320-06
COMPENSATION AND PAY PLAN

POLICY & PROCEDURE

Subject:

Compensation and Pay Plan

Index: Human Resources & Risk Management

Number: 320-06 (replaces 300-41 & 300-17)

Effective Date:

9/9/2015

Supersedes:

n/a

Page:

1 of 4

Staff Contact:

Nancy A. Carlson

Approved By:

Denis Law

1.0 PURPOSE:

To provide all employees with information regarding the policy and procedures when administering the city’s compensation plan.

2.0 ORGANIZATIONS AFFECTED:

All departments/divisions and City officials.

3.0 REFERENCES:

Labor Agreements

Policy & Procedure 300-16, Probation Period

Policy & Procedure 320-05, Request for Reclassification

4.0 POLICY:

4.1    The City shall establish a compensation and pay system that takes into account internal equity, labor market considerations, complexity or difficulty of the work, total compensation, and the City’s economic condition. It is the goal of the City to attract and retain highly qualified employees and encourage excellence in performance.

4.2    The City recognizes the role of collective bargaining in determining compensation of represented employees. Salary ranges and steps for represented employees shall be established through the collective bargaining process.

4.3    For non-represented regular employees, each classification shall be assigned a pay grade with a minimum and maximum salary. There shall be an additional three steps between the minimum and maximum rates, for a total of five steps in each range.

4.4    Temporary employees shall be assigned to a designated temporary pay grade.

5.0 PROCEDURES:

5.1    New Employees: New Employees shall be hired at the A step of the range unless extenuating circumstances exist, such as his or her prior experience and education exceeds the minimum requirements, or the higher step is needed to meet or exceed the individual’s current salary. New employees may be hired at the D or E step with prior approval from the City Council.

5.2    Promotion: Employees promoted to a classification in a higher salary range shall be placed at the A step of the new salary range or at the step that provides for at least a five percent (5%) salary increase, whichever is greater. Requests to provide more than the increase described above must be justified by the Department Administrator, reviewed by the HRRM Administrator, and approved by the Mayor (or designee). Employees’ appointment date shall be modified to reflect the date of the promotion and to determine subsequent step increases.

5.3    Reclassification: Employees who have their position reclassified to a higher salary range, either under the terms of a collective bargaining agreement or City policy 320-05, shall be placed at Step A of the new salary range or at the step that provides for at least a five percent (5%) salary increase, whichever is greater. Requests to provide more than the increase described above must be justified by the Department Administrator, reviewed by the HRRM Administrator, and approved by the Mayor (or designee). Reclassifications become effective on January 1st of the subsequent year in which the reclassification request was made. Employees’ appointment date shall be modified to reflect the date of the reclassification and to determine subsequent step increases.

5.4    Market Adjustments: Employees who have their classification adjusted to a higher salary range as a result of a market study shall be placed at the same step in the higher range that they achieved in the lower range. Employees’ appointment date will not change.

5.5    Transfers: Employees who transfer from one position to another position in the same salary range shall not receive a salary increase. Employees’ appointment date will not change.

5.6    Acting Pay: Unless otherwise specified in a collective bargaining agreement, when a regular employee is asked to assume the duties of a position at a higher salary range for more than thirty (30) days, the employee shall receive a five percent (5%) premium, retroactive to the first day of the assignment. If the acting assignment is more than three (3) months, the employee shall be entitled to the five percent (5%) premium or Step A of the higher salary range, whichever is greater. Acting assignments expected to last up to three (3) months must be approved by the HRRM Administrator. Acting assignments expected to last more than three months must be approved by the Mayor (or designee). Acting assignments must not last more than six (6) months without prior approval from the Mayor (or designee).

5.7    Special Recognition Award: The Department Administrator, with approval from the Mayor, may authorize a lump-sum award for employees who are in non-represented classifications. The amount of the award may range from $100 to $1,000. The special recognition award will not be incorporated into an employee’s base salary rate of pay for the purposes of computing overtime or compensatory time accruals, unless required by FLSA, but will remain a separate, one-time recognition. The cost of special recognition awards must be absorbed by the department(s) granting the award. Examples of work that would qualify for a special recognition award would include, but not limited to:

5.7.1    A project or work product that is outside the scope of the employee’s normal work assignments;

5.7.2    A project or work product that may be interdepartmental, with the total award shared equally by all members of the work group;

5.7.3    A demonstrated level of creativity, skill, or conscientiousness that is beyond that normally expected for the position;

5.7.4    Individual contribution or leadership without which the project or product results would not have been achieved, and which is beyond what is normally expected for the position; or

5.7.5    Innovation or conscientiousness that may have resulted in substantial savings or reduced costs.

5.8    Working out of Class: An employee who is assigned duties outside the scope of his or her current classification, which would normally be paid at a higher range than what the employee is currently receiving, may be granted a five percent (5%) premium for the time in which the employee is asked to perform the higher level work.

Working out of class requests must be reviewed by the HRRM Administrator and approved by the Mayor (or designee) prior to the assignment of the project or work. Out of class pay may not be granted for more than six months without the prior approval of the Mayor (or designee).

5.9    Longevity Pay:

5.9.1    Unless otherwise specified in the applicable collective bargaining agreement, regular employees would receive longevity pay upon completion of 5, 10, 15, and 20 years of continuous full time service. The Chief Administrative Officer, Administrators, Chiefs and Deputy Chiefs are not eligible for longevity pay.

5.9.2    Regular employees who do not currently receive longevity pay or who receive a prorated longevity pay and whose position is changed from part-time to full-time status, will have their adjusted hire date recalculated for longevity and vacation accrual purposes by converting the part time hours into a full time equivalent. Based on the adjusted hire date, employees would receive the full 5, 10, 15 or 20 year longevity benefit.

5.10    Demotion: Employees who take a voluntary demotion, who are demoted for disciplinary reasons, or who are demoted due to layoff, shall have their salary placed at the step in the lower salary range which most closely reflects the salary they were receiving in the higher range. At no time will their salary exceed the maximum of the new range.