TITLE 2. ADMINISTRATION

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Amended effective August 2, 1989 (Supp. 89-3). Subsection (48) corrected to read "without prejudice" (Supp. 95-2). Subsection (55) amended to correct a printing error (Supp. 99-3). Amended by final rulemaking at 9 A.A.R. 1040, effective May 4, 2003 (Supp. 03-1). Amended by final rulemaking at 11 A.A.R. 4357, effective December 5, 2005 (Supp. 05-4). Amended by final rulemaking at 14 A.A.R. 1420, effective May 31, 2008 (Supp. 08-2).

R2-5-102. General Provisions

A. Delegation of authority.

1. The Director may, in writing, delegate authority to an agency head as consistent with legal requirements.

2. The Director may review or audit delegated authority to determine compliance with laws, rules, and policies.

3. Unless otherwise stated by law, or in these rules, an agency head may delegate authority granted to the agency head in these rules.

B. Availability of funds. The granting of any compensation under these rules is contingent upon the availability of funds, as determined by an agency head and the Director.

C. Conflict with federal requirements. The provisions of A.R.S. § 41-784 apply to these rules. Any provision of these rules that conflicts or is inconsistent with federal rules, regulations, or standards governing the granting of federal funds to an agency does not apply to the agency.

D. Service of notice. If a notice or document is to be given to a person or agency, the notice or document may be served personally or mailed to the last known residence or current business address of the person or agency. Unless otherwise provided by law or these rules, service is complete upon personal delivery or mailing.

E. Employee handbook. The Director may publish an employee handbook outlining pertinent rules and regulations and make the handbook available to all employees.

F. Correction of errors. Only the Director, or designee, has authority to determine whether a manifest error exists and to correct the manifest error.

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Correction to subsection (A) as certified effective December 31, 1986 (Supp. 87-3). Amended by final rulemaking at 9 A.A.R. 1040, effective May 4, 2003 (Supp. 03-1).

R2-5-103. Applicability

A. General. These rules are applicable to all covered employees.

B. Exception. The Director may implement a temporary pilot project to improve personnel management in state service. The project may include an activity or procedure that is not in accordance with these rules and shall not exceed 18 months in duration. A pilot project shall conform to the Standards for a Merit System of Personnel Administration, 5 CFR 900.603, which is incorporated by reference and on file with the Office of the Secretary of State. This incorporation by reference does not include amendments or revisions to Standards for a Merit System of Personnel Administration published after January 1, 2001. A copy of this incorporated material is available for review at the Arizona Department of Administration, Human Resources Division and may be obtained from the Arizona State Library, Archives and Public Records, Research Division, 1700 West Washington, Phoenix, AZ 85007.

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Amended by final rulemaking at 9 A.A.R. 1040, effective May 4, 2003 (Supp. 03-1).

R2-5-104. Discrimination

An agency shall not discriminate against an individual in violation of A.R.S. §§ 41-1461, 41-1463, and 41-1464.

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Section heading amended by final rulemaking at 9 A.A.R. 1040, effective May 4, 2003 (Supp. 03-1).

R2-5-105. Personnel Records

A. Purpose. An employee's official personnel file is the official record and documentation of the administration of the employee's employment.

B. Content. An employee's official personnel file shall contain:

1. A copy of the job application or resume for the employee's current regular position;

2. A copy of all performance appraisal reports completed as required by R2-5-503;

3. Personnel action forms that have authorized changes in employment status, position, classification, pay, or leave status;

4. Letters of commendation as established by agency policy;

5. Correspondence concerning disciplinary actions as described in Article 8, and letters of reprimand, documents acknowledging receipt of reprimand or other disciplinary communications, or other related employee objections that are not filed as grievances under Article 7, and

6. Corrective action plans and performance planning documents.

C. Insurance and medical records. Group insurance enrollment forms may be contained in an employee's official personnel file. All medical records shall be maintained in a separate file that is not part of the employee's official personnel file.

D. Immigration records. The I-9 form and other documents required by law to prove employment eligibility may be retained in an employee's official personnel file or a separate file.

E. Access. For the purpose of this subsection, an official is an individual who provides identification verifying that the individual is exercising powers and duties on behalf of the chief administrative head of a public body. Access to an employee's official personnel file shall be limited to:

1. The employee or an individual who has written authorization from the employee to review the personnel file;

2. Agency personnel designated by the agency head as having a need for the information;

3. A Department official in the normal line of duty;

4. An official acting in response to a court order or subpoena;

5. An official of an agency to which the employee has applied; and

6. An official of an agency of the federal government, state government, or political subdivision, but only if the agency head of the employing agency deems it to be appropriate to a proper function of the official requesting access.

F. Disclosure of information. The Director, or designee, shall ensure that except as provided in subsection (E), only the following information about an employee is provided to any person under A.R.S. Title 39, Chapter 1, Article 2.

1. Name of employee;

2. Date of employment;

3. Current and previous class titles and dates received;

4. Name and location of current and previous agencies to which the employee has been assigned;

5. Current and previous salaries and dates of each change; and

6. Name of employee's current or last known supervisor.

G. Access to other files. An employee has the right to access only the employee's official personnel file.

H. Control.

1. When an employee moves from one state service agency to another, the losing agency shall forward the employee's official personnel file to the gaining agency within 10 days of the effective date of the move.

2. When a former employee returns to state service to an agency other than the agency in which the employee was last employed, the gaining agency shall request that the last agency forward the employee's official personnel file. The last agency shall forward the file within 10 days of the receipt of the request.

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Amended effective August 2, 1989 (Supp. 89-3). Amended by final rulemaking at 9 A.A.R. 1040, effective May 4, 2003 (Supp. 03-1).

