Productivity Enhancement Program
§74-4111 through §74-4122
Unofficial Compilation as of September 1, 2009
§74 4111. Short title.
Sections 1 through 10 of this act shall be known and may be cited as the "Incentive Awards for State Employees Act".
Added by Laws 1984, c. 269, § 1, operative July 1, 1984.
§74 4112. Committee for Incentive Awards for State Employees Creation Membership Compensation and expenses.
There is hereby created within the Office of Personnel Management the Committee for Incentive Awards for State Employees, referred to in the Incentive Awards for State Employees Act as the "Committee".
The Committee shall consist of seven (7) members as follows:
1. The Director of Central Services or designee who shall be the chairperson;
2. The Director of State Finance or designee;
3. The Administrator of the Office of Personnel Management or designee;
4. The chief administrative officer of a state executive agency, department, commission, or office who shall be appointed by the Governor;
5. A state employee who does not occupy a supervisory position, to be appointed by the Governor;
6. A person who is not a state officer or employee, to be appointed by the President Pro Tempore of the Senate; and
7. A person who is not a state officer or employee, to be appointed by the Speaker of the House of Representatives.
Each member who is appointed by the Governor shall serve on the Committee at the pleasure of the Governor. Those members not appointed by the Governor shall serve on the Committee at the pleasure of their respective appointing authority. Each member who is not a state officer or employee shall have experience in administering employee incentive programs as such programs are used in private industry or in the public sector. Each member shall serve on the Committee without receiving compensation for said service or any reimbursement pursuant to the provisions of the State Travel Reimbursement Act.
Added by Laws 1984, c. 269, § 2, emerg. eff. May 30, 1984. Amended by Laws 2000, c. 336, § 11, eff. July 1, 2000.
§74 4113. Implementation of awards program Rules and regulations Policies and procedures.
The Committee shall promulgate rules and regulations and adopt policies and procedures to implement an incentive awards program for state employees pursuant to the provisions of the Incentive Awards for State Employees Act.
Added by Laws 1984, c. 269, § 3, emerg. eff. May 30, 1984.
§74 4114. Agencies authorized to participate in incentive awards program.
With the exception of agencies and offices within the Legislature, the Office of the Governor, the Office of the Lieutenant Governor, and the Office of the State Auditor and Inspector, any agency, department, commission, or office of state government may participate in the incentive awards program provided for in Section 5 of this act.
Added by Laws 1984, c. 269, § 4, operative July 1, 1984.
§74 4115. Contents of incentive awards program.
The incentive awards program provided for in the Incentive Awards for State Employees Act shall consist of:
1. individual productivity incentive awards, individual incentive compensation,and unit incentive pay for contributions resulting in increased productivity, cost curtailment, improved safety, efficiency, or morale, or better services to the citizens of this state; and
2. individual longevity incentive awards for length of service to the state.
Added by Laws 1984, c. 269, § 5, operative July 1, 1984. Amended by Laws 1989, c. 344, § 4.
§74 4115A. Longevity awards.
Pursuant to rules and regulations promulgated by the Committee for Incentive Awards for State Employees, state employees shall be recognized for their length of service to the state. Recognition shall consist of certificates and lapel pins. The longevity award shall be made at five-year intervals during the month following the anniversary date of the employee to recognize years of service as defined in Section 805.2 of Title 74 of the Oklahoma Statutes. The cost of the incentive award shall be billed to the employing agency.
Laws 1989, c. 344, § 5.
§74 4116. Nominations Awards.
Pursuant to rules and regulations promulgated by the Committee, any state employee occupying a supervisory position in an agency, department, commission, or office eligible to participate in the incentive awards program provided for in Section 4115 of this title, monthly, may nominate for an incentive award those employees who have demonstrated excellence by making an exceptional contribution to their respective work unit, to their agency or to state government in general resulting in increased productivity, cost curtailment, improved safety, efficiency, or morale or better services to the citizens of this state. The nomination of such employees shall be made to the Committee on forms prescribed and provided by the Committee. If, after reviewing such nominations, it is the decision of the Committee that a nominated employee made a contribution as provided in this subsection, the Committee shall approve the nomination of said employee and appropriately award said employee with a certificate and lapel pin provided by the Committee. State agency supervisors, managers and agency directors may also be nominated for noncash incentive awards for making similar contributions. The Committee may promulgate rules and establish procedures to delegate the receipt and review of nominations, and the awarding of certificates and lapel pins to participating agencies, boards, commissions, and offices. The cost of the certificates and lapel pins shall be reimbursed to the Committee by the agency, board, commission, or office that made the nomination.
Added by Laws 1984, c. 269,§ 6, operative July 1, 1984. Amended by Laws 1989, c. 344, § 6.
§74 4117. Individual incentive compensation.
