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Excluded Employee Compensation Update – Personal Leave Program


The employee compensation reductions called for by the Governor and reflected in the state budget are coming into focus. The Legislature encouraged rank-and-file groups to agree to reductions through collective bargaining. Without those agreements, the Legislature would authorize employee compensation reductions. Two groups have reached agreement, including SEIU Local 1000 representing nine of the State’s 21 bargaining units and the California Correctional Peace Officers Association (CCPOA), representing Bargaining Unit 6.

The Local 1000 agreement gives a road map to other bargaining units and sets the expectations for likely excluded employee compensation adjustments – a two-day per month “Personal Leave Program” offset in part by suspending the employee contribution to pre-fund retiree health care. This framework is consistent with the approach ACSS has advocated for in light of the excluded employee compensation reductions required by the recent COVID-19 related budget deficits being addressed by the revised state budget.

SEIU Local 1000 Agreement

The tentative agreement or “Side Letter” to modify the Local 1000 labor contract includes the following for rank-and-file employees:

  • Two day-per month Personal Leave Program (PLP) reducing compensation by 9.23% and providing 16 hours of leave credit per month for two years
  • Suspending employee payments to pre-fund retiree health care for two years; employees will not pay this contribution which would otherwise increase to 3.5% effective July 1, 2020
  • All employees will receive $260 per month to offset health care costs
  • Defers the 2.5% July 1, 2020 general salary increase for two years (the 2% increase scheduled for July 1, 2021 is not impacted)
  • Special Salary Adjustments (generally 5%) for 176 classifications of employees will still be paid effective July 1, 2020
  • If federal money is received and/or state budget revenue allows, the cuts and deferrals could end early

Under the PLP, employees work their full schedules. The reductions do not change salary ranges and do not impact benefits or retirement calculations. PLP credits do not count toward the vacation/annual leave cap and need to be used before other paid leave, except sick leave.

With the $260 per month and suspension of the retiree health contribution, the PLP reductions of 9.23% will be significantly mitigated for most employees. Some employees receiving special salary adjustments will still see small increases in their paychecks despite the PLP reductions.

What This Means for Excluded Employees

The Administration has made clear it intends to tie excluded employees to their related bargaining units in achieving salary savings. It is expected that other bargaining units will reach agreements for two-days of PLP, offset in part by suspending the employee contribution to pre-fund retiree health care.

CCPOA representing Bargaining Unit 6 (correctional officers) agreed to a one-day PLP and to different compensation reductions including holiday pay reductions and suspension of night and weekend shift differentials. It is not likely that other units will be able to find enough cost savings to meet the required reductions to avoid a second day of PLP.

ACSS has pushed for any compensation cuts for excluded employees to be offset in part by suspending the pre-funding of retiree health care. ACSS has also made clear to CalHR that the $260 per month health care affordability payment and the special salary adjustments must also be provided to all related excluded employees to avoid salary compaction issues.

With the SEIU Local 1000 Side Letter tentative agreement, we have reached out to CalHR to reiterate these requests and to also ensure that a fair package is in place for excluded employees not directly related to a bargaining unit. Should any rank-and-file unit not reach agreement and instead allow salary reductions to be imposed, ACSS will work to ensure that the reductions for related excluded employees are equitable.

As bills approving agreements reached by rank-and-file organizations are presented to the Legislature for approval, ACSS will continue its aggressive advocacy in protecting the employment interests of excluded employees. ACSS will also keep you informed with the latest information regarding your salaries and benefits.


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CDPH Releases Guidance Requiring Californians to Wear Face Coverings

Posted: 6/18/2020 Tags: COVID-19 legislation policy representation Tags Views: 683

The California Department of Public Health today released an updated guidance that requires Californians to wear a face covering in high-risk settings. A growing body of scientific research has shown that people with no or few symptoms of COVID-19 can still spread the disease and that the use of face coverings, combined with physical distancing and frequent hand washing, will reduce the spread of COVID-19.

Governor Gavin Newsom said, “We are seeing too many people with faces uncovered – putting at risk the real progress we have made in fighting the disease. Science shows that face coverings and masks work. They are critical to keeping those who are around you safe, keeping businesses open and restarting our economy.”

