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Reason Code Definitions and Restrictions for State Agencies FY 2018–2019

Salary Action Codes Used by State Agencies

(Effective date can be any date)

020 – Promotion of a full-time classified employee to a higher minimum salary group with an increase of at least $30 per month if on Schedule A or an increase of at least 3.4 percent if on Schedule B

Use this reason code when a classified employee in a state agency changes from one classified position to another classified position in a salary group with a higher minimum salary rate, has higher qualifications such as greater skill or longer experience, and involves a higher level of responsibility.

If the new salary is on Schedule… a full-time employee shall…
A receive a salary rate of at least $30 per month higher than the employee’s salary rate before the promotion or the minimum of the new group, whichever is greater.
B receive a salary rate of at least 3.4 percent higher than the employee’s salary rate before the promotion or the minimum rate of the new group, whichever is greater.
C receive the higher salary rate in the schedule for that group.

An employee on salary Schedule A or B may receive a rate up to and including the maximum of the new salary group. The new salary may not exceed the maximum of the new group.

In all cases, the job classification will change.

021 – Demotion of a full-time classified employee to a lower minimum salary group with a decrease of at least $30 per month if on Schedule A or a decrease of at least 3.4 percent if on Schedule B

Use this reason code when a classified employee in a state agency changes from one classified position to another classified position in a salary group with a lower minimum salary rate.

If the new salary is on Schedule… a full-time employee shall…
A receive a salary rate of at least $30 per month lower than the employee’s salary rate before the demotion.
B receive a salary rate of at least 3.4 percent lower than the employee’s salary rate before the demotion.
C receive a rate in the lower minimum salary group; it must be a rate set in the schedule for that group.

In all cases, the new salary may not exceed the maximum salary rate of the new group.

023 – Change of classified employee to a lower minimum salary group in lieu of reduction in force

Use this reason code when a classified employee accepts a position in a classification in a lower minimum salary group within a state agency in lieu of a layoff under a reduction in force. When using Reason Code 023, the agency is not required to reduce the employee’s salary. However, no increase may be given.

In all cases, the job classification will change.

A23 – Change of classified employee if the employee is selected for another position in a classification in a lower salary group as a result of applying for the position

Use this reason code when a classified employee is selected for a position in a classification in a lower salary group within a state agency as a result of applying for the position. When using Reason Code A23, the agency is not required to reduce the employee’s salary, and the employee’s new rate may be at any level on the new lower salary group. The new rate may not exceed the maximum of the new salary group.

In all cases, the job classification will change.

025 – Merit increase for classified employees on salary Schedules A and B

Use this reason code when a full-time classified employee on salary Schedule A or B receives a merit increase. A merit increase is defined as an increase to salary of at least $30 per month on salary Schedule A, or an increase to salary on salary Schedule B within the same salary group. There is no limit on the amount of the increase as long as the new salary remains within the salary group. The agency may grant a merit increase to employees whose job performance and productivity are consistently above that normally expected or required.

The law requires each agency to apply merit increases throughout the range of classified salary groups used by that agency. To qualify for a merit increase, a classified employee must have been employed continuously by the state agency for at least six months prior to the effective date of the merit increase and at least six months must have elapsed since the employee’s last promotion, enhanced compensation payment, emergency one-time merit payment, one-time merit payment or merit increase at the agency. Agency criteria for granting merit increases must include specific criteria and documentation to substantiate the granting of a merit increase.

A full calendar month of leave without pay (LWOP), with the exception of military LWOP, will not count toward the requirement for six continuous months of employment. An employee who was moved from a line-item exempt position to a classified position by the agency will have to wait six months after the date the employee became classified before he or she is eligible for a merit increase.

Employees in specific job classification codes who are eligible for salary-level adjustments (Reason Code 034) at the Texas Department of Criminal Justice (TDCJ) or the Texas Juvenile Justice Department (TJJD) are not eligible for merit increases.

A25 – Targeted Pay Raise Authorized for a Step/Rate Adjustment within the Same Salary Group Effective ONLY 9-1-2015 and Authorized ONLY for agencies 537 and 539

Authorized agencies use this reason code to adjust the salary effective 9-1-2015 ONLY for eligible employees as approved by the 84th Legislature, Regular Session.

Agency 537 is authorized to use A25 for the following job classifications (4410, 4411, 4412, 4413, 4414, 4416, 4417, 4418, 4420, 4421, 4422, 4423, 4451, 4452, 5151, 5152, 5153 and 5154) with an effective date of 9-1-2015.

Agency 539 is authorized to use A25 for the following job classifications (4410, 4411, 4412, 4413, 4414, 4416, 4417, 4418, 4420, 4421, 4422, 4423, 4451, 4452, 5121, 5122, 5123 and 5124) with an effective date of 9-1-2015.

The use of this reason code (A25) does not impact eligibility for a merit increase (025) or a one-time merit increase (1XM).

