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Merit Employee Relations Board

Providing timely disposition of Merit employee grievance and maintenance review classification appeals.




State Merit Rules Chapter 4


4.0 Pay Plan

4.1 Uniform pay schedules based on current legislation will be issued by the DHR Secretary. Each position classification shall have assigned to it a paygrade for pay purposes. The pay of employees occupying positions in the Classified Service shall follow the published rates set for the assigned paygrades.

4.2 Standard Work Week. The standard work week for full-time employees shall be 37.5 hours or 40 hours as provided in the Budget Act. Employees shall be paid on the appropriate legislated pay scale. Any future changes with Fair Labor Standards Act (FLSA) implications shall be approved by the DHR Secretary.

4.3 Dual Employment. Employees covered by FLSA shall be permitted to accept additional employment in another State agency with prior written consent of the affected agencies. Overtime eligibility shall be based on the FLSA.

  • 4.3.1 Compensation Received From Other Sources. Employees on approved annual leave may receive additional compensation from another State agency or other employer for work performed during normal duty hours. When not on such leave, any additional compensation shall be deducted from employees’ normal compensation.

4.4 Starting Rate on Initial Appointment

  • 4.4.1 Upon initial appointment, employees shall be paid a salary equal to the minimum for their assigned paygrade, except as hereinafter provided.
  • 4.4.2 Agencies may approve a starting rate up to 85% of midpoint where applicants’ qualifications are clearly over and above the job requirements as stated in the class specification. Upon agency request, the DHR Secretary may approve a starting rate higher than the 85th percentile if supported by documentation of the applicant’s qualifications.
  • 4.4.3 Upon agency request, the DHR Secretary may approve a starting rate above the minimum for the paygrade where a critical shortage of applicants exists. The DHR Secretary and Controller General may provide that all lower paid, equally qualified employees in the same class within the same geographic area receiving a lower rate shall also have their pay rates set as stated above if their performance is satisfactory.

4.5 Employees who transfer or move to another class which is the same paygrade as the former class shall be paid at the same percentage of midpoint, unless their current salary is below the Selective Market Variation (SMV) range or approved alternative pay plan for the class, in which case their salary shall be increased to the minimum of the SMV range.

4.6 Promotion. Upon promotion, employees shall receive either the minimum salary of the higher paygrade or an increase of 5%, whichever is greater. Agencies may grant a greater increase not to exceed the 85th percentile under the criteria in 4.4.2. The DHR Secretary may approve a greater increase that exceeds the 85th percentile under the criteria in 4.4.2.

4.7 Demotion. The rate of pay for employees demoted for reasons other than just cause shall be recommended by the agency for the DHR Secretary’s approval. The rate of pay for employees demoted for just cause shall be set by the agency within the pay range of the lowerpaygrade.

4.8 Starting Rate on Reinstatement. Reinstated employees shall receive the same salary as at the time of separation plus any general salary increases. Any request for a greater salary shall be made pursuant to 4.4.

4.9 After Military Leave. Employees returning from active military duty leave shall receive the rate of pay which they would have otherwise received but for their military dutyleave.

4.10 Pay Rate on Return from Exempt Position. Employees who return from leaves of absence in non-classified positions described in 29 Del.C. §5903 (4), (5), (6) and (23) shall receive at least the rate of pay which they would have otherwise received but for such leave of absence. If they return via competition to a position in a higher paygrade than the former Merit position, the provisions of 4.6 shall apply based on their former rate of pay.

4.11 Pay Rates After Hiring Preference. Employees placed as a result of hiring preference shall be paid in accordance with 4.4.