Today's guidance mandates the use of cloth face coverings by the general public statewide when outside the home, with limited exceptions. The guidance outlines scenarios in which wearing a face covering is required and also outlines those who are exempt from wearing a face covering.

More information about the state's COVID-19 guidance is on the California Department of Public Health's Guidance web page.

More information about reopening California and what individuals can do to prevent the spread of COVID-19, visit Coronavirus (COVID-19) in California.


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Excluded Employee Compensation Questions Remain Even as the Legislature Prepares to Pass a State Budget

Posted: 6/11/2020 Tags: bargaining legislation policy representation salary Tags Views: 2871

The State Budget continues to evolve as the Legislature and Governor continue negotiations, which include the details of possible pay raises along with reductions in state employee compensation.

With a legislative rule that bills must be in print for 72 hours, the Legislature on June 10, 2020 released the latest version of the State Budget in Senate Bill 808. The Legislature is expected to pass this version of the State Budget with votes on the June 15 constitutional deadline. What it means for excluded employee compensation is far from clear, and additional legislative action impacting state employee compensation outside the main State Budget bill remains likley.

Senate Bill 808 includes funding for the previously planned July 1, 2020 excluded employee salary increases and funding for raises included in bargaining unit labor contracts. While this is potentially good news, the possibility remains that the Governor could use his budget authority to remove this funding from the State Budget and not provide those July 1, 2020 pay raises to excluded employees.

With Senate Bill 808, the Legislature also expects that employee compensation will be reduced by approximately ten percent, to be achieved through collective bargaining and reductions for excluded employees. If those compensation decreases and savings are not in place by July 1, 2020, the Legislature “expects to pursue alternative legislative options” to authorize those reductions, presumably through a personal leave program or furloughs for excluded employees.

Also of concern, if additional federal funding is not obtained by September 1, 2020, trigger language may authorize additional employee compensation reductions beginning October 1, 2020. The details and intent of this language are uncertain.

With this framework, a lot will depend on collective bargaining and agreements to reduce compensation and the Governor’s action regarding the possible July 1, 2020 general salary increases and special salary adjustments.

ACSS’ legislative advocates and legal team are continuing to advocate for the interests of excluded employees. As “budget trailer bills” and bills approving any agreements reached by rank-and-file organizations are presented to the legislature for approval and funding, ACSS will continue its aggressive advocacy for excluded employees. While we await more clarity from the adoption of the final State Budget and any impacts from collective bargaining, ACSS will also continue advocacy with CalHR over salaries and the details of any temporary reductions to excluded employee compensation.


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Legislature’s Version of the State Budget Avoids Suspending Salary Increases and Delays Possible Salary Reductions

Posted: 6/5/2020 Tags: budget legislation legislature representation salary Tags Views: 3002

Legislative leadership has announced agreement between the Senate and Assembly on a legislative version of the 2020-2021 State Budget. The Legislature has proposed its own version of the budget modifying the Governor’s proposed May Revision budget. While there is still a long way to go before a final state budget agreement is reached, the “Legislature’s Version” of the budget differs from the Governor’s May Revision in significant ways concerning state employee compensation.

The Governor’s May Revision budget proposal would suspend all planned pay raises for July 1, 2020 and would also temporarily reduce employee compensation by 10 percent. The temporary cuts would be “triggered off” if federal money is received by the state.

The Legislature’s Version instead assumes that congress will pass an economic stimulus package, noting there is “growing confidence” that federal funds will be received. If the federal funds are not received by September 1, 2020, trigger cuts for employee compensation would be authorized effective October 1, 2020. The details of the proposed employee compensation reduction authority are not yet published in bill form.

The Legislature’s Version notes that it “excludes proposed savings related to employee pay and suspending employee pay increases.” If this version of the budget were adopted, it would not authorize the Administration to furlough state employees or cut pay. It is uncertain whether the Governor could (or would) take action through the state budget process to suspend the planned July 1, 2020 salary increases. The Legislature also notes that state employee unions are being asked to agree to cost saving reductions through the collective bargaining process. The results of collective bargaining could also impact compensation for related excluded employees.

