Section 21-5-227 - Special compensation awards(a)(1) A state agency may provide a special compensation award to an employee:(A) To recognize the employee's outstanding performance in successfully completing a significant project or job assignment or completing a major project milestone; or(B) Due to the assignment of temporary job responsibilities for a period not to exceed six (6) months that: (i) Are beyond the scope of work typically performed by the employee; and(ii) Have produced measurable results that enhance the mission and goals of the state agency.(2) The state agency shall determine whether to offer a special compensation award and, if so, the type of special compensation award to offer.(b) A special compensation award may consist of: (1) A lump-sum bonus payment not to exceed five thousand dollars ($5,000) per award;(2)(A) Up to forty (40) hours of incentive leave that shall:(i) Be used by the end of the calendar year following the calendar year in which the award of incentive leave was made; and(ii) Not carry forward to the subsequent calendar year.(B) If an employee receives an award of incentive leave under subdivision (b)(2)(A) of this section, the incentive leave shall: (i) Expire if the employee resigns or is terminated from employment before the end of the calendar year following the calendar year in which the award of incentive leave was made; and(ii) Not be liquidated by a lump-sum payment to the employee when he or she separates from the state agency; or(3)(A) A lump-sum payment of an employee's annual leave.(B) A lump-sum payment under subdivision (b)(3)(A) of this section shall:(i) Not exceed forty (40) hours of annual leave;(ii) Be paid at the employee's hourly rate; and(iii) Not reduce the employee's combined balance of annual leave, holiday leave, and birthday leave to less than eighty (80) hours.(c)(1)(A) A state agency wishing to provide special compensation awards to employees shall prepare a written plan for administering special compensation awards.(B) The written plan under this subsection shall include:(i) An explanation of how the special compensation awards will be implemented;(ii) A list of the classifications eligible for special compensation awards;(iii) Objective, measurable standards for the selection of employees within the listed classifications under subdivision (c)(1)(B)(ii) of this section who are eligible for a special compensation award; and(iv) A description of the special compensation awards that may be provided to employees.(2) The written plan under this subsection shall be reviewed by the Office of Personnel Management.(3) When the office has completed its review of the written plan under subdivision (c)(2) of this section, the office shall refer the written plan to the Legislative Council or, if the General Assembly is in regular session, fiscal session, or extraordinary session, the Joint Budget Committee, for its approval.(4) A state agency shall not provide a special compensation award before the approval of the state agency's written plan for administering special compensation awards under subdivision (c)(3) of this section.(5) If the state agency amends the written plan following its approval under subdivision (c)(3) of this section, it shall: (A) Submit the amended written plan for review by the office and approval by Legislative Council or the Joint Budget Committee in the same manner provided by subdivisions (c)((1)-(3) of this section; and(B) Not provide a special compensation award under the provisions of the amended written plan before the approval of the state agency's amended written plan.(d)(1) After a state agency's written plan for administering special compensation awards has been approved under subdivision (c)(3) of this section, the state agency may submit a request for a special compensation award to the office for approval.(2) A request under subdivision (a)(1)(A) of this section shall include the following:(A) A description of the project or assignment prompting the special compensation award;(B) A description of the work that was completed as part of the project or assignment;(C) The name or names of the employee or employees who would receive the special compensation award;(D) A description of how the employee or employees were selected for the project or assignment that prompted the request for the special compensation award; and(E) A description of the special compensation award that would be provided to the employee or employees.(3) A request under subdivision (a)(1)(B) of this section shall include the following:(A) A list of the regularly assigned job responsibilities of the employee or employees;(B) A list of the temporary job responsibilities assigned to the employee or employees;(C) The name or names of the employee or employees who would receive the special compensation award;(D) A description of how the employee or employees were selected for the temporary job responsibilities that prompted the request for the special compensation award; and(E) A description of the special compensation award that would be provided to the employee or employees.(4) A request for a special compensation award under this subsection shall be consistent with the written plan for administering special compensation awards of the state agency.(5) A state agency shall not provide a special compensation award before the approval of the special compensation award by the office under this subsection.(e) A lump-sum special compensation award under this section shall be:(1) Subject to withholding of all applicable state and federal taxes; and(2) Included by retirement systems in determining retirement benefits.(f)(1)(A) An employee shall not receive a special compensation award under this section more than two (2) times in a biennium.(B) The total compensation received from lump-sum bonus payments under subdivision (b)(1) of this section during a biennium shall not exceed ten thousand dollars ($10,000).(2) A special compensation award under this section may be awarded to an employee whether or not the special compensation award would result in the salary for the employee exceeding the maximum pay level for the grade assigned to the employee's classification.(3) An employee may receive a special compensation award and a merit increase under § 21-5-1101 in the same fiscal year.(g)(1) A special compensation award under this section is subject to a state agency's ability to certify funding for a special compensation award.(2) A state agency shall: (A) Use existing funding for a special compensation award under this section; and(B) Not access the Performance Fund to provide a special compensation award under this section.(h) The office shall file monthly reports of special compensation awards issued under this section with the Legislative Council or, if the General Assembly is in regular session, fiscal session, or extraordinary session, the Joint Budget Committee.(i)(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.Added by Act 2024, No. 172,§ 5, eff. 7/1/2024.