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General Salary Increases for Excluded Employees Effective July 1, 2022

Posted: 7/5/2022 Tags: legislation policy representation salary Tags Views: 772

ACSS continues to meet with the Department of Human Resources (CalHR) to discuss pay and benefits for the state’s supervisory, managerial, confidential and exempt employees. Although many issues remain unresolved, CalHR has released the Excluded Employee Pay Plan for 2022-2023.

  • General Salary Increases effective July 1, 2022:
    EXCLUDED EMPLOYEES AFFILIATED WITH BARGAINING UNIT: GSI (General Salary Increase)
    1, 3, 4, 11, 14, 15, 17, 20, 21 (SEIU Units) 2.5%
    5 4.3%
    6 2.5%
    7 2.25/3.75(PO/FF)%
    12 2.25%
    13 (Pending MOU Ratification) 2.5% (top step)
    16 2%
    19 2.5%
  • Special Salary Adjustments and Pay Differentials will be extended to exempt and excluded employees where appropriate.
  • All exempt and excluded employees associated with the SEIU bargaining units and enrolled in a CalPERS health plan will continue to receive the $260 taxable cash benefit (health affordability payment) through June 30, 2023.
  • Exempt and excluded employees not directly tied to a bargaining unit (such as many employees who have an “E” Collective Bargaining Identifier) will receive the 2.5% GSI.

CalHR is working on the “Pay Letters” and expects the salary adjustments to be reflected in the July pay warrants. As the pay letters are developed, ACSS will continue advocacy with CalHR to ensure excluded employees receive all appropriate special salary adjustments.

Negotiations between CalHR and the representatives for rank-and-file Bargaining Units 2, 8, 9, 10 and 18 for new labor contracts continue. ACSS has submitted proposals for excluded employees related to these units to CalHR. Excluded employees related to these five units are not currently scheduled to receive a general salary increase on July 1, 2022.

Healthcare Facility Retention Payment/Public Safety Retention Stipend

From the beginning of the pandemic, ACSS proposed and pushed for essential worker pay for excluded employees. The state chose not to use available federal money for that purpose, but in May 2022, Governor Newsom announced a one-time bonus for all health care workers. ACSS proposed that all eligible excluded employees receive that bonus amount.

CalHR has approved $1500 one-time payments for excluded employees tied to Bargaining Unit 6 employed in a correctional facility or correctional health facility. Excluded employees tied to Bargaining Units 5, 7, and 8 will receive a $1500 one-time payment public safety retention payment.

Although CalHR has thus far tied these one-time payments to the related bargaining units reaching agreements, ACSS has taken the position that all eligible excluded employees should receive these payments whether the rank-and-file reaches an agreement or not.

ACSS will continue to meet with CalHR regarding the $1500 one-time payments for excluded employees and to pursue a resolution to various ACSS’ salary equity proposals for supervisors and managers.

If you have questions regarding general salary increases, please contact your ACSS Labor Relations Representative.


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May Revision of the 2022 – 2023 State Budget: Historic Surplus Directed to One-time Projects

Posted: 5/16/2022 Tags: budget legislation legislature policy salary Tags Views: 1312

Governor Newsom released his May Revise of the state budget on May 13, 2022. The budget includes a projected record $97.5 billion surplus, including $49.2 billion in discretionary surplus. The Governor’s plan would spend 94 percent of this discretionary surplus on one-time projects. The historic $300.6 billion budget ($227.3 billion general fund) includes $37.1 billion in reserves, with $23.3 billion in the state’s rainy day fund.

The budget proposal contains a few highlights of importance to ACSS members:

  • The May Revision adds another $217.6 million in new employee compensation to reflect updated estimates for salary increases, updated estimates for the state employer’s health and dental costs, telework stipends, and recruitment and retention differentials for the CDCR Division of Juvenile Justice
  • This addition brings the new employee compensation number to nearly $1 billion to fund salary increases, health care costs for active state employees, and retiree health care prefunding for active employees
  • The proposed budget includes a $3.4 billion additional one-time supplemental payment to CalPERS for state plans (to pay down liabilities and save state employer pension costs)
  • The Rainy Day Fund is at the constitutional maximum of 10 percent of General Fund Revenues

The updated budget proposal kicks off legislative deliberation over the budget plan with a June 15 deadline for the legislature to send a budget to the Governor. Six of the state’s 21 rank-and-file bargaining units are negotiating for new labor contracts to be effective in July 2022. ACSS will continue discussions over the next few weeks with CalHR over excluded employee pay increases and will use the opportunity created by the historic budget surplus to urge CalHR to address long-standing pay and benefit issues for supervisory and managerial employees. We will keep you apprised as the excluded pay plan for the fiscal year beginning July 1, 2022 comes into focus.