The Legislature’s Version of the state budget has not been published in bill form. The details of the employee compensation sections of the budget will matter. Negotiations between the Legislature and the Governor over the treatment of state employee compensation will continue with a budget resolution expected by the June 15 constitutional deadline. ACSS’ legislative advocates will be there to continue to protect the interests of excluded employees.


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ACSS Seeks to Mitigate Impact of Employee Compensation Reduction Proposals

Posted: 5/22/2020 Tags: benefits COVID-19 legislation policy representation salary Tags Views: 3502

As the state budget moves forward in the next few weeks, it is very likely that excluded employee compensation reductions and a delay of anticipated salary increases will be part of the budget solutions.

While ACSS cannot collectively bargain over these proposed reductions, the Administration’s planned salary reductions cannot be achieved without legislative approval. ACSS is therefore taking active steps to mitigate the impact of reductions through the legislative process and with CalHR. Mitigating the reductions includes:

  • Avoid Straight Cuts in Pay 
    If salary has to be reduced, it should be through a temporary furlough or personal leave program that provides leave in exchange for the salary reduction and does not change salary ranges, nor negatively impact retirement calculations.

  • Flexibility in a Furlough Program 
    If excluded employees are furloughed, there must be flexibility for supervisors and managers to continue meeting the workload with reduced staff. ACSS is requesting that CalHR implement the program in a way that allows maximum flexibility for excluded employees by not requiring the leave be used in the same month it is accrued.

  • Suspend Employee Contributions to Pre-fund Retiree Health Care 
    Each month excluded employees have a deduction labeled “CERBT” which stands for California Employers’ Retiree Benefit Trust. This deduction is to pay the employee share of pre-funding retiree health care. Most ACSS members are scheduled to pay between 3.5 to 4.5 percent of salary per month. Suspending the payment for at least the duration of the salary reductions will mitigate the reduction in take home salary with no impact on eligibility for health care benefits in retirement.

  • Health Care Affordability Payment 
    SEIU Local 1000 negotiated a $260 per month payment for employees enrolled in a health plan. ACSS asked that this payment be provided to all excluded employees. The current proposal is to allow the $260 per month payment to go forward July 1, 2020 for both SEIU rank-and-file employees and related excluded employees.

    For some ACSS members, suspending the retiree health care deduction and providing the $260 per month would almost completely offset the salary reduction of a two-day furlough. For others, getting one or both would partially offset the temporary salary reduction.

  • Federal Trigger Language 
    The Administration is proposing that the salary reduction authority would end if federal money is received. While this is positive, the details have not been developed. ACSS will push for language to directly address the impact of federal funding on excluded employees.

  • Salary Adjustments 
    Most ACSS members were scheduled for general salary increases and thousands anticipated special salary adjustments (SSA) July 1, 2020. The Administration is proposing no increases. While the treatment of delaying these raises will certainly be impacted by rank-and-file bargaining, it needs to be acknowledged that SSAs were planned to address recruitment and retention issues. Delaying these increases, and exacerbating recruitment and retention problems by cutting pay, will almost certainly lead to more attrition through retirement. The SSAs need to be paid as soon as possible to address likely retention issues.

ACSS is aware that other groups have proposed retirement incentives as a cost saving measure and that nothing in the Administration’s current proposals address incentives for those excluded employees providing front line COVID-19 response. If there is room to advocate on these issues, ACSS will do so through the state budget deliberative process and with CalHR.

We will keep you apprised as these significant budget decisions and proposed reductions move forward.


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CalHR Increases Commute Reimbursement for ALL Excluded Employees; ACSS Advocacy on Salaries Continues

Posted: 2/20/2020 Tags: benefits legislation policy representation salary Tags Views: 1498

CalHR has announced the reimbursement amount for transit passes and vanpools will increase by $35 per month for all supervisors, managers, and confidential employees. Effective February 1, 2020, excluded employees will be eligible for 75% reimbursement for public transit passes, up to $100 per month. Vanpool riders will be reimbursed 75% of the monthly fee, up to $100 per month, and vanpool drivers will receive $135 per month.

When SEIU Local 1000 representing rank-and-file bargaining units negotiated an increase in commute reimbursement amounts, ACSS immediately proposed that CalHR extend the increases to all excluded employees. After several meetings with CalHR where this topic was discussed, we are pleased that CalHR has adopted ACSS’ proposal and extended the increased commute reimbursement amounts to all excluded employees, regardless of bargaining unit affiliation.