Pursuant to rules promulgated by the Committee, any state employee occupying a supervisory position in an agency, department, commission, or office eligible to participate in the incentive awards program provided for in Section 4115 of this title, monthly, may nominate employees for individual incentive compensation. Nominations for such compensation shall be made in the same manner as provided for in Section 4116 of this title concerning nominations for individual incentive awards. Those nominated for such compensation, at a minimum must have made an exceptional contribution similar to, but greater than, that required by the provisions of Section 4116 of this title. Employees determined by the Committee to be deserving of individual incentive compensation pursuant to the provisions of this section may be awarded an increase in compensation in a sum at least equal to twenty five percent (25%) of the amount determined by the Committee to be the total unit dollar savings to the state for the level of services rendered, but not to exceed the sum of Ten Thousand Dollars ($10,000.00). Said incentive compensation shall be paid in one lump sum if the twelve-month period mirrors the fiscal year, or two single payments from any funds available to the nominating agency, department, commission, or office. The calculation for two payments shall be based on the number of months in the first fiscal year of implementation for the first payment. The second payment shall come at the end of the first twelve (12) months of implementation, which falls in the second fiscal year. No nominations for an individual incentive compensation award shall be made until the nominating agency, department, commission, or office assures that funds for said award are available. Funds for the payment of individual incentive compensation awards shall be considered encumbered to the extent said awards are approved by the committee.
Added by Laws 1984, c. 269, § 7, operative July 1, 1984. Amended by Laws 1985, c. 46, § 8, emerg. eff. April 23, 1985; Laws 2001, c. 381, § 20, eff. July 1, 2001; Laws 2005, c. 61, § 1, eff. Nov. 1, 2005.
§74 4118. Unit incentive pay.
The Committee, in addition to individual incentive awards and individual incentive compensation, may award unit incentive pay in accordance with the provisions of this section.
A. To qualify for the award of unit incentive pay to its employees, an agency, department, commission, or office shall demonstrate to the satisfaction of the Committee that said agency, department, commission, office, work unit or work team identified by the respective agency, department, commission or office has met both of the following two criteria in its operations, after adjustment for inflation or deflation:
1. Operated at a lower unit cost. "Unit cost" shall be defined as expenditures in dollars to complete a measurable unit of work.
a. For first time participants the unit cost for the participating year shall be compared to either the unit cost for the immediately preceding twelve-month period or a standard unit cost approved by the Committee, or
b. For participants with one or more years in the program, the unit cost for the participating year shall be compared to either the average unit cost of prior successful participating years in the program or a standard unit cost approved by the Committee; and
2. Operated at no greater total dollar expenditures, except:
a. in a case where unit costs are reduced but total expenditures increased due to the agency or office maintaining its level of service; or
b. in a case where the Legislature or department head specifically mandates an increase in the workload.
B. The Committee shall satisfy itself that the claimed unit dollar cost of operation is real and not merely apparent, and that it is not, in whole or in part, the result of any of the following:
1. A lowering of the level or quality of the service rendered; or
2. Reduced pass through on transfer expenditures; or
3. Receipts realized in excess of amounts budgeted; or
4. Nonrecurrence of expenditures which were single outlay, or one time expenditures, in the preceding fiscal year; or
5. Failure to reward deserving employees through promotions, reclassification, award of merit salary increments, or salary increases authorized by salary range revisions; or
6. Postponement of normal purchases and repairs to a future fiscal year; or
7. Stockpiling inventories in the immediately preceding fiscal year so as to reduce requirements in the eligible fiscal year; or
8. Substitution of federal funds or any funds which are not state funds for state appropriations; or
9. Unreasonable postponement of payments of accounts payable until the fiscal year immediately following the eligible fiscal year; or
10. Shifting of expenses to another agency, department, commission, or office of government; or
11. Any other practice, event, or device which the Committee decides has caused a distortion which misrepresents that a savings or increase in level of services has occurred.
C. The Committee may consider but is not limited to considering as legitimate savings those reductions in expenditures made possible by such items as the following:
1. Reductions in overtime; or
2. Elimination of consultant fees; or
3. Less temporary help; or
4. Elimination of budgeted positions; or
5. Improved methods of communication; or
6. Improved systems and procedures; or
7. Better development and utilization of manpower; or
8. Elimination of unnecessary travel; or
9. Elimination of unnecessary printing and mailing; or
10. Elimination of unnecessary payments for advertising, memberships, dues, and subscriptions; or
11. Elimination of waste, duplication, and operations of doubtful value; or
12. Improved space utilization; or
13. Proven cost reduction techniques; or
14. Any other items considered by the Committee as representing true savings.
Added by Laws 1984, c. 269, § 8, operative July 1, 1984. Amended by Laws 1992, c. 126, § 1, eff. July 1, 1992; Laws 2005, c. 61, § 2, eff. Nov. 1, 2005.
§74 4119. Amount of unit dollar savings Additional award of incentive compensation Retirement benefits Forfeiture of unit share Funding source.
