Effective Date Chapter 4 December 24, 2007 COMPENSATION ADMINISTRATION AUTHORITY The Compensation Administration Policy is in keeping with City Charter Section 3.01 (8), City Code Sections 62-51, 62-52 and 62-54 and Civil Service Rules Sections IV, VI, VII, IX, and XI. POLICY STATEMENT The City of West Palm Beach will administer compensation equitably and consistently in accordance with fiscal resources, collective bargaining agreements, and state and federal legal requirements to attract, retain, and motivate highly talented employees. PURPOSE This policy establishes guidelines for starting salaries and processing compensation changes. SCOPE OF APPLICABILITY This policy applies to all City employees. Where provisions of this policy conflict with a collective bargaining agreement, the collective bargaining agreement will prevail. The Mayor delegates the authority to approve compensation decisions to the City Administrator. DEFINITIONS Across the Board Increase is a flat dollar amount or a fixed percentage increase to base pay. It is paid to non-represented employees when approved by the City Commission and to represented employees when authorized by a collective bargaining agreement. Assignment occurs when an employee works out of classification for the following reasons: When an employee is assigned to a budgeted vacancy pending the completion of a recruitment or promotional process, to fill in during a temporary absence, to complete a special project, or to provide individual developmental opportunities. When an employee is assigned to a higher classification for cross-training purposes. When an employee is assigned to serve as trainer, outside of normal job classification responsibilities.
Base Pay is an employee s regular hourly wages or salary. Base pay does not include overtime pay, longevity pay, stipend pay, certification pay, incentive pay, or any other pay that is not paid due to the employee s regular assignment. Classification is a general description of the tasks, duties, responsibilities, and minimum requirements of a job. Contract Changes are negotiated changes that affect the compensation of employees covered by a collective bargaining agreement. Demotion occurs when an employee is placed in a position with a lower pay grade. Demotions may be voluntary or the result of disciplinary action, layoff, or restructuring. Differential Pay is compensation paid to an employee who temporarily works in a higher classification. Extended Probation occurs when an employee has not obtained a satisfactory rating during the new hire or promotional probationary period. A performance appraisal is submitted to Human Resources by the department director requesting approval for an extension of the probationary period to provide the employee the opportunity to improve performance to a satisfactory level. Job Audit is an evaluation process to determine whether a change in classification is justified. Job audits performed by Human Resources may include completion of questionnaires and/or interviews with the incumbent, supervisors, or others knowledgeable of the job requirements. Longevity Pay is paid to employees based on years of continuous service. Absence for authorized military leave or layoffs not exceeding one year, educational leave, annual or sick leave, or other approved leave or lawful extension thereof, or reinstatement shall not affect computation of continuity of service for longevity pay purposes. Lump Sum is the balance of the merit increase that is in excess of the maximum of the salary range for his/her job classification. Market-Based Adjustment is an increase to base pay for non-represented employees based on the assessment of competitive market rates and on guidelines that take into account each individual s historical performance and years of experience performing similar work. Page 2 of 10
Merit Increase is an increase in base pay up to the maximum of the salary range for represented and non-represented employees based on the annual performance appraisal rating. Position is a budgeted job with a specified classification, salary, and employment status. Probationary Period is a length of time when the employee s performance and behavior are observed and rated to determine if the employee can satisfactorily perform the essential duties of the position. A probationary period occurs at initial hire or upon promotion. Promotions are normally subject to a six (6) month probationary period and an end of probation increase, unless otherwise specified in the collective bargaining agreement. Promotion occurs when an employee accepts an offer for a different position with a higher pay grade. This is not to be confused with a reclassification to a higher pay grade due to a job audit or pay grade adjustment. Reclassification is a change in an employee s job classification, title, or pay grade due to a change in an employee s duties or responsibilities, where there has been a significant change in minimum job requirements such as skill or educational level. Reclassification may also result from departmental reorganization. Reinstatement occurs when an employee separates from the City in good standing and returns to employment with the City in the same or similar classification within one year of separation. Salary Structure is the hierarchy of pay grades and salary ranges established within the City. The City s salary structure(s) will be maintained for purposes of effective pay management, classification, career planning, and promotion activities. Step Plan is a pay plan consisting of one or more salary ranges, each of which is divided into a number of progressive discrete intervals. Employees progress through the salary range by step, and each person's hourly rate of pay must be equal to the amount of one of the steps. Step Plan Advancement is a structured increase in an employee s compensation that occurs on an employee s review date or as scheduled in the collective bargaining agreement. This increase applies to employees covered by a step plan. Step-Up Pay is compensation paid to an employee which is pre-approved for temporarily working in a higher classification. Page 3 of 10
