1. (1)

   1. (a) This section, and the rules made by the division under this section, apply to each career and noncareer employee not specifically exempted under Subsection (2).
   2. (b) If not exempted under Subsection (2), an employee is considered to be in classified service.

2. (2) The following employees are exempt from this section:

   1. (a) members of the Legislature and legislative employees;
   2. (b) members of the judiciary and judicial employees;
   3. (c) elected members of the executive branch and employees designated as schedule AC as provided under Subsection 63A-17-301(1)(c);
   4. (d) employees of the State Board of Education;
   5. (e) officers, faculty, and other employees of state institutions of higher education;
   6. (f) employees in a position that is specified by statute to be exempt from this Subsection (2);
   7. (g) employees in the Office of the Attorney General;
   8. (h) department heads and other persons appointed by the governor under statute;
   9. (i) schedule AS employees as provided under Subsection 63A-17-301(1)(m);
   10. (j) department deputy directors, division directors, and other employees designated as schedule AD as provided under Subsection 63A-17-301(1)(d);
   11. (k) employees that determine and execute policy designated as schedule AR as provided under Subsection 63A-17-301(1)(l);
   12. (l) teaching staff, educational interpreters, and educators designated as schedule AH as provided under Subsection 63A-17-301(1)(g);
   13. (m) temporary employees described in Subsection 63A-17-301(1)(r);
   14. (n) patients and inmates designated as schedule AU as provided under Subsection 63A-17-301(1)(o) who are employed by state institutions; and
   15. (o) members of state and local boards and councils and other employees designated as schedule AQ as provided under Subsection 63A-17-301(1)(k).

3. (3)

   1. (a) The director shall prepare, maintain, and revise a position classification plan for each employee position not exempted under Subsection (2) to provide equal pay for equal work.
   2. (b) Classification of positions shall be based upon similarity of duties performed and responsibilities assumed, so that the same job requirements and the same salary range, subject to Section 63A-17-112, may be applied equitably to each position in the same class.
   3. (c) The director shall allocate or reallocate the position of each employee in classified service to one of the classes in the classification plan.

   4. (d)

      1. (i) The division shall conduct periodic studies and interviews to provide that the classification plan remains reasonably current and reflects the duties and responsibilities assigned to and performed by employees.
      2. (ii) The director shall determine the need for studies and interviews after considering factors such as changes in duties and responsibilities of positions or agency reorganizations.
   5. (e) In accordance with Subsections (3)(a) and (b), and in consultation with the Department of Health and Human Services and the Department of Corrections, the director may create a classification plan for employee positions responsible for providing comprehensive health care and clinical interventions to inmates in a correctional facility, as those terms are defined in Section 26B-4-1001, that accounts for the specific challenges of providing health care in a correctional facility.

4. (4)

   1. (a) With the approval of the executive director and the governor, the director shall develop and adopt pay plans for each position in classified service.
   2. (b) The director shall design each pay plan to achieve, to the degree that funds permit, comparability of state salary ranges to the market using data obtained from private enterprise and other public employment for similar work.

   3. (c) The director shall adhere to the following in developing each pay plan:

      1. (i) each pay plan shall consist of sufficient salary ranges to:

         1. (A) permit adequate salary differential among the various classes of positions in the classification plan; and
         2. (B) reflect the normal growth and productivity potential of employees in that class.
      2. (ii) The director shall issue rules for the administration of pay plans.
   4. (d) The establishing of a salary range is a nondelegable activity and is not appealable under the grievance procedures of Part 6, Grievance Provisions, Title 67, Chapter 19a, Grievance Procedures, or otherwise.

   5. (e) The director shall make rules, accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, providing for:

      1. (i) agency approved salary adjustments within approved salary ranges, including an administrative salary adjustment; and
      2. (ii) structure adjustments that modify salary ranges, including a cost of living adjustment or market comparability adjustment.

5. (5)

   1. (a) On or before October 31 of each year, the director shall submit an annual compensation plan to the executive director and the governor for consideration in the executive budget and to the State Employee Benefits Advisory Commission created in Section 63C-31-102.

