North Carolina § 126-4 - Powers and duties of State Human Resources Commission.

§ 126-4. Powers and duties of State Human Resources Commission.

Subject to the approval of the Governor, the State Human Resources Commission shall establish policies and rules governing each of the following: Position classification plans which shall provide for the classification and reclassification of all positions subject to this Chapter according to the duties and responsibilities of the positions. Compensation plans which shall provide for minimum, maximum, and intermediate rates of pay for all employees subject to the provisions of this Chapter. For each class of positions, reasonable qualifications as to education, experience, specialized training, licenses, certifications, and other job-related requirements pertinent to the work to be performed. Recruitment programs designed to promote public employment, communicate current hiring activities within State government, and attract a sufficient flow of internal and external applicants; and determine the relative fitness of applicants for the respective positions. Hours and days of work, holidays, vacation, sick leave, and other matters pertaining to the conditions of employment. The legal public holidays established by the Commission as paid holidays for State employees shall include Martin Luther King, Jr.'s Birthday and Veterans Day. The Commission shall not provide for more than 12 paid holidays per year, with three paid holidays being given for Christmas. In years in which New Year's Day falls on Saturday, the Commission may designate December 31 of the previous calendar year as the New Year's holiday, provided that the number of holidays for the previous calendar year does not exceed 12 and the number of holidays for the current year does not exceed 10. When New Year's Day falls on either Saturday or Sunday, the constituent institutions of The University of North Carolina that adopt alternative dates to recognize the legal public holidays set forth in subdivision (5) of this section and established by the Commission may designate, in accordance with the rules of the Commission and the requirements of this subdivision, December 31 of the previous calendar year as the New Year's holiday. A leave program that allows employees to volunteer in a literacy program in a public school for up to five hours each month. The appointment, promotion, transfer, demotion and suspension of employees. Cooperation with the State Board of Education, the Department of Public Instruction, the University of North Carolina, and the Community Colleges of the State and other appropriate resources in developing programs in, including but not limited to, management and supervisory skills, performance evaluation, specialized employee skills, accident prevention, equal employment opportunity awareness, and customer service; and to maintain an accredited Certified Public Manager program. The separation of employees. A program of meritorious service awards. The investigation of complaints and the issuing of such binding corrective orders or such other appropriate action concerning employment, promotion, demotion, transfer, discharge, reinstatement, and any other issue defined as a contested case issue by this Chapter in all cases as the Commission shall find justified. Programs of employee assistance, productivity incentives, equal opportunity, safety and health as required by Part 1 of Article 63 of Chapter 143 of the General Statutes, and such other programs and procedures as may be necessary to promote efficiency of administration and provide for a fair and modern system of personnel administration. In cases where the Commission finds discrimination, harassment, or orders reinstatement or back pay whether (i) heard by the Commission or (ii) appealed for limited review after settlement or (iii) resolved at the agency level, the assessment of reasonable attorneys' fees and witnesses' fees against the State agency involved. Repealed by Session Laws 1987, c. 320, s. 2. Repealed by Session Laws 1987, c. 320, s. 3. The implementation of G.S. 126-5(e). Recognition of State employees, public personnel management, and management excellence. The implementation of G.S. 126-7. An alternative dispute resolution procedure. Delegation of authority for approval of personnel actions through decentralization agreements with the heads of State agencies, departments, and institutions. Decentralization agreements with Executive Branch agencies shall require a person, designated in the agency, to be accountable to the Director of the Office of State Human Resources for the compliance of all personnel actions taken pursuant to the delegated authority of the agency. Such agreements shall specify the required rules and standards for agency personnel administration. The Director of the Office of State Human Resources shall have the authority to take appropriate corrective actions including adjusting employee salaries and