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State Accounting and Budgetary Procedures 

Title 19 | Chapter 4 | Subchapter 16

SUBCHAPTER 16 - SALARIES AND PAYROLL DISBURSEMENT

19-4-1601. Regular salary procedures and restrictions.

 (a) This section shall be known as and may be cited as the "Regular Salary Procedures and Restrictions Act" of Arkansas. (b) The Arkansas Constitution, Article 16, § 4, provides that the General Assembly shall fix the salaries and fees of all officers in the state, that no greater salary or fee than that fixed by the law shall be paid to any officer, employee, or other person, or at any rate other than par value, and that the number and salaries of the clerks and employees of the different departments of the state shall be fixed by law. Therefore, the following provisions shall be applicable to all authorized regular salary positions in appropriation acts unless specific exception is made otherwise by law:

(1) For any position authorized by the General Assembly of the State of Arkansas for the benefit of any agency or program for which the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq., are to be applicable, it is declared to be the intent of the General Assembly that the uniform act shall govern with respect to:

(A) The entrance salary step;

(B) The frequency with which step increases may be granted; and

(C) The maximum annual salary that may be paid for the grade assigned each employee under the provisions of these statutes;

(2) For any position authorized by the General Assembly for the benefit of any agency or program for which a maximum annual salary is set out in dollars, it is the intent of the General Assembly that the position is to be paid at a rate of pay not to exceed the maximum established for the position during any one (1) fiscal year;

(3)(A) For all positions authorized by the General Assembly for any agency or program, it is the intent of the General Assembly that in determining the annual salaries of these employees, the administrative head of the agency or program shall take into consideration ability of the employee and length of service.

(B) It is not the intent of the General Assembly that the maximum annual salaries as authorized in the appropriation act, or step increases established for the various grades under the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq., be paid unless the qualifications are complied with and then only within the limitations of the appropriations and funds available for this purpose.

(C) No employee authorized by the General Assembly shall receive from appropriated or cash funds, either from state, federal, or other sources, compensation in an amount greater than that established by the General Assembly as the maximum annual salary for the employee unless specific provisions are made therefor by law;

(4) No employee of the State of Arkansas shall be paid any additional cash allowances, including, but not limited to, uniform allowance, clothing allowance, motor vehicle depreciation or replacement allowance, fixed transportation allowance, and meals and lodging allowance, other than for reimbursement for costs actually incurred by the employee unless the allowances are specifically set out by law as to eligibility of employees to receive allowance and the maximum amount of the allowances are established by law for each employee or for each class of employee eligible to receive such allowances.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349.

 R1-19-4-1601 Payroll Responsibility and Authority

The Department of Finance and Administration-Office of Personnel Management (DFA-OPM) has the overall responsibility for management of the State’s payroll. (ACA §21-5-207) DFA-OPM-Payroll Section is responsible for executing payrolls, paying human resource vendors, reporting taxes and associated taxable income to federal and state tax authorities and providing technical assistance for agencies that use Arkansas Administrative Statewide Information System (AASIS).

User agencies are responsible for creating and updating financial, human resource and employee benefits master data for AASIS. DFA-OPM-Payroll Section is responsible for creating and updating human resource master data for AASIS service bureau agencies. A tutorial on payroll can be accessed at the following web site: http://www.dfa.arkansas.gov/offices/informationServices/aasis/Pages/default.aspx

The DFA-OPM Policies and Procedures Manual can be accessed at: http://www.dfa.arkansas.gov/offices/personnelManagement/policy/Pages/default.aspx

Bi-Weekly Pay Periods Not Within a Single Fiscal Year

In the event that a pay period for regular salaries and extra help commences in the closing period of one fiscal year and extends into the following year, and the pay period is bi-weekly, then the payment of such obligation may be made in whole from the appropriation for either fiscal year as determined by the Chief Fiscal Officer of the State. However, both appropriation and funds must be available in the fiscal year against which the payroll is to be processed. (ACA §19-4-702)

R2-19-4-1601 Year-end Reporting for the Comprehensive Annual Financial Report

Payroll expense incurred but unrecorded at year-end is termed "accrued payroll expense."Accrued payroll expense is a liability and expense that will need to be recorded at year-end during the closing process by each agency. Salary and retirement information will be provided to each agency by the Department of Finance and Administration-Office of Accounting at year end for verification. This information will provide the proper balance for the accrued payroll expense account. Each agency will be required to enter the journal entries to adjust this account as follows:

