Department of Human Resources

Department of Human Resources

Ka ʻOihana Hoʻomohala Limahana

RULES OF THE DIRECTOR OF HUMAN RESOURCES
CHAPTER 6, COMPENSATION ADMINISTRATION

§6-1        Applicability.

Compensation adjustments for movements between bargaining units or not otherwise covered by applicable collective bargaining agreements or executive orders shall be in accordance with these rules.
[Eff Jul 01 2002] (Auth: HRS §76-17) (Imp: HRS §§76-12, 76-13, 89-1, 89C-1, 89C-3)

§6-2       General provisions.

(a) Compensation adjustments not expressly provided for, but necessitated by authorized personnel movements or situations relating to the administration of the compensation law shall be made by the director; provided that the adjustments are not inconsistent with the general intent and provisions of the civil service and compensation rules, laws, collective bargaining agreements, executive orders, or policies.

(b) If the effective date of more than one personnel action coincides, compensation adjustments shall be made in accordance with the appropriate collective bargaining agreement or executive order. For all other employees, compensation adjustments shall be made in the following order:

(1) Step movement;
(2) Negotiated wage increase or wage increase granted by an executive order;
(3) Changeover to a new pay schedule;
(4) Repricing (not to include initial pricing);
(5) Promotion;
(6) Reallocation; and
(7) Other personnel actions.

(c) A leave of absence without pay shall end upon the day before the first working day an employee properly reports for duty, and an employee shall be entitled to receive compensation as of the first working day the employee properly reports for duty. Each calendar day from the beginning to the end of an employee’s leave of absence without pay shall be charged as leave without pay; provided that, an employee who is granted a leave of absence without pay and who returns to duty after being absent from work for only one working day or less shall be charged for one day of leave of absence without pay or less, as applicable, even though one or more scheduled or normal non-working days or a holiday may have preceded the employee’s return to duty.

(d) A new hire shall be compensated for services rendered as of the first day the employee reports to duty.

(e) An employee who separates from the service without having worked on all scheduled working days for that month shall be compensated up to the employee’s last day of work.

(f) An employee who separates from the service after having worked on all scheduled working days for that month shall receive a full month’s compensation.

(g) An employee who suffers a personal injury arising out of and in the course of employment and covered under chapter 386, HRS, shall be credited for a full day’s work on the day of the injury regardless of the time the employee is injured.

(h) An employee who initially was properly compensated following a promotion, the adoption of a new pay schedule, a temporary assignment, pricing or repricing, or any other personnel action affecting pay, shall not be required to make reimbursement when it is found subsequently that an overpayment in salary occurred due to the retroactive feature of a position classification action. However, the proper compensation adjustment shall be made as of the first day of the pay period immediately following the date action is officially taken by the director.

(i) If an employee with a compression differential or a temporary differential receives an upward compensation adjustment due to a promotion, reallocation, or repricing, the reduction or termination of the differentials shall be made in the following order:

(1) Temporary differential; and
(2) Compression differential. [Eff Jul 01 2002] (Auth: HRS §76-17; RCH §§4-105, 6-1109) (Imp: HRS §§76-12, 76-13)

§6-3       Compensation adjustments upon appointment.

(a) All initial appointments shall be made at the first step or minimum rate of the appropriate pay range, except as provided by subsections (b), (c) and (d) below. 

(b) A civil service employee moving to the city through an inter-governmental movement may be compensated above the minimum step/rate with prior approval of the director. The amount of compensation shall be warranted and reasonable, based on evaluation of the employee’s qualifications that are specific and pertinent to the position; operational and organizational need; existing staffing and compensation levels; and other related and appropriate factors. The amount of basic compensation shall not exceed that provided by rules governing promotion, transfer or demotion, nor exceed the maximum step/rate of the appropriate pay range.

(c) Appointments to critical-to-fill or labor shortage positions may be made above the minimum step/rate of the appropriate pay range with prior approval of the director. The amount of compensation shall be warranted and reasonable, based on such factors as described in (b) above; and shall not exceed the maximum step/rate of the appropriate pay range.

(d) Appointments to positions assigned to broad band compensation systems shall be made in accordance with program parameters and requirements. [Eff Jul 01 2002] (Auth: HRS §§76-17, 76-22.5, 76.23.5; RCH §6-1109) (Imp: HRS §§76-1, 76-12, 76-13, 76-22.5)

§6-4       Compensation adjustments upon promotion.

