrued by a FLSA Non-Exempt employee shall be 480 hours for those employees engaged in a public safety or firefighting activity and 240 hours for all other FLSA Non-Exempt employees.
(4) An employee who has accrued the maximum number of compensatory hours shall be paid overtime compensation for any additional overtime hours worked at the rate of 1 1/2 times their regular hourly rate of pay for each overtime hour worked.
(5) Payment for accrued compensatory time upon termination of employment with the agency shall be calculated at the average regular rate of pay for the final 3 years of employment, or the final regular rate received by the employee, whichever is the higher.
(6) Overtime and compensatory time is accrued by work period, as defined by the FLSA.
(7) Compensatory time shall not be transferred from one agency to another agency.
(8) An Appointing Authority shall approve an employee’s request to take compensatory time off on a particular day, unless the employee’s taking compensatory time off on that day disrupts agency operations or endangers public health, safety, or property.
(9) Accrued compensatory time shall be exhausted before the granting of any annual leave for a non-exempt employee except when the employee may lose accrued leave under 530:10 15 10 and 530:10 15 11(b)(5).
(10) Adjustments in scheduled work time may be made on an hour-for-hour basis within the work period.

(e) Appointing Authorities may provide compensatory time off to FLSA Exempt (as defined by the Fair Labor Standards Act) employees with the following stipulations:

(1) The compensatory time off shall be taken within time periods and policy outlined in 530:10-7-12(d)(2). Unused compensatory time shall be taken off the books if not taken by the end of the time periods and policy outlined in 530:10-7-12(d)(2).
(2) Compensatory time shall only be given on an hour-for-hour basis, 1 hour off for each hour worked overtime. The maximum compensatory time which may be accrued by an FLSA exempt employee shall be the same as that outlined in 530:10-7-12(d)(3).
(3) Payments shall not be made for compensatory time accrued by an employee on FLSA Exempt status for any reason, except as provided for in (f) of this Section.

(f) After submitting written notice to the Office of Personnel Management, an Appointing Authority may provide overtime payments to persons in FLSA Exempt classes based on a prevailing market condition.

530:10-7-13. Adjustments in rates of pay when pay bands are changed
When a pay band is changed for a job family level, all employees in that classification, including persons whose rate of pay exceeds the maximum of the old pay band, shall receive an adjustment to the new pay band. No person's salary may be reduced as a result of such a change. All employees of an agency in that job shall be given uniform treatment using one of the following methods: providing adjustment to the minimum of the new pay band; providing a percent increase given to each employee, which shall not exceed the percent of difference between the minimum of the old pay band and the minimum of the new pay band; or any other uniform method of adjustment approved by the Administrator. At the discretion of the Appointing Authority, no change in employee salary need occur provided that all affected salaries fall within the new pay band. OAC 530:10-7-10 does not apply to adjustments made in accordance with this Section.

530:10-7-14. Rate of pay upon reclassification, promotion, career progression, demotion, and transfer
(a) Rate of pay when incumbent is reclassified directly. When an employee is reclassified directly under 530:10 5 90, the rate of pay shall be fixed in accordance with 530:10 7 13.

(b) Rate of pay upon promotion or career progression.

(1) An Appointing Authority shall adopt objective written criteria for the amount of salary advancements on promotion or career progression. These criteria shall be a part of the agency salary administration plan established under 530:10-7-1.1 and shall be consistent with state and federal statutes prohibiting discrimination.
(2) The Appointing Authority shall set an employee’s salary on promotion or career progression at no less than 5% and no more than 20% of the employee's salary before promotion or career progression, except as follows:
    (A) If the increase would make the employee’s salary after promotion or career progression greater than the maximum rate of pay for the new pay band, the employee’s salary shall be set at the maximum rate of pay for the new pay band.
    (B) If the increase is insufficient to raise the employee's salary to the minimum of the new pay band, the employee's salary shall be raised to the minimum of the new pay band.
    (C) The Appointing Authority may set the employee's salary on promotion or career progression at more than 20% of the employee’s salary before promotion or career progression as long as the rate is within the hiring range established for the position in an approved salary administration plan.
    (D) The Appointing Authority shall not lower the salary of an employee on promotion or career progression. If the employee's salary before promotion or career progression exceeds the maximum of the new pay band, the employee's salary shall remain the same.

