278 Compensation Policies & Practices Revisions
RESOLUTION NO.
278
COMPENSATION POLICIES AND PRACTICES
SUBJECT: REVISIONS
BY: j;z;)-A- ;j/f-~
t/fJ t!tJUhc.l--tJ'h~
A RE.SOLUTION OF THE CITY COUNCIL OF THE CITY OF MERIDIAN
REPEALING SUB-PARAGRAPHS 1.,2.,4., AND 9. OF SUB-SECTION B
[COMPENSATION POLICIES] OF SECTION IV [EMPLOYEE CLASSIFICATION,
COMPENSATION, AND BENEFITS] OF THE PERSO.NNEL POLICY rvIANUAL AND
BY AMENDING SUB-PARAGRAPH B OF SECTION IV OF THE PERSONNEL
POLICY rvIANUAL BY THE ADDITION THERETO OF NEW SUB-PARAGRAPHS 1
THROUGH 21, AND RE-NUMBERING THE RErvIAINING SUB-PARAGRAPHS OF
SUB-SECTION B OF SECTION IV PERTAINING TO COMPENSATION POLICIES.
BE IT RESOLVED BY THE rvIAYOR AND COUNCIL OF THE CITY OF MERIDIAN,
IDAHO:
SECTION 1: That sub-paragraphs 1.,2.,4., and 9. of sub-section B of Section
IV of the Personnel Policy Manual are hereby repealed.
SECTION 2: That sub-section B of Section IV of the Personnel Policy Manual
is hereby amended by the addition thereto of new sub-paragraphs 1 through 21 and
re-numbering the remaining sllb-paragraphs of sub-section B to read as follovvs:
B. COMPENSATION POLICIES AND PRACTICES
1. Objective and Definitions
The purpose of this sub-section is to provide guidelines for consistent administration of
the compensation program and movement of employee from position to position (i.e.,
promotion, transfer, demotion, etc.). The City believes that employees should be paid for
their performance and the contributions they make as employees of the City of
Meridian. This philosophy is known as "Pay for. Performance".
"In-guideline": approvals require all levels of management signature in the chain of
command (starting with the Supervisor).
"Out-of-Guideline": approvals require all levels of management signature in the chain
of command and the Mayor.
"A promotion": is a reassignment of an employee to a position in a higher salary/wage
range or grade than the employee's prior position.
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itA demotion": is a reassignment to a position of lower salary/wage range than the
employee's prior position.
"A transfer": is a lateral move to a different job in the same grade.
itA documented vvarning": is an action taken when and employee's behavior is
inconsistent vvith the city's statement of conduct and has received a vvritten notice
describing such conduct.
"A short-term (less than three (3) calendar months) reassignment": is not considered as
a promotion, transfer, or demotion.
itA pay review": is, conducted when a wage or salary adjustment is being considered.
itA performance review": considers various factors of the employee's fulfillment of
his/her job duties.
"Reassignment to another shift": is not considered a promotion/ transfer unless meeting
the above criteria.
2. Pay Program
2.1 Annual Increase Amounts
The Mayor and City Council determine pay increases as budgets are set and tax
levies are authorized. Pay given for any position within" the City is subject to the
annual budgetary process and as such may be subject to increase or decrease
from fiscal budget year to year. The head of the department may make
suggestions about salary compensation and other pay system concerns but the
final decision regarding compensation levels rest with the Mayor and City
Council. The Mayor and City Council reserve the right to make budget
adjustments, and consequently pay adjustments, during the course of the fiscal
budget year to deal with other circumstances which they think justify changes in
entity expenditures.
Employees will receive the increase according to the mid-point of their current
grade range. After considering the employee's performance as provided here in
this sllb-section, the percentage increase will be determined. This amount is
then multiplied by the mid-point of the employee's grade and added to the
current rate. For example, an employee is in a grade range with a mid-point of
$10.00. The individual is given a 5% increase based on his/her performance.