Debit 5010001100 NBR Personal Services (current year accrued salary expense)

Debit 5010001600 NBR Employee Benefits (current year accrued retirement and payroll tax expense)

Credit 2115006000 Accrued Salary & Benefits (to record the year-end accrual)

 

R3-19-4-1601 Payments for Personal Services not Considered Payroll Items

Contract Labor

Occasionally, an agency will undertake special programs or be subjected to seasonal fluctuations that temporarily increase the workload beyond the capabilities of the agency’s regular staff. Situations of this nature may necessitate the hiring of "contract labor"to be paid for out of the Operating Expenses line item of the agency’s appropriation. Contract labor is not to be paid for out of regular salaries or extra help line items because the contract labor is employed by and paid by the contract labor service and not the user agency. The user agency will be billed for the services by the contract labor service. Labor of this type must be considered temporary and infrequently needed. Contract labor is paid from commitment item 02-Operating Expenses.

In order to prevent the circumvention or violation of the law or its intent, it has been determined that no agency subject to this act may employ contract labor for a period longer than six consecutive weeks or 240 hours per calendar quarter. If help is needed more often, the agency must request additional positions and employ full-time or extra help personnel to be paid in accordance with §ACA 21-5-101 and §ACA 21-5-209.

 19-4-1602. Payroll deductions.

 (a) Deductions from the payrolls of state employees, both regular and extra help, are authorized only for the following purposes: (1) Withholding taxes;

(2) Social security contributions;

(3) Contributions to any state retirement system or approved plan of deferred compensation;

(4)(A) Group hospital, medical, and life insurance deductions.

(B) However, any payroll deductions through the Arkansas state mechanized payroll system for state employees for coverages other than the state-authorized plan shall be approved by the State and Public School Life and Health Insurance Board;

(5) Payments to state employees' credit unions;

(6) Value of maintenance perquisites;

(7) Payment of union dues, when requested in writing by state employees;

(8) Purchase of United States Government savings bonds;

(9) Arkansas State Employees Association dues, when requested in writing by those state employees;

(10) Fees for participation in the State Employees Benefit Corporation, when requested in writing by those state employees;

(11) Contributions to the major federated fund-raising organization, when authorized by those state employees;

(12) Arkansas State Police Association dues, when authorized in writing by those state employees;

(13) Fraternal Order of Police dues, when requested in writing by those state employees;

(14) Central Arkansas State Troopers Coalition dues, when authorized in writing by those state employees;

(15) Arkansas Rehabilitation Association dues, when authorized in writing by those state employees;

(16) Correctional Peace Officers Foundation dues, when authorized in writing by those state employees;

(17) Department of Correction Employees Association dues, when requested in writing by those employees;

(18) American Association of University Professors dues, when requested in writing by those employees; and

(19) Arkansas Association of Correctional Employees Trust dues, when requested in writing by those employees;

(20) Department of Correction Bus Pool dues, when requested in writing by those employees: and

(21) For such other purposes as are specifically authorized by law but not enumerated in this subsection.

(b) If a state employee authorizes in writing the payroll deduction of dues of any union or professional association representing the employee, the agency shall deduct the dues from the payroll of the employee and remit the dues to the organization.

(c) Deductions authorized by this section shall be made in compliance with rules, regulations, and procedures established by the Chief Fiscal Officer of the State.

History. Acts 1973, No. 876, § 23; 1975, No. 881, § 1; 1981, No. 251, § 1; 1983, No. 164, § 1; A.S.A. 1947, § 13-349; Acts 1987, No. 18, § 1; 1987, No. 646, § 3; 1989, No. 506, § 1; 1995, No. 1122, § 1; 1997, No. 747, § 1; 2001, No. 166, § 1; 2003, No. 1795, § 1; 2009, No. 368, § 1.

 R1-19-4-1602 State Insurance Contribution Payments

Payments by agencies and institutions participating in benefits offered by DFA-Employee Benefits Division (DFA-EBD) shall be made payable to the DFA-EBD vendor set up for voluntary products for state insurance contribution payments (currently vendor number 9990386 in AASIS). Invoices entered into AASIS with a payment method of "A"will be directly deposited into the State Employee Benefits Trust Fund Account by Automatic Clearing House transaction. Invoices with a payment method of "W"will produce a warrant, which should be delivered by hand or mailed to DFA-EBD. The payment will be processed and manually deposited in the State Employee Benefits Trust Fund Account. Payments not received by DFA-EBD by the due date will be subject to penalties and benefit termination.

