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Despite the New Fiscal Year, Most Salary Issues for Excluded Employees Remain Unresolved

Posted: Jul 12, 2023
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By mid-July, the Department of Human Resources (CalHR) typically publishes one or more “Pay Letters” reflecting July 1 salary adjustments for excluded employees.

On July 11, 2023, CalHR published Pay Letter 23-23. While the pay letter reflects welcome salary increases for some excluded employees (as discussed below), it also reveals that for most supervisors and managers, CalHR has yet to determine the pay plan for the 2023 – 2024 fiscal year.

ACSS continues to meet with CalHR to discuss pay and benefits for the state’s supervisory, managerial, confidential and exempt employees. Numerous ACSS requests for salary adjustments remain pending with CalHR.

Negotiations between CalHR and the representatives for 15 of the state’s 21 rank-and-file bargaining units continue. While there is an inevitable tie between salaries for excluded employees and employees covered by collective bargaining, especially in the amount of “general salary increases”, CalHR has a statutory obligation to set salaries for excluded employees.

CalHR has informed ACSS that the $260 “health affordability payment” ended as planned on June 30, 2023. This means the $260 (pre-tax) received in early July by excluded employees related to the SEIU Local 1000 Units (1, 3, 4, 11, 14, 15, 17, 20 and 21) and enrolled in a state-sponsored health plan is the final payment under the differential.

Many ACSS members are also subject to a scheduled statutory increase of the employee pension contribution. Effective July 1, 2023, the employee contribution rate for excluded employees related to the SEIU Local 1000 Units 1, 3, 4, 11, 14, 15, 17, 20 & 21 and excluded employees related to Unit 7 (non-PO/FF) will increase by one-half percent.

Therefore, in the absence of CalHR taking action to adjust salaries for excluded employees, take home pay will decline with the July 2023 pay period for tens of thousands of supervisory and managerial employees. While retroactive “back pay” to July 1 is likely once salary adjustments are made (and a possible replacement health care stipend is established), ACSS has strongly objected to supervisory and managerial take home pay decreasing on the basis that rank-and-file groups have not reached new labor contracts. ACSS has requested a formal meet-and-confer session to discuss the excluded pay plan for 2023-2024. The next meeting between ACSS and CalHR is set for July 20, 2023.

On a more positive note, CalHR has reiterated that the special salary adjustments and pay differentials in approved memoranda of understanding will continue to be extended to excluded employees. This continues the positive trend of excluded employees receiving at least the same increase as their subordinates.

The increases for excluded employees related to the units with currently approved MOUs are in Pay Letter 23-23 and effective July 1, 2023:

Excluded Employees Affiliated With Bargaining Unit General Salary Increase Special Salary Adjustment
2 3% 4.5% (top step) for ALJs/td>
5 1%  
8 2%  
9 3%  
13 4% (top step)  
18 4%  


The phase in of “Longevity Pay” for S18/M18 employees continues, with the amount increasing on July 1, 2023 to 3% of base salary with 20 or more years of state service.

As these salary issues continue to evolve through July and presumably into August, ACSS will continue advocacy with CalHR and will continue to keep members apprised of these important issues.

If you have questions regarding salary issues for your classification, please contact your ACSS Labor Relations Representative.



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