changing employee classifications that are not in compliance with policy or standards and to suspend decentralization agreements for agency noncompliance with the required personnel administration standards. The implementation of G.S. 126-6.3 in a manner that is consistent across all affected State agencies. The policies and rules of the Commission shall not limit the power of any elected or appointed department head, in the department head's discretion and upon the department head's determination that it is in the best interest of the Department, to transfer, demote, or separate a State employee who is not a career State employee as defined by this Chapter. History (1965, c. 640, s. 2; 1971, c. 1244, s. 14; 1975, c. 667, ss. 6, 7; 1977, c. 288, s. 1; c. 866, ss. 1, 17, 20; 1985, c. 617, ss. 2, 3; c. 791, s. 50(b); 1985 (Reg. Sess., 1986), c. 1028, s. 6; 1987, c. 25, s. 2; c. 320, ss. 1-3; 1991, c. 65, s. 1; c. 354, s. 2; c. 750, s. 1; 1991 (Reg. Sess., 1992), c. 994, s. 2; 1993, c. 388, s. 2; c. 522, s. 10; 1995, c. 141, s. 4; 1997-349, s. 3; 1998-135, s. 1; 2013-360, s. 9.1; 2013-382, ss. 1.3, 9.1(c); 2015-241, s. 26.2(f); 2015-260, s. 2.) Editor's Note. - Session Laws 2008-82, ss. 1 and 2, provide: "Section 1. Pursuant to G.S. 150B-21.3(b1) , 25 NCAC 01C.0216 (Temporary Employment Services), 25 NCAC 01C.0217 (Office of State Personnel Temporary Employment Service), 25 NCAC 01C.0405 (Temporary Appointment), and 25 NCAC 01C.0407 (Temporary Part-Time Appointment) as adopted by the State Personnel Commission [now State Human Resources Commission] on February 16, 2007, and approved by the Rules Review Commission on May 17, 2007, are disapproved. "Section 2. The Office of State Personnel [now Office of State Human Resources] shall conduct a thorough analysis of the use of nonpermanent employees by State agencies, including: "(1) The number of nonpermanent employees currently working in State agencies. "(2) The position classifications of nonpermanent employees. "(3) The average duration of nonpermanent appointments. "(4) The length of time during which nonpermanent employees have been used to meet agency personnel needs in each category of position for which they have been used. "(5) The various categories of nonpermanent employees currently being utilized by agencies, including temporary, seasonal, intermittent, time-limited, and contract. "(6) The number of current nonpermanent employees who are actually seeking full-time permanent employment with full benefits, including retirement and health insurance, versus those who either do not need or are not seeking employment with benefits. "The Office of State Personnel [now Office of State Human Resources] shall use the results of the analysis to develop recommendations for definitions to distinguish various categories of nonpermanent employment and policies regarding the selection, appointment, and duration of various categories of nonpermanent employment. In developing its recommendations, the Office of State Personnel [now Office of State Human Resources] shall seek input from any interested parties outside of State government. The recommendations shall also include a prohibition against the establishment of any new temporary employment services by individual State agencies, other than those in existence on the effective date of this act. The Office of State Personnel [now Office of State Human Resources] shall submit its findings to the General Assembly, including any recommendations for proposed legislation, on or before December 31, 2008. "To the extent it accepts the recommendations of the Office of State Personnel [now Office of State Human Resources], the State Personnel Commission [now State Human Resources Commission] shall adopt rules in accordance with Chapter 150B of the General Statutes to implement a plan for nonpermanent employment in State government." Session Laws 2008-107, s. 30.5, is a severability clause. Session Laws 2013-382, s. 9.1(b), provides: "The following entities and positions created by Chapter 126 of the General Statutes are hereby renamed by this act: "(1) The State Personnel Commission is renamed the 'North Carolina Human Resources Commission.' "(2) The Office of State Personnel is renamed the 'North Carolina Office of State Human Resources.' "(3) The State Personnel Director is renamed the 'Director of the North Carolina Office of State Human Resources.' " Session Laws 2013-382, s. 9.1(c), provides: "Modification of References. - The Revisor of Statutes shall delete any references in the General Statutes to the State Personnel Act, State Personnel Commission, the State Personnel Director, and the Office of State Personnel (or any derivatives thereof) and substitute references to the North Carolina Human Resources Act, the State Human Resources Commission, the Director of the Office of State Human Resources, and the Office of State Human Resources (or the appropriate derivative thereof) to effectuate the renaming set forth in this