Supportive Papers for State Contribution Payments

No supportive documents are normally required to be submitted with the state contribution payments; however, agencies that are paying a different amount for added extra help positions than the amount billed should submit a copy of the billing along with the changes/corrections to DFA-EBD. Any permanent budgeted position changes/corrections should be reported to the DFA-Office of Budget for future billings. It remains the agencies’ responsibility to retain all appropriate supporting documentation in their files for audit purposes.

Agencies participating in the DFA-Employee Benefits Division health and life insurance plans are required to enroll and maintain records for eligible employees. Employee benefit master data shall be maintained as required by Employee Benefits Division for the purposes of eligibility and employer matching contributions.

R2-19-4-1602 Retirement Contributions

Agencies participating in the Arkansas Public Employees Retirement System (APERS) are required to monitor regular and extra help hours for all positions to comply with employer retirement matching contribution requirements and balance Arkansas Public Employee Retirement monthly reports. Agencies are required to submit employee contributions and employer matching payments within 10 calendar days after each payroll processing date. Agencies shall receive pre-printed remittance forms from APERS and will be provided additional forms as requested. Generic remittance forms may be found at http://www.apers.org/employer.php for emergency use. Complete the agency name, payroll cycle and agency number when using these generic forms. Reporting instructions are available at http://www.apers.org/employer.php.

R3-19-4-1602 Deferred Compensation Plans

Authority

Arkansas Annotated Code 21-5-504 states:

"(a) The state or any county, city, town, or other political subdivision may agree, by contract, with any employee to defer, in whole or in part, any portion of that employee's future compensation to a deferred compensation program.

(b) (1) The administrator of the deferred compensation program may:

(A) Contract for, purchase, or otherwise procure annuity contracts for the deferred compensation program; and

(B) Through a trust or custodian, contract for, purchase, or otherwise procure fixed or variable life insurance contracts, mutual funds, pooled investment funds, or such other investment vehicles that comply with state and federal laws and which permit the deferral of compensation for income tax purposes and retirement savings purposes.

(2) If an annuity or life insurance contract is purchased, then it must be purchased from an insurance company licensed to contract business in this state, and any insurance agent selling such contracts must be licensed by this state."

Purpose

The purpose of the Arkansas Diamond Deferred Compensation Plan ("Plan"), formerly the State of Arkansas Deferred Compensation Plan, is to provide employees and independent contractors of the State of Arkansas and its political subdivisions with a convenient way to save on a regular long-term voluntary basis to provide supplemental income for their retirement. The Plan is intended to satisfy the requirements for an "eligible deferred compensation plan"under Section 457 of the Internal Revenue Code of 1986, as amended, established and maintained by and for the State of Arkansas, its political subdivisions and any agency or instrumentality of the State of Arkansas or its political subdivisions. All amounts of compensation deferred under the Plan and all income attributable thereto shall be held for the exclusive benefit of participants and their beneficiaries and alternate payees.

In order to make deferral contributions to the Plan, an employee or independent contractor must enter into a deferral agreement, which shall become effective as soon as administratively feasible after the deferral agreement is entered into by the employee or independent contractor.

The operation and administration of the Plan shall be the responsibility of the Executive Director, Employee Benefits Division, Department of Finance and Administration of the State of Arkansas, or the person or persons designated by the Executive Director to act on his or her behalf.

The Executive Director shall, in his or her sole and complete discretion, determine both the financial organizations, which provide investment funds to the Plan, and each individual investment fund offered as an investment option under the Plan. Investment funds may include annuity contracts, fixed or variable life insurance contracts, mutual funds, pooled investment funds or such other investment vehicles that comply with Arkansas and federal laws and which permit the deferral of compensation for income tax purposes when held in a custodial account for the Plan.

TERM DEFINITIONS

Employee – Any employee who is employed by an Employer and is characterized as a common law employee under Arkansas law.

Employer – The State of Arkansas and any Participating Employer.

Independent Contractor – An individual who performs services for an Employer as an independent contractor.

Participant – An individual who is or who has previously deferred compensation under the Plan pursuant to a deferral agreement, and who has not received a distribution of all of his or her accounts under the Plan.

Participating Employer – Any political subdivision of the State and any agency or instrumentality of the State or a political subdivision of the State, the governing body of which has adopted the Plan by appropriate resolution or other legal action with the consent of the Executive Director, and in any case where a resolution or other legal action of such governing body is required by law to be approved by any other body or officer, with the written approval of such other body or officer.

