ORS 240.235¹
Compensation plan for classified service

(1) The Personnel Division shall establish and implement a merit pay system which shall take into consideration individual performance and organizational accomplishment, prevailing rates of pay for the services performed and for comparable services in public and private employment, living costs, maintenance or other benefits received, obligations established by collective bargaining agreements, and the state’s financial condition and policies. The merit pay system may provide for monetary awards to employees for past meritorious service and contribution to the mission and goals of the employing agency.

(2) Modifications of the merit pay system may be adopted by the division and shall be effective only when approved by the Director of the Oregon Department of Administrative Services.

(3) Except as provided in subsection (4) of this section, each employee in the classified service shall be paid a rate within the salary range set forth in the merit pay system for the class of positions in which employed.

(4) Following any modification of the classification plan affecting a position, the division may provide that the rate of compensation of the employee holding such position shall not be reduced by reason of any such modification. An employee holding such a position shall not be eligible for any salary increase during such period of time that the employee’s salary is above the maximum of the salary range of the classification to which the employee’s position is allocated. [Amended by 1961 c.451 §1; 1969 c.80 §53; 1975 c.305 §1; 1979 c.468 §12]

Notes of Decisions

Where Personnel Division had responsibility under this sec­tion, ORS 240.215 (Classification plan), [former] ORS 240.220 and ORS 291.258 (Approval of department required for establishment of new personnel position or classification) for classifica­tion and compensa­tion plans for classified service, Forestry Depart­ment did not have authority to promulgate directive binding division to include within restructuring-reclassifica­tion proposal request for salary increases for all employes placed into classifica­tion with higher salary range. Berry v. State Forestry Dept., 35 Or App 703, 582 P2d 473 (1978), Sup Ct review denied

While Personnel Division retains power, pursuant to this sec­tion, to group all job posi­tions into classes and adopt salary ranges, es­tab­lish­ment of compensa­tion plan can be subject for bargaining between state and labor organiza­tions and individual wage rates for employes in collective bargaining units are to be set within negotiated ranges. AFSCME v. Executive Dept., 52 Or App 457, 628 P2d 1228 (1981), Sup Ct review denied

Atty. Gen. Opinions

Authority for voluntary pension trust program for public employes not in educa­tion, (1971) Vol 35, p 998; changing regular eight-hour day and 40-hour week without overtime pay, (1972) Vol 35, p 1291

Law Review Cita­tions

51 OLR 23 (1971)

Chapter 240

Notes of Decisions

Effect of Public Employes Rela­tions Act is to modify authority of Personnel Division so that, while division retains responsibility for es­tab­lishing general job salary grades and classifica­tions, specific salary within each range which is paid to employe in public employe bargaining unit is subject to negotia­tion or arbitra­tion under terms of ORS chapter 243. AFSCME v. Executive Dept., 52 Or App 457, 628 P2d 1228 (1981), Sup Ct review denied

Completed Cita­tions

Beistel v. Pub. Employe Rela­tions Bd., 6 Or App 115, 486 P2d 1305 (1971)

Atty. Gen. Opinions

Changing regular eight-hour day and 40-hour week without overtime pay, (1972) Vol 35, p 1291; state agencies paying carpooling employes’ parking fees, (1974) Vol 36, p 1015; uniform collective bargaining agree­ments for like classes of employes, (1978) Vol 38, p 1694; employe classifica­tion of deputy public defenders, (1979) Vol 39, p 726

Law Review Cita­tions

51 OLR 38 (1971); 16 WLR 341 (1979)

1 Legislative Counsel Committee, CHAPTER 240—State Personnel Relations, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors240.­html (2019) (last ac­cessed May 16, 2020).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2019, Chapter 240, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano240.­html (2019) (last ac­cessed May 16, 2020).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information