section wherever conforming changes are necessary." Session Laws 2013-382, s. 9.2, provides: "No action or proceeding pending on the effective date of this section [August 21, 2013], brought by or against the State Personnel Commission, the Director of the Office of State Personnel, or the Office of State Personnel, shall be affected by any provision of this section, but the same may be prosecuted or defended in the new name of the Commission, Director, and Office. In these actions and proceedings, the renamed Commission, Director, or Office shall be substituted as a party upon proper application to the courts or other public bodies." Session Laws 2013-382, s. 9.3, provides: "Any business or other matter undertaken or commanded by the former State Personnel Commission, State Personnel Director, or Office of State Personnel regarding any State program, office, or contract or pertaining to or connected with their respective functions, powers, obligations, and duties that are pending on the date this act becomes effective [August 21, 2013] may be conducted and completed by the Commission, Director, or Office in the same manner and under the same terms and conditions and with the same effect as if conducted and completed by the formerly named commission, director, or office." Session Laws 2018-5, s. 26A.3(a), (b), provides: "(a) No later than December 1, 2018, the Office of State Human Resources shall recommend to the State Human Resources Commission a revision to the salary range established by the Commission under Article 3 of Chapter 126 of the General Statutes for area directors, as defined in G.S. 122C-3. In forming its recommendation, the Office of State Human Resources shall use funds available to hire an outside consultant to conduct a market compensation study of organizations nationwide with similar functions as the local management entities/managed care organizations (LME/MCOs) and of similar size, including number of covered lives, annual service expenditures, and geographic service areas. The market compensation study shall include both public and not-for-profit managed care organizations. In forming its recommendation, the Office of State Human Resources shall seek input from the Secretary of the Department of Health and Human Services and the LME/MCO area boards. "(b) The State Human Resources Commission shall use the results of the market compensation study conducted pursuant to subsection (a) of this section to fulfill its responsibility for approving area director salary ranges under G.S. 126-9." Session Laws 2018-5, s. 34.19(a)-(h), provides: "(a) Subject to the approval of the Secretary of the Department of Transportation, employees of the Department of Transportation (Department) who voluntarily relinquish (i) annual longevity payments or any claim to longevity pay and (ii) any claim to career status or eligibility for career status are exempt from: "(1) The classification and compensation rules established by the State Human Resources Commission pursuant to G.S. 126-4(1) through (4). "(2) G.S. 126-4(5) only as it applies to hours and days of work, vacation, and sick leave. "(3) G.S. 126-4(6) only as it applies to promotion and transfer. "(4) G.S. 126-4(10) only as it applies to the prohibition of the establishment of incentive pay programs. "(5) Article 2 of Chapter 126 of the General Statutes, except for G.S. 126-7.1. "(b) Nothing in subsection (a) of this section shall be construed to abrogate career status under G.S. 126-1.1. "(c) For the 2018-2019 fiscal year and the 2019-2020 fiscal year, the sum equal to two percent (2%) of the total Highway Fund and Highway Trust Fund appropriation for the applicable fiscal year for the payroll expenses of the Department may be used for the purposes of: "(1) Salary adjustments within the Department to provide competitive salary rates and to address changes in labor market salary rates as documented through the Department's data collection and analysis according to accepted human resource professional practices and standards. "(2) Reallocation of positions within the Department to higher-level job classifications to compensate employees for more difficult duties at competitive salary rates as documented through data collection and analysis according to accepted human resource professional practices and standards. "(3) Recruitment and retention programs instituted at the Secretary's discretion. "(d) Priority funding shall be given to recruitment, retention, salary range revisions, and reallocations affecting the job classifications and bands deemed by the Secretary to be most in need of immediate attention. The Department, as determined by the Department to be needed, may utilize market surveys and other relevant employment sector information available to the Office of State Human Resources. "(e) The Department shall report to the Joint Legislative Transportation Oversight Committee and Fiscal Research Division of the General Assembly, beginning January 