Plan Administrator – Citistreet (Third Party Administrator)

Plan Sponsor – Employee Benefits Division

Regulations

Regulations have been established as broad guidelines for state employees’ eligibility to participate in the Arkansas Diamond Deferred Compensation Plan. The Employee Benefits Division (EBD) of the Department of Finance and Administration (DFA) has sponsorship oversight of this plan. As such, EBD may enter into a contract or contracts with Plan Administrators to conduct the daily work of The Plan and also hire a consultant as an advisor in these matters.

EBD shall require that the Plan Administrator obtain official permission from each employee participating in the "Plan"to authorize salary reduction and contributions into the "Plan"and that the Plan Administrator be responsible for compliance with the Plan Document (on file at EBD) and state and federal regulations.

Regarding the Employee’s Opportunities to Participate in Plans:

All state employees (including physicians who receive state Medicaid funds) are to have equal opportunity to participate in any deferred compensation plan and any options or benefits related to such plan as has been approved. Any employee hired after the "Plan"is effective is to be informed of the "Plan"at the onset of their employment.

EBD is responsible for seeing that a proper, unbiased, educational program is made available to eligible employees to inform them of the pertinent information relating to the "Plan"or plans in which they may participate. This educational program may take the form of an instructional seminar for all eligible employees, a direct mailing to all eligible employees or both. The seminar approach is recommended where practicable because it affords the employee the opportunity to ask questions and have direct contact with persons knowledgeable on the subject.

Regarding Control of Funds:

EBD acts as the Plan Sponsor to the Third Party vendor (Plan Administrator) that manages the funds allocable to any deferred compensation plan or plans in which state employees participate.

When a salary reduction agreement exists, the employee’s Federal and State Income Tax withholding will be computed on the net salary after the amount of the salary reduction is applied. The salary reduction will be deducted each payroll from the employee’s pay and paid to the third party vendor by the DFA-Office of Personnel Management-Payroll Systems. Records of such deductions are maintained on AASIS in the employee’s payroll result table. AASIS also maintains a record of the third party payment to the vendor.

Payment of contributions for investment in the "Plan"investment options on behalf of participating employees will be made promptly, preferably by secure electronic fund transfer (EFT).

Complete records of salary payments, salary reduction amounts and investment elections will be maintained. Federal and State taxable wages are reported annually in boxes one (1) and sixteen (16) of Internal Revenue Service W-2 forms. The amount of salary reduction for a deferred compensation "Plan"is reported in box twelve (12).

The Plan Administrator is responsible for making prompt payment of any benefits to which the employee or former employee is entitled under the terms of the contract. The Plan Administrator shall maintain complete and accurate records of such payments.

Any benefits forfeited by any state, county, city, town or other political subdivision employee under a deferred compensation agreement shall become the property of the unit of government for which the employee worked and shall be considered general revenues. (The likelihood of this is small, as the "Plan"requires participants to name a beneficiary to receive the account balance in the event of the participant’s death. If no beneficiary is on file, plan assets will become part of the deceased’s estate.)

R4-19-4-1602 Workers’ Compensation Premium Tax

The Workers’ Compensation Premium Tax was established to provide funding for the Workers’ Compensation Commission. Such tax is required to be paid by all insurance carriers, self insurers and public employers not obtaining Workers’ Compensation Insurance from an insurance carrier. On or before March 1st of each year the Workers’ Compensation Commission shall certify the rate of taxation, not to exceed 3%, for the preceding year to the Insurance Commissioner. The Insurance Commissioner shall notify the Insurance Department-Public Employee Claims Division of the rate of the tax. (ACA §11-9-306 (a-d), ACA §11-9-306 (e) (3)) Also refer to ACA§11-9-303 for limit on tax.

The tax calculation is based upon the following formula: Salaries for

Calendar Year

$100

x

Statewide Average Compensation

Rate as promulgated by the

National Council on Compensation

Insurance (NCC)

x

Tax Rate

The salaries within the formula are all taxable wages and salaries for the employees of the public entity including any non-cash taxable wage such as clothing and housing allowances. The NCCI Average Compensation rate is determined from the published rate in effect on January 1 of the year the tax is based. (ACA §11-9-305 (a)(2)(B))

After the "Computation of the Worker’s Compensation Premium Tax" Form, at http://www.awcc.state.ar.us/premium_tax/schedule_wc.pdf, is received from the Insurance Department-Public Employees Claims Division, the agency or institution shall prepare a warrant(s), check(s) or fund transfer as specified by the Insurance Department-Public Employees’ Claims Division for remittance. Payments must be made in accordance with salary appropriations received.