(a) The basic rate of pay in the higher pay range for a regular employee who is promoted shall be determined in the following manner:

(1) If the promotion is to other than a salary schedule with single rate pay ranges or a salary schedule with equal rates of compensation at the corresponding salary ranges and steps, the employee shall be compensated at the lowest step in the higher pay range which exceeds the employee’s basic rate of pay by five per cent. If there is no step in the higher pay range which exceeds the employee’s basic rate of pay by at least five per cent, the employee shall be compensated at the maximum step in the higher pay range, or at the employee’s basic rate of pay, whichever is greater.

(2) If the promotion is to a salary schedule with single rate pay ranges, the employee shall be compensated at the single rate in the higher pay range.

(3) If the promotion is to a salary schedule with equal rates of compensation at the corresponding salary ranges and steps, the employee shall be compensated as follows:

(A) For promotions involving a movement of three (3) or less pay ranges, the employee shall be compensated at the corresponding step in the higher pay range.

(B) For promotions involving a movement of more than three (3) pay ranges, the employee shall be compensated at the step in the higher pay range which is equal to the rate for promotions involving three (3) pay ranges. If this rate falls below the minimum step, the employee shall be compensated at the minimum step of the higher pay range.

(b) A regular employee who is released from a position while serving a temporary appointment, new probationary or provisional appointment and is returned to the position the employee last held a permanent appointment shall be compensated as though the employee had remained in the former position continuously.

(c) A new probationary employee who is promoted shall have the compensation adjustment made based on the rate that the employee was receiving in the position in which the employee last held a permanent appointment. [Eff Jul 01 2002] (Auth: HRS §76-17; RCH §§6-1109, 6-1111) (Imp: HRS §’§76-1, 76-12, 76-13)

§6-5       Compensation adjustments upon demotion.

(a) A regular employee who is granted a voluntary demotion shall have the employee’s basic rate of pay reduced by one of the following methods:

(1) If the voluntary demotion is to other than a salary schedule with single rate pay ranges or a salary schedule with equal rates of compensation at corresponding pay ranges and steps, the employee shall be compensated at the highest step in the lower pay range with a rate which is not greater than ninety-five per cent of the employee’s basic rate of pay. If there is no step in the lower pay range with a rate which is not greater than ninety-five per cent of the employee’s basic rate of pay, the employee shall be compensated at the minimum step.

(2) If the voluntary demotion is to a salary schedule with single rate pay ranges, the employee shall be compensated at the single rate in the lower pay range.

(3) If the voluntary demotion is to a salary schedule with equal rates of compensation at the corresponding pay ranges and steps, the employee shall be compensated as follows:

(A) For voluntary demotions involving a movement of three (3) or less pay ranges, the employee shall be compensated at the corresponding step in the lower pay range.

(B) For voluntary demotions involving a movement of more than three (3) pay ranges, the employee shall be compensated at the step in the lower pay range which is equal to the rate for voluntary demotions involving three (3) pay ranges. If this rate falls above the maximum step of the lower pay range, the employee shall be compensated at the maximum step of the lower pay range.

(b) Upon return to the position in which the employee last held a permanent appointment, a regular employee who is granted a voluntary demotion on a temporary or provisional appointment basis, shall be compensated as though the employee had remained in the former position continuously.

(c) An employee who is serving a new probationary period when a voluntary demotion occurs, shall have a compensation adjustment made based upon the rate the employee was receiving in the position in which the employee last held a permanent appointment.

(d) An employee who receives a disciplinary demotion or who is involuntarily demoted shall have the employee’s basic rate of pay reduced by one of the following methods:

(1) If the demotion is to other than a salary schedule with single rate pay ranges, the employee’s basic rate of pay shall be reduced to the corresponding step in the lower pay range or to any lower step deemed appropriate by the appointing authority. When there is no corresponding step in the lower pay range, the employee’s basic rate of pay shall be reduced to the highest step in the lower pay range with a rate which is not greater than ninety-five per cent of the employee’s basic rate of pay. At the discretion of the appointing authority, the employee’s compensation may be further reduced to a step with a rate which is less than ninety-five per cent of the employee’s existing basic rate of pay. In no event shall an employee be compensated below the minimum rate in the lower pay range.