(c) Rate of pay when demoted. The rate of pay of an employee who is demoted shall be set by the Appointing Authority at any rate of pay within the pay band for the job to which demoted, which does not exceed that employee's last rate of pay. An Appointing Authority may delay setting the rate of pay upon demotion for up to 1 year when the demotion is due to an agency reorganization. For the purposes of this subsection, "agency reorganization" means the reclassification of employees in lieu of reduction-in-force.

(d) Rate of pay upon intra-agency lateral transfer. An Appointing Authority may provide up to a 5% increase in salary, not to exceed the maximum rate of pay for the pay band, for an employee upon intra-agency lateral transfer to a position in the same job family and level or another job family and level with the same pay band assignment, based on the needs of the agency. [74:840-2.17]

530:10-7-15. Salary reduction
No employee salary shall be reduced except as specifically provided in the Merit Rules.

530:10-7-16. On-call pay [AMENDED EFF. 7/11/04]
An Appointing Authority shall compensate a classified employee for a minimum of two (2) hours work if the employee is required to report to a work location while on-call. Employees are guaranteed compensation for each occasion in which a call-back is made after having left the regular work station. The compensation may be in the form of compensatory time in lieu of cash payment. [74:840-2.29]

530:10-7-17. Rate of pay upon detail to special duty
The pay of an employee who is detailed to special duty in accordance with 530:10-11-110 shall not be reduced, but must be increased to at least the minimum rate but not more than the maximum rate the employee could receive upon promotion to that job family and level, provided:

(1) any such temporary increase shall not affect eligibility for increase in the regular job family and level which the Appointing Authority could grant if the employee had not been detailed.
(2) at the conclusion of the detail, pay shall revert to the authorized rate of pay in the employee's regular job family and level.

530:10-7-18. Discretionary performance pay increases [REVOKED]

530:10-7-19. OK Health Incentive Pay [REVOKED]

530:10-7-20. Market adjustments
Upon approval by the Administrator, an Appointing Authority may make market adjustments for all employees in a job family or job family levels or limit such adjustment to employees who perform the same or similar duties, or who perform the same role or accountabilities. An Appointing Authority making such a request shall provide the Administrator with information supporting the request, such as relevant market data, information on recruitment or retention problems, or other appropriate data. The Appointing Authority shall also certify that an adjustment can be made within the agency’s budget for the current and subsequent fiscal year without the need for additional funding. An Appointing Authority may limit market adjustments to employees rated at least "Meets Standards" on the most recent performance evaluation. Such limitation must be included in the agency's approved Salary Administration Plan. All eligible employees of an agency in jobs affected by a market adjustment shall be given uniform treatment.

530:10-7-21. Relocation Incentive
(a) Appointing Authorities may implement a pay incentive plan intended to encourage employees to relocate when it is determined that there is difficulty recruiting qualified candidates for the position. The plan must be approved by the Administrator of the Office of Personnel Management and must identify the job family or families to which the incentive will be applicable. The plan will also identify factors that establish the need for the incentive, which may include, but need not be limited to, one or more of the following:

(1) Recent turnover in similar positions in the locality involved;
(2) Employment trends and labor-market factors that may affect the agency's ability to recruit candidates for the locality involved;
(3) Special or unique qualifications required for the position;
(4) Failure of non-pay authorities, such as special training or work scheduling flexibilities, to resolve difficulties in recruiting candidates;
(5) The desirability of the duties, work or organizational environment, or geographic location of the position; and
(6) Other supporting factors.

(b) The plan must contain a certification that the additional costs associated with the proposed incentive can be accommodated within the agency’s existing budget. The plan shall be signed by the Appointing Authority, and this signature requirement may not be delegated. No payment shall be made under this Section until the plan has been reviewed and accepted by the Administrator.

(c) A position is considered to be in a different geographic area if the worksite of the new position is 50 or more miles from the worksite of the position held by the employee immediately before the move. The employee must establish a residence in the new geographic area before an appointing authority may pay a relocation incentive.

(d) The relocation pay incentive shall not exceed 20% of the employee’s base pay in the new position The determination to pay a relocation incentive must be made before the employee enters on duty in the position. An agency may pay a relocation incentive:

(1) As an initial lump-sum payment at the commencement of a 2-year service period required by a service agreement;
(2) In installments throughout the 2-year service period; or
(3) As a final lump-sum payment upon the completion of the 2-year service period.