What’s Next for the Remainder of the 2019-2020 Fiscal Year?
CalHR is expected to implement adjustments to bilingual pay, recruitment & retention for the Correctional Case Records series, and an increase in the call center differential. ACSS has met with CalHR and requested these same increases for excluded employees. CalHR will soon implement salary adjustments for Bargaining Unit 18. ACSS has requested CalHR provide at least the same salary increases for supervisors, managers and confidential employees, in addition to correcting standing salary inequities and compaction issues.

What About July 1, 2020 Increases?
Sixteen of the state’s 21 bargaining units are scheduled for salary increases July 1, 2020. The other five will be in negotiations this spring to adjust salaries. In addition to continued advocacy with CalHR for salary increases and corrections to salary inequities, ACSS is working to ensure the state budget contains funding for salary and benefit increases for excluded employees. While the state budget remains subject to the May Revise and legislative approval, at this point we are optimistic that the budget will adequately fund general salary increases and many special salary adjustments for excluded employees.


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Retroactive Salary Increases for Supervisors and Managers Related to Units 2, 7 and 13

Posted: 11/19/2019 Tags: legislation policy representation salary Tags Views: 2366

The Department of Human Resources (CalHR) has provided confirmation to ACSS of salary increases for state excluded employees related to bargaining units 2, 7, and 13. Effective July 1, 2019, excluded employees related to Bargaining Units 2 and 7 will receive General Salary Increases of 2.75%.

  • Excluded employees related to Bargaining Unit 13 will see their maximum salary ranges increase by 2.75% also effective July 1, 2019. This means those at the old maximum salary for 12 pay periods will see an immediate retroactive increase.
  • Excluded employees related to Bargaining Unit 2 enrolled as a subscriber in a state sponsored health plan will receive a $260 taxable cash benefit/health stipend retroactive to July 1, 2019 through the June 2020 pay period.
  • As part of the BU 7 Labor Agreement, employees in specific classifications will receive Special Salary Adjustments retroactive to July 1, 2019. CalHR has confirmed that excluded employees tied to those classifications “may also be eligible for Special Salary Adjustments retroactive to July 1, 2019” and that details of impacted classifications and percentages will be outlined in a forthcoming Pay Letter.

Many of the recently approved labor contracts (including the 9 SEIU Local 1000 units) include new and revised pay differentials that may affect related excluded employees. Specific details of how these changes will affect related excluded employees will also be included in the forthcoming Pay Letter. ACSS has requested that CalHR make all increases applicable to excluded employees.

CalHR is currently developing the Excluded Compensation package for Fiscal Year 2020 – 21. Items of compensation including general and special salary adjustments and the $260 month cash benefit for healthcare for employees in the 9 SEIU Local 1000 bargaining units (1, 3, 4, 11, 13, 15, 17, 20, and 21) are effective July 1, 2020. ACSS has requested at least the same increases as rank-and-file employees. CalHR says it will announce the excluded compensation package upon approval of the Budget Act of 2020.

ACSS continues to discuss the compensation of excluded employees related to Bargaining Unit 18 with CalHR. The announcements of salary adjustments do not indicate any adjustments to employees related to Unit 18, but ACSS will continue to ask CalHR to make appropriate salary adjustments for these supervisory and managerial employees, even if the rank-and-file is unable to reach a new labor contract.

When the official Pay Letters are released instructing the State Controller’s Office to adjust salaries, we will provide details of the adjustments including the expected timing of pay adjustments and retroactive pay warrants.


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ACSS and CalHR Discuss Pay Equity and Other Issues that Affect Excluded Employees

Posted: 10/10/2019 Tags: benefits legislation policy representation salary Tags Views: 2786

On October 8, 2019, ACSS met with CalHR Director Eraina Ortega to continue discussions regarding the Newsom Administration’s approach to salary and benefits improvement for the State’s excluded employees. Director Ortega and her Labor Relations staff, led by Deputy Director and Chief of Labor Relations Paul Starkey, met with ACSS President Todd D’Braunstein, ACSS Executive Director Rocco Paternoster and key staff, along with ACSS Legislative Advocate Ted Toppin.