The May Revision summary can be found here: Budget Summary (ca.gov)


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Leave Buy-Back Program Authorized for Excluded Employees

Posted: 4/27/2022 Tags: benefits leave legislation policy representation salary Tags Views: 1163

CalHR and the Department of Finance have authorized the Excluded Employee Leave Buy-Back Program for 2021-2022. Employees designated Exempt, Supervisory, Managerial or Confidential may elect to be paid at their regular salary rate in exchange for up to 80 hours of unused leave (vacation or annual leave, voluntary personal leave, personal holiday or holiday credit). Excluded employees related to bargaining unit 2 (attorneys and administrative law judges) may cash out up to 160 hours of leave. Note that Personal Leave Program 2020 leave (or prior PLP leave) may not be cashed out. Payment is out of existing appropriations, so each department’s participation is subject to the availability of departmental funds.

No later than May 1, 2022, your department should notify you whether the department has funds to participate and how much leave that you will be able to cash out. The notification will include a deadline to submit your request to cash out leave. Departments may issue payments as early as May, but no later than June 30, 2022.

ACSS members are encouraged to evaluate their accrued leave status and consider cashing out leave as part of an overall strategy to remain compliant with leave caps.

Click here to view the CalHR policy manual covering leave buy-back.

If you have questions regarding leave buy-back program issues, please contact your ACSS Labor Relations Representative.


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CalHR Issues Telework Stipend Pay Differential Covering All Excluded Employees

Posted: 3/2/2022 Tags: legislation policy representation Tags Views: 3508

On March 1, 2022, the Department of Human Resources (CalHR) issued Pay Differential 453 – Telework Stipend Differential for all excluded employees and for employees in the six rank-and-file bargaining units with a telework stipend side letter agreement.

Excluded employees with an approved remote-centered telework agreement (50 percent or more at home) shall receive $50 per month. Excluded employees with an approved office-centered telework agreement shall receive $25 per month. Eligibility and the amount of the stipend are generally based on the employee’s approved telework agreement as of the first day of the month. Incidental telework does not qualify. No receipts are required for the stipend.

Employees receiving the stipend are not eligible to submit claims for utilities, phone, cable/internet, or other costs. Claims for approved office supplies such as papers, pens, and printer cartridges can be submitted in accordance with department policies.

The Telework Stipend is retroactive to October 1, 2021 for all eligible excluded employees. The State Controller’s Office is already working with departments on implementing the new stipend. When ACSS obtains an estimate of the expected timing of the Telework Stipend payments, that information will be shared with ACSS Members.

ACSS thanks CalHR and the Administration for agreeing to make this stipend available to all eligible excluded employees, not just those employees related to a bargaining unit with a telework stipend side letter.

The CalHR Pay Differential can be read here.

If you have questions about the Telework Stipend, contact your ACSS Labor Relations Representative.


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2022-23 Proposed State Budget: Focus on One-time Investments

Posted: 1/11/2022 Tags: budget legislation policy politics salary Tags Views: 1142

On January 10, 2022, Governor Gavin Newsom released his proposed 2022-2023 State Budget that will fund state government for the 12-month period starting July 1, 2022.

State spending next fiscal year would increase by 9.1 percent to just over $286.4 billion, with $213.1 billion in general fund spending. The Governor projects a $45.7 billion surplus, which includes $20.6 billion in the general fund available for discretionary purposes. This $20.6 billion projection is far more conservative than the Legislative Analyst’s Office projection of $31 billion. The proposed budget allocates 86 percent of the discretionary surplus to one-time investments.

Regarding state employee compensation, the Governor’s budget proposal summary states:
The Budget includes $770.5 million ($377.8 million General Fund) for increased employee compensation, health care costs for active state employees, and retiree health care prefunding contributions for active employees.

This employee compensation number is expected to increase as six of the state’s 21 bargaining units will be in bargaining for new labor contracts. As those rank-and-file groups engage in bargaining, ACSS will make proposals to CalHR for related excluded employees.

Other proposed budget items of interest include:

  • In addition to the $8.4 billion state employer contribution to CalPERS for state pension costs, a supplemental $3.5 billion pay down of retirement liabilities at CalPERS
  • An additional $365 million in one-time funding to prefund retiree healthcare
  • $20.9 billion in the Rainy Day Fund and $3.1 billion in operating reserves
  • Funding to modernize the state’s payroll system (expected to be implemented in a few years)
  • With continued use of telework, over the next three years the Department of General Services is projecting a 20-percent overall reduction in the state’s leased office space

In his remarks, the Governor stated he is working with the Legislature on the issue of supplemental paid sick leave for employees. The prior availability of 80-hours of COVID-19 supplemental sick leave expired in September 2021.

As the proposed state budget progresses, ACSS will continue to meet with CalHR to advocate for supervisory and managerial employees.