The tax filing must be completed on the form received from the Insurance Department-Public Employees Claims Division according to the instructions provided. The form, including certifying signature with all warrants and/or checks, shall be submitted to the Insurance Department-Public Employee Claims Division, 1200 West Third Street, Suite 201, Little Rock, AR 72201-1904. The tax payment is due to the Insurance Department-Public Employees Claims Division annually on or before April 1st. Any questions regarding payment shall be addressed to the Insurance Department-Public Employee Claims Division. (ACA §11-9-306(f)

PLEASE NOTE: Workers Compensation Premium Tax is based on the gross payroll and is considered an employment cost as a "Matching" payment. It is paid from Commitment Item 03 using AASIS GL account number 5010010000.

An agency or institution’s failure to pay the tax may result in decertification of the public employer from participation in the State Workers’ Compensation Program which would require that agency or institution obtain workers’ compensation coverage for its employees from the private insurance market for one full year. (ACA §11-9-305(b))

The Insurance Department-Public Employees Claims Division allocates the tax and remits the payments to the Workers’ Compensation Commission on or before April 1st of each year. (ACA §11-9-306 (e) (3))

Year-End Reporting

Because the Workers’ Compensation Premium Tax is paid on a calendar year basis and the State has a fiscal year, which differs from a calendar year, an estimate of the amount of premium tax to be paid for the period from January through June shall be recorded while completing fiscal year-end adjusting entries. The estimated tax due is calculated by the Workers’ Compensation Commission-Administrative Services. The amount of each agency’s estimate shall be communicated to the respective agency by the Workers’ Compensation Commission-Administrative Services on or before July 20th.

As with all year-end accrual entries, the accrual entry should be entered with a FBS1 Enter Accrual/Deferral Document Transaction with a reversal date the first day of the following fiscal year (07/01/20XX). Although the previous year’s accrual entry to record the estimated premium tax should have been reversed in the current year, the account should be reviewed to determine this occurred. If the previous year’s entry has not been reversed, the previous year entry should be reversed in the current period. The current year estimate should be recorded in non-budget relevant accounts in period 13 in funds that correspond to salary appropriations (See additional information and instructions in R2-19-4-506). The amounts recorded for each fund shall also be detailed on the Intergovernmental Transactions (Igt’s) – Receivables/Payables Form in the Year-End Disclosure Package. The journal entry should use the following accounts:

DR 5010001100 NBR – Personal Service – Payroll

CR 2110004100 Inter-agency Due to Other Agency

To record accrued workers compensation premium tax accrual.

19-4-1603. Procedures for position control.

(a) The Chief Fiscal Officer of the State shall establish procedures for exercising position control applicable to those state agencies subject to the provisions of § 21-5-201 et seq. (b) Exercising position control shall be interpreted as follows:

(1) The Chief Fiscal Officer of the State shall assign a position control number to each line-item position authorized for the applicable agencies;

(2) The Chief Fiscal Officer of the State shall establish reporting procedures so that agencies shall provide complete reports to the department on the use of all authorized positions; and

(3) The Chief Fiscal Officer of the State may restrict an agency's use of authorized positions only after finding that the agency is in financial difficulty and after invoking the fiscal controls provided in § 19-4-701 et seq. and § 19-4-1201 et seq.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349

19-4-1604. Salary from two agencies.

(a) Except as provided in subsection (b) of this section, no person drawing a salary or other compensation from one (1) state agency shall be paid salary or compensation, other than actual expenses, from any other state agency except upon written certification to and approval by the Chief Fiscal Officer of the State and by the head of each state agency, stating that: (1) The work performed for the other state agency does not interfere with the proper and required performance of the person's duties; and

(2) The combined salary payments from the state agencies do not exceed the larger maximum annual salary of the line-item position authorized for either state agency from which the employee is being paid.

(b)(1) This section does not prohibit a state employee from contracting to temporarily teach as adjunct faculty at a state-supported institution of higher education and thereby receive combined salary payments from the two (2) state agencies in excess of the larger maximum annual salary of the line-item position authorized from either state agency.

(2)(A) This section does not prohibit a part-time or job-share public defender from receiving compensation from an appellate court for work performed in connection with an indigent's appeal to the Supreme Court or the Court of Appeals.

(B) A person employed as full-time public defender who is not provided a state-funded secretary may also seek compensation for appellate work from the Supreme Court or the Court of Appeals.