4.12 Pay Rates After Reclassification Or Grade Change

  • 4.12.1 Any employee movement to a higher paygrade is a promotion. Any employee movement to a class of the same paygrade shall be treated in accordance with 4.5. Employees moving to a lower class and/or paygrade shall retain their former pay as long as they remain in that position.
  • 4.12.2 Employees in positions reclassified to a lower class not qualifying for Selective Market Variation (SMV) where their former class qualified for a SMV shall retain, for pay purposes, the SMV pay range assigned annually by the State budget process to the former class as long as they remain in that position and the former class continues to qualify for SMV.
  • 4.12.3 Employees whose positions were reclassified to classes in lower paygrades and who retain their former paygrade as provided for in 4.12.1 and 4.12.2 shall not retain the paygrade upon voluntary transfer or promotion.
  • 4.12.4 Employees shall receive the pay increase provided in the Budget Act, unless their latest Performance Review is unsatisfactory. If the unsatisfactory performance has already resulted in a reduction in paygrade, however, they shall receive the pay increase. Employees who are denied such increase shall become eligible for it when, as evidenced by a Performance Review, their performance is no longer rated as unsatisfactory. Such an increase is not retroactive.

4.13 Pay for Overtime Service

  • 4.13.1 FLSA-covered employees with a standard work week of 37.5 hours who are authorized to perform overtime service shall be paid at 1.5 times their regular rate for each hour worked after 37.5 hours per week. FLSA-covered employees with a standard work week of 40 hours who are authorized to perform overtime service shall be paid at 1.5 times their regular rate for each hour worked after 40 hours. The form of pay, time off or cash, is at agency discretion and shall be agreed to in advance. Only hours worked over 40 hours per week are covered by the overtime provisions of the FLSA. The regular rate of pay shall include all payments (e.g., shift differential, stand- by duty pay and hazardous duty pay). Agencies may assign reasonable periods of overtime to meet operational needs.
  • 4.13.2 Any authorized service in excess of the standard work week or work schedule allowed by the FLSA shall be overtime service. Employees working flexible schedules shall be paid for overtime service in accordance with that schedule and not the standard schedule of 37.5 or 40 hours per week.
  • 4.13.3 A workweek is a period of 168 hours during 7 consecutive 24-hour periods.
  • 4.13.4 Hours worked includes paid leave plus hours actually worked by the employee.
  • 4.13.5 Employees in FLSA exempted classes authorized to work beyond the standard work week may be paid with equal time off.
  • 4.13.6 In unusual circumstances of overtime service by employees normally not eligible for overtime pay in cash, the agency may recommend, for approval by the DHR Secretary that such employees be paid at straight time rates.
  • 4.13.7 Merit compensatory time shall be used within 180 calendar days of accrual or be forfeited. Under extenuating circumstances, the DHR Secretary may approve exceptions to this rule. FLSA compensatory time may be accrued up to 240 hours of compensatory time-off unless the employee is engaged in work in a public safety activity, an emergency response activity, or a seasonal activity in which case the employee may accrue not more than 480 hours of compensatory time-off. Hours in excess of the 240 hours FLSA maximum shall be paid overtime.
  • 4.13.8 Agencies may request the DHR Secretary review the prevailing overtime rates for one or more FLSA exempted classes where external market pressures including excessive turnover rates, recruitment problems and high vacancy rates necessitate that such employees be paid at the rate of 1.5 times the regular rate of pay for any authorized overtime service.

4.14 Compensation for Holidays

  • 4.14.1 If the holiday falls on a day employees would not have been scheduled to work, they shall receive equivalent time off on a pro-rated basis.
  • 4.14.2 Employees eligible for holiday pay and overtime compensation who are authorized to work on a holiday shall be compensated for the hours actually worked on the holiday at 1.5 times and for the holiday on a pro-rata basis. Employees eligible for holiday pay but not normally eligible for overtime compensation required to work on a day observed as a legal holiday shall be credited for the holiday on a pro-rata basis, and may be credited for the hours actually worked on the holiday at straight time, except as otherwise approved by the DHR Secretary. Employees’ compensation for any additional hours, beyond those for which they are routinely compensated, which have accumulated as a result of working the holiday, may be either in cash or time off or a combination of the two at agency discretion.
  • 4.14.3 To qualify for pay for a holiday not worked, employees shall be required to be in a paid status, for any portion of the day, on their last scheduled work day prior to the holiday and on their next scheduled work day after the holiday.
  • 4.14.4 Employees working in 7-day per week functions shall receive holiday pay for hours worked on the actual holiday rather than hours worked on the day observed as the legal holiday.

