STATEMENT OF EMERGENCY

101 KAR 2:180E

      The amendments include the creation of a third interim review period, to appropriately capture the work-related performance during the months of October – December. Previously this performance was captured by additional comments as necessary and attached to the evaluation form. These amendments now provide a formal location within the evaluation form. Additionally, if an employee transfers or changes positions after November 1st in a calendar year, the current evaluator will complete the annual evaluation prior to the change in position. Current language utilizes October 1st; however, this date change is desired to better capture an employee’s entire year of performance. Other amendments include clarification regarding what to consider when establishing job duties, and the necessary training that must be completed by supervisors and employees. The evaluation form is updated to reflect these changes, and other technical amendments are made throughout the regulation and form. An ordinary amendment to the administrative regulation is not sufficient for the timely and consistent implementation of the changes to the state employee performance evaluation system. The current regulatory language must remain in effect throughout calendar year 2011 to ensure that the existing requirements and forms are utilized for the 2011 calendar year employee performance. The revisions to the administrative regulation and evaluation forms must be effective January 3, 2012 for supervisors and employees to utilize the proper performance plan documents for calendar year 2012. The emergency amendment will be replaced by an ordinary amended administrative regulation. The ordinary administrative regulation was filed with the Regulations Compiler on January 3, 2012. This emergency administrative regulation is identical to the ordinary administrative regulation.

STEVEN L. BESHEAR, Governor

TIM LONGMEYER, Secretary

DINAH T. BEVINGTON, Executive Director

PERSONNEL CABINET

(Emergency Amendment)

101 KAR 2:180E. Employee performance evaluation system.

      RELATES TO: KRS 18A.110

      STATUTORY AUTHORITY: KRS 18A.110(1)(i), (7)(j)

      EFFECTIVE: January 3, 2012

      NECESSITY, FUNCTION and CONFORMITY: KRS 18A.110(1)(i) and (7)(j) requires the Secretary of the Personnel Cabinet to promulgate comprehensive administrative regulations for classified service employees to establish a uniform system of annual employee evaluations for classified employees. This administrative regulation establishes the uniform employee performance evaluation system.

      Section 1. General Provisions. (1)[(a) Except as provided in paragraph (b) of this subsection, the] The annual performance period shall be one (1) calendar year beginning on January 1.

[(b) For calendar year 2001, the annual performance period shall be the effective date of this administrative regulation until the end of the calendar year.]

      (2) Except as provided in subsection (4)(d) of this section, performance evaluations shall be completed no later than thirty (30) calendar days after the end of the annual performance period.

      (3) All agencies shall use the Annual Employee Performance Evaluation form.

      (4)(a) Except as provided in paragraph (b) or (c) of this subsection, the first line supervisor of an employee at the time the evaluation is due shall be the evaluator.

      (b) If the first line supervisor has not supervised the employee for at least sixty (60)[ninety (90)] calendar days during the performance year, the next line supervisor who meets the sixty (60)[ninety (90)] day requirement shall be the evaluator.

      (c) If an employee changes jobs or reports to a different supervisor on or before November 1 of the performance year, the agency shall transfer all performance evaluation documentation for the performance year to the new evaluator for incorporation in the annual evaluation.

(d) If an employee changes jobs or[and] reports to a different supervisor after November 1[October 1] of the performance year, the annual evaluation shall be completed by the former supervisor prior to the job change.

      (5)(a) Except as provided in paragraph (b) of this subsection, the evaluator[The first line supervisor (evaluator)] shall establish a performance plan for each eligible employee no later than thirty (30) calendar days after the start of the performance period.

(b) If an employee’s position or job title changes during the performance year, the evaluator shall establish a new performance plan no later than thirty (30) calendar days after the start of the position or job title change. The new performance plan shall become a part of the original performance year evaluation documentation.

      (6) The evaluator shall meet with the employee when completing the performance plan to discuss job duties and expectations.

      (7) Performance evaluations shall be in writing. The evaluator shall:

      (a) Present and explain all documentation relevant to an employee’s performance evaluation;

      (b) Discuss both the positive and negative aspects of performance with the employee at the annual evaluation;

      (c) Elicit the employee’s opinions and concerns; and

      (d) Discuss measures to improve or enhance performance with the employee.

