Implementation of the Fiscal Year 2022-2023 Labor Market Adjustment Reserve (LMAR) at Appalachian State University

Tuesday, October 11, 2022

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Implementation of the Fiscal Year 2022-2023 Labor Market Adjustment Reserve (LMAR) at Appalachian State University


Section 39.2 of the 2022 Appropriations Act (S.L. 2022-74) funded a Labor
Market Adjustment Reserve (LMAR) equal to one percent (1%) of each
institution’s State-appropriated salaries and associated benefits.
Appalachian State University’s appropriation is $2.45M for base salary
adjustments and to cover the associated fringe benefit increases.


LMAR adjustments are intended to better retain talent. Institutions have
discretion to identify which employees or positions will receive LMARrelated adjustments based on identified labor market needs. President
Hans strongly encourages LMAR funds be used to address critical workforce
needs among SHRA and EPS (Formerly EHRA) non-faculty employees that are not “highly
paid” employees. The Office of State Human Resources has identified the
following major categories of LMAR actions for reporting purposes:
●Increase salaries that are below the minimum of the salary range.
●Increase salaries that are below the midpoint or market reference rate of
the salary range.
●Increase salaries to address salary compression or salary inequity issues.
●Increase salaries to address classifications with higher turnover or higher
vacancy rates.
●Other market-related reasons for salary increases

Eligibility Criteria

Individuals who were permanent part- or full-time benefits-eligible
employees as of June 30, 2022 and are active in payroll at the time of
implementation are eligible. Time-limited positions and vacant budgeted
permanent positions are also eligible for the LMAR under the following
●The employee’s 2021-2022 overall performance rating must be “Meets
Expectations” or greater, or the employee must be deemed in “good
standing” by their supervisor.
●Employees with an active disciplinary action, notice of termination for
cause, or performance improvement plan are not eligible.

Limiting Criteria

The application of the LMAR increase is limited as follows:
●May not exceed the greater of fifteen thousand dollars ($15,000) or
fifteen percent (15%) of the employee’s current base salary as of the
effective date of the adjustment
●May not result in the employee's salary exceeding the maximum of the
salary range associated with the position or, for SHRA employees, the
market rate of the next-higher competency level of the position
●May not exceed twenty-five percent (25%) of the institution’s total
positions as of July 1, 2022. Twenty-five percent (25%) of App State’s
3,122.99 total positions is 780.75 positions.


App State will implement the LMAR in the October 2022 payroll retroactive
to July 1, 2022 and according to the criteria outlined above - SHRA
employees with a 2021-2022 overall performance rating of Meets
Expectations or higher, compensation will be increased to 95% of the
market rate (if greater than $99.99) for the Career Banded classification
level of the position.


Please direct questions to any of the following:
• Alyson Ebaugh, Interim Associate Vice Chancellor of Human Resources, x6482
• Cindy Harper, Associate Director of Classification and Compensation for
Human Resources,, x6487
• The Office of Human Resources, 330 University Hall Drive,, x3187


Published: Oct 14, 2022 12:28pm