(2) If the demotion is to a salary schedule with single rate pay ranges, the employee shall be compensated at the single rate in the lower pay range.

(e) An employee who receives a disciplinary demotion or an involuntary demotion on a limited term basis shall be compensated as though the employee received a regular demotion; provided that upon termination of a limited term demotion the employee shall be compensated as though the employee had remained in the former position continuously.

(f) A regular or initial probationary employee or a new probationary employee following a promotion or a demotion or a reallocation who receives a demotion due to an injury or illness sustained while performing the employee’s assigned duties and responsibilities shall retain the employee’s existing basic rate of pay; provided that:

(1) If the employee’s existing basic rate of pay falls between two steps in the lower pay range, the employee shall be compensated at the next lower step and shall be eligible for temporary differential (TD) pay.

(2) If the employee’s existing basic rate of pay falls above the maximum step or the single rate of a salary schedule with single rate pay ranges in the lower pay range, the employee shall be compensated at the maximum step or the single rate, as applicable, and shall be eligible for temporary differential (TD) pay.

(3) If the employee’s existing basic rate of pay falls below the minimum step or the single rate of a salary schedule with single rate pay ranges, the employee shall be compensated at the minimum step or the single rate, as applicable.

(g) An employee who receives a demotion other than as a result of an injury or illness sustained while performing the employee’s assigned duties and responsibilities shall be compensated as provided below:

(1) An employee who has fifteen or more years of service in the city civil service shall retain the employee’s existing basic rate of pay; provided that:

(A) If the employee’s existing basic rate of pay falls between two steps in the lower pay range, the employee shall be compensated at the next lower step and shall be eligible for temporary differential (TD) pay.

(B) If the employee’s existing basic rate of pay falls above the maximum step or the single rate of a salary schedule with single rate pay ranges in the lower pay range, the employee shall be compensated at the maximum step or the single rate, as applicable, and shall be eligible for temporary differential (TD) pay.

(C) If the employee’s existing basic rate of pay falls below the minimum step or the single rate of a salary schedule with single rate pay ranges, the employee shall be compensated at the minimum step or the single rate, as applicable.

(2) An employee with at least five years but less than fifteen years of service in the city civil service shall retain the employee’s existing basic rate of pay for a period beyond the effective date of the demotion as provided below:

 

Years of ServiceMonths of Compensation Retention

5

12
614
716
818
920
1022
1124
1226
1328
1430

 

(A) If the employee’s existing basic rate of pay falls between two steps in the lower pay range, the employee shall be compensated at the next lower step and shall be eligible for temporary differential (TD) pay.

 

(B) If the employee’s existing basic rate of pay falls above the maximum step or the single rate of a salary schedule with single rate pay ranges in the lower pay range, the employee shall be compensated at the maximum step or the single rate, as applicable, and shall be eligible for temporary differential (TD) pay.

(C) If the employee’s existing basic rate of pay falls below the minimum step or the single rate of a salary schedule with single rate pay ranges, the employee shall be compensated at the minimum step or the single rate, as applicable.

(3) The basic compensation of an employee with less than five years of service in the city civil service or an employee whose retention period as prescribed in paragraph (2) has expired, shall be adjusted to the highest step in the lower pay range not exceeding the employee’s existing basic rate of pay.

(h) An employee who receives a demotion in order to avoid being laid off or due to a reorganization shall continue at the employee’s existing basic rate of pay; provided that:

(1) If the employee’s existing basic rate of pay falls between two steps in the lower pay range, the employee shall be compensated at the next lower step and shall be eligible for temporary differential (TD) pay.

(2) If the employee’s existing basic rate of pay falls above the maximum step or the single rate of a salary schedule with single rate pay ranges in the lower pay range, the employee shall be compensated at the maximum step or the single rate, as applicable, and shall be eligible for temporary differential (TD) pay.

(3) If the employee’s existing basic rate of pay falls below the minimum step or the single rate of a salary schedule with single rate pay ranges, the employee shall be compensated at the minimum step or the single rate, as applicable. [Eff Jul 01 2002] (Auth: HRS §76-17; RCH §6-1109) (Imp: HRS §§76-1, 76-12, 76-13)

§6-6       Compensation adjustments upon transfer.