(3) This section does not allow an employee to be on paid sick leave with a state agency and to be paid a salary or compensation from another state agency.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349; Acts 1995, No. 403, § 1; 2001, No. 1370, § 1; 2005, No. 1189, § 1.

19-4-1605. Payment from multiple funds.

In those instances where a state agency has approved line-items for salaries which are payable from more than one (1) fund, the Chief Fiscal Officer of the State shall be authorized to establish a paying account on his or her books and on the books of the Treasurer of State and Auditor of State from which all such salaries may be paid, with provisions for reimbursing the paying account by directing the transfer of the necessary funds and appropriations on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349.

19-4-1606. Review of payroll required.

(a) The Department of Finance and Administration shall review the payroll of state agencies covered by the provisions of the Uniform Classification and Compensation Act, § 21-5-201 et seq., with respect to the salaries of all employees of affected state agencies. This review shall determine the correctness of each payroll with respect to each position to assure compliance with the compensation plan and to assure that no position is being paid, during any payroll period, an amount greater than authorized in the compensation plan or the amount authorized for the position in the appropriation act applicable to the agency. (b) Any proposed rate of pay for an employee found not to be in accordance with the provisions of the compensation act and the appropriation act governing the agency shall be changed to the appropriate rate of pay by the state agency covered by the provisions of the compensation act before the department shall approve it for payment.

(c) No payment of salary of any employee of any state agency affected by the provisions of the compensation act shall be made without the certification of correctness by the department based on its review duties as provided in this section.

(d) The department is authorized to develop and implement rules and procedures to accomplish the purposes authorized in this section.

History. Acts 1969, No. 199, § 8; A.S.A. 1947, § 12-3208; Acts 2001, No. 1453, § 43. 

19-4-1607. Monthly, biweekly, weekly, and hourly salaries.

(a)(1) Except for those state agencies which operate principally on a scholastic year, or on a part-time basis, or where such salaries or personal services are specifically established for a period less than one (1) year, all salaries established by the General Assembly shall be considered to be a maximum amount to be paid for a twelve-month payroll period. No greater amount than that established for the maximum annual salary of any state official or employee shall be paid to such employee during any such twelve-month payroll period, nor shall more than one-twelfth (1/12) of such annual salary be paid to any such employee during any calendar month unless authorized in this subchapter. (2) The limitations set out in this section may be converted to biweekly or weekly increments of one-twenty-sixth (1/26) or one-fifty-second (1/52) of the maximum annual salary.

(3) For complying with federal requirements, upon approval of the Chief Fiscal Officer of the State, the maximum annual salaries may be converted to hourly rates of pay for positions established on the basis of twelve (12) months or less if authorized by law.

(b) The remuneration paid to an employee of the state may exceed the maximum annual salary as authorized by the General Assembly as follows, and the following shall not be construed as payment for services or as salary as contemplated by Arkansas Constitution, Article 16, § 4:

(1) Overtime payments as authorized by law;

(2) Payment of a lump sum to a terminating employee, to include lump sum payments of sick leave balances upon retirement as provided by law;

(3) Payment for overlapping pay periods at the end of a fiscal year as defined or authorized by law;

(4) Payment for the biweekly twenty-seven (27) pay periods;

(5) Payment for career service recognition as authorized by law;

(6) Payment for career ladder incentive program bonus, as authorized by law; and

(7) Payment in accordance with special language salary provisions in individual agency appropriation acts.

History. Acts 1973, No. 876, § 23; 1975, No. 980, § 1; 1980 (1st Ex. Sess.), No. 36, § 1; 1980 (1st Ex. Sess.), No. 62, § 1; 1985, No. 637, § 1; A.S.A. 1947, § 13-349; Acts 2001, No. 1453, §44

19-4-1608. Personal services less than 12 months.

In the event an appropriation is made for the payment of personal services, where it has been established by law on the basis of a scholastic year or for some other period less than twelve (12) months, then any person so employed may be paid from bank funds for the remainder of the year if his services are required by the state agency.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349.

19-4-1609. State-supported institutions of higher learning.