Page 4 of 10 Chapter 4 Stipend is additional compensation paid to employees who attain a qualifying professional designation or certification, where such certification/professional designation was not considered in setting the employee s salary. Transfer occurs when an employee is moved from one classification to another classification with the same pay grade. Employees must be qualified to perform the duties of the new classification. STANDARDS AND PROCEDURES A. Classification and Salary Plan The City Code requires that job titles and salary ranges be approved by City Commission. This is done by submitting the annual Classification and Salary Plan in a resolution to be adopted by the City Commission. The Salary Plan is amended by resolution as necessary. B. Effective Date In general, compensation changes are effective at the beginning of the first pay period on or after the approval date of the adjustment/change. C. Forms actions such as hiring, promotions, salary changes, transfers, and terminations are documented using one of the following forms: o Employee Status/Salary Change o New Hire/Rehire/Reinstatement o Requisition to Fill Vacancy o Separation Form o Performance Appraisal Forms These forms are prepared by the employee s current department, signed by the department director and forwarded to the Human Resources Department for approval and processing. The forms are available on Lotus Notes. D. Compensation Changes The following actions may change an employee s compensation: 1. Adjustment Based on Reclassification The department director may request a job audit when the work being performed falls outside the incumbent s current job classification. The Human Resources staff conducts job audits to determine whether a change in classification is justified. Job audits may include completion of questionnaires
Page 5 of 10 Chapter 4 and/or interviews with the incumbent, supervisors, or others knowledgeable of the job. The Human Resources Director will consider the originating department director s request and recommendations made by the Human Resources Analyst conducting the job audit. All reclassifications require the approval of the Human Resources Director and City Administrator. Employees reclassified to a higher level job will receive a five percent (5%) salary increase, an increase to the appropriate step on a step plan, or increase to the minimum of the pay grade (whichever is higher). The increase requires the authorization of the Human Resources Director. Exceptions to these compensation guidelines require justification and approval by the City Administrator and may be subject to collective bargaining. Reclassification salary increases shall only be implemented upon completion and approval of the changes in the personnel detail of the budget and/or required changes in the Classification and Pay Plan. Such increases shall be made effective at the beginning of the first pay period on or after the date of approvals. There is no probationary period for a reclassification where an employee has been performing at the higher classification, no end of probation increase would be granted, and the employee s review date remains the same. A job audit may also result in placement within a lower classification. When this occurs, an employee may be paid a rate of pay that corresponds to the lower position, subject to applicable collective bargaining agreement. Requests for job audits may be declined or postponed due to budgetary constraints as declared by the City Administrator. 2. Adjustment Based on Market Data For employees in jobs that are below competitive market rates, the City may provide market-based adjustments to base pay. The Human Resources Director will consider the originating department director s request and recommendations made by the Compensation and Employment Manager. All market-based salary adjustments require the approval of the Human Resources Director and City Administrator. Adjustments take into account each individual's historical performance and years of experience performing similar work. 3. Assignment Pay Assignment Pay is based on the type of assignment: An assignment to fill a vacancy, to complete a special project, or to provide individual developmental opportunities may be granted for up
Page 6 of 10 Chapter 4 to ninety (90) days with the approval of the department director and Human Resources Director. An extension of an additional ninety (90) days requires the approval of the City Administrator. Assignments will not last any longer than one-hundred-eighty (180) consecutive calendar days. Assignment to a higher-level job will include a five percent (5%) salary increase, an increase to the appropriate step on a step plan, or an amount sufficient to reach the minimum of the pay grade (whichever is higher), and requires the authorization of the Human Resources Director. Exceptions require justification and approval by the City Administrator. The department is required to submit an Employee Salary/Status Change form to Human Resources for all temporary assignments lasting longer than one pay period or one twenty-one (21) day FLSA cycle in the case of Fire shift personnel. While an employee is on assignment, pay increases will be calculated based on the base rate of pay prior to the temporary assignment increase. The Employee Status/Salary Change form is completed by the department. Step-Up pay is processed by the department timekeeper based on documentation supplied by the employee s supervisor. Training Assignment pay is based on the applicable bargaining agreement. See applicable bargaining agreement for specifics regarding represented employees. 4. Contract Changes and Across the Board Increases Advancement within the salary range is based on the provisions of the salary resolution approved by the City Commission or the collective bargaining agreement. Human Resources is responsible for implementing these actions. No department initiated forms are required. 5. Demotion/Salary Reduction Demotions due to disciplinary actions, layoff, or restructuring must be done in accordance with the applicable collective bargaining agreement or Civil Service Rules and must be approved by the Human Resources Director.
