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Return to Rules ListingChapter 24: Transfer of Governmental Functions and Acquisitions

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24.1 Transfer of Governmental Functions

When any or all of the functions of a state department are transferred to another state department, or when one state department is replaced by one or more other state departments, all positions and incumbents assigned the functions transferred or replaced shall be transferred to the receiving department. The allocation and individual pay rate of employees who transfer shall not change. Following this transfer, if the receiving department determines that any or all of the aforementioned positions should require an allocation change or abolishment, affected employees may be subject to layoff in accordance with Chapter 17 of these rules.

24.2 Status of Non-classified Employees Whose Positions are Declared to be in the State Classified Service or are Acquired by a State Agency

(a) When a nongovernmental private organization or position, which is not subject to Article X is acquired by a State department as a result of a legislative act, constitutional amendment, judicial decree, or an executive order, or a government organization or position, which has been created by an executive order of the Governor, legislation, constitutional amendment, or a local authority, is declared to be in the State classified service by judicial decree or by order of the Commission or Director, an employee encumbering an affected position shall be appointed in the State classified service under this Rule if:

  1. His/her position is retained by the State agency, and the appointing authority of the agency certifies in writing to the Director that the retention is necessary for the continued efficient functioning of the acquiring agency, and such position falls within the State classified service;
  2. He/she is eligible for employment in the classified service;
  3. He/she is either employed in the position or is an employee of the acquired organization and has at least one year of continuous service as of the effective date of the transfer of the position or of the acquired agency to the State classified service provided that such effective date shall be the same effective date of the legislation, constitutional amendment, judicial decree, or commission order that initiated the action to classify the position, and in the absence of these directives, as of the date of the Director's order;
  4. He/she possesses the minimum requirements established for the class to which his/her position has been allocated, on the date of the notification to the agency of the original allocation of his/her position for probationary appointment;
  5. He/she attains a passing score on the appropriate test, within 180 days of the date of notification of the original allocation of his/her position for probationary appointment. After notifying the Commission, the Director may waive the passing of a written test provided:
    1. Either an appropriate test is not available or a review of the hiring and personnel practices of the entity indicates testing would be impractical and/or unnecessary; or
    2. A review of the person's application and personnel record reveals that he/she has successfully performed the duties of the same position for two years; or
    3. The appointing authority certifies that his/her performance has been satisfactory.
  6. Subject to Rule 17.3 and 17.15(e), when an agency acquires employees under this Rule and a layoff results, it shall neither exempt the acquired employees from a layoff, nor shall the acquisition of these employees prevent the appointment of classified employees from a Department Preferred Reemployment List.

(b) An employee who enters the State classified service in accordance with this Rule and who is employed as a classified employee of a governmental jurisdiction subject to a civil service article, statute or ordinance shall be appointed to the State classified service with the same appointment status attained in the former service and such employee shall be exempt from the requirements in 24.2(a)3, (a)4 and (a)5. All other employees who enter the State classified service in accordance with this Rule shall be probationally appointed.

(c) An employee who enters the state classified service in accordance with this Rule, and who is employed with an organization that is being acquired in its entirety for the first time in the classified service, may be exempted from the requirements in (a)3, (a)4, and (a)5 by order of the Director, provided the employee occupies the same position with the acquired organization.

  1. The Director may order such exemptions only after a review of the hiring and personnel practices of the organization that is being acquired.
  2. When using this provision the Director shall notify the Commission of his/her intention to apply it and, after using it, shall file a written report explaining the reasons therefore.
  3. The Director may still require certain employees to meet the requirements of (a)4 and (a)5.
  4. An employee acquired under this provision, except for those acquired under subsection (c) 3 above, will be considered to possess the minimum qualifications of the job in which acquired.

(d) An employee who enters the State classified service in accordance with this Rule shall have his/her pay established in accordance with Rule 6.17.

(e) An employee who enters the State classified service in accordance with this Rule shall have his/her leave credits determined as follows:

  1. An employee who is employed as a classified employee of a governmental jurisdiction subject to a civil service article, statute or ordinance shall have his/her annual and sick leave credits assumed by the acquiring agency; provided that only the amount of leave earned minus the amount taken, during the first year of the appointment authorized by the Director or Commission, may be paid upon separation in that year, except for separations caused by a layoff, medical disability, death or retirement. Upon entering the State classified service, he/she shall earn and be credited with leave benefits as provided elsewhere in these Rules.
  2. An employee of the state, so long as an official system of leave earning and use was maintained by the employer, shall have his/her leave credits determined as provided by Rule 11.19(d).
  3. Any other employee who enters the State classified service in accordance with this Rule shall be credited for unused annual and sick leave, not to exceed 240 hours of each, which had been earned by and credited to the employee on the date of his/her appointment to the State classified service so long as an official system of leave earning and use was maintained by the former employer; provided that only the amount of leave earned minus the amount taken by the employee, during the first year of the appointment authorized by the Director or Commission, may be paid upon separation in that year, except for separations caused by a layoff, medical disability, death or retirement.

(f) Compensatory time shall not be credited above what is legally required under FLSA to the employee.

(g) An employee who enters the State classified service in accordance with this Rule shall have his/her eligibility for performance adjustments under Rule 6.14 and leave earning determined based on the original date of appointment with his/her current or former employer and, upon appointment in the State classified service. However, the Director may approve existing annual eligibility dates for all employees of an entity acquired under this rule, that already had a well established merit pay policy.

(h) This Rule shall not apply to any employee who is illegally hired in either the State unclassified or State classified service as determined by the Commission after investigation by public hearing, or who is hired in the State unclassified service under the provisions of Rule 4.1(d)1, or who is voluntarily seeking employment in the State classified service.

(i) Upon request of an appointing authority, and/or when in its judgment sufficient and compelling reasons to do so have been presented, the Commission may apply the provisions of this Rule to situations not addressed herein.

(j) The Director may order an employee, who is subject to being brought into the State classified service under this Rule, to be placed on a special provisional appointment as provided by this subsection and such appointment shall:

  1. be provided to allow the completion of the process necessary to determine if the employee may remain in the classified service and what requirements of this rule, and others if applicable, will have to be met; and
  2. expire either upon probational appointment of the employee, or two years from the date the appointment was made, or upon cancellation by the Director.