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HR Officers:

Given the lack of an adopted State Budget for FY 2021-22, the Office of State Budget and Management (OSBM) has issued the attached guidance on continuing budget authority. You will note that Item 3 limits many types of salary adjustments effective July 1, 2021, or later until further notice.

Specifically, the following salary actions are temporarily frozen, likely until a statewide budget is passed: additional duties, reclassifications, pre-emptive (e.g., speculative) retention, labor market, equity, and SHRA employee competency assessments, regardless of funding source. These restrictions apply to all categories of employees, temporary or permanent, including student employees (e.g., graduate students, postdocs, etc.).

Any action that has been approved and submitted for payroll processing (meaning ePAR submitted) prior to this communication will proceed. All other pending actions will be reviewed for compliance under these restrictions and may be stopped if applicable.

These restrictions do not preclude processing the following salary actions if deemed essential under the Essential HR Actions review and approval process:

  • Promotional increases (e.g., internal hires) for existing budgeted positions and/or titles.
  • Offers extended to external candidates for existing budgeted positions, including any positions funded by external contracts and grants.
  • Critical retention increases in situations where there is either a documented recruitment effort or an outside offer letter and all normal retention criteria for the employee type is met.
  • Increases for individuals assuming an acting or interim appointment for an existing vacant position.
  • Increases required by contractual agreements, legal settlements or any other increase mandated by federal or state law that cannot be delayed.

The UNC System Office HR team developed the attached FAQ about these temporary restrictions, and we will dedicate time on this Friday’s HR Council agenda to discuss these restrictions. So that we can work to address any questions you may have, in advance of the meeting please send your questions to the following contacts:

  • For SHRA position and salary actions: your assigned Classification and Compensation Consultant.
  • For EHRA Non-Faculty position and salary actions: your assigned EHRA Non-Faculty Consultant.
  • For SHRA and EHRA Non-Faculty recruitment actions: your assigned Talent Acquisition Partner.
  • For Faculty Actions: Academic Personnel Office.

Thank you for your continued cooperation with this process.


Linc Butler
Associate Vice Chancellor for Human Resources

Attachment: OSBM Freeze FAQ


Categories: HRO
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