(e) To receive the incentive, employees shall be required to sign an agreement form acknowledging they are obligated to repay the entire incentive, including tax withholdings on the incentive, if they leave state employment or accept employment with another state agency prior to the expiration of 2-year service period.

(f) An employee may receive no more than two relocation pay incentives during his or her state employment. A relocation pay incentive will not be approved if an earlier relocation pay incentive was approved within the previous five-year period.

530:10-7-22. Salary adjustments upon completion of initial probation or trial period
An Appointing Authority may provide salary adjustments not to exceed 5% to probationary classified employees achieving permanent status following the initial probationary period. An Appointing Authority may also provide this salary adjustment to employees reinstated to the classified service after a break in service upon completion of a probationary period, and to permanent classified employees successfully completing trial periods after intra-agency lateral transfer or promotion to a different job family level or career progression to a different job family level. [74:840-2.17]

530:10-7-23. [RESERVED]

530:10-7-24. Skill-based pay adjustments
(a) An Appointing Authority may develop skill-based pay programs upon the approval of the Administrator. Such programs shall be related to the acquisition or possession of additional skills and abilities which can be applied to the work to be performed and which will increase the value of the employee to the agency. The skills or abilities must be verifiable through certification, licensure, diploma, or some other method and must be beyond the qualifications required to perform the primary or essential functions and responsibilities of the employee's position. Requests to establish skill-based pay programs shall include a complete description of the training or education required, how it will benefit the agency, the proposed salary adjustment, and any other information that will assist in evaluating the request.

(b) Skill-based pay adjustments may be provided as a differential over and above an employee's base pay or as lump-sum payment. Lump sum skill-based pay adjustments may be awarded upon initial certification and any subsequent recertification as may be required by the certifying organization and identified in the agency's skill-based pay plan. Lump sum payments shall be limited to 10% of an employee's annual salary, and differentials shall be limited to 10% of an employee's monthly salary for employees paid on a monthly basis, and 10% of an employee's biweekly salary for employees paid on a biweekly basis. Except as provided in Subsection (c), skill-based pay adjustments shall be paid only as long as the employee occupies a position to which the skill is applicable in accordance with the agency's salary administration plan. An employee may receive multiple skill-based pay differentials so long as the combined total of all skill-based pay differentials does not exceed 15%.  All eligible employees of an agency in jobs affected by a skill-based pay adjustment shall be given uniform treatment.

(c) Skill-based pay differentials shall not be included in the employee’s base salary and are subject to being discontinued under circumstances described in Subsection (b). [74:840-2.17]

530:10-7-25. [RESERVED]

530:10-7-26. Equity-based pay adjustments
An Appointing Authority may provide equity-based pay adjustments when employees are significantly underpaid relative to other employees performing the same or similar duties, or employees with the same role or accountabilities, in the same job family and level within the same agency. Adjustments above the midpoint of the pay band require approval of the Administrator. Adjustments below the midpoint of the pay band and which are consistent with the requirements of this section may be made at the Appointing Authority's discretion. An Appointing Authority may limit equity-based pay adjustments to employees rated at least "Meets Standards" on the most recent performance evaluation. Such limitation must be included in the agency's approved Salary Administration Plan. All eligible employees of an agency in jobs affected by an equity-based adjustment shall be given uniform treatment.  No employee may receive more than one equity-based adjustment in the same job family and level in a twelve-month period.

530:10-7-27. Performance-based adjustments
(a) Performance-based adjustments enable Appointing Authorities to award a salary increase or lump sum payment to employees who have achieved an overall rating of "meets standards" or better on their most recent performance evaluation. This performance evaluation shall be conducted with the standard performance management system provided by 530:10-17-31.

(b) Appointing Authorities may adopt a performance-based adjustment program for permanent classified full-time and part-time employees pursuant to this Section. The program may allow performance-based adjustments for part-time employees on a prorated basis.