ARTICLE 2. EMPLOYMENT

R2-5-201. Employment

A. General. The state of Arizona employment process shall ensure open competitive practices in recruitment, selection, and placement of qualified candidates based on the merit of the candidate's:

1. Knowledge, skills, and abilities;

2. Overall qualifications; and

3. Overall fitness for employment with the state.

B. Waiver of rules.

1. The Director may:

a. Waive any rule under Article 2 if the Director determines that essential public services are being hampered by critical employment needs for a specific class or classes; and

b. Implement temporary procedures.

2. The Director shall ensure that employees hired under temporary procedures are selected on the basis of the criteria in R2-5-201(A).

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Amended effective September 15, 1994 (Supp. 94-3). Amended by final rulemaking at 6 A.A.R. 4572, effective November 13, 2000 (Supp. 00-4).

R2-5-202. Recruitment

A. Filling of vacancies.

1. Except as otherwise provided by these rules, vacancies in state service shall be filled through open competitive recruiting.

2. Arizona residency is not required for state service.

3. Vacancies for positions governed by state service personnel rules shall be filled through:

a. The use of the Human Resources Employment Database, or

b. An alternative procedure based on the uniqueness of the operation or critical employment need.

4. The Director may refuse to evaluate or test anyone who cannot be located by mail sent to the last known address, telephone call to the last known number or by message sent to the last known electronic address.

B. Reemployment. An agency shall consider for appointment a reemployment candidate who meets the criteria in R2-5-201(A). before implementing other recruitment actions. A reemployment candidate is eligible to fill a vacancy in any state agency.

C. Vacancy announcements.

1. The Director shall establish a procedure for announcing open competitive vacancies in state service employment.

2. The Director may authorize the use of resumes, applications, or alternative forms that provide the information for analyzing an applicant based on the criteria in R2-5-201(A).

D. Administration. The Director shall establish procedures for maintaining and keeping confidential all resumes, applications, tests, test results, records, correspondence, and other documents used to seek employment in state service. The procedures shall restrict the review of any application material to the applicant, an individual who has written authorization from the applicant, state officials in the normal line of duty, or officials acting in response to court orders or subpoenas.

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Amended by final rulemaking at 6 A.A.R. 4572, effective November 13, 2000 (Supp. 00-4).

R2-5-203. Applicant Evaluations

A. Competitive evaluations. The Director shall establish open competitive evaluation procedures to be used for entrance into state service.

B. Criteria for evaluation. The basis for evaluation of an applicant shall be the knowledge, skills, and abilities required for the position as identified in the class specification or the position description questionnaire. The same criteria shall be used to evaluate all applicants for a position. The Director may authorize the use of related knowledge, skills, and abilities for a particular position even though these provisions are not part of the class specification. When necessary to make a complete evaluation, an applicant shall furnish, at the applicant's own expense, evidence of character, education, physical condition, or other qualification.

C. Evaluations. The Director shall establish an evaluation procedure to determine a person's ability to perform the duties and responsibilities of the position or classification for which the person is being considered for employment. An agency shall not administer any evaluation technique or any combination of techniques other than job-related selection interviews without prior written approval from the Director.

D. Written and performance test results.

1. The Director shall send written notice of written and performance test results to each applicant after the grading is complete.

2. An applicant may inspect the applicant's answers for any written test to determine whether the applicant's answers are the same as the answers shown on the grading key for that test, if the applicant requests the inspection in writing within one month after notice of the score is sent to the applicant. Only the applicant or the applicant's representative may inspect the test answers. An applicant's representative shall provide written authorization from the applicant to inspect the test answers.

3. An applicant may retake a performance test. An applicant may not retake a written test for two months after the last test. An applicant's most recent test score shall be used for employment evaluation.

4. Tests are not required for reinstatement or reemployment unless the Director determines that the requirements of the class have changed or are different from the class from which the applicant separated.

E. Preferences. Preference points authorized by A.R.S. § 38-492 shall be added to an applicant's grade on any assessment or evaluation that results in a numeric grade after the final grade is determined, if a passing grade is earned without the addition of preference points. Preference points shall not be applied to promotional examinations. If an evaluation does not result in a numeric grade, preference shall be given by granting applicable preference codes to qualified applicants.

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Subsection (G) corrected to add omitted text following the word "error" (Supp. 95-2). Amended by final rulemaking at 6 A.A.R. 4572, effective November 13, 2000 (Supp. 00-4).

R2-5-204. Human Resources Employment Database

The Director shall establish and maintain the Human Resources Employment Database to fill state service vacancies. Agencies shall use the database as the primary source for applicant tracking and candidate identification. The Director may approve other methods for applicant tracking and candidate identification to meet special agency requirements.

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Section repealed by final rulemaking at 6 A.A.R. 4572, effective November 13, 2000 (Supp. 00-4).

R2-5-205. Identification and Selection of Candidates

A. The Director shall provide a referral list to the hiring agency that contains the names of available candidates who possess the knowledge, skills, and abilities required for the position.

B. Referral list. An agency may request an external or an internal state service referral list.

1. An internal state service referral list may contain:

a. Repromotion candidates;

b. Original probation and permanent status employees in the agency;

c. Employees currently employed in the agency;

d. Permanent status employees in a state service position in the agency;

e. Employees who have attained permanent status in any state service agency; or

f. Any combination of the above.

2. An external referral list may contain any combination of qualified candidates.

3. Repromotion

a. A permanent status employee who is reduced in grade as a result of a reduction in force is entitled upon written request to be considered within the agency for the class in which permanent status was held immediately before the reduction in grade, or any intervening class. The employee shall be considered for two years from the date on which the employee was reduced in grade.

b. An employee eligible for repromotion shall be offered a vacant position in the class from which the employee was reduced or in any intervening class. An employee who accepts a position in an intervening class shall continue to be considered for repromotion in other eligible classes for the balance of the two years. An employee who fails to accept a repromotion to the class from which the employee was reduced shall not continue to be considered for repromotion.

c. If more than one employee is eligible for repromotion to a vacancy in a class, the vacancy shall be offered to the employee with the highest number of retention points at the time the repromotion is offered.