   2. (b) The plan described in Subsection (5)(a) may include recommendations, including:

      1. (i) salary increases that generally affect employees, including a general increase or merit increase;
      2. (ii) salary increases that address compensation issues unique to an agency or occupation;
      3. (iii) structure adjustments, including a cost of living adjustment or market comparability adjustment; or
      4. (iv) changes to employee benefits.

   3. (c)

      1. (i)

         1. (A) Subject to Subsection (5)(c)(i)(B) or (C), the director shall incorporate the results of a salary survey of a reasonable cross section of comparable positions in private and public employment in the state into the annual compensation plan.
         2. (B) The salary survey for a law enforcement officer, as defined in Section 53-13-103, a correctional officer, as defined in Section 53-13-104, or a dispatcher, as defined in Section 53-6-102, shall at minimum include the three largest political subdivisions and all state law enforcement agencies that employ, respectively, comparable positions.
         3. (C) The salary survey for an examiner or supervisor described in Title 7, Chapter 1, Part 2, Department of Financial Institutions, shall at minimum include the Federal Deposit Insurance Corporation, Federal Reserve, and National Credit Union Administration.
      2. (ii) The director may cooperate with or participate in any survey conducted by other public and private employers.
      3. (iii) The director shall obtain information for the purpose of constructing the survey from the Division of Workforce Information and Payment Services and shall include employer name, number of persons employed by the employer, employer contact information and job titles, county code, and salary if available.
      4. (iv) The division shall acquire and protect the needed records in compliance with the provisions of Section 35A-4-312.
   4. (d) The director may incorporate any other relevant information in the plan described in Subsection (5)(a), including information on staff turnover, recruitment data, or external market trends.

   5. (e) The director shall:

      1. (i) establish criteria to assure the adequacy and accuracy of data used to make recommendations described in this Subsection (5); and
      2. (ii) when preparing recommendations use accepted methodologies and techniques similar to and consistent with those used in the private sector.

   6. (f)

      1. (i) Upon request and subject to Subsection (5)(f)(ii), the division shall make available foundational information used by the division or director in the drafting of a plan described in Subsection (5)(a), including:

         1. (A) demographic and labor market information;
         2. (B) information on employee turnover;
         3. (C) salary information;
         4. (D) information on recruitment; and
         5. (E) geographic data.
      2. (ii) The division may not provide under Subsection (5)(f)(i) information or other data that is proprietary or otherwise protected under the terms of a contract or by law.

   7. (g) The governor shall:

      1. (i) consider salary and structure adjustments recommended under Subsection (5)(b) in preparing the executive budget and shall recommend the method of distributing the adjustments;
      2. (ii) submit compensation recommendations to the Legislature; and
      3. (iii) support the recommendation with schedules indicating the cost to individual departments and the source of funds.
   8. (h) If funding is approved by the Legislature in a general appropriations act, the adjustments take effect on the July 1 following the enactment unless otherwise indicated.

6. (6)

   1. (a) The director shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for the granting of incentive awards, including awards for cost saving actions, awards for commendable actions by an employee, or a market-based award to attract or retain employees.
   2. (b) An agency may not grant a market-based award unless the award is previously approved by the division.
   3. (c) In accordance with Subsection (6)(b), an agency requesting the division's approval of a market-based award shall submit a request and documentation, subject to Subsection (6)(d), to the division.

   4. (d) In the documentation required in Subsection (6)(c), the requesting agency shall identify for the division:

      1. (i) any benefit the market-based award would provide for the agency, including:

         1. (A) budgetary advantages; or
         2. (B) recruitment advantages;
      2. (ii) a mission critical need to attract or retain unique or hard to find skills in the market; or
      3. (iii) any other advantage the agency would gain through the utilization of a market-based award.

7. (7)

   1. (a) The director shall regularly evaluate the total compensation program of state employees in the classified service.

   2. (b) The division shall determine if employee benefits are comparable to those offered by other private and public employers using information from:

      1. (i) a study conducted by a third-party consultant; or
      2. (ii) the most recent edition of a nationally recognized benefits survey.

Amended by Chapter 324, 2026 General Session