ACSS Meets with CalHR: Excluded Employee Salary Increases Announced

Posted: Sep 18, 2023
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On September 13, 2023, Governor Newsom signed legislation approving new labor agreements for 13 of the state’s 21 rank-and-file bargaining units and including funding for excluded employee salary increases. ACSS met with the Department of Human Resources (CalHR) on September 14 to discuss those agreements and pay and benefits for the state’s supervisory, managerial, confidential and exempt employees.

Updated Excluded Employee Pay Plan for 2023-2024

On September 15, CalHR informed ACSS of General Salary Increases (GSI) and Special Salary Adjustments (SSA) for excluded employees related to the units represented by SEIU Local 1000 (1, 3, 4, 11, 14, 15, 17, 20, 21) and Units 7, 12, 16 and 19. The GSI effective July 1, 2023 for excluded employees related to these 13 units is three percent, although employees in certain classifications related to Unit 12 will instead receive four percent.

CalHR also confirmed that SSAs and Pay Differentials approved in the various MOUs and side letters will be extended to exempt and excluded employees “where appropriate.” As the details of those increases are released by CalHR in upcoming pay letters (instructions to the State Controller’s Office to adjust salaries), ACSS will continue advocacy to ensure excluded employees receive increases to avoid salary compaction and to maintain salary relationships with subordinates.

CalHR told ACSS the plan is to implement the salary increases as soon as possible, but did not commit to doing so with the October 2023 pay period. As the timing of the implementation of the pay letters and retroactive pay is confirmed, ACSS will update impacted members.

Health Affordability Payment of $260 to Resume
Excluded employees related to the nine SEIU Local 1000 units and some exempt employees will again receive $260 per month (taxable cash payment) as a health affordability payment beginning with the December 2023 pay period, meaning the payment will begin at the start of January 2024. Note that this is different than the rank-and-file who will instead receive $165 per month as an additional employer contribution toward health benefits.

Decrease in the Employee Contribution to Pre-fund Retiree Health Care
Excluded employees related to the nine SEIU Local 1000 units will see a reduction in the Other-Post Employment Benefits employee contribution beginning October 1, 2023. The OPEB employee contribution to pre-fund retiree healthcare will be reduced to 3% from the current 3.5%.

Healthcare Facility Retention and Wildfire Emergency Response One-Time Payments
Excluded employees related to the nine SEIU Local 1000 units and Unit 19 who worked on-site more than 50 percent of the time during the pandemic in a correctional facility, correctional health facility, state hospital, veteran’s home, or developmental services facility will be eligible for a one-time payment of $1450. Excluded employees related to Unit 16 meeting these criteria will receive $1000. Excluded employees related to Units 12 and 13 meeting these criteria or working on certain wildfire emergency response will receive $1500.

Other one-time payments include:

  • Certain CDPH classes providing on-site services at a lab or a 24/7 care facility will receive $1000
  • State Special Schools employees related to the nine SEIU Local 1000 units will receive $625
  • Unit 19 related employees at the Department of Rehabilitation providing onsite services will receive $750

Workforce Stability Stipend
Excluded employees related to Unit 12 will be eligible to accrue a Workforce Stability Stipend at $100 per pay period over the next three years. Stipends covering six-months will be paid twice per year starting in January 2024 and ending in August 2026.

Travel Expenses
The state is moving excluded employees to the federal standard meal & incidental expense and lodging rates established by the federal General Services Administration. The move to the GSA rates should avoid excluded employees being out-of-pocket while traveling on state business. Although the timing of implementing the new rates has not yet been announced, it is anticipated the change will be made this fiscal year.

CalHR to Provide Responses to ACSS’ Salary Proposals

In addition to advocating for increases from the various MOUs to be provided to related excluded employees, ACSS also has salary proposals for various classes of supervisory and managerial employees pending at CalHR.

At the September 14, 2023 meeting, CalHR acknowledged it is ready to provide ACSS with responses to each ACSS salary proposal pending at CalHR. Those discussions are expected to begin this week. As responses to the ACSS salary proposals are released, ACSS will keep impacted members apprised of the outcomes.

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