At the conclusion of the eligible fiscal year, subject to the rules and regulations promulgated by the Committee, the Committee shall compare the unit dollar expenditures for that year of each agency, department, commission, office, or defined work unit or work teams against the base year data and, after making such adjustments as in the judgment of the Committee are required to eliminate distortions, shall determine the amount, if any, that the agency, department, commission, office, or defined work unit or work teams has reduced its unit dollar cost of operations or increased its level of services in the eligible fiscal year. Adjustments to eliminate distortions may include any legislative increases in employee compensation and inflationary increases in the cost of services, materials, or supplies. If the Committee shall determine an agency, department, commission, or office qualifies for award, it may award, after consultation with the Office of State Finance, to the employees of that agency, department, commission, office, defined work unit or work teams a sum not in excess of twenty five percent (25%) of the amount determined to be the total unit dollar savings to the state for the level of services rendered. Incentive pay awards provided pursuant to the provisions of the Incentive Awards for State Employees Act shall be exempt from retirement contributions and shall not be included for the purpose of computing a retirement allowance pursuant to any public retirement system of this state. The amount awarded shall be divided and distributed in equal shares to the employees of the agency, department, commission, office, defined work unit or work teams except that employees who have worked for the agency, department, commission, office, defined work unit or work teams less than the full twelve (12) months of the fiscal year shall receive only a pro rata share based on the fraction of the year said employees have worked for that agency, department, commission, office, defined work unit or work teams. Employees voluntarily leaving the employment of state government or employees dismissed for cause shall forfeit their share. Funds for this incentive pay shall be drawn from the operating expenses of the agency, department, commission, or office for the eligible fiscal year. No nominations for a unit incentive compensation award shall be made until the nominating agency, department, commission, or office assures that funds for said award are available. Funds for the payment of unit incentive compensation awards shall be considered encumbered to the extent said awards are approved by the Committee.
Added by Laws 1984, c. 269, § 9, operative July 1, 1984. Amended by Laws 1985, c. 46, § 9, emerg. eff. April 23, 1985; Laws 1992, c. 126, § 2, eff. July 1, 1992.
§74-4120. Reports.
The Administrator of the Office of Personnel Management shall include a status report on the employee incentive award program in the annual report for the Office of Personnel Management required by Section 840-1.6A of this title.
Added by Laws 1984, c. 269, § 10, operative July 1, 1984. Amended by Laws 1998, c. 364, § 35, emerg. eff. June 8, 1998.
§74-4121 - On-the-Job Employee Performance Recognition Program
A. In order to establish a public employee benefit program to encourage outstanding performance in the workplace, the Administrator of the Office of Personnel Management is hereby directed to establish an on-the-job employee performance recognition program which encourages outstanding job performance and productivity.
B. In order to promote excellence in job performance and provide recognition for work units with exceptional performance, state agencies are authorized to expend from monies available in the agency’s operating funds so much thereof as may be necessary for the purchase of recognition awards for presentation to the members of work units or individual employees with exceptional job performance records or for other significant contributions to the operation of the agency. State agencies may also provide for such recognition awards to be cash awards.
C. Recognition awards may be presented to members of work units or individual employees having exceptional job performance records or other significant contributions and such awards may be presented at a formal or informal ceremony, banquet or reception, the cost of which may be expended from monies available in the agency’s operating funds.
D. 1. Recognition awards may consist of distinctive wearing apparel, service pins, plaques, writing pens, or other distinguished awards of a value not exceeding One Hundred Fifty Dollars ($150.00) per recognized employee each fiscal year to recognize the achievement of the work unit or individual employee.
2. In addition to recognition awards listed in paragraph 1 of this subsection, the agency may establish an employee cash recognition program not to exceed Five Hundred Dollars ($500.00) per recognized employee each fiscal year.
Added by Laws 1999, HB 1280, c. 396, § 29, emerg. eff. June 10, 1999; Amended by Laws 2001, HB 1299, c. 50, § 1, emerg. eff. April 10, 2001; Amended by Laws 2001, SB 571, c. 348, § 1, eff. November 1, 2001; Renumbered from 56 O.S. § 162.6 by Laws 2001, SB 571, c. 348 § 5, eff. November 1, 2001; Amended by Laws 2002, HB 2148, c. 325, § 1, eff. November 1, 2002; Amended by Laws 2007, SB 626, c. 342, § 6, eff. July 1, 2007.
§74-4122. Employee productivity program.
A. State agencies may establish employee productivity programs designed to enhance their quality improvement efforts and employee productivity. Employee productivity programs shall include a process that enables employees to make recommendations to agencies that would improve employee productivity or reduce agency service costs and that provides recognition to employees whose recommendations lead to improved productivity or agency cost savings.
B. State agencies may expend monies available to them for the purchase of employee productivity program recognition awards for employees whose exceptional recommendations result in improved productivity or agency cost savings. Recognition awards shall include distinctive wearing apparel, service pins, or United States Savings Bonds, the value of which shall not exceed One Hundred Dollars ($100.00) per employee per award.
Added by Laws 2001, c. 362, § 1, eff. Nov. 1, 2001.
NOTE: Editorially renumbered from § 4121 of this title to avoid a duplication in numbering.
