AL SB122

Authorizes appointing authorities to provide lump sum merit reward payments of up to 2.5% of annual base salary to qualified full-time state employees on their anniversary date, effective October 1, 2017.

Requires employees to have earned the maximum pay rate in their range, met or exceeded performance appraisal standards, and that no cost-of-living increase was provided to state employees during the previous two consecutive fiscal years.

Restricts payments to one per employee (not every year) and prohibits adjusting anniversary dates to provide earlier payments; payments do not increase retirement salary calculations.

Excludes employees covered by labor agreements, retired persons, agency heads, deputy heads, those without annual performance appraisals, and those who received other pay increases within the previous two years.

Each fiscal year, appointing authorities determine the payment percentage; if insufficient agency funds exist to pay all qualified employees, no payments may be made for that entire fiscal year.