The employee's current rate is $9.25. The employee's ne\rv rate would be $9.75
($10.00 X .05 = $0.50 + $9.25 = $9.75).
The increase amOllnts can be adjusted. Contact Human Resources for the latest
schedule.
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2.2 Employees Currently Over the Maximum of Their Grade Range
These employees will continue to receive increases as if they vvere vvithin the
range for one (1) year. If after one (1) year the employee is above the range
maximum, he/she will be frozen until recaptured in the range.
2.3 Compliance vvith State and Federal Pay Acts
The City shall comply with all State and Federal pay acts respecting the
compensation of employees for services performed in the public service.
3. Review Schedule
03.1 Current Employees
Current employees will be given a review on October 1st of each year unless
experiencing a date altering event as prescribed by policy. Upon completion of
the review current employees are eligible for a merit increase based on
performance.
3.2 Nevv Hires
Employees hired on or after October 1, 1998 will receive a review at six (6)
months, and will be eligible for an merit increase based on performance at twelve
(12) months effective on their employment start date and on the employee's
anniversary thereafter unless experiencing a date altering event as prescribed by
policy.
Employees in the police department will receive a review after one (1) year of
service, and will be eligible for a merit increase based on performance that vvill
be effective on the anniversary date of hire, unless experiencing a date altering
event prescribed by policy.
Employees in the fire department will receive a review after one (1) year of
service; merit increases are determined by the union contract.
3.3 Interim Increases (Changes in Anniversary Date)
Each time an increase or decrease occurs, the date of this adjustment will be
used to determine the next review. For example, if an employee receives an
increase or promotion on March 15, his/her next review is due twelve (12)
months after the wage increase.
Supervisors may delay or request early increases on an exception basis. Such a
review will be approved through Uout-of-gtlideline" approval channels. The
exception to this is a pay review that is delayed because the employee is on a
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documented disciplinary warning for which he/ she has signed an
acknowledgment of receipt.
3.4 Rehires
Employees who have terminated their employment will have their revievv date
based upon when they rehired.
3.5 Employees on Document Written vVarning
These employees vviII not be eligible for pay increase until after the warning has
expired. If an increase is granted after the warning period has expired, the
anniversary is not adjusted, but remains the same date as the scheduled revievv.
For example, and employee's scheduled revievv is October 1. The individual is
placed on an employee signed warning on September 15. The employee
sllccessfully fulfills the outlined warning obligations and the warning expires on
March 15. The increase would be effective on March 15 and the employee's next
review will be on October 1 in the following year.
3.6 Promoted Employees
See section 15 of the "Promotion/Transfer" policy.
4. Differentials
4.1 Lead Differential
Lead Workers will be raised to the greater of: two grades above the lowest
position in the work group for which they are responsible or one grade higher
than the grade of the top position in the work group. For example, if a Lead
Worker coordinates employees who are in a grade A2 and As he/she would be
placed in Grade A4. However, if the work group consists of only A4's, the Lead
Worker would be placed in the A6 grade.
4.2 Other Differentials (Police Department)
Differentials (e.g., skill pay, certification) are additions to the base wage and will
be removed when the specific condition is no longer required.
5. Start Rate
5.1 New Hires
New hires will normally start at the minimum of the range for the grade.
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If the individual filing the position has considerable background, knowledge,
education, etc. \vhich merits entering at a higher rate the Department Head must
get "out-of-guideline" approval before an offer is made.
5.2 Rehires
Terminated employees who are rehired will be considered "new hires" (see 5.1
for guidelines". Terminated employees \vho are rehired above the market rate
\vill require additional approvals.
Employees returning from an approved leave of absence are not considered as
"rehires."
6. Updating the Program
6.1 Ranges
Human Resources will review the wage ranges by grade on an annual basis.
6.2 Grades Revievved by the Compensation Committee
The Mayor will designate a Compensation Committee. They will meet on at
least an annual basis to review the grades, re-evaluate positions that have
significantly changed, and slot new positions.
