1. A. Agencies shall develop written policies to govern the administration of salary decreases for employees.

2. B. In-Band Salary Decreases - Written justification for effecting any salary decrease shall be maintained by the employing agency. An employee’s salary may be decreased within his current pay band for the following reasons:

   1. 1. Performance Decrease - An agency may decrease an employee’s salary based upon performance in accordance with Section 8-1-160 of the South Carolina Code of Laws. Such decrease shall be determined by the agency. Performance decreases must not place an employee’s salary below the minimum of the pay band. Performance decreases must be based on the results of an Employee Performance Management System (EPMS) evaluation.

   2. 2. Assignment of Lower-Level Responsibilities

      1. a. Voluntary Reason - An employee who is voluntarily assigned lower-level responsibilities or moved to a position in his current pay band with lower-level responsibilities than his current position, may, at the discretion of the agency head or his designee, be paid at any rate within the pay band provided the rate is equal to or below the current salary and provided the employee signs a written statement indicating agreement to the salary decrease. The signed document should be maintained by the agency.

      2. b. Involuntary Reason - A covered employee who is involuntarily assigned lower-level responsibilities or moved to a position in his current pay band with lower-level responsibilities than his current position, may, at the discretion of the agency head or his designee, have his salary reduced no more than 15% or to the midpoint of the pay band, whichever is lower, immediately following the assignment of lower-level responsibilities. For decreases of more than 15% the agency must submit written justification to DSHR for approval.

         1. (1) Subsequent pay adjustments establish the maximum of the pay band above the employee’s rate of pay; or
         2. (2) The employee is subsequently promoted, or his position is reclassified and his current rate of pay is below the maximum for the pay band for the class to which promoted or reclassified.

         If the employee’s salary is allowed to remain above the maximum of the pay band, the employee shall not be eligible for pay increases unless:

3. C. Salary Decreases Resulting from Downward Band Changes - Written justification for effecting any salary decrease shall be maintained by the employing agency. An employee’s salary may be decreased as a result of movement to a lower pay band for the following reasons:

   1. 1. Demotion and Downward Reclassification Decreases

      1. a. Voluntary Reason - An employee who voluntarily has his position reclassified to a class with a lower pay band or is demoted to a position in a lower pay band, may, at the discretion of the agency head or his designee, be paid at a salary equal to or below the current salary. However, the rate must be within the lower pay band and the employee must sign a written statement indicating agreement to the salary decrease. The signed document should be maintained by the agency.
      2. b. Disciplinary or Performance Reason - An employee who, as the result of a disciplinary action or unsatisfactory rating on an EPMS evaluation, has his position reclassified to a class with a lower pay band or is demoted to a position in a lower pay band, may, at the discretion of the agency head, be paid at a rate equal to or below the current salary, but within the lower pay band.

      3. c. Involuntary or Non-Disciplinary Reason - When an employee is demoted due to involuntary or non-disciplinary reasons or when an occupied position is reclassified to a class in a lower pay band for these reasons, the employee’s salary may, at the discretion of the agency head or designee be reduced no more than 15% or to the midpoint of the pay band, whichever is lower, immediately following the demotion or downward reclassification. For decreases of more than 15% the agency must submit written justification to DSHR for approval.

         1. (1) Subsequent pay adjustments establish the maximum of the pay band above the employee’s rate of pay; or
         2. (2) The employee is subsequently promoted, or his position is reclassified and his current rate of pay is below the maximum for the pay band for the class to which promoted or reclassified.

         If the employee’s salary is allowed to remain above the maximum of the lower pay band, the employee shall not be eligible for pay increases unless:

      4. d. An employee who is promoted or his position is reclassified upward, and subsequently demoted or his position is reclassified downward prior to attaining permanent status in a class of a higher pay band, shall have a reduction in pay as follows:

         1. (1) When an employee is demoted or his position is reclassified to the previous class or to a class with the same pay band held prior to promotion or reclassification, or to a class with a lower pay band, the employee’s salary will be reduced by the amount previously received upon promotion or upward reclassification provided the salary will not exceed the maximum of the pay band for the class to which demoted or downwardly reclassified.
         2. (2) When an employee is demoted or his position is reclassified downward to a class having a higher pay band than the original position, the employee’s salary will be reduced by the amount previously received upon promotion or reclassification and the employee’s new salary will be established in accordance with Section 19-705.04 D.

   2. 2. Downward Band Reallocation

      1. a. Subsequent pay adjustments establish the maximum of the pay band above the employee’s rate of pay; or
      2. b. The employee is subsequently promoted or his position is reclassified, and his current rate of pay is below the maximum of the pay band for the class to which promoted or reclassified.

      When a class is reallocated to a lower pay band, the pay of an employee shall not be changed as a result of this action for a period of six months from the date of the action unless an exception is approved by the Department of Administration. After the expiration of the six-month period, with the approval of the agency head, the employee’s salary may be reduced no more than 15% or to the midpoint of the pay band, whichever is lower. If the employee’s salary exceeds the maximum of the new pay band, the employee shall not be eligible for pay increases of any type unless:

HISTORY: Added by State Register Volume 26, Issue No. 1, eff January 25, 2002. Amended by State Register Volume 34, Issue No. 5, eff May 28, 2010; State Register Volume 40, Issue No. 10, eff October 28, 2016; SCSR 48-9, eff September 27, 2024.