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Exempt salaries are established for each position based on factors such as, duties, responsibilities, organization relationships, and comparable positions with similar roles.
Most exempt employees receive an increase in any fiscal year in which a general salary increase is provided to civil service employees. The amount of the increase shall be comparable to, but shall not exceed, the percentage of the general salary increases provided to state employees. CalHR reports the amount of the increase to the State Controller (who administers the payroll system) to implement the increase.
The Exempt Salary Schedule provides salary information such as Exempt Pay Differentials, Exempt Salary Chart, EPR process, and a Department Index.
Elected state officers whose salaries are established by the California Citizens Compensation Commission and appointed state officers in the Executive Branch whose salaries are fixed by law are referred to as "statutory" exempts. Positions whose salaries are recommended by the appointing power, and approved by the Governor's Office and/or the CalHR, are referred to as "non‑statutory" exempts.
The California Citizens Compensation Commission meets annually in the spring to review and establish salaries and benefits for elected officials in the Executive and Legislative branches. The Commission consists of seven members appointed by the Governor, three representing the public and two each the business community and labor organizations. Salaries become effective the first day of the new legislative session — the first Monday of December. The Department of Human Resources provides staff support to the Commission and further information is located at: http://www.calhr.ca.gov/cccc/Pages/home.aspx.
The salaries of most top level state officers (Agency Secretaries and Department Directors) who are appointed by the Governor are set in Article VII, section 4 of the California Constitution. Any appointee to a position listed must also be confirmed by the State Senate. The list of Appointed State Officials can be found at: http://www.calhr.ca.gov/state-hr-professionals/Pages/appointed-state-officials.aspx.
The Constitution of the State of California provides that members of boards and commissions, appointees of the Governor and one appointee of each Governor's appointee shall be exempt from civil service. All those that do not fall under the categories of appointed state officer or elected state official come under the salary approval authority of the CalHR. For these employees, CalHR approves the salary range for each position and determines any annual increase. These positions normally receive the same increase provided comparable civil service employees.
Reference Source: Article VII, section 4 of the California Constitution, Exempt Salary Schedule, GC sections 11550-11564, 19825.5