Senate Bill S7841

                                 
BILL NUMBER: S7841

SPONSOR: JACKSON
 
TITLE OF BILL:

An act directing the director of the budget to amend the state's over-
time compensation eligibility policy to include all positions allocated
up to and including salary grade 23

 
PURPOSE:

To allow the State of New York to extend overtime payment to deserving
State employees who through no fault of their own are presently ineligi-
ble for this benefit

 
SUMMARY OF PROVISIONS:

Section 1 directs the director of the budget to amend the state's over-
time compensation eligibility policy as specified in Budget Bulletin
G-1024.

Section 2 establishes the act's effective date.
              

 
JUSTIFICATION:

The State of New York has employed a "bright line test" for employee
overtime pay eligibility. This has been rigorously applied by the State
since July 1986 with few exceptions pursuant to the Division of the
Budget's Budget Bulletin G-1024. Specifically, those employees above
Salary Grade 22 are typically ineligible to receive overtime pay. The
assumptions behind the 1986 overtime policy have dramatically changed in
the last 39 years. Accordingly, the overtime policy should also change
to reflect current realities. In 1986, the assumption was that positions
at and above Salary Grade 23 were supervisory or, if not supervisory,
held greater authority. That assumption has changed for several reasons.
First, with various pay equity studies and other ad hoc occupational
reviews, titles have been reallocated to higher Salary Grade levels. In
turn, supervisory responsibilities for professional titles in State
service have been reassigned to higher salary grade levels. Second,
State agencies have, under recruitment difficulty, filled higher graded
positions while allowing lower graded positions to remain vacant or be
reclassified or eliminated.

By default, positions that were once supervisory in nature may not now
be required to supervise or exercise only nominal supervisory responsi-
bility. Third, the assumption that Salary Grade 23 is the general mark
of supervision or higher authority has eroded through the State's clas-
sification and compensation plan; a mandate for a Salary Grade 23 posi-
tion to "supervise" has often been replaced by terms such as "may super-
vise" or "advanced performance level."  Accordingly, "Grade Inflation,"
either intentional or non-intentional, has impacted the assumptions
behind the State's 39-year-old overtime payment policy.

This modest change will ensure that additional employees (for example MC
Employees at Grade 23) will rightly become eligible to receive overtime
compensation for work beyond 40 hours per week in keeping with the spir-
it and intent of the State's interpretation of the Fair Labor Standards
Act (FLSA).

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

N/A

 
EFFECTIVE DATE:
This act shall take effect immediately.