(a) An employee who is transferred shall continue at the employee’s existing basic rate of pay; provided that:

(1) If the employee’s existing basic rate of pay falls between two steps of the pay range, the employee shall be compensated at the next lower step. An employee whose compensation is so decreased shall be entitled to retain the difference between the employee’s existing basic rate of pay and the adjusted basic rate of pay, and the amount retained shall be considered as temporary differential (TD) pay.

(2) If the employee’s basic rate of pay falls above the maximum step or the single rate of a salary schedule with single rate pay ranges, the employee shall be compensated at the maximum step or the single rate, as applicable. An employee whose compensation is so decreased shall be entitled to retain the difference between the employee’s existing basic rate of pay and the adjusted basic rate of pay, and the amount retained shall be considered as temporary differential (TD) pay.

(3) If the employee’s existing basic rate of pay falls below the minimum step or the single rate of a salary schedule with single rate pay ranges, the employee shall be compensated at the minimum step or the single rate, as applicable.

(b) A regular employee who is released from a position while serving a new probationary period, limited term, or provisional appointment and is returned to the position from which the employee was transferred shall be compensated as though the employee had remained in the former position continuously. [Eff Jul 01 2002] (Auth: HRS §76-17; RCH §6-1109) (Imp: HRS §§76-12, 76-13)

§6-7       Compensation adjustments upon reallocation

(a) An employee occupying a position which is reallocated upward, whether permanently or temporarily, shall be compensated as though a promotion had been made.

(b) The compensation of an employee occupying a position reallocated downward shall be determined in the following manner:

(1) An employee retained in a position reallocated downward other than for reasons specified in paragraphs (2), (3), (4), (5) and (6) below shall be compensated in accordance with section 6-5(f).

(2) An employee occupying a position which is reallocated downward for voluntary reasons shall be compensated in accordance with section 6-5(a).

(3) An employee occupying a position which is reallocated downward for disciplinary or involuntary reasons shall be compensated in accordance with section 6-5(d).

(4) An employee occupying a position reallocated downward as a result of an injury or illness sustained by the employee while performing the employee’s assigned duties and responsibilities shall be compensated in accordance with section 6-5(f).

(5) An employee occupying a position reallocated downward due to an injury or illness sustained by the employee other than in the course of performing the employee’s assigned duties and responsibilities shall be compensated in accordance with section 6-5(g).

(6) An employee occupying a position which is reallocated downward due to a reorganization shall be compensated in accordance with section 6-5(h).

(c) For a reallocation not covered by subsections (a) or (b) above, the employee in the position shall be compensated in accordance with section 6-6.

(d) A new probationary employee who is reallocated shall have a compensation adjustment based on the rate that the employee received in the new probationary position.

(e) Whenever the reallocation as prescribed in subsection (a) above is retroactive in its effect, employees who occupied or occupy the position within the period covered by the retroactive date, and who performed the duties of and met the minimum qualifications for the position at the higher class, as determined by the director, shall be entitled to receive retroactive pay adjustments for the period of appointment to the position.

(f) If the incumbent of a reallocated position is ineligible for appointment to a position in the class to which the employee’s position has been reallocated, the employee may be promoted, transferred or demoted, if eligible, from the position in which the employee last held permanent status, but the employee shall receive compensation for the time actually served in the position as reallocated as though a temporary assignment had been made.

(g) Upon discontinuance of a temporary reallocation, the employee shall return to the employee’s former rate of pay as though the temporary reallocation had not taken place. [Eff Jul 01 2002] (Auth: HRS §76-17; RCH §6-1109) (Imp: HRS §§76-12, 76-13; RCH §6-1109)

§6-8       Temporary assignment.

(a) Compensation for temporary assignment shall be allowed under any one of the following circumstances:

(1) The incumbent of the position is temporarily not available to perform the duties of the employee’s position.
(2) The incumbent of the position is serving on a temporary assignment.
(3) A vacancy exists in a position for which there is no appropriate eligible list but the compensation for the temporary assignment shall not exceed 120 working days in a 12-month period; provided however that the temporary assignment may be extended for 60 days with the approval of the director. If however, there is an appropriate eligible list, compensation for the assignment shall be only for the period until an appointment can be made from the list. The 120-day limitation shall not apply to vacant department head or deputy department head positions.