4.15 Shift Differential Pay

  • 4.15.1 Shift differential is pay for working inconvenient hours and schedules authorized at the agency’s discretion. Shift differential is not authorized for flexible or compressed schedules established at the request of, and for the convenience of, employees even if the requirements of 4.15.2 are met.
  • 4.15.2 Employees authorized by agencies to work night shifts which include four or more hours of work between the hours of 6:00 p.m. and 8:00 a.m. the following day shall receive supplemental pay for the entire shift equal to 5% of their paygrade midpoint.
  • 4.15.3 Agencies may approve employees on a rotating shift schedule to receive shift differential pay during the whole time they are assigned to the rotating shift.
  • 4.15.4 Shift differential is payable for single shift assignments as well as recurring shift assignments. Employees on fixed night or rotating shifts receive shift differential for all periods of overtime service. For employees not on fixed or rotating shifts, shift differential is payable for entire periods of overtime service once the minimum four hour requirement of 4.15.2 are met. For purposes of shift differential eligibility, each period of work during employees’ regular schedule and each period of overtime service will be considered separately.
  • 4.15.5 Employees on a fixed night or rotating shift shall continue to receive such adjusted pay while on paid holidays or other authorized leave with pay; provided that the night shift or rotating shift assignment pertains both before and after such leave; and further provided that sick leave of more than five consecutive work days shall terminate the shift differential for the entire period of absence. Agencies may assign employees who are receiving shift differential pay to the day shift for a period of 30 days or less without loss of shift differential.
  • 4.15.6 An agency may request that the DHR Secretary review the prevailing shift differential rates for one or more classes where external market pressures including excessive turnover rates, recruitment problems and high vacancy rates necessitate that such employees receive shift differential payments which exceed the amounts provided for in 4.15.2.
  • 4.15.7 Employees authorized and required by agencies to work split shifts shall receive supplemental pay for their entire shift equal to 5% of their paygrade midpoint.

4.16 Call-Back Pay

  • 4.16.1 FLSA-covered employees who have left the work site at the end of their scheduled shift and are called back for overtime service shall be paid for such service in accordance with the provisions for overtime pay, provided that minimum total payment is equivalent to four times their regular straight time hourly rate. Employees shall be paid according to this call- back provision or the overtime provision, whichever is greater, not both.
  • 4.16.2 Social workers providing direct child or adult protective services and the State Emergency Response Team approved by the DHR Secretary shall be eligible for call-back pay.

4.17 Stand-by Pay

  • 4.17.1 FLSA-covered employees assigned to critical public service approved by the DHR Secretary, and authorized by agencies to be on-call regularly for emergency services for an average of 64 off-duty hours or more per week, shall receive stand-by pay equal to 5% of their paygrade midpoint while so assigned. Such increased pay shall continue during absences only for paid holidays and sick leave of five successive work days or less occurring during the period of assignment. Any call-back work required during on-call periods shall also be compensated in accordance with 4.16.
  • 4.17.2 Social workers providing direct child or adult protective services and the State Emergency Response Team approved by the DHR Secretary shall be eligible for stand-by pay.

4.18 Hazardous Duty Pay

  • 4.18.1 Determination as to the positions eligible for hazardous duty pay shall be requested by agencies for the DHR Secretary’s approval. The agency shall notify the DHR Secretary when a substantive change occurs in the duties or work conditions of any position receiving hazardous duty pay. Compensation shall be set by the State Budget Act.

4.19 Supervisory Pay. Subject to the approval of the DHR Secretary, the Secretary of the Department of Health & Social Services (DHSS) may grant supplemental pay equal to 5% of the employee’s paygrade midpoint to registered nurses employed in DHSS institutions or facilities who are designated as charge nurses or team leaders and are permanently assigned such responsibilities in addition to their regular staff nurse duties. Charge Nurse/Public Health Nurse team leader responsibilities include the daily supervision and coordination of nursing or other patient care activities in a unit, ward, floor, clinic or field setting during a specified shift to ensure quality patient care and continuity of care with other shifts. This supplemental pay is not authorized for employees required to perform charge nurse/team leader functions on a temporary basis consistent with Merit Rule 3.2.

4.20 Computing Overtime Pay. The hourly rate of pay for overtime, holiday and call-back payment purposes includes shift differential, stand-by and hazardous duty pay.


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