1, 2019, and the semiannually thereafter, regarding the actions taken pursuant to this section. "(f) Notwithstanding G.S. 126-7.1 or any law to the contrary, the Secretary of the Department of Transportation may designate vacant positions as not being subject to the open recruitment requirements of G.S. 126-7.1(a) for the purpose of carrying out the recruitment flexibility granted to the Secretary under subdivision (3) of subsection (c) of this section. The Secretary shall notify the State Human Resources Commission within 30 days of invoking recruitment flexibility. "(g) Compensation decisions made under this section are exempt from the classification and compensation rules and policies established by the State Human Resources Commission. "(h) This section becomes effective July 1, 2018, and expires June 30, 2020." Session Laws 2018-5, s. 35.19A(a)-(c), as added by Session Laws 2018-97, s. 8.3, provides: "(a) During the 2018-2019 fiscal year, notwithstanding G.S. 126-4(1), G.S. 126-4(2), or any other provision of law to the contrary, the Council of State agencies, the Office of State Controller, the Community College System Office, and The University of North Carolina are granted sole authority and discretion to take the following actions concerning classification and salary administration of their respective personnel: "(1) Classify new positions or reclassify vacant positions within the classification system adopted by the State Human Resources Commission or as otherwise prescribed by law. "(2) Make hiring decisions based on the flexibility provided under this section. "(3) Determine the appropriate salary for their respective employees, provided that funding is available within the budgeted salary appropriated to the agency and the salary remains within the minimum and maximum of the salary range associated with the position classification or as otherwise provided by law. "The Human Resources Director for each State agency shall ensure that each new hire employed pursuant to the classification and salary administration flexibility granted by this section meets the minimum qualifications for the position. The Office of State Human Resources shall provide assistance to agencies upon request. "(b) The deadline is extended, through June 30, 2019, for the State agencies identified in subsection (a) of this section to submit all post-implementation studies, including all supporting documentation, to the Office of State Human Resources. "(c) By March 1, 2019, the State entities granted classification and salary administration flexibility under this section shall report to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division on the following: "(1) The number of classification actions taken under this section. "(2) The number of salary adjustments made under this section and total additional salary funds awarded. "(3) A comparison of the number of agency employees recruited from and the number of agency employees hired by cabinet agencies. "(4) Impact of the classification and salary administration flexibility on agency operations, including, but not limited to: "a. Hiring time line. "b. Recruitment of candidates. "c. Retention of key personnel. "(5) Any remaining position classification disagreements with the Office of State Human Resources. "(6) Whether the program should be extended and any recommended adjustments to the program." Session Laws 2018-5, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2018.'" Session Laws 2018-5, s. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2018-2019 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2018-2019 fiscal year." Session Laws 2018-5, s. 39.7, is a severability clause. Effect of Amendments. - Session Laws 2013-360, s. 9.1, effective July 1, 2013, added subdivision (5b). Session Laws 2013-382, s. 1.3, effective August 21, 2013, substituted "12 paid holidays per year, with three paid holidays being given for Christmas" for "11 paid holidays per year except that in those years in which Christmas Day falls on a Tuesday, Wednesday, or Thursday, the Commission shall not provide for more than 12 paid holidays" in the last sentence of subdivision (5). Session Laws 2013-382, s. 9.1(c), effective August 21, 2013, substituted "State Human Resources Commission" for "State Personnel Commission" in the section heading and introductory paragraph, and substituted "Director of the Office of State Human Resources" for "State Personnel Director" in subdivisions (18)a. and b. Session Laws 2015-241, s. 26.2(f), effective July 1, 2015, added subdivision (19). Session Laws 2015-260, s. 2, effective September 30, 2015, deleted the former last sentence of subdivision (10), which read: "This subdivision may not be construed to authorize the establishment of an incentive pay program." Legal Periodicals. - For survey of 1976 case law dealing with administrative law, see 56 N.C.L. Rev. 898 (1977). For survey of 1977 law on employment regulation, see 56 N.C.L. Rev. 854 (1978).