027 – Salary/rate reduction for disciplinary reasons for classified employees

Use this reason code to record a salary reduction for disciplinary reasons. The administrative head of a state agency may reduce an employee’s salary for disciplinary reasons to a lower rate in the employee’s designated salary group but not lower than the minimum rate, if justified by the employee’s performance. An employee’s salary may be reduced for disciplinary reasons while in temporary assignment.

The job classification must not change.

028 – Salary/rate restoration when employee’s performance improves

Use this reason code to record the restoration of a classified employee’s pay as the employee’s performance improves following a salary/rate reduction for disciplinary reasons. As performance improves, the administrative head of the agency may completely or incrementally restore the employee’s pay to any rate that does not exceed the rate prior to the salary/rate reduction.

The job classification must not change.

029 – Salary, classification code and/or work hours change for line-item exempt and unclassified employees

Use this reason code to record a change in salary, a change in job classification code or a change in work hours for line-item exempt and unclassified employees. The salary rate for line-item exempt employees may not exceed the maximum amount established in the GAA for line-item exempt employees.

030 – Status change for employee moving from a line-item exempt or unclassified position to a classified position

Use this reason code to record an employee moving from a line-item exempt or unclassified position to a classified position on salary Schedule A or B.

The following applies only to line-item exempt employees moving to a classified position on salary Schedule A or B: If the previous position is a line-item exempt position, then the new salary must equal the salary before the change unless the old salary exceeds the maximum in the new salary group. If the old salary exceeds the maximum of the new group, then the new salary will be the maximum of the new group. If the previous position is a line-item exempt position, the employee cannot be moved to a salary group with a higher minimum than the employee’s current salary.

The following only applies to unclassified employees moving to a classified position on salary Schedule A or B: If the previous position is an unclassified position, the new salary must equal the salary before the change unless the old salary exceeds the maximum or is below the minimum in the new salary group. If the old salary exceeds the maximum of the new group, then the new salary will be the maximum of the new group. If the old salary is below the minimum of the new salary group, then the new salary will be the minimum of the new group.

A formerly line-item exempt employee is not eligible to receive an emergency one-time merit payment, one-time merit payment or merit increase until the employee has been in a classified position for at least six months. This provision does not apply to employees moving from an unclassified to a classified position.

031 – Status change for employee moving from a classified position to a line-item exempt or unclassified position

Use this reason code to record a change when an employee moves from a classified position to a line-item exempt or an unclassified position. If an employee is moving to a line-item exempt position, the salary may not exceed the not-to-exceed amount for the line-item position established in the GAA.

034 – Salary level adjustment for classified employee in Salary Schedule A or B (Agency must have specific GAA authority)

Use this reason code to record a change in salary rate for specified employees of the:

  • Office of the Attorney General (OAG)
  • Texas Department of Aging and Disability Services (DADS)
  • Texas Juvenile Justice Department (TJJD)
  • Texas Department of Criminal Justice (TDCJ)

OAG may adjust the salaries of the classified employees in the Assistant Attorney General series to rates within the designated salary group for the purpose of providing a cost of living adjustment for Assistant Attorneys General.

TJJD may adjust the salaries of the classified employees in the Juvenile Correctional Officers series to rates within the designated salary group for the purpose of recruiting, employing and retaining career juvenile correctional personnel.

TDCJ may provide salary adjustments for correctional officers and ranking staff, laundry and food service managers, and parole officers.

The adjustments authorized with this reason code do not change the salary group or schedule. They only allow for a rate adjustment within the appropriate salary group.

Merit raises and one-time merit payments are not allowed for those TJJD and TDCJ personnel eligible for the salary level adjustments within the career-ladder system.

035 – One-time merit payment for classified employees

Use this reason code to record a one-time merit payment for a classified employee. The one-time merit payment authority allows a one-time lump sum amount to be paid in a single payment to an employee whose job performance and productivity is consistently above that normally expected or required. There is no limit on a one-time merit payment amount.

To qualify for a one-time merit payment, a classified employee must have been employed continuously by the state agency for at least six months prior to the effective date of the one-time merit payment and at least six months must have elapsed since the employee’s last promotion, enhanced compensation payment, emergency one-time merit payment, one-time merit payment or merit increase at the agency. Agency criteria for granting one-time merit payments must include specific criteria and documentation to substantiate the granting of a one-time merit payment. Agencies are required to apply one-time merit payments throughout the range of classified salary groups used by each state agency.

A full calendar month of leave without pay (LWOP), with the exception of military LWOP, will not count toward the requirement for six continuous months of employment. An employee who was moved from a line-item exempt position to a classified position by the agency must wait six months after the date the employee became classified before he or she is eligible for a one-time merit payment.

Employees in specific job classification codes who are eligible for salary-level adjustments (Reason Code 034) at TDCJ or at TJJD are not eligible for one-time merit payments.

The effective date of this reason code is the pay period start date for the one-time merit payment.

036 – Performance reward for classified employees of eligible agencies (Not used effective Sept. 1, 2013)

This reason code was used to record a performance reward for classified employees. This type of reward was also called an enhanced compensation payment and was authorized when an agency achieved or exceeded targets for 80 percent of the established key performance measures for a fiscal year. An agency that achieved or exceeded targets for fiscal 2011 was eligible to award the performance reward/enhanced compensation payment in fiscal 2012. The authority to grant this award was removed by the 83rd Legislature.

