Ark. Code Ann. § 21-5-1101 (2020)

1. 1. The Department of Transformation and Shared Services is authorized to develop and establish a merit increase pay system in accordance with the performance evaluation process under § 21-5-1001 et seq. for employees of all state agencies, boards, and commissions covered by the Uniform Classification and Compensation Act, § 21-5-201 et seq.
   2. The merit increase pay system shall be reviewed by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.
2. For the purpose of this subchapter, “merit increase pay system” means a merit-based pay system that incorporates pay and performance evaluation standards according to § 21-5-1001 et seq. and establishes criteria for payments for employees who meet requisite performance categories.
3. Merit payments may be awarded to employees who satisfy performance evaluation-based criteria developed by agencies in accordance with procedures and policies developed and approved by the Office of Personnel Management after review by the Legislative Council.

History. Acts 1999, No. 1061, § 1; 2001, No. 1461, § 12; 2003 (1st Ex. Sess.), No. 22, § 4; 2007, No. 289, § 1; 2007, No. 799, § 2; 2009, No. 688, § 14; 2011, No. 1017, § 10; 2013, No. 1321, § 6; 2017, No. 365, § 27; 2019, No. 910, § 6149.

Amendments. The 2001 amendment added (c) through (g).

The 2003 (1st Ex. Sess.) amendment rewrote present (c).

The 2009 amendment, in (a), deleted “a job series promotion system and” following “implement” in the introductory language, and deleted “of higher education” following “institutions” in (a)(1) and (a)(2); in (b)(2), substituted “who has had continuous part-time employment with the state for twelve (12) months” for “that completes two thousand eighty (2,080) hours” and inserted “and to receive the merit pay increase on a pro rata basis; deleted (c)(2) and redesignated the remaining subdivision accordingly; substituted “2009” for “2007, for the 2007-2009 biennium” in the introductory language of (e); rewrote (f); added (h); and made minor stylistic changes.

The 2011 amendment deleted “salary adjustments or” preceding “lump-sum payments” in (c); substituted “2011” for “2009” in the introductory language of (e); rewrote (f)(1)(A); and added “and the payment shall not be construed as exceeding maximum salary” in (f)(1)(B) and (C).

The 2013 amendment inserted “of the Division of Management Services of the Department of Finance and Administration” in (d); changed the date from 2011 to 2013 in (e); substituted “merit increase of one and five-tenths percent (1.5%)” for “one and five tenths percent (1.5%) merit increase” in (e)(1); substituted “merit increase of three percent (3%)” for “three percent (3.0%) merit increase” in (e)(2); and substituted “merit increase of four and five-tenths percent (4.5%)” for “four and five-tenths percent (4.5%) merit increase” in (e)(3).

The 2017 amendment rewrote (a); deleted former (b); redesignated former (c) and (d) as (b) and (c); deleted “lump-sum” preceding “payments” in (b); substituted “agencies in accordance with procedures” for “agencies and institutions in accordance with rules” in (c); and deleted (e) through (h).

The 2019 amendment substituted “Department of Transformation and Shared Services” for “Department of Finance and Administration” in (a)(1).