NASHVILLE (AP) — More than 700 state employees were denied pay increases July 1 after Gov. Bill Haslam changed existing policy and blocked raises for those receiving poor evaluations or disciplined in the past year.

The Chattanooga Times Free Press (http://bit.ly/p8hPUP) reported the figure after receiving requested information from the state Human Resources Department.

The newspaper found that 771 employees were denied the 1.6 percent cost of living increase, which was the first pay hike in three years.

Denying pay increases because of poor performance evaluations has long been a provision of the state's annual appropriations act.

But using disciplinary infractions as justification for not giving a raise was a new twist, drawing protests last month from Tennessee State Employees Association Executive Director Robert O'Connell, who questioned its legality.