1. (a) Provided that the employee’s performance evaluation has been conducted and the evaluation process set forth in Per 801 has been completed prior to the employee’s increment date, an appointing authority may withhold an employee's pay increment for unsatisfactory work performance when:

   1. (1) Either:

      1. a. The employee’s current performance evaluation indicates that the employee’s performance fails to meet expectations overall; or
      2. b. The employee has failed to take those steps identified in the previous performance evaluation, written warning, or corrective action plan detailing what actions the employee was required to take in order to avoid disciplinary action; and
   2. (2) The appointing authority has given written notice of the withholding of the pay increment to the affected employee and to the director at least 30 calendar days before the pay increment eligibility date as defined in Per 901.03 and 901.04.
2. (b) The written notice of the withholding of an employee's pay increment shall serve as a written warning as set forth in paragraph (c).

3. (c) When an appointing authority issues a written warning to an employee advising that the pay increment is to be withheld, the warning shall:

   1. (1) Contain a narrative describing in detail the deficiencies in the employee's performance which require the withholding of the increment;
   2. (2) Inform the employee that the letter of warning and the withholding of the increment is a single disciplinary action;
   3. (3) List specifically the corrective action which the employee shall take to avoid additional disciplinary action, including the time frame, if any, in which the corrective action must be taken;
   4. (4) Notify the employee that failure to take corrective action shall result in additional disciplinary action up to, and including, termination for cause;
   5. (5) Include a copy of the performance evaluation completed in accordance with Per 801;
   6. (6) Be signed by the appointing authority or their designee;
   7. (7) Inform the employee that within 15 calendar days from the date of notice, the warning may be resolved through the procedures for settlement of disputes pursuant to Per 205 or by appeal to the personnel appeals board; and

   8. (8) Be signed by the employee receiving the written warning to acknowledge receipt of the warning provided, however, that:

      1. a. If an employee takes exception to the written warning, they may so note in addition to acknowledging receipt;
      2. b. Notice that the employee takes exception to the warning shall not be deemed a properly filed appeal; and
      3. c. Failure of the employee to sign the warning shall neither affect its validity nor delay the time for appeal.

4. (d) The original written warning shall be issued to the employee with copies distributed to the:

   1. (1) Employee's agency personnel file; and
   2. (2) Employee's file in the division.
5. (e) If an employee fails to take corrective action as outlined in a written warning, the employee shall be subject to additional disciplinary action up to, and including, termination for cause pursuant to Per 1003.
6. (f) Notice to the appointing authority that an employee is seeking resolution of the withholding of the pay increment through the procedures for settlement of disputes pursuant to Per 205 or by appeal to the personnel appeals board shall not bar the appointing authority from taking additional disciplinary action.
7. (g) When a pay increment is withheld, the minimum period of withholding shall be at least 3 months service from the date the increment would otherwise be applicable.
8. (h) The withholding of an employee’s pay increment shall result in the establishment of a new pay increment date in accordance with Per 900.
9. (i) The employee shall not be eligible to receive an additional pay increment until the employee has completed at least 12 months of satisfactory work from the date the pay increment is granted.

Source. (See Revision Notes at chapter heading for Per 100) #8738, eff 10-18-06; ss by #10817, eff 5-17-15; renumbered by #14065-B; ss by #14435, eff 12-1-25, EXPIRES 12-1-35