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)(iii), the same as that term is defined in Section 63A-17-102. (ii) "Agency" includes an independent entity that has decided to participate in the pay for performance management system in accordance with Subsection (6)(a). (iii) "Agency" does not include: (A) the State Board of Education; (B) the Office of the State Treasurer; (C) Office of the State Auditor; (D) Office of the State Attorney General; (E) Utah System of Higher Education; (F) the Legislature; (G) the judiciary; or (H) an independent entity that chooses not to participate in the pay for performance management system under this section. (b) (i) "Employee" means an employee of an agency. (ii) "Employee" includes the following individuals only if the agency employing the individuals determines that the individuals may participate in the agency's pay for performance policy: (A) an individual in a position that is not eligible to receive a retirement benefit under Title 49, Utah State Retirement and Insurance Benefit Act; or (B) an individual that an agency hires for a time-limited position that will last fewer than 12 consecutive months. (c) "Independent entity" means the same as that term is defined in Section 63E-1-102. (d) "Pay for performance" means a plan for incentivizing an employee to meet or exceed production or performance goals, in which the plan is well-defined before work begins, specific goals and targets for the employee are determined, and measurement procedures are in place. (e) "Pay for performance management system" means the system described in Subsection (2). (2) The division shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, 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, each agency shall: (a) adopt and maintain 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), the salary range 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) The division shall make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, authorizing an employee to receive a wage that exceeds the salary range of the employee's position if warranted based on the employee's performance rating. (6) (a) An independent entity may participate in the pay for performance management system by providing written notice to the division that: (i) states the intent of the independent entity to participate in the system; and (ii) indicates that the independent entity agrees to comply with Subsection (6)(b). (b) An independent entity participating in the pay for performance management system shall comply with: (i) the provisions of this section; and (ii) the rules and policies of the division relating to participation in the pay for performance management system.