The Governor’s complete budget summary can be found here: Budget Summary (ca.gov)


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New Telework Stipend Program Policy Effective October 1; Retroactive Payments Likely

Posted: 10/7/2021 Tags: legislation policy representation Tags Views: 5174

The Department of Human Resources (CalHR) and the Department of General Services (DGS) have implemented a new Telework Stipend Program and a new statewide Telework Policy – each effective on October 1, 2021. Although the new statewide DGS Telework Policy is now effective, emergency telework provisions still remain in effect.

CalHR confirmed to ACSS that telework stipends for excluded employees are intended to be effective October 1, 2021, but that the payment of the stipends most likely requires a legislative appropriation. This means payments are not expected to begin until the Legislature passes a measure approving the appropriation of funds after returning to session in January 2022. CalHR confirmed that with a legislative appropriation, the telework stipend payments for excluded employees will be retroactive to October 1.

The major provisions of the new Telework Policy and Telework Stipend Program include:

  • An encouragement of teleworking, with management/departments retaining the discretion to find that positions or job classifications are not appropriate for telework
  • Dependent care and personal responsibilities cannot affect work duties or professionalism
  • For employees who telework, they will be either remote-centered (50% or more at home) or office-centered (more than 50% at the office)
    -  Remote-centered employees will receive a $50 per month stipend
    -  Office-centered employees will receive a $25 per month stipend
    -  As employees need to provide adequate internet coverage to perform the job, this is the main basis for the stipend
  • Other equipment and office supplies may be provided or reimbursed (pens, paper, printer ink, etc.)
  • The state will provide equipment for a single dedicated work station for employees
    -  Remote-centered teleworkers shall have their dedicated work station at their designated alternate work location. Remote-centered teleworkers shall use a shared work station when working in the office
    -  Office-centered teleworkers shall have a dedicated work station in the office and utilize their own equipment or department provided mobile equipment for teleworking at their designated alternate work location
  • Each department will have to adopt its own telework policy by October 1, 2022, but cannot alter the CalHR Standard 200 Telework Form

Departments are encouraged by the Administration to determine the maximum level of telework appropriate based on their operational needs with the goal of maximizing telework. ACSS will meet and confer as appropriate over proposed departmental telework policies to protect the interests of supervisors and managers.

ACSS’ legislative advocates will work to ensure the Legislature approves an appropriation to fund the telework stipends for excluded employees. We will keep you apprised of the progress and expected timing of retroactive telework stipend payments for eligible excluded employees.

If you have questions about telework, contact your ACSS Labor Relations Representative.


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CalHR Issues Pay Letters Ending the PLP 2020 Reduction and Implementing Salary Increases

Posted: 7/9/2021 Tags: benefits budget legislation policy representation salary Tags Views: 2600

This week CalHR issued two pay letters impacting excluded employees. Pay Letter 21-18 ends the pay reductions (generally 9.23%) from the Personal Leave Program 2020. Pay Letter 21-19 increases salaries for most excluded employees through General Salary Increases and includes a number of Special Salary Adjustments. The State Controller’s Office is implementing these changes with the July 2021 pay period warrants.

All excluded employees are receiving the same General Salary Increases as related rank-and-file employees and from ACSS’ initial review, it appears all Special Salary Adjustments have been passed along to related supervisors and managers.

ACSS awaits a pay letter for the July 1, 2021 General Salary Increase (5.06%) and Special Salary Adjustments for S19 and M19 employees. ACSS will keep impacted employees apprised of the expected timing of these salary adjustments.

CalHR has informed ACSS that the resumption of the “OPEB/CERBT” employee contribution is now expected to also take effect with the July pay warrant. This employee contribution to prefund retiree health care benefits was suspended during the PLP 2020 pay reductions with the state picking up the employees’ portion. The employee contributions generally range from 2 percent to 4.6 percent of salary.

With salaries restored, ACSS now looks forward to working in earnest with CalHR and impacted departments to address a number of supervisory and managerial pay and classification issues.

Pay Letter 21-18 ending the PLP 2020 reductions can be read here.

The portions of Pay Letter 21-19 affecting excluded employees can be read here. (page 14 through 45.)

If you have questions about the salary increases or the prefunding of retiree healthcare, please contact your ACSS Labor Relations Representative.


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May Revision of the 2021 – 2022 State Budget: End of Pay Reductions and Deferrals

Posted: 5/14/2021 Tags: budget legislation legislature policy salary Tags Views: 3945

Governor Newsom released his May Revise of the state budget on May 14, 2021. The budget includes a projected $75.7 billion surplus. The historic $267.8 billion budget ($196.8 billion general fund) includes $24.4 billion in reserves, with $15.9 billion in the state’s rainy day fund.