Effective Sept. 1, 2013, the authority for awarding performance rewards/enhanced compensation awards was removed from the General Appropriations Act and the reason code will no longer be used.

039 – Emergency one-time merit payment

Use this reason code to record a one-time merit payment awarded due to the employee’s performance during a natural disaster or other extraordinary circumstance.

There is no limit on the amount of an emergency one-time merit (EXM) payment. However, the administrative head of the agency must provide written documentation to the Comptroller’s office prior to authorizing payment for an employee. The documentation must define the natural disaster or extraordinary circumstance during which the employee showed meritorious performance and include the employee’s name and Social Security number, and amount rewarded. The agency must notify the Comptroller’s office once the payment has been made.

To qualify for an EXM, a classified employee must have been employed at a state agency in a classified position for at least six months prior to the effective date of the EXM. Prior merit salary increases (025), one-time merit payments (035), promotions (020), or enhanced compensation [i.e. performance rewards] (036) do not impact the eligibility for an EXM. However, an EXM does impact eligibility for a regular one-time merit payment or a merit salary increase.

The effective date of this reason code is the pay period start date for the emergency one time merit payment.

040 – Equity adjustment for classified employees

Use this reason code to record a salary increase awarded to maintain desirable salary relationships between and among agency employees or between agency employees and employees in similar positions in relevant job markets. The increase may be any amount within the same salary group. There is no limit on the amount of the increase as long as the new salary remains within the range of the salary group and the job classification does not change.

An equity adjustment may be given to a classified employee who has been in the current job classification for at least six months with satisfactory job performance. An employee who was moved from a line-item exempt position to a classified position by the agency will have to wait six months after the date the employee became classified before he or she is eligible for an equity adjustment. An employee may only receive one equity adjustment per fiscal year.

The law requires state agencies to establish rules for the equity adjustment including procedures that will be used to review and analyze salary relationships.

046 – Lateral move to a classification in a salary group with the same minimum salary with or without an increase in pay

Use this reason code to record a lateral move to a different job classification in a salary group with the same minimum salary. This may occur when an employee is selected for a job in the same pay group from an internal/external posting.

In each case, the job classification must change.

Salary may increase, decrease or remain the same. If the salary increases, it may increase by up to 3.4 percent above the previous salary. If the salary decreases, it may not decrease below the minimum of the salary group.

047– Governor’s not-to-exceed increase for certain line-item exempt employees

Use this reason code to report or record an increase for certain line item exempt employees to a rate set by the governor in an amount not to exceed the maximum salary but not less than the minimum salary for the appropriate group listed in the GAA. The line-item exempt positions included in this authority are:

Position Office
Adjutant General Texas Military Department
Executive Director Bond Review Board
Commissioner Texas Emergency Services Retirement System
Executive Commissioner Health and Human Services Commission
Public Counsel Office of Public Insurance Counsel
Public Counsel Office of Public Utility Counsel
Executive Director Office of State-Federal Relations
Commissioners (3) Public Utility Commission of Texas
Secretary of State Secretary of State
Chief Administrative Law Judge State Office of Administrative Hearings
Commissioners (3) Texas Commission on Environmental Quality
Parole Board Members (6) Texas Department of Criminal Justice
Presiding Officer, Texas Board of Pardons and Paroles Texas Department of Criminal Justice
Executive Director Texas Department of Housing and Community Affairs
Commissioner of Insurance Texas Department of Insurance
Commissioner of Workers’ Compensation Texas Department of Insurance
Commissioner of Education Texas Education Agency
Commission Chair Texas Workforce Commission
Commissioners (2) Texas Workforce Commission

048 – Language interpreter services pay

(For use by Texas Department of State Health Services [DSHS], Texas Department of Aging and Disability Services [DADS] and Texas Workforce Commission [TWC] only)

DSHS and DADS use this reason code to compensate classified employees for providing interpretation services to consumers whose primary language is not English. The agencies may increase the salary of classified employees by an amount equal to an increase of at least $30 per month for employees on salary Schedule A or 3.25 percent for employees on salary Schedule B, as long as the resulting salary does not exceed the rate designated as the maximum rate for the applicable salary group. The increase may be granted only for the regular provision of interpreter services. When these services are, for whatever reason, no longer provided by the employee or when the services are no longer needed, the salary adjustment shall be removed and the rate is returned to the amount before the increase. The authorization also applies to employees who provide interpretation services in American Sign Language.

049 – Salary-level adjustment for certain Schedule C employees

Use this reason code to adjust an employee to a higher step in Schedule C for groups C3, C4, C5, C6, C7 and C8. It allows a change in salary or step if an employee has met one of the levels of years of service specified on Schedule C. If the change in step includes a salary increase, the employee is entitled to the higher rate of pay.

Each agency using Schedule C is authorized to determine the specific criteria required for an employee to move from one level to another.