(a)(1) Pursuant to administrative procedures established by the Chief Fiscal Officer of the State, each state-supported institution of higher learning may request a salary and personal services matching or a maintenance and general operations expense disbursement procedure, or both. This procedure shall be requested, in writing from the executive head, communicated to the Chief Fiscal Officer of the State by which, effective at a date in accordance with the request, each payroll for all its salaries payable to employees, or a maintenance and general operations expense of the institution and personal services matching for employees of the institution, or both, may be disbursed by the institution and paid from state agency bank funds of the institution, subject to reimbursement and correction of reporting as provided in this section. (2)(A) The Chief Fiscal Officer of the State may approve such salary and personal services matching, or a maintenance and general operations expense disbursement procedure, or both, for such reimbursement if he determines that each institution has complied with all administrative procedures established by the Chief Fiscal Officer of the State.

(B)(i) The Chief Fiscal Officer of the State may revoke any such approval by transmitting a thirty-day notice to the executive head of the institution when the Chief Fiscal Officer of the State finds that internal administrative procedures and controls of the institution are not adequate.

(ii) The Legislative Joint Auditing Committee shall advise the Chief Fiscal Officer of the State and keep him or her informed regarding any of its findings which may be relevant to such determination regarding these institutions.

(b)(1) Upon completion of salary and personal services matching, or a maintenance and general operations expense disbursement, or both, by the institution, the disbursing officer or other appropriate official of the institution shall examine the payroll or a maintenance and general operations expense, or both, as disbursed for such amounts as are properly payable from State Treasury funds.

(2) At such time as the disbursing officer or other appropriate official of the institution examines the payroll or a maintenance and general operations expense for determining the reimbursable amount, or both, he or she shall also review it in order to discover any erroneous or improper payments as provided for by law. The liability for those payments shall be with the executive head of that institution and its bonded disbursing officer, or his designated bonded assistant.

(c) All salaries and personal services matching, or a maintenance and general operations expense, or both, shall be subject to the restrictions and controls provided by law and the administrative procedures of the Chief Fiscal Officer of the State.

History. Acts 1979, No. 578, § 1; A.S.A. 1947, § 13-349.2; Acts 1989, No. 688, § 1; 1997, No. 758, § 1; 2001, No. 1453, § 45.

19-4-1610. Retroactive pay prohibited.

(a)(1) In the event that a state employee is being paid less than the maximum provided for by law, and thereafter the head of the agency provides for an increase in the rate of pay for the employee, the rate of pay shall not exceed one-twelfth (1/12) of the annual maximum amount of the salary position on which he or she is placed, for the remainder of the annual period. (2) Payments under subdivision (a)(1) of this section shall not be made for a preceding fiscal year.

(b)(1) No increase in the rate of pay, either by paying the full amount of the maximum salary or by placing an employee in a position calling for a greater salary, shall be construed as authorizing the payment of any retroactive salary to the employee.

(2) Payments under subdivision (b)(1) of this section shall not be made for a preceding fiscal year.

(c)(1) Salary payments made to correct an administrative error shall not be considered retroactive pay, nor shall such payment be construed as exceeding the employee's maximum authorized pay.

(2) Payments under subdivision (c)(1) of this section may be made for a preceding fiscal year if:

(A) Requested within twelve (12) months of the end of the preceding fiscal year; and

(B) Upon the consent of the Chief Fiscal Officer of the State.

History. Acts 1973, No. 876, § 23; 1981, No. 741, § 4; A.S.A. 1947, § 13-349; Acts 1989, No. 629, § 10; 2003, No. 656, § 8.

19-4-1611. Supplemental payments prohibited.

In the event the General Assembly shall have established by law the maximum annual salaries for certain positions for any state agency and shall have appropriated for those positions, no greater salary than that established by law shall be paid to any person occupying the position by making supplemental payments from agency bank funds. However, the salaries may be paid partly from state-appropriated funds and partly from agency bank funds, but the aggregate of the payments shall not exceed the maximum annual salary rate, where it is established by law.

History. Acts 1973, No. 876, § 23; A.S.A. 1947, § 13-349.

19-4-1612. Overtime pay.

(a) It is the policy of the State of Arkansas that overtime pay for state employees is the least desirable method of compensation for overtime work. (b)(1) All state departments, agencies, boards, commissions, and institutions may pay overtime to its employees, under the rules and regulations set out by the Federal Fair Labor Standards Act.

(2)(A) The Chief Fiscal Officer of the State will specify those specific employees or groups of employees other than employees of the Arkansas State Highway and Transportation Department and the Arkansas Lottery Commission eligible to receive overtime compensation, the circumstances under which overtime pay is to be allowed, and such other matters which the Chief Fiscal Officer of the State may deem appropriate and as necessary to comply with the Federal Fair Labor Standards Act as regards the payment of overtime compensation.