      (8) The Personnel Cabinet[Governmental Services Center] or agency personnel shall provide supervisor evaluation training on the performance evaluation system.

      (a) The appointing authority shall require that supervisor evaluation training is completed prior to completing performance planning, interim reviews, and annual evaluations[evaluation] of employees.

      (b) The Personnel Cabinet shall monitor and validate compliance with supervisor evaluation training requirements.

      (9) An employee[Employees] shall complete orientation to the performance evaluation system prior to January 1 of the employee’s initial performance evaluation period[no later than thirty (30) calendar days after completion of initial probation].

      (10) Except as authorized by the appointing authority, an evaluator shall complete required performance planning, interim reviews, and annual evaluations for each eligible employee. If the appointing authority approves the exception, written justification for the decision shall be placed in the employee’s personnel file.

      Section 2. Employee Eligibility. Performance evaluations shall be completed for all full-time classified employees with status at the beginning of the performance year who have remained in continuous merit status throughout the performance year.

      Section 3. Performance Planning. (1) The performance plan shall specify job responsibilities and expectations in the four (4) categories established in this subsection.[following categories:]

      (a) Job tasks.

      1. The job tasks category shall identify specific duties and expectations of the position held by the employee.

      2. The employee’s job duties shall be consistent with the position description.

      3. Duties and expectations shall be in writing.

      4. The evaluator shall assign points to identified duties and expectations[, weighted by importance].

      (b) Adaptability/initiative.

      1. The adaptability/initiative category shall identify job requirements of the agency.

      2. The evaluator shall place each requirement under this category in writing and assign points weighted by importance.

      (c) Communication/teamwork.

      1. The communication/teamwork category shall identify requirements of the agency.

      2. The evaluator shall place each requirement under this category in writing and assign points weighted by importance.

      (d) Self-management.

      1. The self-management category shall identify requirements of the agency relating to workplace standards that shall include:

      a. Attendance;

      b. Punctuality;

      c. Career development;

      d. Responsibility; and

      e. Dependability.

      2. The evaluator shall place each requirement under this category in writing and assign points weighted by importance.

      3.[Performance goals and objectives shall relate to the agency’s mission.][4.] The evaluator shall develop the performance plan after consultation with the employee.

      a. The employee and evaluator shall certify in writing in the performance planning section of the evaluation form that the employee has met with the evaluator and is aware of the performance plan [at the start of the evaluation period].

      b. The next line supervisor shall certify that he or she has reviewed the duties and expectations of the employee and finds them to be reasonable and appropriate based upon the employee’s classification[equitable considering duties of other employees in the same classification].

      (2) Total points assigned for all four (4) categories shall equal 100 total points. The evaluator shall distribute points among the four (4) categories as follows:

      (a) The job tasks category shall have a minimum of fifty (50) points designated; and

      (b) The other three (3) categories shall have a minimum of five (5) points designated to each category.

      (3) To obtain the point total for each category, points assigned to each job duty within each category shall be multiplied by the numerical rating[one (one (1) to five (5))] provided[determined] by the evaluator, as described in Section 5(3) of this administrative regulation[to complete the final point total for each category].

      (4) Total points in all four (4) categories shall be added to obtain a final performance evaluation score.

      Section 4. Performance Coaching and Feedback. (1) Modification of the performance plan may occur during the performance evaluation period if the changes are consistent with the duties reflected on an employee’s position description.

      (a) The employee shall be given written notice of changes to the performance plan.

      (b) Changes to the performance plan shall be indicated on the evaluation form or on a supplemental sheet attached to the form.

      (c) Changes to the performance plan shall be initialed and dated by the evaluator and the employee when changes become effective.

      (2) Three (3)[Two (2)] interim reviews shall be required during a performance year.

      (a) The evaluator shall document the interim reviews.

      1. Interim reviews shall not contain a rating.

      2. The interim meeting section of the evaluation form shall contain comments by the evaluator for each category established in Section 3(1) of this administrative regulation.

      (b) The employee and evaluator shall sign the performance evaluation form to certify that the interim reviews occurred.

      (c) For consideration in the annual year evaluation, the employee may attach pertinent comments relating to the interim review within five (5) working days of the interim review meeting.