7. Interim Increases
Increases other than those given according to the schedule( s) outlined in this policy
must have all levels of management approval starting with the Supervisor up to and
including the Mayor. The next review date will then be derived from this adjustment
date.
8. Procedure
8.1 Notice of Review Date
Approximately five (5) weeks prior to the employee's effective date for his/her
increase, Human Resources will send a list of employees to be reviewed to the
designated supervisor, manager or department head.
8.2 Management responsibility
The supervisor, manager or department head will complete a Performance
Evalllation form for each of the employees noted in section 8.1 and indicate the
appropriate salary/wage increase on a Personnel Action Request form. Two (2)
forms are llsed for each in routing for approvals. A due date will be noted on the
information received from Human Resources. The date will be approximately
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tvvo (2) vveeks after receipt of the list by the supervisor.
8.S Approvals
8.3.1 If the recommendation is "in-guidelines", the immediate supervisor
forwards the Personnel Action Request form and related Performance
Evaluation(s) to the next level of management for approval. After the
next level of management has approved these documents, the Personnel
Action request form is sent to Human Resources and the Performance
Evaluation and a copy of the Personnel Action Request form is sent to
the immediate supervisor.
8.3.2 lfthe recommendation is (lout of guidelines", the Personnel Action
Request form and related Performance Evaluation(s) are sent to all levels
of management and up to and including the Mayor for approval.
8.4 Inputting by Payroll
The information will then be put into the system by Payroll.
8.5 Sending of Forms Back to the Supervisor
The approved Personnel Action Reqllest form(s) vvill be sent back to the
Supervisor with the related Performance Evaluation(s).
8.6 Meeting with the Employee
The supervisor will discuss the review with the employee and have him/her sign
his/her Performance Evaluation. The supervisor gives the employee a copy of
the Performance Evaluation and forwards the original to Human Resources for
filing.
8.7 No Preliminary Discussion with Employee
No discussion of the increase should be held with the employee prior to receipt
of fully approved documents.
8.8 Responsibility for Review Outcome
The immediate supervisor should take responsibility for the amount of the
review. In no case should a supervisor lead an employee to believe they tried for
a larger increase, but could not get it approved by "upper management."
8.9 Wage/Salary Increase Philosophy
Increases are "earned by the employee not "given" by management. All
increases are earned by merit. Merit considers and measures job performance
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against job standards or established goals and objectives. Attitude can also be
considered if it affects the job performance of the employee or other employee( s).
9. Employees on Leave of Absence (LOA) and Layoff(LO)
9.1 Revievv Date
lfthe employee has been on LOA or LO for less and one-half(~) of the total
days for the review period, the employee's review date will remain the same as
though he/she had not been on leave. Increases for employees on LOA or LO is
prorated based upon time service.
If the employee has been on LOA or LO for more than one-half(~) of the total
days for the review period, the review will be forfeited.
9.2 Pro-ration of Increase
When increases are given job performance is, among other factors, a major
consideration. If the employee has been on active status for less than the annual
review period of twelve (12) months, an increase will be calculated from a
proportion of actual mon ths of active status worked compared to total number of
months in the review period.
Example: An employee is on active status for six (6) months during his/her
review period. He/ she is reviewed on October 1. This individual would receive
six-twelve's (6/12) or 50% of his/her regularly scheduled amount.
10. Returning [rom LOA/La or Transferring to a Position in a Lower Grade
Employees returning or transferring to a position in a lower salary/wage grade
will assume the new salary/wage range. Factors considered in determining the
employee's salary/wage in the new range include: speed, accuracy, attitude,
length of service in the job class prior to the leave of absence or layoff, the
salary/wage grade range of the new position, grade range penetration of the
employee relative to experience level, etc.
10.1 Minimum to Mid-Point
Generally, employees will be placed between the entry and market point of the
range for the position they are being placed.
10.2 Under the Minimum and Over the Mid-Point of the Range
Employees' rate can be placed in these locations through "out-of-guideline"
approval( s ).
