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Excluded Employee Compensation Plan for 2020-2021


The Department of Human Resources (CalHR) has released the outline of the excluded employee pay plan for the 2020-2021 fiscal year. We are pleased that the outline contains most of the items ACSS has advocated for in light of the Administration’s mandated state employee compensation decreases due to the large state budget deficits related to the ongoing pandemic.

The exempt and excluded pay plan effective July 1, 2020 includes:

  • Two day-per month Personal Leave Program (PLP) reducing compensation by 9.23% and providing 16 hours of leave credit per month. The PLP credit will not need to be used in the month it is accrued, but taken before other paid leave (except sick leave).
  • Suspending employee payments to pre-fund retiree health care. The deduction is shown on your pay warrant as “OPEB/CERBT”. The deductions for employees related to units 12 and 13 will continue, but be offset by a pay differential.
  • General Salary Increases are suspended.
  • Special Salary Adjustments and Pay Differentials will be extended to exempt and excluded employees where appropriate.
  • All employees related to the nine SEIU Local 1000 bargaining units (1, 3, 4, 11, 14, 15, 17, 20, and 21) will receive a $260 per month taxable cash benefit to offset health care costs.
  • The Vacation/Annual Leave Cap is increased by the amount of the PLP accrued for excluded employees related to bargaining units 2, 9, 10 and 19.

CalHR is working on pay letters to implement the details of the leave program and special salary and pay differential adjustments. CalHR expects to issue a series of pay letters “in the coming weeks” and has informed ACSS they are working with the State Controller’s Office to try to implement the majority of the salary adjustments in the July pay period.

As the pay letters are developed, ACSS will continue advocacy with CalHR to ensure excluded employees receive all appropriate special salary adjustments and pay differentials and will keep you informed regarding the expected timing of the pay adjustments.


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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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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: 3214

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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ACSS and CalHR Discuss Salary and Benefit Improvements

Posted: 10/4/2018 Tags: bargaining benefits legislation meeting policy representation Tags Views: 2255

On October 1, 2018, CalHR Acting Director Adria Jenkins-Jones met with ACSS President Frank Ruffino, ACSS Executive Director Rocco Paternoster, ACSS Director of Representation Nellie Lynn and ACSS Legislative Advocate Ted Toppin to discuss improvements to the salary and benefits of excluded state employees.

“It was a pleasure to meet with the Association of California State Supervisors, and I look forward to working with ACSS as CalHR’s Acting Director,” Adria Jenkins-Jones said. “I have enormous respect and appreciation for the state’s managers and supervisors and the jobs they do. They drive California state government and ensure that we fulfill our mission to serve the public.”

ACSS acknowledged the progress made under the Brown administration and previous CalHR Director Richard Gillihan. In addition to General Salary Increases in 2017 and 2018, the Administration provided excluded employees a 3% General Salary Increase (GSI) effective on October 1, 2016, as well as various special salary adjustments to address salary compaction. The October 2016 GSI was a departure from previous practice by providing excluded employees a GSI before several rank and file Unions reached collective bargaining agreements. ACSS is committed to continuing to work with CalHR and the next administration to ensure excluded employees receive equitable and appropriate salary and benefit improvements.

ACSS advocated for a minimum 10% pay differential between excluded employees and their staff. We also provided salary data supporting ACSS’ request for special salary adjustments for various excluded classifications to address salary compaction and pay parity for excluded employees.

Additionally, we advocated for salary increases for excluded employees related to bargaining units 06, 09 and 10. Rank and File employees in those units recently reached new labor contracts (called Memorandum of Understanding or MOUs) with salary increases, in which ACSS urged CalHR to pass on those benefits to excluded employees.

In addition, ACSS reiterated a request for disability insurance benefit improvements and paid family leave. CalHR confirmed they will notice and meet with ACSS under the Meet and Confer process on a proposal to provide state managers and supervisors with paid family leave benefits by July 2019. Governor Brown’s veto message on ACSS supported AB 3145 revealed plans to provide paid family leave benefits for excluded state employees.

More information on AB 3145 and paid family leave can be found here.

As always, ACSS will provide updates as information is available about specific salary and benefit improvements for excluded employees.


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SEIU Local 1000 Members Approved New Contract

Posted: 1/20/2017 Tags: bargaining legislation salary Tags Views: 3128

The votes are in and according to SEIU Local 1000, approximately 90 percent of the the people voted in favor of the new contract. The 42-month contract promises members a $2,500 bonus and a cumulative raise of 11.5%. The next step is ratification of the Legislature before the 96,000 state workers represented by SEIU Local 1000 receive their bonus checks.  

>> Click here to read the full article from the Sac Bee.


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Rank and File reach a Tentative Agreement and Pay Raise – How this Affects Excluded Employees

Posted: 12/5/2016 Tags: bargaining policy retirement salary Tags Views: 5322

Over the past month, ACSS has followed the bargaining between California’s largest union of state employees (SEIU Local 1000) and the State of California over a new contract. We have also been following the reports on the possibility of a strike and how the State of California sought to halt the potentially disruptive strike by seeking an injunction against SEIU Local 1000 employees. The Brown administration has been arguing that the potential strike would be illegal because of the no-strike clause. On Friday December 2nd, 2016, SEIU Local 1000 announced that the strike, set for December 5th, had been called off.