(d) Except as requested by the appointing authority and authorized by the Secretary of Personnel, the evaluator shall schedule interim reviews to discuss performance January 1 through April 30, May 1 through August 31, and September 1 through December 31[during the months of April and August of each performance year].

(e) Interim reviews shall be completed no later than thirty (30) calendar days after the end of each interim review period.

(f)[(d)] Interim reviews shall document performance to justify the annual performance rating.

      Section 5. Performance Evaluations and Ratings. (1) Except as provided in Section 1(4)(d) of this administrative regulation, the[The] evaluator and the employee shall meet no later than thirty (30) calendar days after the performance period ends to discuss the performance ratings.

      (2) Eligible employees shall be evaluated in the four (4) categories described in Section 3 of this administrative regulation.

      (3) All job duties identified within the categories shall be rated on a scale of one (1) to five (5), with five (5) representing superior performance.

      (4) The final performance evaluation shall consist of a defined numerical rating. Point values for the overall performance rating shall be[are]:

      (a) Outstanding: 450 to 500 points;

      (b) Highly effective: 350 to 449 points;

      (c) Good: 250 to 349 points;

      (d) Needs Improvement: 150 to 249 points; or

(e) Unacceptable: less than 150 points.

      (5) Unresolved disagreements on ratings or any aspect of the performance evaluation shall be reviewed through the reconsideration process established in Section 7 of this administrative regulation.

      (6) Signatures of the evaluator, employee and next line supervisor shall be required on the final evaluation.

      (a) The next line supervisor shall sign the evaluation after it is completed, signed, and dated by the evaluator and the employee.

      (b) For the purpose of evaluating or managing the performance of the evaluator, the next line supervisor’s signature shall certify that he or she is aware of the evaluation and has reviewed it.

      (c) Exceptions to this requirement may be requested by the appointing authority and shall be subject to the approval of the Secretary of Personnel.

      Section 6. Performance Incentives.[Employee] Annual leave shall be awarded as a performance incentive at the following rates:

      (1) Two (2) workdays, not to exceed sixteen (16) hours, for an "Outstanding" rating; or [.]

      (2) One (1) workday, not to exceed eight (8) hours, for a "Highly Effective" rating.

      Section 7. Reconsideration and Appeal Process. (1) Within five (5) working days of a performance evaluation, an employee may request initial reconsideration of the performance evaluation by the evaluator.

      (2) Within five (5) working days of the receipt of the request for reconsideration, the evaluator shall respond to the request in writing.

      (3) If the employee refuses to sign the form in the employee response section, the evaluation shall not be eligible for reconsideration.

      (4) Within five (5) working days after the initial reconsideration by the evaluator, an employee may submit a written request for reconsideration of the evaluation by the next line supervisor. If neither the evaluator nor the next line supervisor responds[respond] to the request for reconsideration in the designated time period, the employee may submit a written request to the appointing authority for response to the request for reconsideration and compliance with this administrative regulation.

      (5) The next line supervisor shall:

      (a) Obtain written statements from both the employee and the evaluator; or

      (b) Meet individually with the employee and the evaluator.

      (6) The next line supervisor shall inform both the employee and evaluator in writing of the decision no later than fifteen (15) working days after receipt of the employee’s request.

      (7) Within sixty (60) calendar days after an employee has received the written decision from the next line supervisor, the employee who has complied with this administrative regulation may appeal a final evaluation which has an overall rating in either of the two (2) lowest overall ratings to the Personnel Board.

      Section 8. Evaluation-based Agency Action. If an employee receives an overall rating of unacceptable, the agency shall:

      (1) Demote the employee to a position commensurate with the employee's skills and abilities; or

      (2) Terminate the employee.

      Section 9. Incorporation by Reference. (1) The "Annual Employee Performance Evaluation"[Form], November 2011[01/01/01], is incorporated by reference.

      (2) This material may be inspected, copied[copies], or obtained, subject to applicable copyright law, at the Personnel Cabinet, 501 High Street, Third Floor[200 Fair Oaks Lane, 5th Floor], Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.

TIM LONGMEYER, Secretary

      APPROVED BY AGENCY: December 29, 2011

      FILED WITH LRC: January 3, 2012 at 10 a.m.

      CONTACT PERSON: Dinah T. Bevington, Office of Legal Services, 501 High Street, 3rd Floor, Frankfort, Kentucky 40601, phone (502) 564-7430, fax (502) 564-0224.

