Arkansas Code
Subchapter 2 - Uniform Classification and Compensation Act
§ 21-5-221. Compensation differentials

(a) To address specific employee compensation needs not otherwise provided for in this subchapter, a state agency may pay additional compensation for current employees in specific positions or for classifications of positions assigned to a compensation plan authorized by the General Assembly for one (1) or more compensation differentials.
(b)
(1) Authorization for one (1) or more compensation differentials may be approved if the:
(A) State agency has documented the need for a compensation differential for specified positions or classifications;
(B) State agency submits to the Office of Personnel Management a plan of the terms and conditions for eligibility that must directly address the needs of the targeted positions or classifications for any requested compensation differential;
(C) Cost of implementing and maintaining a compensation differential is within the state agency's existing appropriation and shall not be implemented using funds specifically set aside for other programs within the state agency; and
(D) Compensation differential plan has been approved by the Office of Personnel Management after review by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.

(2) Any compensation differential authorized under this section shall be renewed each fiscal year.
(3) The cumulative total of any compensation differentials paid to an employee shall not exceed twenty-five percent (25%) of the employee's base salary.

(c)
(1) Hazardous duty differential of up to ten percent (10%) may be authorized for the increased risk of personal physical injury for an employee occupying a certain identified high-risk position if the:
(A) Position classification is determined to be physically hazardous or dangerous due to location, facility, services provided, or other factors directly related to the duty assignment of the positions; and
(B) Employee's regularly assigned work schedule exposes him or her to clear, direct, and unavoidable hazards during at least fifty percent (50%) of the work time and the employee is not compensated for the hazardous exposure.

(2)
(A) The director of the requesting state agency shall identify the facility or unit, location, and eligible positions and classifications within the facility or unit that are identified as high-risk.
(B) The positions shall be certified by the state agency director as having been assigned to a work environment that poses an increased risk of personal injury and shall be submitted as part of the plan for payment of hazardous duty differential to the Office of Personnel Management for approval by the Secretary of the Department of Transformation and Shared Services in consultation with the Chief Fiscal Officer of the State after review and approval of the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.
(C) Subsequent changes to the facility or unit, location, and eligible positions or classifications within the facility or unit on file with the Office of Personnel Management shall receive prior approval by the Secretary of the Department of Transformation and Shared Services after review and approval by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.

(d) It is the intent of this subsection that hazardous duty compensation shall be at the discretion of the Secretary of the Department of Transformation and Shared Services and the director of the state agency and shall not be implemented using funds specifically set aside for other programs within the state agency.
(e) An additional ten percent (10%), but not to exceed a total of twelve percent (12%), hazardous duty differential may be authorized for employees occupying positions assigned to a maximum security unit or facility if the regularly assigned work schedules expose employees at least eighty-five percent (85%) of the work time to clear, direct, and unavoidable hazards from clients, inmates, or patients who are in units or facilities that are classified as maximum security.
(f) An employee who is receiving additional compensation for hazardous duty and then is reassigned to normal duty shall revert on the day of the reassignment to the rate of pay for which he or she is eligible under this subchapter.
(g)
(1) A professional certification differential of up to ten percent (10%) for job-related professional certifications for individual positions or for specific classifications within a state agency may be authorized if the certification is:
(A) From a recognized professional certifying organization and is determined to be directly related to the predominant purpose and use of the position or classification; and
(B) Not included as a minimum qualification established or as a special requirement for the classification by the official class specification.

(2)
(A) A professional certification differential may be paid only while the certification is current and maintained by the employee and while employed in a position or classification covered by the plan.
(B) Documentation of continuation or renewal of the certification of the employee is required for continuation of the certification differential.

(h) An education differential of up to ten percent (10%) for job-related education for individual positions or for specific classifications within a state agency may be authorized if:
(1) Attainment of additional education is from an accredited institution of higher education, documented by official transcript, certificate, or degree award, and directly related to the predominant purpose and use of the position or classification; and
(2) The education to be compensated is not included as a special requirement or minimum qualification established for the classification by the official class specification.

(i) A geographic area differential of up to ten percent (10%) may be authorized to address the documented inability to recruit and retain certain employees in a specific geographic area of the state if the additional geographic area differential is based on documented recruitment, turnover, or other competitive pay issue in a specific geographic area but that does not justify a statewide labor market special entry rate.
(j)
(1) A second-language differential of up to ten percent (10%) may be authorized for an employee who has the demonstrated ability and skill to communicate in a language other than English, including American Sign Language, and that skill is determined by the state agency to be directly related to the effective performance of the job duties for the position occupied by the employee.
(2) An employee who receives additional compensation under this section and who moves into a position that does not need the skill to communicate in a language other than English shall revert on the effective date of the change to the rate of pay that the employee would otherwise receive.

(k)
(1) On-call duty or standby-duty differential may be authorized for an employee whose job requires him or her to provide services on nights, weekends, or holidays or other situations when the state agency does not have regularly scheduled staff coverage.
(2) On-call duty or standby-duty differential is to be used for officially scheduled duty outside regular work hours during which an employee is required to be accessible by telephone, pager, or other means and must return to the designated work site upon notification of need within a specified response time.
(3)
(A) An employee who is required to be available for duty on nights, weekends, and holidays will be eligible to receive on-call or standby-duty pay equivalent of an hourly rate not to exceed twenty percent (20%) of his or her base hourly pay rate for each on-call or standby hour for not more than forty-eight (48) hours during any seven-day work period.
(B)
(i) Compensation shall not be paid to any employee required to be on-call and standby who fails to respond after the second notification that his or her services are needed.
(ii) If the equipment or paging device malfunctions, the penalty shall not apply.

(C)
(i) An employee on on-call or standby duty who is called in to work shall be compensated for the actual hours worked at the appropriate rate of pay with a minimum of two (2) hours for each call back.
(ii) The employee shall not be paid on-call or standby pay for hours actually worked during a call back.

(l) If granting additional compensation would have the effect of exceeding the maximum pay level for the grade assigned to the employee's classification, the additional compensation shall not be considered as exceeding the maximum allowable rate for that grade.
(m) Other compensation differentials may be administered by the Office of Personnel Management after:
(1) Approval by the State Personnel Administrator; and
(2) Review by the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.