President D’Braunstein thanked CalHR for recently implementing Family Care Leave and new Emergency Pay rules for excluded employees – two long standing ACSS priorities. He also thanked Director Ortega for the new process allowing ACSS to submit excluded employee salary and benefit proposals related to bargaining units at the same time CalHR is negotiating with those bargaining units.

In our continued efforts to aggressively advocate for solutions to solve compaction, ACSS noted progress made in addressing salary compaction, but many excluded employee classifications remain within 5 percent of subordinate classes. Director Ortega confirmed salary setting for excluded employees will be more flexible in the future and CalHR will not be as constrained by a practice of limiting salary differentials to 5 percent.

ACSS reiterated previously submitted proposals for pay and benefit equity with rank-and-file units and proposals to correct salary inequities. ACSS discussed the need to restore vertical salary relationships between classifications and explore other incentives to promote to excluded classifications.

Chief of Labor Relations Paul Starkey noted CalHR was in the process of realigning labor relations staff to more effectively respond to and address excluded employee issues raised by ACSS and affecting our members. Director Ortega and Mr. Starkey confirmed a commitment to working with ACSS now to review many of the long-standing compensation issues ACSS has identified. We anticipate scheduling interim meetings to discuss specific proposals with CalHR Labor Relations. CalHR has promised feedback and is evaluating improvements to the process for sharing salary and benefit related decisions with ACSS.

President D’Braunstein thanked Director Ortega and her staff for making excluded employee issues a priority and for committing to review and respond to issues and proposals made by ACSS. As always, ACSS will continue to keep members informed of issues that affect excluded employees as they arise.


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ACSS Met with CalHR to Discuss Issues that Affect Excluded Employees

Posted: 5/17/2019 Tags: legislation policy representation Tags Views: 1777

On April 30, 2019, ACSS met with CalHR Director Eraina Ortega to discuss the new administration’s plan for salary and benefits improvement for the State’s excluded employees. Director Ortega was appointed by Governor Newsom in March. Director Ortega met with ACSS President Todd D’Braunstein, ACSS Executive Director Rocco Paternoster, ACSS Director of Representation Nellie Lynn and ACSS Legislative Advocate Ted Toppin.

ACSS President Todd D’Braunstein comments, “ACSS is pleased to be working with the new Administration and we anticipate a productive relationship moving forward. It was a pleasure talking with Director Ortega and I believe together we can work towards achieving positive results to resolve the issues affecting ACSS Members.” Director Ortega is committed to working with ACSS to ensure excluded employees are part of the process of developing the compensation package for excluded employees. ACSS appreciates the opportunity to work cooperatively with CalHR to ensure future excluded employee salary and benefits improvements address existing salary compaction issues and establish pay differentials for supervisors and managers that attract the best candidates for the State’s management team making the State of California an employer of choice.

ACSS asked Director Ortega about implementation of a Paid Family Leave component to the disability program for excluded employees and conveyed ACSS’ long standing advocacy and support for Paid Family Leave for excluded employees.


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Retroactive Salary Increases for Supervisors and Managers related to BU9 and Certain Supervisory and Managerial classes related to BU10

Posted: 12/19/2018 Tags: legislation policy representation Tags Views: 1679

On December 12, 2018, the Department of Human Resources (CalHR) released Pay Letter 18-35 which covers supervisory and managerial engineers, along with certain supervisory and managerial scientist classifications.  While other supervisory and managerial employees received increases on July 1, 2018, these employees did not.

Effective retroactively to July 1, 2018, S09 and M09 Excluded Employees and certain S10 and M10  classifications will receive a General Salary Increase of 4.5 percent. According to the latest information from CalHR, it is expected that this salary adjustment will be reflected in the December pay warrants. The retroactive portion is expected to be processed separately by the State Controller’s Office reflecting five months of the retroactive salary increase.

Pay Letter 18-35 also includes new provisions for longevity pay for certain employees with 20 or more years of service and geographic pay for certain employees working in Bay Area counties. These new pay differentials are provided to supervisory and managerial engineers, but not to other excluded employees. ACSS immediately approached CalHR regarding interest in extending Longevity Pay and Geographic Pay to all excluded employees.


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