4. Reemployment.

a. An applicant for reemployment shall submit a written request.

b. The agency may consider an applicant for reemployment for the class in which the applicant held permanent status at time of separation and for all classes at the same or lower grade for which the applicant is qualified for two years from the effective date of the separation.

5. Reinstatement.

a. An applicant for reinstatement shall submit a written request.

b. The agency may consider an applicant for reinstatement for the class in which the applicant held permanent status at time of separation and for all classes at the same or lower grade for which the applicant is qualified for two years from the effective date of the separation.

C. Selection.

1. An agency head may non-competitively select any qualified reemployment, repromotion, reinstatement, voluntary decrease, or transfer candidate to fill a position.

2. If the agency head does not select a reemployment, repromotion, reinstatement, voluntary decrease, or transfer candidate, the agency head shall interview a minimum of three candidates, if available, before making a selection.

3. The Director or an agency head shall establish procedures to check references or investigate a candidate's background, education, or work history as appropriate for the position.

D. Complaints or recommendations. A candidate who has a complaint or recommendation relating to the procedures used in the selection or evaluation process shall submit the complaint or recommendation to the agency human resources representative who shall evaluate the complaint or recommendation and notify the candidate of the action to be taken.

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Amended by final rulemaking at 6 A.A.R. 4572, effective November 13, 2000 (Supp. 00-4).

R2-5-206. Appointment

A. General. An agency shall use a Human Resources Employment Database referral list to make an appointment to a position in the state service unless otherwise indicated in these rules.

B. Types of appointments.

1. Regular Appointment. A regular-appointment employee who successfully completes an original probation period acquires the rights of permanent status.

2. Limited appointment. A limited-appointment employee who successfully completes an original probationary period acquires all rights of permanent status except reduction in force, reemployment, and reinstatement. If the limited appointment expires, is unfunded, or is eliminated, the limited-appointment employee shall be separated without the right of appeal.

a. A qualified limited-appointment employee may be considered for transfer, promotion, or demotion to a regular position.

b. A limited-appointment employee who is promoted or transferred to a regular position shall serve an original probationary period in the regular position.

3. Temporary appointment. A temporary appointment may be made for a recurring period of time up to a maximum of 1500 hours in any one position per agency each calendar year.

4. Provisional appointment.

a. A provisional appointment shall not continue beyond the reporting date of a candidate selected from a referral list, beyond the expiration date of a valid referral list, or for more than six months.

b. An agency shall not make successive provisional appointments of the same person to the same class.

5. Emergency appointment. Appointments shall be at the discretion of the agency head with the approval of the Director.

a. An emergency appointment shall not exceed 240 hours or more than 30 working days.

b. An agency shall not make successive emergency appointments of the same person to the same class.

6. Clerical pool appointment.

a. The Director may establish a clerical pool in any locality where there is a demand for temporary clerical help.

b. Clerical pool appointments may be made for up to six months by an agency head and may be extended for not more than three months by the Director.

7. Student employment. The Director may establish special procedures for the employment of students. An agency may employ a student for a maximum of 1040 hours in a calendar year.

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Amended effective September 15, 1994 (Supp. 94-3). Amended by final rulemaking at 6 A.A.R. 4572, effective November 13, 2000 (Supp. 00-4).

R2-5-207. Employment of Relatives

A. Relationship to supervisor. An individual shall not be appointed or promoted to a position if the immediate supervisor of the individual is related within the third degree of affinity (marriage) or consanguinity (blood).

B. Relationship to other employees. An individual shall not be appointed or promoted to a position if the individual is related within the third degree of affinity or consanguinity to an employee who currently occupies a position under the same immediate supervisor.

C. Exceptions. The Director may grant an exception to the prohibitions in subsections (A) and (B) if there is no other qualified candidate for the position at the location.

D. Definition. For the purpose of this Section, persons related within the third degree include a spouse, child, parent, grandchild, grandparent, sister, brother, great grandchild, great grandparent, aunt, uncle, niece, or nephew.

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Amended effective August 2, 1989 (Supp. 89-3). Amended by final rulemaking at 6 A.A.R. 4572, effective November 13, 2000 (Supp. 00-4).

R2-5-208. Changes in Assignment

A. Promotion.

1. State service promotions shall be competitive.

2. An internal state service promotion referral list may contain:

a. Original probation and permanent status regular and limited employees;

b. Employees currently employed in the agency;

c. Permanent status regular and limited employees in a state service position in the agency;

d. Employees who have attained regular and limited permanent status in any state service agency; or

e. Any combination of the above.

3. Criteria for evaluation. The basis for evaluating candidates for a promotion referral list shall be the knowledge, skills, and abilities required for the position as identified in the class specification or the position description questionnaire. The same criteria shall apply to all applicants.

B. Transfer.

1. Intra-agency transfer.

a. An agency head may transfer an employee to a position in the same pay grade.

b. An agency head, upon the request of an employee, may transfer the employee to a position in the same pay grade.

2. Interagency transfer. An employee may transfer to a position in the same pay grade in another state service agency, upon request by the employee and approval of the gaining agency head.

3. Qualifications. An employee shall possess the knowledge, skills, and abilities required for the position as identified in the class specification or the position description questionnaire for the position to which transferred.

