Arkansas Code of 1987 (2023) › Title 21 - PUBLIC OFFICERS AND EMPLOYEES (§§ 21-1-101 — 21-15-113) › Chapter 5 - COMPENSATION AND BENEFITS (§§ 21-5-101 — 21-5-1418) › Subchapter 11 - CAREER LADDER INCENTIVE PROGRAM (§ 21-5-1101) › Section 21-5-1101 - Merit increase pay system - definition

(a)
(1)
The Department of Transformation and Shared Services is authorized to develop and establish a merit increase pay system in accordance with the performance evaluation process under §
21-5-1001
et seq. for employees of all state agencies, boards, and commissions covered by the Uniform Classification and Compensation Act, §
21-5-201
et seq.
(2)
(A)
The merit increase pay system shall be reviewed by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.
(B)
If the department amends the merit increase pay system following its review under subdivision (a)(2)(A) of this section, it shall submit the amended merit increase pay system for approval by the Legislative Council or the Joint Budget Committee in the same manner provided by subdivision (a)(2)(A) of this section.
(C)
The department shall not implement an amended merit increase pay system prior to the approval of the amended merit increase pay system under subdivision (a)(2)(B) of this section.
(b)
For the purpose of this subchapter, "merit increase pay system" means a merit-based pay system that incorporates pay and performance evaluation standards according to §
21-5-1001
et seq. and establishes criteria for payments for employees who meet requisite performance categories.
(c)
Merit payments may be awarded to employees who satisfy performance evaluation-based criteria developed by agencies in accordance with procedures and policies developed and approved by the Office of Personnel Management after review by the Legislative Council.
(d)
A merit payment under this section may be awarded to an employee whose salary is equal to or above the maximum pay level for the grade assigned to the classification, resulting in the salary for the employee exceeding the maximum pay level for the grade assigned to the classification, if the merit payment resulting in an increase above the maximum pay level is approved by the:
(1)
Legislative Council; or
(2)
Joint Budget Committee, if the General Assembly is in regular, fiscal, or extraordinary session.
(e)
(1)
It is both necessary and appropriate that the General Assembly maintain oversight by requiring prior approval of the Legislative Council or, if the General Assembly is in regular session, fiscal session, or extraordinary session, the Joint Budget Committee, as provided by this section.
(2)
(A)
The requirement of approval by the Legislative Council or the Joint Budget Committee under this section is not a severable part of this section.
(B)
If the requirement of approval by the Legislative Council or the Joint Budget Committee under this section is found unconstitutional by a court of competent jurisdiction, the entire section is void.
Amended by Act 2024, No. 172,§ 6, eff. 7/1/2024.
Amended by Act 2023, No. 886,§ 3, eff. 7/1/2023.
Amended by Act 2019, No. 910,§ 6149, eff. 7/1/2019.
Amended by Act 2017, No. 365,§ 27, eff. 7/1/2017.
Amended by Act 2013, No. 1321,§ 6, eff. 7/1/2013.
Acts 1999, No. 1061, § 1; 2001, No. 1461, § 12; 2003 (1st Ex. Sess.), No. 22, § 4; 2007, No. 289, § 1; 2007, No. 799, § 2; 2009, No. 688, § 14; 2011, No. 1017, § 10.