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11. Amounts Noted for Salaried Positions
Salaries are quoted in monthly amounts for convenience and are not designed to imply a
contractual obligation on the part of the employee or city.
12. Promotion Eligibility
12.1 Qllalifications
Eligibility for promotion/transfer compares minimum relevant qualifications of
the new position and the employee's qualifications. Factors that generally relate
to the position include:
The duties and responsibilities of the position;
Education, training, or special knowledge required; and
Experience, including both the nature and length of previous assignment.
Factors that relate to the employee include:
Quality of work, initiative, planning, dependability and attitude;
Present and past performance levels; and
Potential for successful performance in the new position.
12.2 Required Length of Service
12.2.1 An employee must have a minimum of six (6) months service in his/her
current position before requesting a promotion/transfer unless receiving
approval from all levels of management starting with the immediate
supervisor up to and including the Department Head in the chain of
command, Human Resources and the Mayor.
12.3 Employee Performance Criteria for Granting of Requests
12.3.1 The employee being considered for the promotion/transfer must not be
on any type of documented disciplinary warning with and employee
receipt acknowledgement signature.
12.3.2 The employee being considered for the promotion/transfer must have
documented good work performance.
13. Job Posting Procedures
13. 1 Proced ures
IS.1.1 The open position will be posted showing the related grade and range.
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13.1.2 The employee is to return the URequest for Promotion/Transfer" form to
Human Resources.
13.1.S Screening of applicants by the prospective supervisor "viII be done in
coordination with Human Resources, as positions are open.
13.1.4 After review by Human Resources, Department Heads may mal{e the
verbal offer. Human Resources will follow up vvith a vvritten
acknovvledgment. After the position has been fuled, Human Resources
will inform the candidates in \vriting of the hiring decision.
13.2 Posting of Positions
Positions will be posted for five (5) working days on a designated board(s) for
employees to review.
Positions in all Grades will be posted. Ifinterested in a position any Grade, the
employee should submit an approved "Request for Promotion/Transfer" to
Hllffian Resources.
1S.3 Interviews
Although employees may have a "Request for Promotion/Transfer" form
completed, this is not a guarantee of an interview when the position is available.
13.4 Outside Recruiting
The City reserves the right to consider outside applicants simultaneously with
those submitting "Request for Promotion/Transfer" from within.
14. Selection Process
The candidate who is best matched for the open position will be selected. This
determination will be made through such methods as interview, past performance,
evaluations, etc. As an equal employrp.ent opportunity employer, age, race, sex, national
origin, religion or disability will not be discriminatorily considered.
15. Promotion Wage/Salary Adjustment
All increase will be based on merit. Depending on the performance of the employee and
the location ofthe promoted individual's current wage/salary, the following schedule
will be used as it relates to the lowest range for the grade.
Below Entry
To Minimum
Salary/Wage Location in New Range
Entry to Market Rate
Up to 5%, but not to exceed Market Rate
Over Market-Rate
0%
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15.1 Below the Entry of the Ne\v Range
Promoted employees will be taken to the minimum of their new range.
15.2 Current Wage/Salary Betvveen Entry and Market Rate
The employee will be able to receive up to five percent (5%) increase at the time
of promotion.
15.3 Current vVage/Salary Above the Market Rate
Typically there are no increases for individuals in this section of the range. The
advantage for the employee is he/ she will assume a range with a greater
maximum than in his/her previous grade. Any exceptions will be processed
through the "out-of-guideline" approval channels.
15.4 Revievv Schedule for Promotional Increases
When an employee receives an increase in conjunction vvith a promotion, the
date of the promotion becomes the anniversary date for the purposes of
establishing the next review date.
16. Demotions
Employees being placed in positions with a grade lesser than the one from which they
originated will have wage/salary determined through "out--of-guideline" approval
channels. Employees being demoted will normally receive a decrease in wage/salary if
their rate of pay is above the market rate of their grade. Demoted employees with a
wage/ salary below the market rate of the new range will be frozen for at least one year.