4. Transfer of function.

a. Between state service agencies. If part or all of the functions of an agency are transferred to another agency, all employees in the positions affected shall be transferred to the gaining agency.

b. From non-state service agencies. If part or all of the functions of a non-state service agency are transferred to the state service, all of the affected employees of the agency may be offered state service employment on a non-competitive basis in the transferred functional area. An agency head may require a transferred employee to serve an original probationary period.

C. Special detail.

1. General. An agency head may assign a permanent status employee to a special detail in a covered position within the agency.

a. Short-term special detail. A special detail made for a maximum of six months may be made non-competitively.

b. Long-term special detail. A special detail made for more than six but fewer than 12 months shall be competitive in accordance with these rules, unless the Director approves a non-competitive special detail.

2. Qualifications. An employee is not required to possess the precise knowledge, skills, and abilities of the position to be assigned to a special detail.

3. Return from special detail. At the end of the special detail, the employee shall return to the position previously held, if vacant. If the position is not vacant, the employee shall return to a position in the same class held before the special detail.

4. Extensions. A special detail shall not exceed 12 months unless extended by the Director.

D. Mobility assignments

1. State service employees. An employee with permanent status in the state service may accept a mobility assignment to an uncovered position or to a position in another Arizona state agency, for not more than 36 months with the concurrence of the Director, the employee, the agency in which employed, and the agency to which the employee will be assigned. The employee has the right to return to a position in the original agency in the same pay grade held before the mobility assignment if the employee possesses the required knowledge, skills, and abilities.

2. Extension. The Director, the employee, the employing agency and the agency from which the employee came shall renegotiate a mobility assignment that extends beyond 36 months.

E. Voluntary grade decrease

1. Request. An employee may request a permanent change in assignment to a position with a lower pay grade. The employee shall possess the knowledge, skills, and abilities required of the new position. An employee is not eligible to grieve or appeal an approved voluntary pay grade decrease.

2. Probation. An employee on original probation shall be required to serve a new original probation in the new position.

F. Relocation. The agency may reimburse reasonable relocation expenses to a current employee for a management-initiated geographical transfer of more than 50 miles from the employee's current work site.

Historical Note

New Section adopted by final rulemaking at 6 A.A.R. 4572, effective November 13, 2000 (Supp. 00-4).

R2-5-209. Repealed

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Repealed effective August 2, 1989 (Supp. 89-3).

R2-5-210. Repealed

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Section repealed by final rulemaking at 6 A.A.R. 4572, effective November 13, 2000 (Supp. 00-4).

R2-5-211. Clerical Placement

An applicant for a class in the clerical occupational series may be interviewed by an agency upon referral by the Director. The Director shall refer the applicant based upon the applicant's knowledge, skills, and abilities for the particular vacancy. The agency, upon such referral may interview any or all referred applicants and hire the applicant the agency prefers.

Historical Note

Adopted effective August 2, 1989 (Supp. 89-3). Amended effective September 15, 1994 (Supp. 94-3). Amended by final rulemaking at 6 A.A.R. 4572, effective November 13, 2000 (Supp. 00-4).

R2-5-212. Reserved

R2-5-213. Probation

A. Types of probation. Original probation and promotional probation are the only types of probation in state service.

B. Credit for prior service. An agency head may credit up to six months of state service that was completed in the same class immediately before a probationary appointment if that service was achieved under the same program of orientation, training, and evaluation currently applied to other probationary employees in the same class.

C. Original probation.

1. Duration. An original probationary period is six months. Upon request of an agency head, the Director may establish a longer or shorter period for any class of positions in the agency. In no case shall the probationary period established for a class be less than 90 days or more than one year.

2. Extensions.

a. An agency head may extend original probation up to six months for employment-related reasons. If original probation is extended, an employee's probation may exceed one year in the aggregate.

b. The probationary period shall be extended for any period for which a probationary employee is on leave without pay for more than 80 consecutive working hours. If original probation is extended for this reason, the employee's probation may exceed one year.

3. Completion of probation.

a. A supervisor shall evaluate a probationary employee and submit a report to the agency head before expiration of the employee's probationary period. If the agency head takes no action to extend the probationary period or to terminate the employee, the agency head shall grant permanent status to the employee upon completion of the probationary period.

b. If an agency head determines at any time during an original probationary period that the services of a probationary employee are no longer required in that position for any reason or for no reason, the agency head may:

i. Offer the employee another position for which the employee possesses the criteria in R2-5-201(A); or

ii. Dismiss the employee without a stated reason and without the right of appeal, providing the employee a letter of dismissal.

4. An original-probation employee who is selected for another state service position shall serve an original probation period in the new position.

D. Promotional probation.

1. A permanent-status employee who is promoted shall serve a promotional probationary period of six months. The agency head may extend the probation up to a total of one year for employment-related reasons.

2. A limited-appointment employee on original probation who is promoted or is transferred to a regular position shall serve an original probationary period.

3. If an employee fails to complete a promotional probation successfully the agency head may:

a. Revert the employee to a vacant position in the current employing agency in the class in which the employee held permanent status immediately before promotion; or

b. Offer the employee a similar position in another class at the same grade as the class that the employee holds permanent status if the employee meets the knowledge, skills, and abilities of that position.

4. Neither (D)(3)(a) nor (D)(3)(b) shall preclude the imposition of disciplinary action.

5. An employee who is reverted to a position in the same class or transferred to a position in another class shall not have the right to appeal.

6. If a vacancy does not exist in the agency, the rules governing reduction in force shall apply.

7. An employee who is repromoted shall not be required to serve a probationary period.

E. Reinstatement and reemployment. When an employee is reinstated or reemployed, the agency head:

1. May require the former employee to complete an original probation.

2. Shall require the former employee to complete an original probation if the former employee is reinstated or reemployed in a class other than the class the employee previously held.

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Subsection (C)(2) corrected to read "job-related" in line 2; Amended effective April 20, 1995 (Supp. 95-2). Amended by final rulemaking at 6 A.A.R. 4572, effective November 13, 2000 (Supp. 00-4).

ARTICLE 3. CLASSIFICATION AND COMPENSATION

R2-5-301. Classification

A. General. The Director shall group positions into classes based on similarities of duties and responsibilities. All state service positions are assigned a class specification with a specific title. An agency head may not appoint, transfer, promote, or demote an employee, or make any change in salary for any position until the position is allocated to a class.

B. Class title. An agency shall use the class title of a position to designate the position in all budget estimates, payrolls, vouchers, and communications in connection with personnel processes.

C. Class specification. A class specification indicates the kinds of positions to be allocated to the class, as determined by the duties and responsibilities described for that class. Each class specification shall contain a statement of the education, experience, knowledge, skills, abilities, and other qualifications required to perform the work. Required postsecondary education shall be attained in an institution that meets the standards established by a recognized accrediting body.

D. Change in classification plan. The Director may establish new classes and divide, combine, alter, or abolish existing classes, after consultation with affected agency heads.

E. Allocation. The Director shall place every position in a class based on its duties and responsibilities. The Director may delegate to an agency head the authority to underfill a position.

F. Change in job duties. If a material and permanent change takes place in the duties and responsibilities of a position, the agency head shall report this change to the Director who may order a reclassification of the position. The employee in the position at the time of reclassification is entitled to continue to serve in the position.

G. Review. An employee in a position or an agency head may file a written request with the Director for review of the classification of the position.

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Amended by final rulemaking at 7 A.A.R. 2724, effective June 6, 2001 (Supp. 01-2).

R2-5-302. Salary Plans

A. Classes. The Director shall allocate each class to a specific pay grade or rate.

B. Salary. The base salary of an employee shall not be less than the minimum nor more than the maximum of the pay grade to which the employee's class is allocated, except for an underfill or as otherwise specified by these rules.

C. Alternative salary plan. The Director may approve a special salary plan and pay practice for a certain class or group of employees. In approving a special salary plan, the Director shall consider factors such as occupational patterns, economic conditions, and incentive plans common to government, business, and industry.

D. Counteroffer pay adjustment. Subject to available funding, the Director may approve a pay adjustment as a counteroffer to a verifiable job offer to retain a current employee in the same position. A counteroffer shall not exceed the maximum of the pay grade.

E. Hiring bonus. The Director may establish guidelines for the payment of a hiring bonus to attract a new employee into a state service position when there is:

1. A shortage in the labor market;

2. Recruitment or retention difficulty; or

3. A requirement for a unique, critical skill.

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Amended by final rulemaking at 7 A.A.R. 2724, effective June 6, 2001 (Supp. 01-2).

R2-5-303. Salary Administration

A. Salary. The salary of an employee shall be not less than the minimum nor more than the maximum of the pay grade of the class to which the employee's position is allocated except for:

1. The salary of an employee that exceeds the maximum salary of the pay grade of a class due to a downward reclassification of the employee's position;

2. The salary of an employee that exceeds the maximum salary of the pay grade of a class due to a change of the class to a lower pay grade;

3. The salary of an employee upon special detail to a position in a class with a lower pay grade;

4. The salary of an employee upon placement on a mobility assignment in a class with a lower pay grade than the employee's permanent status class;

5. The salary of an employee that exceeds the maximum salary of the pay grade of a class, due to an authorized shift differential;

6. The salary of an employee that exceeds the maximum salary of the pay grade of a class due to receipt of a special performance adjustment;

7. The salary of an employee that exceeds the maximum salary of the pay grade of a class due to the receipt of special payments, such as hazardous duty pay; and

8. The salary of an employee that exceeds the maximum salary of the pay grade of a class due to a reduction in force as provided in subsection (K).

B. Salary adjustment. The salary used to compute an adjustment covered in this Section is the employee's base salary not including overtime pay, shift differential, special performance adjustment previously granted, or pay for other special situations. Following an adjustment to the base salary, an agency shall add to the new rate of pay any special pay situation still valid.

C. Administrative adjustment. Subject to available funding, the Director may approve a pay adjustment to:

1. Resolve a manifest error;

2. Increase the base salary of a supervisor that is below the base salary of a subordinate;

3. Correct an inequity; or

4. Increase a transferred employee's base salary based upon documentation of recruitment difficulties to fill the position, specific needs identified by the agency, or the employee's education, experience, knowledge, skills, and abilities.

D. Classification or pay grade changes.

1. The base salary of an employee in a position that is reclassified to a class with a higher pay grade, or in a class that is allocated to a higher pay grade, shall be increased by 2.5%. If increasing the base salary of an employee whose position is reclassified to a class allocated to a higher pay grade would result in a salary level that is less than the entrance salary or greater than the maximum salary of the pay grade, the employee's salary shall be the entrance salary or the maximum salary of the pay grade, respectively.

2. The base salary of an employee shall remain the same if the employee's position is reclassified to a class with a lower pay grade, or is in a class that is allocated to a lower pay grade, and is:

a. Within the salary range of the new pay grade, or

b. Greater than the maximum salary of the new pay grade.

3. In the situation described in subsection (D)(2)(b), the employee is not eligible for a general salary adjustment or performance based salary adjustment except for a special performance adjustment until the employee's salary is less than the maximum salary of the new pay grade.

4. The Director shall establish guidelines that supersede the provisions of subsections (D)(1), (D)(2), and (D)(3) when setting the salary of an employee in a classification affected by a Classification Maintenance Review or a Special Market Adjustment.

