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Texas Payroll/Personnel Resource

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Salary Adjustments for State Agency Employees
Demotions (Reason Codes 021, 023, A23)

A demotion is a change to a classified employee’s duty assignment to a job classification in a salary group with a lower minimum salary rate.

Although by definition a demotion means moving to a lower minimum salary rate, it does not always mean a decrease in the employee’s salary. Depending on the reason for the demotion, the salary of the employee can:

  • Stay the same (reason codes 023, A23).
  • Decrease (reason codes 021, 023, A23).
  • Increase (reason code A23 only).

If an Agency Demotes an Employee (Reason Code 021)

If an agency demotes an employee, the agency must reduce the employee’s salary.

For Salary Schedule A employees: Reduction must be to a lower minimum salary group and at least $30 per month lower than the pre-demotion salary.

For Salary Schedule B employees: Employee must be moved to a lower minimum salary group and receive a salary decrease of at least 3.4 percent.

If an Employee Moved to a Lower Salary Group in Lieu of a Reduction in Force (Reason Code 023)

In this case, the agency is not required to reduce the employee’s salary as the employee accepted a position in a lower salary group rather than lose his or her job.

Example: An HR Specialist II/job class 1731/salary group B17, making $42,000.00 annual salary, accepts an Accountant I position in job class 1012/salary group B15 in lieu of being laid off. The salary range for the new position is $35,976 to $55,045. As the employee’s old salary is within this new lower salary group range, the agency could opt to leave the employee’s salary intact.

The agency may also choose to reduce the salary to any rate within the new salary range, but the reduction is not required. The salary could not be increased with this action, even though a higher salary is also within the new salary range.

If an Employee Accepts a Position Classified in a Lower Salary Group Because He or She Applied for the Posted Position (Reason Code A23)

In this case, the agency is not required to reduce the employee’s salary.

Example: An employee currently classified as a Program Specialist V/job class 1574/salary group B21 applies and is selected for a Planner II/job class 0517/salary group B20. If the employee’s current salary is within the range of the new lower salary group, the agency does not have to reduce the salary.

The agency may decide to increase the employee’s salary to any salary within the new range, or leave the salary the same.

Timeframe

Demotions can occur at any time during the month.

While there is no specific timeframe required between demotions, an employee cannot receive a demotion in any of the following situations:

  • While on leave without pay (LWOP).
  • While in a temporary assignment.
  • When his or her salary has been reduced for disciplinary reasons.

    Important Note: Agencies should be aware there are salary groups with the same minimum salaries across the salary schedules. For example, an A14 may have the same minimum salary as a B14. Though the position is in a different salary schedule, a move between these two salary groups is not a demotion as the minimum salary is the same for both positions.

Sources

Texas Government Code, Sections 659.251-259, 2101.035 and 2101.037; General Appropriations Act, Article V, Rider 7 – Texas Department of Criminal Justice, Rider 21 – Texas Juvenile Justice Department, Article IX, Part 2, Article IX, Parts 3.01-3.04 and 3.07; Texas Administrative Code, Section 5.41.