17. Transfers to a Position in the Same Grade
Employees affected by this situation must have their wage/salary adjustment and
transfer approved before completion of the move. Typically the individual will remain
at the same rate of pay.
18. Adjustment of Review Dates for Transferred Employees
If adjustment to the employee salary/wage rate occurs, the next review will be twelve
(12) months from the transfer date. Lateral transfers when no increase is given the
employees regular scheduled review date will remain the same.
19. Transfers at the Company's Request
19.1 City Initiated
Occasionally, transfers may be made at the City's request to satisfy operational
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needs. Consideration vvilI be given to employee's speed, accuracy, attitude,
background and experience, personal situation (i.e., preferred shift, etc.).
19.2 Job Elimination
In the event of job elimination, refusal to accept a reasonable transfer at the
City's req uest will be interpreted as a termination. Layoff( s) of regular full-time
employees must be approved through "out-of-guideline" channels.
20. Introductory Period for Employees Who are Promoted/Transferred
An employee selected for promotion/transfer will enter an Introdllctory Period of not
less than six (6) months to assess his/her performance. Police/Fire department
introductory period is one (1) year. Completion of the Introductory Period will not
result in a wage/salary review. Should the selected employee be unable to satisfactorily
perform the duties of the new position, his/her supervisor will notify him/her. Two (2)
levels of management and Human Resources will be involved in this process. Efforts
will be made to place the employee in another position within the organization.
Hovvever, ifno match is found, termination may occur.
21. Employment At-Will
Nothing in this policy is to alter the employment at-will philosophy; which means the
employee may voluntarily terminate employment with the City for any reason at
anytime. Similarly, the City may terminate the employee's employment anytime for any
reason, subject to the employees and employers rights afforded by law. Additionally,
this document does not guarantee employment for a specific period of time nor does it
apply to appointed positions under State Code.
22. Classification Plan
All employees of the City of Meridian shall be classified in the position they hold with
the City of Meridian in the following manner:
22.1 Elected officials.
22.2 Exempt employees not subject to merit testing or other selection criteria
provided by this manual and compliance with Fair Labors Standard Act.
22.S Classified full-time employees subject to the testing and placement standards
established by this personnel policy manual.
22.4 Part-time or casual employees exempt from placement standards cited herein.
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23. Overtime Compensation- Compliance vvitl1 Fair Labor Standards Act
All executive, administrative or professional employees who qualifY, as exempt
employees under the Fair Labor Standards Act (FLSA) will be paid in compliance with
the applicable code of federal regulations of the (FLSA).
24. Overtime Policy
All non-exempt employees will be paid time and one-half (1 Y2 ) the regular rate for
hours worked in excess offorty (40) hours per week. Overtime must be approved in
advance by the employee's supervisor or when absolutely necessary (in case of an
emergency).
25. f{eporting and Verifying Time Records
I t is the responsibility of each employee to properly record time that he or she has
worked during a payroll period. Each time sheet/ card shall bear the signature of the
employee with a statement verifYing its accuracy and a counter signature by a
supervisor indicating that the hours claimed were actually worked. These records shall
be retained for at least four years follovving a pay period or the conclusion of an
employee's service by the payroll officer (City Treasurer). Failure to carry out these
duties may result in disciplinary action.
26. Work Period
Employment with the City of Meridian is subject to the Federal Fair Labor Standards
Act as previously described. Each employee is responsible for monitoring the status of
hours worked in each work period. Overtime will be allowed only when authorized by
an appropriate supervisor or when absolutely necessary in an emergency. The work
week for all regular employees who are subject to the FLSA will begin at 12:00
(midnight) on Sunday of each week and concludes at 11:59 p.m. of the succeeding
Saturday. For regular employees, hours actually worked must exceed forty in a work
week, and premium compensation will be paid, or authorized compensatory time will be
allowed to accrue, on the paycheck next following the work period during which it was
earned.