E. Demotion. An employee who has a change in assignment for cause from a position in one class to a position in another class having a lower pay grade shall receive a salary decreased by an amount equal to the midpoint of the pay grade from which the employee is demoted multiplied by 7.0% and then deducted from the employee's current base salary. If the decrease in the employee's salary is less than the entrance salary or greater than the maximum salary of the new pay grade, the employee's salary shall be within the range of the new pay grade.

F. Special detail.

1. The salary of an employee on a special detail to a class at a pay grade greater than the pay grade of the employee's permanent class shall be set in accordance with subsection (J).

2. The salary of an employee on a special detail to a class at a pay grade less than the pay grade of the employee's permanent class shall be the same salary as that paid before the special detail, which may exceed the maximum salary of the pay grade of the class to which detailed.

3. A general salary adjustment that becomes effective during an employee's special detail shall be applied to the salary the employee is paid while on special detail. However, if the employee's salary is at the maximum salary for the pay grade of the special detail position, the employee shall be paid the maximum salary of the pay grade of the class to which detailed.

4. The salary of an employee who returns to a permanent position after a special detail of 24 months or less shall be the same salary as that paid before the special detail, plus the percentage or dollar increase of an intervening general salary adjustment or special market adjustment for which the employee is eligible, and the dollar amount of a performance increase that the employee received during the special detail.

5. An employee who returns to the prior position after a special detail of more than 24 months and who received satisfactory or better performance evaluations while in the special detail shall be paid the special detail salary. However, if the special detail salary would exceed the maximum for the pay grade of the employee's permanent class, the employee shall be paid the maximum salary of the pay grade for the class.

G. Mobility assignment.

1. The salary of an employee on a mobility assignment to a covered position in a class at a pay grade greater than the pay grade of the employee's permanent class shall be set in accordance with subsection (J).

2. The salary of an employee on a mobility assignment to a covered position in a class at a pay grade less than the pay grade of the employee's permanent class shall be the same salary as that paid before the mobility assignment, which may exceed the maximum salary of the pay grade of the class to which assigned.

3. A general salary adjustment that becomes effective during an employee's mobility assignment to a covered position shall be applied to the salary the employee is paid while on mobility assignment. However, if the employee's salary is at the maximum salary for the pay grade of the employee's permanent position, the employee shall be paid the maximum salary for the pay grade of the class.

4. The salary of an employee who returns to a permanent position after a mobility assignment shall be the same salary as that paid before the mobility assignment, plus the percentage or dollar amount of increase of an intervening general salary adjustment or special market adjustment for which the employee is eligible, and the dollar amount of a performance increase that the employee received during the mobility assignment.

H. Basic hiring rate. A new employee shall be paid a salary up to the midpoint of the pay grade established for the class to which the employee is appointed. The basic hiring rate for a qualified applicant may be at a higher salary than the midpoint based on factors such as the applicant's education, experience, knowledge, skills, or abilities, the availability of qualified applicants, the applicant's earning history, or the geographical location of the position.

I. Special recruitment rate. The Director may establish a special recruitment rate for a class up to the midpoint of the pay grade when:

1. It is not possible to recruit a qualified employee at the established basic hiring rate; or

2. Competitive starting salaries for the class exceed the established basic hiring rate.

J. Promotion.

1. A permanent status employee who has a permanent change in assignment from a position in one class to a position in another class having a higher pay grade shall receive a salary increased by an amount equal to the midpoint of the new pay grade multiplied by 7.0% and then added to the employee's current base salary. If the increase in the employee's salary results in a salary that is less than the entrance salary or greater than the maximum salary of the new pay grade, the employee's salary shall be within the range of the pay grade.

2. An agency head may authorize a salary increase for a qualified employee that is greater than the percentage listed in subsection (J)(1), based on factors such as the unusual and outstanding character of the employee's education, experience, knowledge, skills, or abilities, the availability of qualified applicants, the applicant's earning history or the geographical location of the position.

3. A promoted employee may accept a lower salary in the new pay grade than is otherwise authorized if fiscal constraints prohibit the granting of the normal promotional increase and the new salary is not less than the entrance salary of the new pay grade.

4. An employee who is promoted to the position to which the employee was in special detail shall be paid at a minimum the salary received while on special detail.

5. The salary of an employee on a special detail who is promoted to a position other than the position to which detailed shall be calculated as follows:

a. The salary is first adjusted for a return from special detail as specified in subsection (F)(4) or (F)(5), as applicable.

b. The salary is then adjusted for the promotion as specified in this subsection.

6. The salary of an employee on promotional probation who is again promoted to another position shall be calculated from the employee's current base salary.

K. Reduction in force. The salary of an employee who is reduced to a class in a lower pay grade due to a reduction in force remains the same even if the salary is higher than the maximum salary of the new pay grade. Unless the employee's salary is less than the maximum of the new pay grade at a later date, the employee is not eligible for a general salary adjustment or a performance increase.

L. Repromotion.

1. The salary of an employee who is repromoted to the class held prior to the reduction in force shall be the salary paid at the time of the reduction in force, plus the percentage or dollar amount of increase of an intervening general salary adjustment or special market adjustment for which the employee is eligible, and the dollar amount of a performance increase that the employee received at the lower pay grade.

2. The salary of an employee who is repromoted to a class with a higher pay grade than the current class but with a lower pay grade than the class held prior to the reduction in force, shall be set in accordance with subsection (J)(1).

3. A repromoted employee may accept a lower salary in the new pay grade than is otherwise authorized if fiscal constraints prohibit the granting of the normal promotional increase and the new salary is not less than the entrance salary of the new pay grade. The employee's salary shall be within the established range of the pay grade.

M. Return to state service.

1. The salary of a former state service employee who is reinstated or reemployed in state service may:

a. Be the same salary as that paid when separated,

b. Not exceed the maximum salary of the pay grade if the new pay grade is less than the prior pay grade, and

c. Not be less than the entrance salary of the pay grade if the new pay grade is higher than the prior pay grade.

