STATEMENT OF BASIS, SPECIFIC STATUTORY AUTHORITY, AND PURPOSE FOR THE STATE PERSONNEL DIRECTOR’S ADOPTION OF PERMANENT ADMINISTRATIVE PROCEDURES.  Chapter 2 introduction; 2-11(A); 3-4; 3-13(A); 3-28; 3-42; 3-45; 3-46; Chapter 5 introduction; 5-6; 5-8; 5-21; 5-25; 8-78; 8-79; and 10-3.  Incorporation of Achievement Pay concept and language: 1-9; 1-23; 1-27; 3-8(4), (5), and (7); 3-19; 3-21; 3-24; 3-25; 6-4 main paragraph, (E), (G), (I); 6-5; 8-94; 8-95(C) and (D); 8-96(A), (C), and (D); 8-98(B); 8-99 main paragraph and (A).

4 CCR 801

The purpose of the State Personnel Director’s permanent adoption of administrative procedures listed below is to reflect statutory and procedural changes, eliminate ambiguities, and provide clearer guidance to users of the Director’s administrative procedures.  

Chapter 2 - Jobs
Introduction - Add additional statutory cites.
Chapter 3 - Compensation 
3-4 - To clarify that a disciplinary action that results in an employee’s salary falling below the minimum of the pay grade will be in effect only temporarily, consistent with the provision in 3-2.
3-13(A) – To delete the grievance and appeal wording on the saved pay provision for layoff situations since it was misleading and confusing.
FLSA
3-28 - To clarify that all full-time employees, whether exempt or non-exempt under FLSA, work a minimum of 40 hours during a standard workweek. The proposed change reorganizes existing language for further clarity.
3-42 – To clarify that each department is accountable for maintaining basic records under FLSA provisions.
Call Back
3-45 – To clarify that call back does not apply when the time required to report to work is continuous with a scheduled shift.
On Call
3-46 – To clarify the definition of On Call by deleting contradictory language.
Chapter 5 - Time Off
Introduction – To add the statutory cite on election judge administrative leave.
Medical Certifications
5-6 and 5-8 - To add language reflecting an administrative ruling issued by the U.S. DOL based on the U.S. Supreme Court’s decision in the Barron v. Runyon case, which provides that the appointing authority may request a certification for a condition each fiscal year even though certification for the same condition previously was provided.

Administrative Leave to Serve as an Election Judge
5-21 – To add language to reflect the modification to the election statutes (C.R.S. 1-6-122), which occurred during the 2006 legislative session, regarding administrative leave for state employees to serve as election judges.
FMLA for Temporary Employee and FMLA Leave Year 
5-25 - To clarify that the  requirement to work 1250 hours in the 12 months prior to the date FML leave  begins only applies  to current temporary employees, AND to repeal the language changing the state personnel system's Family and Medical Leave Act year, effective July 1, 2007, from a fixed 12-month period (fiscal year) to a "rolling backward" year.
Chapter 8 - Dispute Resolution
8-78 – To correct the address where disputes under the Director’s jurisdiction are submitted.
8-79 – To correct the name of the standard dispute form to reflect the consolidation of the State Personnel Board’s and the Director’s forms into one.
Chapter 10 - Personal Services
10-3 (D) – To correct an inadvertent transposition of two words – from “a meet” to “meet a”.

Administrative Procedure Changes Related to Achievement Pay and Incentives 
Background:  Funding for the performance pay element of the performance system has not provided the anticipated employee recognition and the mechanism to allow employees’ salaries to move through pay ranges since its passage by the legislature (HB96-1262 and SB00-211) and implementation in Fiscal Year 2002-2003.  A new model, Achievement Pay, has replaced performance pay.  A fixed statewide percentage for both base and non-base adjustments will be set annually by the Director for all state personnel system employees.  This change requires that the language in many rules be changed, refined and clarified.  Those rules are the following:
1-9 – Under appointing authority powers, to change the term “performance award” to “non-base incentive” and clarify that such incentive, as allowed under 3-21, is within policies set out in the department’s written incentive plan.
1-23 and 1-27 – To revise the language related to performance disputes as the pay component is now fixed by the Director and any disputes regarding pay will be handled like any other payroll error.
3-8(4) - To clarify that the changes in pay grade minimums and maximums is an adjustment to the pay structure.
3-8(5) and (7) - To incorporate  the new achievement pay terms..
3-19 – To change the heading to Achievement Pay and to revise the language to incorporate the achievement pay terms and to repeal the provision that the departments’ performance programs address performance pay.
3-21, 3-24, and 3-25 – To revise language to incorporate the achievement pay terms.
6-4 – To change the term “performance pay system” to “performance management system” since the pay component is now fixed by the Director as a compensation element under the total compensation system.  To repeal the language regarding performance pay and funding sources.
8-94 – To change the heading to Performance Management Disputes and to change the term “Performance Pay” to “Performance Management”
8-95, 8-96, and 8-98 – To repeal the language on performance pay in those matters that are disputable and non-disputable under the performance management dispute system.  Since achievement pay will be fixed statewide, any dispute on the payment or amount of this compensation will be handled in the same manner as any payroll dispute.  To change the term “Performance Pay” to “Performance Management”.
8-99 – To change the term “Performance Pay” to “Performance Management”.

The State Personnel Director’s authority to adopt these administrative procedures is enumerated in, but not limited to:

∙	Colorado Constitution, Article XII, Sections 13 and 14;
∙	State Personnel System Act, Title 24, Article 50, Sections 101 through 804, CRS (2005).
∙	State Support Services Reorganization Act, 24-50.3-104, CRS (2005); and
∙	CAPE v. Lamm, 677 P2d 1350 (Colo. 1984).

Adopted: