(a) A new appointment to a position in a state agency covered by this subchapter shall be paid at the entry pay level for the grade assigned to the classification unless otherwise authorized by law.

(b) Special rates of pay may be established for either classifications or positions for the following reasons:

(1) Prevailing labor market conditions;

(2) An extraordinarily well-qualified candidate;

(3) The need to retain trained, competent employees;

(4) An employee assigned additional duties as a result of the elimination of a position by a state agency; or

(5) To meet the requirements of state or federal laws.

(c)

(1) A state agency may request a special rate of pay for a specific classification or position due to prevailing market rates of pay up to the midpoint pay level of the appropriate grade of a classification on the appropriate pay table for the assigned grade with the written approval of the Chief Fiscal Officer of the State.

(2) A state agency may request a special rate of pay for a specific classification or position due to prevailing market rates of pay up to the maximum pay level for the assigned grade only with the approval of the Chief Fiscal Officer of the State after review by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.

(3) The Office of Personnel Management shall maintain a register of classifications or positions for which special rates of pay have been established due to prevailing market rates of pay.

(4) The Office of Personnel Management shall file a report of special rates of pay established due to prevailing market rates of pay with the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, at the next regularly scheduled meeting following the approval.

(d)

(1) A special rate of pay may be established for an exceptionally well-qualified applicant whose educational background or experience qualifies the applicant to perform the job with little or substantially less orientation and training than would be required for another qualified applicant.

(2)

(A) An agency director may approve a special rate of pay under subdivision (d)(1) of this section up to fifteen percent (15%) above the entry pay level for the grade assigned to the classification and shall report all actions under the Office of Personnel Management's procedures.

(B) The Office of Personnel Management may approve a special rate of pay under subdivision (d)(1) of this section above fifteen percent (15%) up to thirty percent (30%) above the entry pay level for the grade assigned to the classification.

(C) The Office of Personnel Management may approve a special rate of pay pursuant to subdivision (d)(1) of this section above thirty percent (30%) up to the maximum pay level for the grade assigned to the classification after review by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.

(3) The Office of Personnel Management shall file a report of special rates of pay established under this subsection with the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, at the next regularly scheduled meeting following the approval.

(e) (1) An agency director may approve special rates of pay to retain a trained, competent employee or due to the assignment of additional duties as a result of the elimination of positions by the state agency, subject to the following:

(A) The assignment of additional duties shall be permanent and beyond the scope of work currently being performed by the employee;

(B) The same employee may not receive a special rate of pay pursuant to this subdivision (e)(1) more than one (1) time during a biennium;

(C) An increase for an agency director pursuant to this subdivision (e)(1) shall be initiated and approved by the Governor; and

(D) All increases up to ten percent (10%) approved under this subdivision (e)(1) shall be reported by the state agency to the Office of Personnel Management, and increases above ten percent (10%) shall be approved by the Office of Personnel Management.

(2) The Office of Personnel Management shall file a report of all salary increases established under this subsection with the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, at the next regularly scheduled meeting following the approval for review.

(f) (1) (A) An employee promoted on or after July 1, 2017, shall receive a salary increase up to ten percent (10%).

(B) However, an employee's rate of pay upon promotion shall not exceed the maximum pay level of the grade assigned to the classification.

(2) An employee who upon promotion is receiving a rate of pay below the entry pay level established for the new grade shall be adjusted to the entry pay level for that grade.

(3) An employee who returns to a position in a classification the employee formerly occupied within a twelve-month period after promotion from the classification is eligible for a rate of pay no greater than that for which the employee would have been eligible had the employee remained in the lower-graded classification.

(g) (1) (A) Upon demotion, an employee's pay shall be decreased by up to ten percent (10%).

(B) However, an employee's rate of pay upon demotion shall not exceed the maximum pay level of the grade assigned to the classification.

(2) If the employee's salary falls below the lowest entry pay level of the new grade upon demotion, his or her salary shall be adjusted to the entry pay level for the grade.

(h) (1) If an employee accepts a new position that is a transfer, the employee may receive a change in pay, as follows:

(A) If the employee's salary falls below the entry pay level of the new grade, then his or her salary shall be adjusted to the entry pay level for the grade; or

(B) If a special rate of pay has been established pursuant to this section.

(2) A transferring employee's rate of pay shall not exceed the maximum pay level of the grade assigned to the new position, unless otherwise authorized.

(i) An employee who is placed in a lower-graded position on the same pay table because the original position has expired due to lack of funding, program changes, or withdrawal of federal grant funds may continue to be paid at the same rate as the employee was being paid in the higher-graded position upon approval of the Office of Personnel Management after seeking the review of the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.

(j) If an employee who has been terminated for more than thirty (30) working days returns to state service, the state agency may offer up to the employee's last rate of pay not to exceed the maximum pay level established for the grade.

(k) Upon transfer of employment between state agencies, an employee is to receive a lump-sum payment from the original state agency for any overtime that has been accrued and not been paid and for any compensatory time accrued that has not been used at the higher rate of either the:

(1) Average regular rate of pay received by the employee during the last three (3) years of his or her employment; or

(2) Final regular rate of pay received by the employee.

(l) Any special rate of pay established under this section shall not affect the salary level or salary eligibility of any existing employee within the state agency.

(m)

(1) A special rate of pay is subject to the state agency's ability to certify funding for a special rate of pay established under this section.

(2) A state agency shall not use merit adjustment funds for a special rate of pay established under this section.

(n) The Chief Fiscal Officer of the State or the Governor may suspend discretionary special salary actions.