Mr. George lyl. McNiel 

State Auditor 

Opinion No. M-706 

Sam Houston State Office Bldg. Re: Legality of Legislative 

Austin, Texas Audit Committee authorization for agency heads to 

reclassify downward at 

time of conversion to 

Dear Sir: 

new salary schedule provided in General Appropriation Acts without a 

change in rate of pay. 

Your letter of September 11, 1970. asked for answers 

to the following questions: 

"(1) The legality of the authorization by the 

Legislative Audit Committee for the heads of agencies 

and departments to make reclassifications downward 

at the time of conversion to new salary schedules 

established'in General Appropriation Acts without 

a change in the employee's rate of pay; and 

"(2) The legality of the authorization by the 

Legislative Audit Committee for the Classification 

Officer to direct, in conformity with Audit committee 

policy, that individual reclassifications to a lower 

salary group may be made without a change in the employee's rate of pay." 

Your letter further states that there exists a conflict of opinion of whether a reclassification downward should 

be treated as a demotion in accordance with Article V, House Bill 

2, 2nd Called Session, 61st Legislature, governing "demotions" 

or whether a reclassification downward is accomplished by the 

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’ 

Mr. George W. McNiel, page 2 (M-706) 

4th paragraph of the act. Paragraph 4 of the act reads as 

follows: 

“An employee whose classification position 

is reallocated by this Act to a lower salary group 

shall receive the annual rate which he would have 

received had the position not been reallocated, not 

to exceed the step 7 rate of the lower salary group." 

Section l(3) reads as follows: 

"DEMOTIONS. Demotion means a chancre in dutv 

assisnment of an employee from a position in one 

classification to a position in another classification in a lower salary group. An employee who is 

demoted shall have his salary ,reduced at least to a 

rate one increment below the rate he received before 

demotion." (Emphasis added.) 

Article 6252-11, the Position Classification Act of 

1961, reads, in part, as follows: 

“Sec. 4. Commencing with the effective date 

of this Act, all regular full-time salaried employments with the exceptions and deferments specified 

hereinabwe shall be made only in conformity with 

the classes of work described in such Position 

Classification Plan, and under the titles authorized 

by such Plan. The State Auditor shall examine or 

cause to be.examined in periodic post-audits of expenditures of State departments and agencies, and 

by such methods as he deems appropriate and adequate, 

whether employments have been made in accordance 

with the prwisions of this Act, and shall report 

the facts as found to the GWernOr, the Comptroller, 

and the Legislative Audit Committee." 

Section 6 of the Act reads, in part, as follows: 

-3415- 
Mr. George W. McRiel, page 3 (M-706) 

"When exceptions to or violations of the 

position Classification Plan or of prescribed 

salary ranges are revealed by personnel audits, the 

Classification Officer shall notify the agency head 

in writing and specify the points of nonconformity or 

violation. The executive head of such agency shall 

then have reasonable opportunity to resolve the exception or end the violation by reassigning the employee to another position title or class consistent 

with the work actually performed, by changing the 

employee's title or salary rate to conform to the 

prescribed Classification Plan and salarv ranse, or 

by obtaining a 'new class description of work.and:. :~ 

salarv ranqe to correct the exception or violation." 

(Emphasis added.) 

We answer both of your questions by saying that the 

reclassification downward, whether at the time of conversion 

to the tiew salary schedule or by individual reclassification 

during a fiscal year where there is no change in the employee's 

duty assignment, may be made without a change in the employee’s 

rate of pay, not to exceed step 7 rate of the lower salary group. 

The Act specifically sets reclassifications apart from 

demotions in Section le(1) which reads in part as follows: 

8, . . . Reclassification shall not be interpreted to mean a change in the emulovee's duty 

assiqnment. but only shall mean the proper definition of duties and classifications of the position 

based upon duties actually performed by the employee; 

hence, a position shall be reclassified for the 

sole purpose of complvinq with the requirements of 

the Classification Act." (Emphasis added.) 

The act further provides for a reduction in salary in 

the event a classification audit determines that a position is 

classified higher than is warranted by actual duty assignments, 

(Section le(2) of the Act) according to the "... policies and 

procedures as the Legislative Audit Committee may prescribe." 

-3416- 
Mr. George W. Mdbliel, page 4 (M-706) 

Under the prwisions of Article V, House Bill 2, Acts 

of the'second Called Session, 61st Legislature, job reclassifications downward wfthout change in duty assignments, may be 

made either at the time of conversion to new salary schedules 

or by individual reclassifications during a fiscal year without 

a reduction in the employee's rate of pay, not to exceed step 7 

of the lower salary group. 

SUMMARY 

State employees under the classification system 

may be reclassified downward, without change in duty 

assignment, without a mandatory reduction in rate of 

pay, not to exceed step 7 rate of the lower salary 

g-w. 

Attor y General of Texas 

Prepared by Melvin E. Corley 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Kerns Taylor, Chairman 

W. E. Allen, Co-Chairman 

J. C. Davis 

John Reeves 

Roger Tyler 

Houghton Brownlee 

MKADB P. GRIFFIN 

Staff Legal Assistant 

ALFRBDWALKER 

Executive Assistant 

NOLAWBITB 

Fir*+ .P.7I.c.Ce."C