(c) In order to adopt a performance-based adjustment program, an Appointing Authority must submit a written performance-based adjustment plan to the Administrator for approval. The plan must:

(1) Indicate the manner in which the Appointing Authority intends to award performance-based adjustments, including a determination that performance-based adjustments will be awarded for overall ratings of "meets standards" and "exceeds standards," or "exceeds standards" only. Performance-based adjustments shall not exceed 5% of an employee's annual salary for "meets standards" or 10% of an employee's annual salary for "exceeds standards." The plan shall include:
    (A) The amount or percentage that the Appointing Authority will award to qualifying employees; or
    (B) The total dollar figure the Appointing Authority intends to set aside for performance-based adjustments to be divided among qualifying employees;
(2) Identify and define the 12-month evaluation cycle to be used within the agency, such as a calendar year or fiscal year. The plan may not be amended within the evaluation cycle but may be discontinued according to paragraph (5) of this subsection;
(3) Indicate whether the Appointing Authority will award performance-based adjustments as an increase to the employee's salary, a lump sum payment, or a combination thereof;
(4) Include certification by the Appointing Authority that the agency can fund the performance-based adjustment program for the current and subsequent fiscal year without the need for additional funding, and that the plan provides for uniform treatment of all permanent classified employees of the agency who achieve a "meets standards" or "exceeds standards" except as provided in subsection (e). The Appointing Authority shall not delegate authority to sign the certification; and
(5) Include a statement that the Appointing Authority may discontinue performance-based adjustments at any time should it be necessary to prevent a budget shortfall. The Appointing Authority shall notify employees of the discontinuation of the plan and the reason therefore.

(d) The performance-based adjustment plan must be approved by the Administrator before the Appointing Authority may grant performance-based adjustments to any permanent classified employee.

(e) An Appointing Authority shall not grant performance-based salary increases which cause an employee's base salary to exceed the maximum of the pay band to which the employee is assigned. [530:10-7-10] Such employees may be given performance-based salary increases up to the maximum of the pay band to which assigned and may also receive the remainder of the increase as a lump sum payment.

(f) An Appointing Authority may grant only one performance-based adjustment to any employee for any 12-month evaluation cycle. An Appointing Authority shall not award a performance-based adjustment to any employee based upon a performance evaluation which is more than one year old.

PART 3. PAYROLL

530:10-7-30. [RESERVED]

530:10-7-31. Certification of payrolls
(a) Certification. No state disbursing or auditing officer shall make, approve or take part in making or approving any payment for personal service to any person holding a position in the classified service, unless the payroll voucher or account of such pay bears the certification of the Appointing Authority that the persons named therein have been appointed and employed in accordance with the provisions of the Oklahoma Personnel Act and the Merit Rules [74:840-1.18(D)].

(b) Withholding of certification. The Appointing Authority may for proper cause withhold certification from an entire payroll or from any specific item or items [74:840-1.18(D)]. Whenever the Office of Personnel Management finds that any person is employed or is proposed to be paid as an employee in the classified service in any amount not provided for under the provisions of the Oklahoma Personnel Act and the Merit Rules, the Office of Personnel Management shall notify the concerned state disbursing or auditing officer. After such notice, the concerned state disbursing or auditing officer shall not approve any payment to such person except in accordance with the provisions of the Act or the Merit Rules.

(c) Suit to restrain disbursement. Any citizen may maintain a suit to restrain a disbursing officer from making any payment in contravention of any provision of the Oklahoma Personnel Act or the Merit Rules [74:840-1.18(D)].

(d) Recovery of erroneous payments. Any sum paid contrary to any provision of the Oklahoma Personnel Act or the Merit Rules may be recovered in an action maintained by any citizen, from any officer who made, approved or authorized such payment or who signed or countersigned a voucher, payroll, check or warrant for such payment, or from the sureties on the official bond of any such officer [74:840-1.18(D)]. All monies recovered in any such action shall be paid into the State Treasury [74:840-1.18(D)].

(e) Right of action by employees employed in contravention to the Merit Rules. Any person appointed or employed in contravention of any provision of the Oklahoma Personnel Act or the Merit Rules and who performs service for which unpaid, may maintain an action against the officer or officers who purported to appoint or employ the person in order to recover the agreed pay for such services, or the reasonable value thereof if no pay was agreed upon. [74:840-1.18(D)] No officer shall be reimbursed by the state at any time for any sum paid to such person on account of such services [74:840-1.18(D)].

(f) Action to compel payroll certification. If the Appointing Authority wrongfully withholds certification of the payroll voucher or account of any employee, such employee may maintain an action or proceeding in the courts to compel the Appointing Authority to certify such payroll voucher or account [74:840-1.18(D)].