2. If an employee accepts a lower salary, the employee retains reinstatement rights.

3. A former employee may accept a lower salary in the pay grade than is otherwise authorized if fiscal constraints prohibit the granting of the former salary and the salary is not less than the entrance salary of the pay grade.

N. Reversion. An employee who is promoted but does not complete a promotional probationary period and returns to the former position or to another position in a class in a lower pay grade shall be paid the same salary as that paid at the time of promotion, plus the percentage or dollar amount of increase of an intervening general salary adjustment or special market adjustment for which the employee is eligible, and the dollar amount of a performance increase that the employee received at the higher grade.

O. Shift differential. The Director may authorize a shift differential to be paid to an employee on other than a day shift. The Director shall establish a competitive shift differential rate periodically based on an annual survey of the market place. Employees in the same class in the same agency who work on the same shift shall receive the same shift differential rate.

P. Transfer. The salary of an employee who is transferred to a position in the same class or to another class in the same pay grade shall be the same salary as that paid before the transfer unless the provisions of subsection (C)(4) apply.

Q. Voluntary Pay Grade Decrease.

1. A permanent status employee who is granted a voluntary permanent change in assignment from a position in one class to a position in another class with a lower pay grade due to a career path change, relocation, or personal reasons shall be paid the same salary as that paid before the voluntary pay grade decrease to the class in the lower pay grade provided the salary is within the new pay grade. A voluntary pay grade decrease to a class with a lower pay grade is limited to once in a five-year period.

2. A permanent status employee who volunteers for a pay grade decrease for reasons other than those outlined in subsection (Q)(1) shall be paid a salary decreased by an amount equal to the midpoint of the pay grade held before the pay grade decrease multiplied by 7.0% and then deducted from the employee's current base salary. If the decrease in the employee's salary is less than the entrance salary or greater than the maximum salary of the new pay grade, the employee's salary shall then be within the range of the new pay grade.

3. An employee promoted within one year to the immediately prior class shall be paid the same salary as that paid before the voluntary pay grade decrease to the class at the lower pay grade plus the percentage or dollar amount of increase of an intervening general salary adjustment or special market adjustment for which the employee is eligible, and the dollar amount of a performance increase that the employee received at the lower pay grade.

4. An employee promoted to a class other than the employee's immediately prior class shall be paid a salary set in accordance with subsection (J).

5. An original probationary employee who volunteers for a pay grade decrease shall be paid the basic hiring rate of the new pay grade.

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Amended effective August 2, 1989 (Supp. 89-3). Amended effective September 15, 1994 (Supp. 94-3). Amended effective March 4, 1997 (Supp. 97-1). Amended effective August 5, 1997 (Supp. 97-3). Amended by final rulemaking at 7 A.A.R. 2724, effective June 6, 2001 (Supp. 01-2).

R2-5-304. Performance-based Salary Adjustments

A. Performance-based salary adjustment limits. Subject to legislative appropriation, the Director shall determine employee eligibility and the minimum and maximum percentage for a performance-based salary adjustment.

B. Performance-based salary adjustments.

1. The Director shall issue performance-based salary adjustment guidelines.

2. All employees who are in the state service on the date listed in the guidelines and who meet the criteria listed in the guidelines are eligible for a performance-based salary adjustment that takes effect on the date set in the guidelines.

3. A performance-based salary adjustment may not raise the base salary of an employee beyond the maximum salary of the pay grade.

4. An employee may not receive a performance-based salary adjustment greater than the percentage limit set in the guidelines issued by the Director.

C. Special performance adjustment. An employee at the maximum salary of the employee's pay grade, or who is eligible for a performance-based salary adjustment that places the employee at the maximum salary of the pay grade, is eligible for a special performance adjustment. The special performance adjustment shall be a payment method established by the Director in the performance-based salary adjustment guidelines.

D. Combination of increases. An employee shall not receive a combination of a performance-based salary adjustment and a special performance adjustment exceeding the limit set in the guidelines issued by the Director.

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Amended by final rulemaking at 5 A.A.R. 4417, effective November 2, 1999 (Supp. 99-4). Amended by final rulemaking at 7 A.A.R. 2724, effective June 6, 2001 (Supp. 01-2).

R2-5-305. Overtime Pay and Compensatory Leave

A. Approval of overtime work. An agency head may require that an employee work overtime and:

1. Shall approve in advance all work in excess of 40 hours per workweek or in excess of a work period as defined by the Fair Labor Standards Act (FLSA); 29 U.S.C. 203, August 1998, published by the U.S. Government Printing Office Superintendent of Documents, Mail Stop: SSOP Washington, D.C. 20402-9328, incorporated by reference and on file with the Department and the Office of the Secretary of State. This incorporation by reference contains no future editions or amendments; and

2. May assign an employee who volunteers for overtime before mandatory overtime is required.

B. Exemptions. The Director shall determine exemptions from minimum wage and maximum hour requirements in accordance with the Fair Labor Standards Act, 29 U.S.C. 213, October 1998, published by the U.S. Government Printing Office, Superintendent of Documents, Mail Stop: SSOP Washington, D.C. 20402-9328, incorporated by reference and on file with the Department and the Office of the Secretary of State. This incorporation by reference contains no future editions or amendments.

C. Non-exempt employees.

1. An agency shall compensate an employee in a non-exempt position who works in excess of 40 hours per workweek or in excess of a work period as defined by the FLSA by either:

a. Additional pay at the rate of 1 1/2 times the employee's regular rate for each excess hour worked, or,

b. Compensatory leave at the rate of 1 1/2 hours for each excess hour worked.