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

Contact person: Dinah T. Bevington

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This regulation establishes the uniform employee performance evaluation system.

      (b) The necessity of this administrative regulation: This regulation is necessary to establish a uniform system of annual employee evaluations for classified employees, and fulfills the secretary’s statutory requirements to promulgate comprehensive regulations regarding the evaluation system.

      (c) How this administrative regulation conforms to the content of the authorizing statutes: KRS 18A.030 allows the secretary to promulgate comprehensive administrative regulations consistent with the provisions of KRS Chapters 13A and 18A, and this regulation is required pursuant to KRS 18A.110(1)(i) and (7)(j).

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This regulation currently establishes the uniform employee performance evaluation system.

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: The proposed amendments to the existing regulation will accomplish the following:

      Create a third interim review period, to appropriately capture the performance and conduct during the months of October – December;

      Provide that if an employee transfers after November 1st in a calendar year, the current evaluator will complete the annual evaluation – the current language utilizes October 1st;

      Require a new performance plan must be completed for all employees within 30 days of starting a new position;

      Recognize the requirement to complete supervisor training before that individual creates any performance plans or conducts evaluations;

      Clarify that the evaluation system is no longer housed within the Governmental Services Center (GSC);

      Clarify what should be considered before an employee’s duties are established, including the employee’s position description; and    Provide updated information to the Annual Performance Evaluation form, including the third interim evaluation period, clarification to the scoring areas, clarification to the signature pages, clarification for employee comments, and use of terminology utilized within the new HR system; and

      Remedy technical or drafting within the regulation.

      (b) The necessity of the amendment to this administrative regulation: The amendments to this administrative regulation are necessary to ensure the performance evaluation system is appropriately utilized and serves its intended purpose. Additionally, the amendments incorporate the updated Annual Employee Performance Evaluation form.

      (c) How the amendment conforms to the content of the authorizing statutes: This amendment complies with KRS 18A.030, 18A110(1)(i) and (7)(j), as well as KRS 13A.2251.

      (d) How the amendment will assist in the effective administration of the statutes: The amendments assist in the administration of the statutorily required performance evaluation system. The additional interim period provides a more effective way of capturing and addressing employee work performance, and the amendments to the form assist in the effective completion and review of employee evaluations.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: All KRS Chapter 18A employees, supervisors, and executive branch agencies are required to comply with this regulation.

      (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

      (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: The Personnel Cabinet is responsible for equipping all executive branch agencies with the revised Annual Performance Evaluation form, and providing additional training as necessary. The only additional action required by each regulated entity is the documentation of performance during the last four (4) months each calendar year.

      (b) In complying with this administrative regulation or   amendment, how much will it cost each of the entities identified in question (3): There is no additional cost to each of the entities identified in       question (3).

      (c) As a result of compliance, what benefits will accrue to the     entities identified in question (3): Additional benefits include the increased guidance and direction regarding how performance may effectively be evaluated.

      (5) Provide an estimate of how much it will cost to implement this administrative regulation:

      (a) Initially: This regulation, as amended, is not anticipated to generate any new or additional costs.

      (b) On a continuing basis: This regulation, as amended, is not anticipated to generate any new or additional costs.

      (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: This regulation, as amended, is not anticipated to generate any new or additional costs.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: This regulation, as amended, is not anticipated to generate any new or additional fees or funding.

      (8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees:

      This regulation, as amended, is not anticipated to generate any new or additional fees.

      (9) TIERING: Is tiering applied? Tiering does not apply because all classes are treated the same        under this regulation.

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

      1. Does this administrative regulation relate to any program, service, or requirements of a state or local government (including cities, counties, fire departments, or school districts)? Yes.

      2. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? All state agencies with employees covered under KRS Chapter 18A.

      3. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 18A.030, 18A110(1)(i) and (7)(j), and KRS 13A.2251.

      4. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.

      (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? No revenue will be generated.

      (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? No revenue will be generated.

      (c) How much will it cost to administer this program for the first year? There are no additional estimated costs.

      (d) How much will it cost to administer this program for subsequent years? There are no additional estimated costs.

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

      Revenues (+/-):

      Expenditures (+/-):

      Other Explanation: