CSSB 2(CRA): "An Act requiring pay equity for certain public employees and requiring the compensation of certain public employees based on the value of work performed."
00CS FOR SENATE BILL NO. 2(CRA) 01 "An Act requiring pay equity for certain public employees and requiring the 02 compensation of certain public employees based on the value of work performed." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 23.40.210 is amended by adding new subsections to read: 05 (b) The state and a bargaining organization representing state employees may 06 not negotiate over or include in an agreement a provision concerning pay levels that 07 is contrary to AS 39.27.013. 08 (c) An agreement may contain a provision that addresses the compensation of 09 incumbents in positions that are reclassified to a lower level and that prevents the 10 reduction of the incumbents' compensation. The provision may prevent a reduction 11 in compensation for a period not to exceed two years. 12 * Sec. 2. AS 39.27 is amended by adding a new section to read: 13 Sec. 39.27.013. PAY LEVEL FOR EMPLOYEES MOVED TO A HIGHER 14 PAY RANGE. When an employee's position is moved to a higher pay range, either
01 through reclassification or through a change in range, the employee shall be placed at 02 the lowest step in the higher pay range that does not result in a decrease in salary. 03 This section applies only to an action taken to implement a job evaluation system 04 adopted under AS 39.90.200 - 39.90.300. This section supersedes a personnel rule to 05 the contrary. 06 * Sec. 3. AS 39.90 is amended by adding new sections to read: 07 ARTICLE 3. PAY EQUITY. 08 Sec. 39.90.200. COMPENSATION POLICY. It is the policy of this state to 09 establish pay equity between female-dominated, male-dominated, and balanced classes 10 of employees in order to eliminate sex-based wage disparities in public employment. 11 Sec. 39.90.210. JOB EVALUATION SYSTEM. (a) Each public employer 12 shall use a job evaluation system to determine the comparable work value of the work 13 performed by each class of employees. The system shall be maintained and upgraded 14 to account for new employee classes and changes in factors affecting the comparable 15 work value of existing classes. Public employers shall meet and confer with the 16 bargaining organizations representing public employees on the development or 17 selection of a job evaluation system under this section. 18 (b) At a minimum, the job evaluation system shall be based on the following 19 factors, measured objectively: 20 (1) the knowledge and skills needed for acceptable job performance, 21 including substantive knowledge and managerial skills; 22 (2) the intellectual effort required including the creativity and analytical 23 skills needed for acceptable job performance, the degree to which the employee works 24 independently, and the complexity of the problems assigned to the employee; 25 (3) the employee's accountability for the employee's actions and the 26 consequences of the employee's job performance, including the employee's level of 27 discretion and the potential for benefit or harm to the employer or the public from the 28 employee's job performance; and 29 (4) working conditions, including the physical effort and skills required, 30 whether the job environment is disagreeable or physically demanding and the hazards 31 presented by the job.
01 (c) After considering the list of classes in which pay inequity exists, each 02 public employer shall prepare a plan to create pay equity for those positions. The 03 employer shall submit the plan to the legislature by January 1 of each odd-numbered 04 year together with the list of classes between which pay inequity exists. The employer 05 shall include the cost of implementing the plan in its budget for the next fiscal year 06 and shall implement the plan at the start of that fiscal year. 07 Sec. 39.90.220. PUBLIC EMPLOYER NEGOTIATING POSITIONS. (a) In 08 preparing the position classification plan and the pay plan for employees, the public 09 employer shall assure that compensation for 10 (1) positions in the different services of the employer compares 11 reasonably to one another; 12 (2) positions in public service bears a reasonable relationship to 13 compensation for similar positions outside public service; 14 (3) management positions bears a reasonable relationship to 15 compensation of the employees managed by the positions; 16 (4) positions within one service bears a reasonable relationship among 17 related classes and among various levels within the same occupations. 18 (b) In this section, the compensations paid to different positions bear a 19 reasonable relationship to one another if the compensation for positions that require 20 (1) comparable skill, effort, responsibility, and working conditions is 21 comparable; and 22 (2) differing skill, effort, responsibility, and working conditions is 23 related to the skill, effort, responsibility, and working conditions required of the 24 different positions. 25 Sec. 39.90.300. DEFINITIONS. In AS 39.90.200 - 39.90.300, 26 (1) "balanced class" means a class in which no more than 70 percent 27 of the incumbents are male and no more than 70 percent of the incumbents are female; 28 (2) "class" means one or more positions that have similar duties and 29 responsibilities and require similar qualifications to perform the duties so that the same 30 descriptive title can be used with clarity for each position in the class, the same 31 selection procedures can be used to recruit employees, and the same compensation
01 schedule can be applied with equity to all positions in the class working under the 02 same or substantially the same employment conditions; 03 (3) "comparable work value" means the value of the work measured 04 by the composite of the skill, effort, responsibility, and working conditions normally 05 required in the performance of the work; 06 (4) "female-dominated class" means a class in which more than 70 07 percent of the incumbents are female; 08 (5) "male-dominated class" means a class in which more than 70 09 percent of the incumbents are male; 10 (6) "management positions" means those positions accountable for 11 (A) determining, securing, and allocating human, financial, and 12 other resources needed to accomplish objectives; 13 (B) determining overall objectives, priorities, and policies within 14 a program area; 15 (C) handling significant and involved relationships with 16 governmental leadership; or 17 (D) exercising discretionary powers on a regular basis; 18 (7) "pay equity" means compensation based on comparable work value; 19 (8) "pay inequity" means compensation that is not based on comparable 20 work value; 21 (9) "public employer" means 22 (A) a department, institution, board, commission, division, 23 authority, public corporation, committee, or other administrative unit of the 24 executive, judicial, or legislative branch of state government, including the 25 University of Alaska and the Alaska State Housing Authority, but not including 26 the Alaska Railroad Corporation; and 27 (B) a school district or regional educational attendance area. 28 * Sec. 4. (a) Notwithstanding AS 39.90.210(c), enacted by sec. 3 of this Act, a public 29 employer shall make the initial report to the legislature under AS 39.90.210(c) by January 1, 30 1997. The initial report must include 31 (1) the following information for each job class, as of July 1, 1996:
01 (A) the title of the job class, the number of incumbents, and the 02 percentage of incumbents who are male and the percentage who are female; 03 (B) the comparable work value of the job class as determined under the 04 system chosen under AS 39.90.210, enacted by sec. 3 of this Act; 05 (2) a description of the job evaluation system used by the public employer; 06 (3) a plan for establishing equitable pay relationships between female-dominated and male-dominated job classes, 07 including 08 (A) identification of classes for which a pay inequity exists based on 09 the comparable work value of the class; 10 (B) a timetable for implementing pay equity; and 11 (C) the estimated cost of implementing pay equity. 12 (b) If requested by a public employer, the commissioner of administration shall 13 provide technical assistance in completing the report required by this section. 14 (c) In this section, "public employer" has the meaning given in AS 39.90.300.