GOV §19832: (a) After completion of the first year in a position, each employee shall receive a merit salary adjustment equivalent to one of the intermediate steps during each year when they meet the standards of

(a) After completion of the first year in a position, each employee shall receive a merit salary adjustment equivalent to one of the intermediate steps during each year when they meet the standards of efficiency as the department by rule shall prescribe. (b) An employee who is excluded from the definition of “state employee” in subdivision (c) of Section 3513 shall be informed in writing of a merit salary adjustment denial 10 working days before the proposed effective date of the adjustment. (c) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.