SB72 Alabama 2019 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2019

Title

State employees, lump sum merit reward payments for full-time employees at top of pay ranges authorized, Sec. 36-26-48 added

Summary

SB 72 creates a new rule allowing lump-sum merit payments up to 2.5% of an eligible state employee's base salary for reaching the top of their pay range, if funding and conditions are met.

What This Bill Does

It adds a new section (36-26-48) authorizing lump-sum merit rewards for eligible full-time state employees who have reached the maximum pay range and meet performance standards, starting October 1 after the act takes effect. Payments, up to 2.5% of annual base salary, are paid on the employee's anniversary date only if the last two fiscal years saw the employee at max pay, a satisfactory performance appraisal, and no state cost-of-living increase. Availability of funds determines whether any payments are made each year, and payments cannot be guaranteed every year or increase retirement benefits; several categories of employees are ineligible.

Who It Affects

• Eligible full-time state employees who are at the maximum of their pay range, have a satisfactory or better performance, and have not received a pay increase in the prior two years (may receive up to 2.5% of their annual base salary on their anniversary date, subject to funds).
• State agencies and appointing authorities responsible for determining the annual percentage used for lump-sum payments and ensuring there are sufficient funds each fiscal year.
• Employees excluded from eligibility, including those covered by labor agreements, retirees performing duties, employees without annual performance appraisals, heads or deputies of agencies, and unclassified/exempt employees.
• The broader state government, which would implement the payments across branches that use standardized pay ranges and annual performance appraisals, subject to funding and approval.

Key Provisions

• Adds Section 36-26-48 to authorize lump-sum merit reward payments for qualified state employees.
• Eligibility criteria: full-time employee at maximum pay range, has a satisfactory performance appraisal, and there has been no state cost-of-living increase in the prior two fiscal years; payment amount up to 2.5% of annual base salary and paid on the employee's anniversary date after Oct 1.
• Funding condition: at the start of each fiscal year, the appointing authority sets the total percentage for lump-sum payments; if funds are insufficient to pay all eligible employees, no payments are made for that year.
• Payment timing and limitations: payments are not guaranteed every year, cannot be scheduled by changing anniversary dates, and do not increase retirement benefits.
• Exclusions: employees covered by labor agreements, retirees performing duties, employees without annual appraisals, heads and deputies, and unclassified/exempt employees are not eligible.
• Implementation scope: any branch of state government that uses standardized pay ranges and annual performance appraisals may provide lump-sum payments, subject to appointing authority approval.
• Effective date: becomes law immediately after governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

State Employees