2. An employee shall select either overtime pay or compensatory leave for overtime compensation. If the employee selects both overtime pay and compensatory leave, the agency head shall determine which applies. If an employee's compensatory leave balance reaches the maximum allowed in subsection (F), the agency shall compensate the employee by overtime pay.

D. Exempt employees.

1. An employee in a position that is exempt from the FLSA, except for those excluded in subsection (E), who works in excess of 40 hours per workweek or in excess of an established work period shall earn one hour of compensatory leave for each hour of overtime worked, until the employee's compensatory leave balance reaches the maximum allowed in subsection (F). When the maximum balance is reached, an agency shall not require or allow an exempt employee to work overtime.

2. The Director may approve overtime pay at the regular rate for positions exempt from the Fair Labor Standards Act, 29 U.S.C. 207, September 1995, published by the U.S. Government Printing Office, Superintendent of Documents, Mail Stop: SSOP Washington, D.C. 20402-9328, incorporated by reference and on file with the Department and the Office of the Secretary of State. This incorporation by reference contains no future editions or amendments. These positions are eligible for compensatory leave because the primary duty is management when any of the following criteria is met:

a. The Director determines that the practice is a prevailing condition in the Arizona labor market,

b. Overtime pay to subordinates reduces pay differentials between subordinates and supervisors to the extent that it is no longer an incentive to remain in the supervisory position, or

c. Temporary emergency conditions arise that make it more practical to pay overtime than to grant compensatory leave.

E. Excluded employees.

1. An employee in a position described under A.R.S. § 41-783(25) is excluded from receiving either overtime pay or compensatory leave.

2. Under A.R.S. § 41-783(25)(c), a professional position is a physician or attorney position that is compensated in accordance with a special salary plan.

F. Maximum accumulation. The maximum number of hours of accumulated compensatory leave is:

1. 480 hours for an employee who works in a public safety activity or an emergency response activity, or,

2. 240 hours for an employee who works in any other activity.

G. Payment.

1. An agency head may pay an employee at any time for all or any portion of the employee's accrued compensatory leave balance at the employee's current base salary, subject to funding availability.

2. An agency shall pay an employee who has unused compensatory leave at the time of separation from state service for each hour of compensatory leave at:

a. The employee's average base salary during the last three years of employment; or,

b. The employee's final base salary, whichever is higher.

H. Inter-agency Transfer. An agency head may pay an employee who transfers to another state service agency for all accumulated compensatory leave at the time of the transfer. An agency may transfer part or all of the compensatory leave accumulated by an employee who transfers to another agency with the gaining agency's concurrence. If the gaining agency does not concur, the losing agency shall pay all of the accumulated compensatory leave that the gaining agency will not accept.

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Amended effective April 20, 1995 (Supp. 95-2). Amended by final rulemaking at 7 A.A.R. 2724, effective June 6, 2001 (Supp. 01-2).

R2-5-306. Expired

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6). Amended by final rulemaking at 7 A.A.R. 2724, effective June 6, 2001 (Supp. 01-2). Section expired under A.R.S. § 41-1056(E) at 13 A.A.R. 1143, effective May 31, 2006 (Supp. 07-1).

R2-5-307. Expired

Historical Note

Adopted as an emergency effective February 22, 1988, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 88-1). Emergency expired. New Section adopted effective March 10, 1993 (Supp. 93-1). Section expired under A.R.S. § 41-1056(E) at 8 A.A.R. 3483, effective July 19, 2002 (Supp. 02-3).

ARTICLE 4. BENEFITS

R2-5-401. Benefit Administration

A. Eligibility for leave. All state service employees, except emergency, seasonal, clerical pool, and temporary employees, are eligible for any type of leave with pay from the date of appointment. Emergency, seasonal, clerical pool, and temporary employees are eligible only for administrative leave, military leave, and civic duty leave for the purpose of voting only.

B. Requests for leave. Except in an emergency, an employee must obtain approval in advance and in writing prior to taking any leave.

Historical Note

Adopted effective December 31, 1986 (Supp. 86-6).

R2-5-402. Holidays

A. State service holidays.

1. January 1, "New Year's Day".

2. Third Monday in January, "Martin Luther King, Jr./Civil Rights Day".

3. Third Monday in February, "Lincoln/Washington Presidents' Day".

4. Last Monday in May, "Memorial Day".

5. July 4, "Independence Day".

6. First Monday in September, "Labor Day".

7. Second Monday in October, "Columbus Day".

8. November 11, "Veterans Day".

9. Fourth Thursday in November, "Thanksgiving Day".

10. December 25, "Christmas Day".

B. Employees scheduled to work. An employee who is regularly scheduled to work on a day on which one of the holidays listed in subsection (A) above is observed is entitled to be absent with pay for the number of hours regularly scheduled to work, not to exceed 8, unless required to work to maintain essential state services.

1. Part-time employees who work 1/4 time, 1/2 time, or 3/4 time are entitled to a proportional amount of holiday pay. Part-time employees who work a percentage of full-time other than 1/4 time, 1/2 time, or 3/4 time are entitled to holiday pay at the next lower rate. An employee who works less than 1/4 time is not entitled to holiday pay.

2. Seasonal, temporary, emergency, and clerical pool employees shall receive holiday pay provided they are in pay status the day before and the day after the holiday.

C. Employees not scheduled to work. An employee, excluding seasonal, temporary, emergency, clerical pool, and part-time employees, who is not scheduled to work on a day on which one of the holidays listed in subsection (A) above is observed shall receive holiday compensation for the number of hours normally worked per day, not to exceed 8, provided the employee is not on leave without pay on the employee's work days immediately preceding or following the day on which the holiday is observed.

D. Employees required to work. An employee who is required to work on a day on which a holiday listed in subsection (A) above is observed shall receive both holiday compensation and one hour of pay at the current s