In his budget summary, the Governor notes that last year state employees “stepped up at a time of uncertainty” by deferring scheduled pay increases and pay reductions through the Personal Leave Program. Although the Governor notes long-term financial risk remains high, the higher-than-anticipated tax revenue and additional federal funds have drastically improved the near-term picture. With that backdrop, the budget proposal contains a few highlights of importance to ACSS members:

  • Instructs CalHR to discuss the end of the Personal Leave Program 2020 program AND an end to deferring scheduled pay increases
  • Includes a $1.5 billion additional one-time supplemental payment to CalPERS for state plans (to pay down liabilities and save state employer pension costs)
  • Includes a one-time $616 million payment to keep on pace to pre-fund retiree health benefits (which makes up for the employee contribution which was suspended this fiscal year to mitigate the PLP pay reduction )

The updated budget proposal kicks off legislative deliberation over the budget plan with a June 15 deadline for the legislature to send a budget to the Governor. It also kicks off discussions and collective bargaining with CalHR over ending the PLP 2020 program and ending the deferral of salary increases which many ACSS members were slated to receive July 1, 2020 and July 1, 2021.

ACSS will continue our discussions over the next few weeks with CalHR over excluded employee pay increases and will use the opportunity created by the budget surplus to address long-standing pay and benefit issues. We will keep you apprised as the excluded pay plan for the fiscal year beginning July 1, 2021 comes into focus.

The Governor’s complete budget summary can be found here:

Budget Summary (ca.gov)


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ACSS Board of Directors Discusses Political Endorsements, Chapter Meetings, and Elections

Posted: 5/4/2021 Tags: chapters election events legislation PAC Tags Views: 1073

In the past few weeks, the ACSS Board of Directors has met on two occasions to discuss important Association business. On one occasion, the Board met for a special session to quickly and decisively vote to support Governor Gavin Newsom in his efforts to fight the recall. ACSS’ contributions were noted in Politico’s news article, posted April 29, 2021. Most recently on May 1, the Board held a regular meeting and made further political endorsements:

Legislative

  • Dr. Angelov (Angelo) Farooq (SD 31, 2024) – Dr. Farooq is currently a member of the Board of Education for Riverside Unified School District. He is also the Chairman of the California Workforce Development Board, appointed by Governor Gavin Newsom. In addition, he serves at a high level on several councils that focus on education, economic development, women’s health, entrepreneurship, and innovation.

CalPERS 2021 Election

  • David Miller (Board of Administration, At Large Seat A) – ACSS endorsed David Miller during the previous election for his current position on the CalPERS Board. David Miller continues to protect pensions, improve health benefits and provide transparency on behalf of CalPERS members.
  • Jose Luis Pacheco (Board of Administration, At Large Seat B) – Mr. Pacheco has a strong background in labor and is a current member of the South Bay Labor Council in San Jose. He also serves on councils that support credit unions, breast cancer, and Latino issues. He promises to protect pensions, improve healthcare programs, and act as the voice that represents CalPERS members.

The CalPERS candidates endorsed by the ACSS Board are running for statewide seats voted on by current state employees including state managers and supervisors as well as retired state and public employees.

The ACSS Board of Directors also discussed the return of Chapter meetings via virtual format as well as future in-person meetings. We are in the process of training and preparation for holding Chapter meetings again and we look forward to providing members with a virtual outlet to discuss ACSS activities, updates, and topics that are important to excluded employees.

As you may already be aware, ACSS Elections for Chapter Offices and Delegates are now open until May 21, 2021. Please remember to visit the ACSS Election Portal and cast your vote for local leaders to represent your voice. Delegate Assembly 2021 is slated for October 8-10 at the Sheraton Grand in Sacramento.


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Leave Buy-Back Program Authorized for Excluded Employees

Posted: 4/20/2021 Tags: benefits legislation policy representation salary Tags Views: 2943

CalHR and the Department of Finance have authorized the Excluded Employee Leave Buy-Back Program for 2020-2021. Employees designated Exempt, Supervisory, Managerial or Confidential may elect to be paid at their regular salary rate in exchange for up to 80 hours of unused leave (vacation or annual leave, voluntary personal leave, personal holiday or holiday credit). Note that Personal Leave Program 2020 leave (or prior PLP leave) may not be cashed out. Payment is out of existing appropriations, so each department’s participation is subject to the availability of departmental funds.

No later than May 1, 2021, your department should notify you whether the department has funds to participate and how much leave (up to 80 hours) that you will be able to cash out. The notification will include a deadline to submit your request to cash out leave. Departments may issue payments as early as May, but no later than June 30, 2021.

Authorization of the leave buy-back program is welcome news and reflective of the vastly improved state budget situation over last year’s pandemic related budget predictions. ACSS members are encouraged to evaluate their accrued leave status and consider cashing out leave as part of an overall strategy to remain compliant with leave caps.

Click here to view the CalHR policy manual covering leave buy-back.

If you have questions regarding leave buy-back program issues, please contact your ACSS Labor Relations Representative.


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