Over the weekend, a tentative agreement had been reportedly reached between L1000 and the state. As reported by SEIU Local 1000, the new tentative agreement includes:

  • A $2,500 one-time signing bonus
  • 11.5% GSI total spread over 3 years: 4% effective 7/1/2017, 4% GSI effective 7/1/2018 and 3.5% GSI effective 7/1/2019.
  • Only 2.3% total in prefunding contributions for retirement health benefits over those 3 years
  • Special salary adjustments in over 30 classifications

ACSS will review and analyze the tentative agreement. We plan to reach out to CalHR to discuss the impact of this potential agreement on excluded employees related to SEIU Bargaining Units. ACSS is following this issue closely and will continue to bring updates to managers and supervisors who may be affected by it.


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ACSS Continues Communication with CalHR

Posted: 11/9/2016 Tags: bargaining legislation salary Tags Views: 1886

On Monday November 7th, ACSS met with CalHR Director Richard Gillihan. Gillihan informed ACSS of staffing changes within CalHR for the position responsible for labor relations of excluded state employees. The current labor relations representative, Steven Booth, will be leaving the position and CalHR will be filling the vacancy with a new employee soon.

In addition, Pam Manwiller, Deputy Director of Labor Relations, notified us that an additional pay letter will be released soon in regards to excluded employees related to Bargaining Unit 2. Manwiller says the new pay letter "corrects things that were missed in previous pay letters".

ACSS President Frank Ruffino noted, “Although much works remains to be done, We're grateful to the Governor and CalHR for their effort and time in addressing our issues.”

ACSS and CalHR continue to work together to improve and resolve the issues affecting excluded employees. As always, ACSS will keep you informed on any updates.


*** UPDATE: January 5, 2017 - Pay Letter 16-19A-2 ***

On January 5, 2017, CalHR Released Pay letter 16-19A, which is an update on Special Salary Adjustments for excluded employees related to Bargaining Unit 2. 

>> Click here to download Pay Letter 16-19A-2


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General Salary Increase and Special Salary Adjustment for Attorneys and Hearing Officers (BU2)

Posted: 10/17/2016 Tags: bargaining legislation representation salary Tags Views: 2454

On October 11, 2016, Cal HR released Pay Letter 16-19, and later released Pay Letter 16-19A on October 13, regarding General Salary Raises (GSI) and Special Salary Adjustments (SSA) to excluded employees related to Bargaining Unit 2 (Attorneys and Hearing Officers).

M02 and S02 –

  • Effective October 1, 2016, CalHR approved a 5% General Salary Increase (GSI) for all classes designated M02, S02 and supervisory ranges in U02. (See page 7 of Pay Letter 16-19 for details.)

In addition to the GSI mentioned above, there were many classes within M02 and S02 that received Special Salary Adjustments (SSA). Effective October 1, 2016, CalHR approved a 1% Special Salary Adjustment to the maximum of the class, for all classes designated M02 and S02 in Pay Letter 16-19 and Pay Letter 16-19A. In addition, all employees designated M02 and S02 shall receive a 1% increase, including employees who separated from state service prior to October 1, 2016, and have lump sum payments that extend beyond October 1, 2016. The lump sum payments shall be adjusted to reflect the above salary increase.

Below are some of the notable classes that received SSAs in this Pay Letter:

  • Class 5703 – Supervising Deputy Attorney General – 4.96% SSA
  • Class 5871 – Assistant Chief Counsel – 14.99% SSA
  • Class 5872 – Chief Counsel I, C.E.A. – 17.41% SSA
  • Class 5873 – Chief Counsel II, C.E.A. – 17.57% SSA
  • Class 6088 – Presiding Administrative Law Judge – 5% SSA

>> Click here to read details of Special Salary Adjustments for additional classes in Pay Letter 16-19.

>> Click here to read details of Special Salary Adjustments for additional classes in Pay Letter 16-19A.

ACSS will continue to advocate for additional special salary adjustments for excluded employees associated with BU02. As more information is available, we will make sure to pass that on.


Update: October 18, 2016

CalHR Releases Pay Letter 16-19B - Correction on Section 14 Differentials for Attorneys


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Prefunding Retirement Benefit Contributions – Implementation for S06, M06 and other Excluded Employees


On August 26, 2016, ACSS met with CalHR to discuss Other Post Employment Benefit (OPEB) Prefunding for supervisors and managers tied to Bargaining Unit 6 (Peace Officers).

Below are the important issues that were discussed at the meeting:

  • Excluded Employee General Salary Increases
  • Other Post Employment Benefit (OPEB) Prefunding Implementation
  • Processing Prefunding Deductions
  • Delaying Prefunding
  • Retirement Health Benefits and Vesting for New Employees

  >> Click here to read the full text of the article.


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Maintenance Workers Reject Pay Increase - Dissatisfaction Over Hefty Prefunding

Posted: 7/8/2016 Tags: bargaining legislation politics retirement salary Tags Views: 1767

On July 7, 2016, Bargaining Unit 12 Maintenance Workers (rank-and-file) rejected a pay increase agreement and authorized a strike. While the agreement proposes a ten percent increase in pay through 2019, it also requires employees to pay nearly half of the increase back toward retiree health benefits.  At this time, the impact on excluded employees (managers and supervisors) is unknown. For now, BU12 and the Employer go back to the bargaining table to discuss how much state employees should contribute to retiree health benefits.

 >>Read the full SacBee article for details...


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