(b) Compensation for temporary assignment shall be allowed when an employee is temporarily assigned to perform the duties of a position in another department and this assignment is made with the concurrence of the two appointing authorities concerned.

(c) Compensation for temporary assignment shall be as follows:

(1) Except as provided in subparagraphs (A) and (B), the basic rate of an employee who performs temporary assignment involving a higher position or higher rate of pay or in a position in a higher pay range shall be adjusted as though a formal appointment had been made; except that, any compression differential or temporary differential which the employee is receiving shall not be added to the basic rate of pay, but shall be retained by the employee while performing the temporary assignment:

(A) Exclusions as provided for in subsection (d).
(B) Deputy or assistant department heads who are covered under these rules and who are duly designated as acting department head and perform temporary assignment to the department head positions shall be compensated after 10 consecutive working days of the temporary assignment.

(2) A new probationary employee who receives a temporary assignment to a higher class shall have the compensation adjustment made based on the rate that the employee received in the new probationary position. 

(3) An employee who performs a temporary assignment involving a position in the same or lower rate of pay or pay range shall continue to be compensated at the employee’s existing basic rate of pay, prior to the temporary assignment; provided that, if the employee’s existing basic rate of pay falls below the minimum step, the employee shall be compensated at the minimum step.

(d) Compensation adjustments shall not be provided for the following:

(1) An employee whose position includes assuming the duties and responsibilities of another employee’s position in the absence of the other employee and which assignment is recognized in the employee’s position classification and pricing.

(2) An employee who performs duties in accordance with the terms of a formal training agreement entered into with the employee’s department head and approved by the director.  [Eff Jul 01 2002] (Auth: HRS §76-17; RCH §6-1109) (Imp: HRS §§76-12, 76-13)

§6-9       Temporary differential pay.

(a) An employee shall be eligible for temporary differential pay (herein referred to as TD pay) in the event of a demotion due to injury or illness, a demotion to avoid layoff, a demotion due to reorganization, a transfer, a reallocation, a repricing, or initial pricing action which results in a lower basic rate of pay. The amount of TD pay shall be determined by computing the difference between the employee’s existing basic rate of pay and the employee’s new basic rate of pay.

(b) The TD pay shall not be considered part of an employee’s basic rate of pay.

(c) The TD pay shall be reduced by an amount equal to any adjustment in the employee’s basic rate of pay due to promotion, or any upward reallocation, repricing or initial pricing actions. When the adjustment due to these actions is greater than or equal to the TD pay, the TD pay shall be terminated.

(d) When an employee with TD pay is demoted or transferred, or whose position is reallocated to a class in the same or lower pay range, the TD shall be continued in the new pay range. [Eff Jul 01 2002] (Auth: HRS §76-17; RCH §6-1109) (Imp: HRS §§76-1, 76-12, 76-13; RCH §6-1109 )

§6-10     Compensation adjustments for employees with compression differential.

(a) When an employee with a compression differential (herein referred to as CD) is promoted, demoted, transferred, or whose position is reallocated to a class outside of the bargaining unit, the CD shall be added to the existing basic rate of pay of the employee for purposes of computing the employee’s pay adjustment and shall no be longer carried with the employee as a differential.

(b) When an employee is released from a probationary, limited-term or other temporary appointment and returns to the position to which the employee last held permanent appointment, the CD shall be restored as though the employee had remained in the former position continuously. [Eff Jul 01 2002] (Auth: HRS §76-17; RCH §6-1109) (Imp: HRS §§76-12, 76-13)

§6-11     Performance based incentive pay programs.

Performance based incentive pay programs designed to encourage the achievement of superior performance may be authorized by the appointing authority, with prior approval of the director. 

(a) Programs must be consistent with the merit principle and organizational and operational goals, reflect clear objectives and valid performance measures.
(b) Programs and awards must be approved by the director, and are subject to annual review.
(c) The director may, for good reason, terminate programs and awards at any time.
(d) Incentive pay shall be awarded in the form of a pay differential and is not considered part of an employee’s base pay.
[Eff Jul 01 2002] (Auth: HRS §§ 76-17, 76-23.5) (Imp: HRS §§76-1, 76-12, 76-13, 76-23.5)

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