Sworn law enforcement officers and fire fighters are subject to the special exception for
their respective professions (~ 207(k)) which allows establishment of their work period
up to twenty eight days. Premium compensation is to be paid for qualifying law
enforcement hours beyond 171 in a 28-day work period or for qualifying Fire
Department hours beyond 204 in a 27-day work period. For these special exception
employees, payment of premium compensation will be paid, or authorized compensatory
time will accrue, on the paycheck which follows the conclusion of a 27-day work period
by at least one week. Questions about overtime and compensatory time should be
directed .to your supervisor or the personnel office.
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Payroll Procedures and Payday
Employees are paid every month throughout the year. Paychecks are issued by the
office of the City Treasurer on the last working day of each month. Paychecks
compensate employees for work performed in the pay period. Paychecks are to be
distributed at the workplace prior to 5:00 p.m. on pay day.
I t is the obligation of each employee to monitor the accuracy of each paycheck received.
Information shown on the employee's paycheck stub is provided for information only.
The paycheck is generated by a computer program that does not have the capacity to
think or to understand individual circumstances. Actual practices respecting the
issuance of paychecks and allocation of employee benefits must be consistent with
official policy of the entity. In the event of disagreement between the computer-
generated paycheck stub and official policy as interpreted by the Mayor and City
Council with the assistance of the City Treasurer, the policy shall prevail.
28. Compensation while Serving on Jury Duty or as Witness in Court Proceeding
Leave will be granted to full-time employees called to jury duty or to serve as a court
witness in accordance with City COllncil-adopted policy. Full pay vvill be provided
during actual service. Fees received by an employee excluding mileage reimbursement
shall be remitted to the City.
29. Military Leave
Unpaid leave of absence vvill be granted for a maximum of fifteen calendar days to
participate in ordered and authorized field training under the National Defense Act.
Our public entity employment policy will comply with provisions of Idaho Code ~ 46-
224, et seq., or its successor, as those Code provisions govern leaves of absence for
military service.
so. Reduction in Force
Employee assignments may be affected by reductions in force made due to economic
conditions or to changes in staffing and workload. The Mayor and City Council
reserves the right to make any changes in work force or assignment of resources that it
deems to be in the organization's best interests. The Mayor and City Council may also
specify at the time reductions in force are made what reinstatement preferences may
accompany the reductions. Said reinstatement preferences may be tied to the
classification of the employee or to specialized skills possessed by the employee.
S 1. Payroll
In accord with Idaho Code ~ 45-609 or its successor, no payroll deductions vvill be made
from an employees paycheck unless authorized by the employee or required by law.
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32. Travel Expense Reimbursement
An employee on entity business shall be .reimbursed for expenses incurred in
completing his/her work-related assignment in accord with the policies established by
the Mayor and City Council. Each City employee is responsible for providing verified
receipts for any expenses for vvhich reimbursement is requested in accord with Idaho
Code ~ 31-1506 or its successor.
33. On-The-Job Injuries
All on-the-job injuries shall be reported to the Human Resources as soon as practicable
to allow fIling of worker's compensation claims in the proper manner. All on the job
injury reports shall be completed by the Supervisor and employee and filed with Hllman
Resources. If an employee is disabled temporarily by an On-the-job accident he shall be
eligible for worker's compensation and shall not be charged with any vacation or sick
leave time while away from his or her position. Return to employment vvill be
authorized on a case-by-case basis upon consultation with the supervising official and
the State Insurance Fund. Concerns associated with injured worker status may be
brought before the chief executive for review.
34. Job Abandonment
Any employee that does not report to work or is absent without notifying his/her
supervisor for three (s) days/shifts will be terminated.
P ASSE~Y THE CITY COUNCIL OF THE CITY OF MERIDIAN, IDAHO, this
day of cem~ , 1999.
7-11:
APP~ED BY THE MAYOR OF THE CITY OF MERIDIAN, IDAHO, this
of .e~~, 1999.
7~ day
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