(1) Management
shall write and publish incentive award and bonus policies before rewarding any
employee with incentive awards or bonuses. Incentive awards and bonuses are
discretionary, not an entitlement, and are subject to the availability of funds
in the agency.
(a) DHRM shall review agency
incentive award policies to ensure that they are consistent with standards
established in this rule and the Department of Government Operations, Division
of Finance, rules, and procedures.
(b) Management may not grant individual
awards greater than $4,000 per pay period and $8,000 in a fiscal year, except
when approved by DHRM and the governor.
(i)
Management shall include documentation of the work units affected and any cost
savings in a request for an exception to Subsection (b) for a retirement
incentive award.
(ii) A single
payment of up to $8,000 may be granted as a retirement
incentive.
(c) Any cash
and cash equivalent incentive awards and bonuses shall be subject to payroll
taxes.
(2) Performance
Based Incentive Awards.
(a) Cash Incentive
Awards.
(i) Management may grant a cash
incentive award to an employee or group of employees that demonstrates
exceptional effort or accomplishment beyond what is normally expected on the
job for a unique event or over a sustained period.
(ii) To implement a Pay for Performance cash
incentive awards program, management shall include the program in the agency's
incentive awards policy pursuant to Section
R477-10-1.
(A) The policy shall include information
supporting the following:
(1) sustainability
of the funding for the cash incentive program;
(2) the positions eligible to participate in
the Pay for Performance program;
(3) goals of the program;
(4) type of work to be incentivized;
and
(5) ability to track the
effectiveness of the program.
(iii) The agency head or designee shall
approve any cash awards and ensure that documentation relating to the award is
maintained.
(b) Noncash
Incentive Awards.
(i) Management may recognize
an employee or group of employees with noncash incentive awards.
(ii) Individual noncash incentive awards may
not exceed the limits in Finance Policy 05-03.06.
(iii) Noncash incentive awards may include
cash equivalents such as gift certificates or tickets for admission. Cash
equivalent incentive awards shall be subject to payroll taxes and shall follow
standards and procedures established by the Department of Government
Operations, Division of Finance.
(3) Cost Savings Bonus.
(a) Management may establish a bonus policy
to increase productivity, generate savings within the agency, or reward an
employee who submits a cost savings proposal.
(i) Management shall document the cost
savings involved.
(4) Market Based Bonuses.
Management may award a cash bonus as an incentive to acquire
or retain an employee with job skills that are critical to the state and
difficult to recruit in the market. Any market based bonuses shall be approved
by the DHRM Division Director or designee.
(a) When requesting market based awards,
management shall submit documentation specifying how the agency will benefit by
granting the bonus based on:
(i)
budget;
(ii) recruitment
difficulties;
(iii) a mission
critical need to attract or retain unique or hard to find skills in the market;
or
(iv) other market based
reasons.
(b) Eligible
reason types for market based bonuses include:
(i) Retention Bonus.
Management may award a bonus to an employee who has unusually
high or unique qualifications that are essential for the agency to
retain.
(ii) Recruitment or
Signing Bonus.
Management may award a bonus to a qualified job candidate to
incentivize the candidate to work for the state.
(iii) Scarce Skills Bonus.
Management may award a bonus to a qualified job candidate
that has the scarce skills required for the job.
(iv) Relocation Bonus.
Management may award a bonus to a current employee who is
required to relocate to accept a position in a different commuting
area.
(v) Referral Bonus.
Management may award a bonus to a current employee who refers
a job applicant who is subsequently selected.
(vi) Geographic Job Market Bonus.
Management may award a bonus to incentivize an employee to
accept or continue an assignment in a specific geographic
area.
Notes
Utah Admin. Code R477-6-7
Amended by
Utah State Bulletin Number 2015-14, effective
7/1/2015
Amended by
Utah State Bulletin Number 2017-14, effective
7/1/2017
Amended by
Utah State Bulletin Number 2018-14, effective
7/1/2018
Amended by
Utah State Bulletin Number 2019-14, effective
7/1/2019
Amended by
Utah State Bulletin Number 2020-13, effective
7/1/2020
Amended by
Utah State Bulletin Number 2021-14, effective
7/1/2021
Amended
by
Utah
State Bulletin Number 2022-13, effective
7/1/2022
Amended by
Utah
State Bulletin Number 2023-13, effective
7/1/2023