(B) The Director of State Highways and Transportation shall make these determinations as to employees of the Arkansas State Highway and Transportation Department.

(C) The Director of the Arkansas Lottery Commission shall make these determinations as to employees of the Arkansas Lottery Commission.

(c) The rules and regulations authorized by this section shall not go into effect until the Chief Fiscal Officer of the State, or the Arkansas State Highway and Transportation Department as to its employees, has sought the advice of the Legislative Council.

(d) In the event that the Federal Fair Labor Standards Act is held, for whatever reason, to be non-applicable to state employment, then any state department, agency, board, commission, or institution may pay overtime to its employees only if the General Assembly has given authorization by an appropriation. History. Acts 1973, No. 876, § 23; 1976 (Ex. Sess.), No. 1, § 1; 1977, No. 118, § 1; 1985, No. 820, § 1; A.S.A. 1947, § 13-349; Acts 2009, No. 605, 19; 2009, No. 606, 19.

19-4-1613. Lump-sum terminal pay

(a) Upon termination, resignation, retirement, death, or other action by which a person ceases to be an active employee of a state agency, the amount due the employee or his or her estate, including any accrued unpaid annual or holiday leave which is due in accordance with the policies of the state agency and lump-sum payments of sick leave balances upon retirement as provided by law, may, and should, be included in the final pay to the employee or his or her estate for the employee's active work, even though the final payment of salary or wages may exceed one twenty-sixth (1/26) or other fractional amount based upon days, weeks, or months of the employee's annual authorized compensation at the date active employment ceases. (b) No employee receiving the additional compensation shall return to state employment until the number of days for which he or she received additional compensation has expired.

(c) Payment of the additional compensation shall not be considered as exceeding the maximum for a position so authorized.

(d) If an employee receives compensation for unused sick leave at retirement pursuant to § 21-4-501 and returns to state employment, the employee shall not be required to wait until the expiration of the number of days for which he or she received additional compensation before returning to state employment or to repay the amount of the compensation.

History. Acts 1973, No. 876, § 23; 1975, No. 980, § 2; A.S.A. 1947, § 13-349; Acts 2001, No. 1453, § 46; 2005, No. 1188, § 1.

19-4-1614. Judicial awards under federal laws

(a) In the event an employee of the State of Arkansas, or the authorized agent of the employee, files suit against the State of Arkansas in a court of competent jurisdiction for relief under the provisions of Title VII of the Federal Civil Rights Act of 1964, as amended, or the Federal Civil Rights Act of 1866, or the Federal Civil Rights Act of 1871, or the Fourteenth Amendment to the United States Constitution, and the court finds for the employee and in so finding awards wages or salaries for personal services rendered in addition to wages or salaries already paid or due, the additional wages or salaries shall be paid from the regular salary appropriation from which the employee is normally paid. If it is found, however, that such payment will impair the regular salary appropriation, the Chief Fiscal Officer of the State shall transfer the necessary appropriation from the maintenance and general operations appropriation of the employing agency to the regular salary appropriation in order that the additional wages or salaries shall be paid. (b) Any liquidated damages awarded by the court, pursuant to the federal laws cited in subsection (a) of this section, are to be paid in the same manner as the additional wages or salaries provided for in subsection (a) of this section.

(c) When notified that a state employee has filed suit or is in any other manner claiming redress under the provisions of the federal laws cited in subsection (a) of this section, the Chief Fiscal Officer of the State may investigate the circumstances surrounding the claim. If, based on the evidence and facts found during the investigation, the Chief Fiscal Officer of the State determines or has reason to believe that the court would sustain the employee's claim and find for the employee and in so doing award wages or salaries in addition to those paid or due for the employee's personal service rendered, then the Chief Fiscal Officer of the State shall, with the advice of the Legislative Council or the Joint Budget Committee, authorize payment of the additional wages or salaries as provided in subsection (a) of this section.

History. Acts 1973, No. 876, § 23; 1977, No. 813, § 4; A.S.A. 1947, § 13-349.

Refer to R1-19-10-101 for information regarding Judicial Awards.

19-4-1615. Awards from State Claims Commission.

(a) In the event a state employee is awarded a claim by the Arkansas State Claims Commission for wages or salaries for personal services rendered for a state agency, such award shall be processed through the state mechanized payroll system. (b) The award shall be paid from the regular salaries and personal services matching appropriation from which the employee is normally paid.

History. Acts 1995, No. 176, § 1.

Refer to R1-19-10-101 for additional information regarding Judicial Awards.