Section 112 – Pay for performance management system — Employees paid for performance.

• (1) As used in this section:
  • (a)
    • (i) “Agency” means, except as provided in Subsection (1)(a)(ii), the same as that term is defined in Section 63A-17-102.
    • (ii) “Agency” does not include the State Board of Education, the Office of the State Treasurer, Office of the State Auditor, Office of the State Attorney General, Utah System of Higher Education, the Legislature, the judiciary, or, as defined in Section 63E-1-102, an independent entity.
  • (b)
    • (i) “Employee” means an employee of an agency.
    • (ii) “Employee” does not include an individual in a schedule AB, as described in Section 63A-17-301, position.
  • (c) “Pay for performance” means a plan for incentivizing an employee for meeting or exceeding production or performance goals, in which the plan is well-defined before work begins, eligible work groups are defined, specific goals and targets for the employee are determined, measurement procedures are in place, and specific incentives are provided when goals and targets are met.
  • (d) “Pay for performance management system” means the system described in Subsection (2).

• (2) The division shall establish and, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules for the administration of a pay for performance management system.

• (3) The pay for performance management system shall include:
  • (a) guidelines and criteria for an agency to adopt pay for performance policies and administer pay based on an employee’s performance in furtherance of the agency’s mission;
  • (b) employee performance ratings;
  • (c) requirements for written employee performance standards and expectations;
  • (d) supervisor verbal and written feedback based on the standards of performance and behavior outlined in an employee’s performance plan; and
  • (e) quarterly written evaluation of an employee’s performance.

• (4) In consultation with the division, no later than July 1, 2023, each agency shall:
  • (a) adopt pay for performance policies based on the performance management system; and
  • (b) subject to available funds and as necessary, adjust an employee’s wage to reflect:
    • (i) subject to Subsection (5), for a classified service employee, the salary range of the position classified plan for the employee’s position; and
    • (ii) an increase, decrease, or no change in the employee’s wage:
      • (A) commensurate to an employee’s performance as reflected by the employee’s evaluation conducted in accordance with the pay for performance management system; and
      • (B) in an amount that is in accordance with the guidelines and criteria established for a wage change in the pay for performance management system.

• (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division shall make rules authorizing a classified service employee to receive a wage that exceeds the salary range of the classified service employee’s position classified plan if warranted based on the classified employee’s performance rating.

Enacted by Chapter 209, 2022 General Session