If I give Bob and Bill permissions to Review and Publish to Web and give Jane permission to In Draft, when logged in as Jane, why can she add an article, choose any of the steps and create the article?
If you added Jame using the "Edit Permissions" tab on the work flow step this means Jane can edit articles that in the "In Draft" workflow step. If anyone else tries to edit articles in that workflow step they won't be able to.
If Bob and Bill are added within the "Edit Permission" tab on the "Review" and "Publish" workflow steps then only Bob and Bill will be able to edit articles in either the "Publish" or "Review" workflow steps.
Jane will still be able to create articles and view articles in other work flow steps.
For example she will be able to click "Edit" on articles within the "Review" workflows tep. However the form will be read only and she won't be able to update the fields or save the article until it's placed into the "In Draft" workflow step.
To prevent James from adding articles you will need to customize her permissions.
From Admin CP > Staff > Staff Permissions. Create a new staff permission set and all this "Draft". Once you've created the permission set from the Staff Permissions page click the white Edit button alongside your "Draft" permission set. This will display all the tabs you have and allows you to modify permissins for each tab.
Now you'll need to create a "Draft" staff deparment. Goto Admin CP > Staff > Staff Departments. Create a new staff department called "Draft" and link this to the "Draft" permission set.
You'll need to now visits Janes profile fron Admin CP > Staff > Manage Staff.
Edit Janes profile and ensure her Primary Department is set to "Draft".
This will mean the "Draft" staff permission set we created is applied to Jane. You can disable the creation of articles or access to certain tabs when editing tab staff permissions.
I hope this helps clear things up a little. If i can assist further please don't hesitate to respond,
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