An employee who is demoted to a position of a lesser pay grade shall be paid a rate of pay not to exceed the maximum of the new salary range. 6. End of Probation The department director must complete an end of probation performance appraisal including the end of probation form. The effective date of the successful completion of the probationary period becomes the employee s new review date. An eligible employee will receive a five percent (5%) salary increase or an increase to the appropriate step in the new salary range upon successful completion of the new hire or promotional probationary period. 7. Longevity Pay Longevity pay is compensation paid to employees who have completed the required years of continuous service with the City. Longevity Pay is not included in the employee s base rate of pay. The Human Resources Department is responsible for implementing Longevity Pay. 8. Lump Sum Lump sum amounts will be paid to the employee on a bi-weekly basis (twenty six (26) times per year). Employees leaving the City will forgo any unpaid lump sum amount. 9. Merit Increase Advancement within the salary range takes place on an employee s annual review date based on the rating earned on the employee s Performance Appraisal. Refer to the collective bargaining agreement for represented employees. See also Policy 4-8 for non-represented employees. 10. Promotion A promotion requires a budgeted vacancy and is made on the basis of a competitive process. A non-competitive appointment may be done for unclassified positions with the approval of the Human Resources Director and the City Administrator. Department directors will contact the Human Resources Department to identify and/or confirm the correct procedure for filling a vacancy by promotion. The promotional process used is based on the job classification, collective bargaining requirements, and/or Civil Service Rules. Page 7 of 10
A promotional increase greater than five percent (5%), unless it is the minimum of the new pay grade, must be approved by the City Administrator prior to Human Resources making an offer. The employee s current department will complete the Employee Status/Salary Change form for the promotion. A performance appraisal shall be completed and submitted to the Human Resources Department if the employee s last appraisal was more than ninety (90) days prior to the promotion date. 11. Reinstatement Upon reinstatement an employee will be paid the same rate of pay he or she was paid at the time of separation, not less than the minimum of the salary range. The employee will retain all previously earned seniority, but will not earn seniority during the time the person was not employed by the City. 12. Special Pay Increases Employees not covered by a collective bargaining agreement may receive a pay increase as a percentage increase to recognize extraordinary achievement. The department submits written justification for the increase and requires the concurrence of the Human Resource Director and approval by the City Administrator. The Employee Status/Salary Change form is completed if approved. 13. Stand by Pay Approval of the department director is required for those employees placed on stand by pay status for less than two weeks. For employees being placed on stand by pay status for more than two consecutive weeks, the approval of the next management level above the department director will be required. 14. Starting Salary In order to not set false expectations for the applicant, discussions of salary by department personnel prior to an official offer by Human Resources are prohibited. Preliminary representations of staff involved in the hiring or promotional process shall not be considered binding on the City. Applicants shall be given a formal job offer or offer of promotion only by the Director of Human Resources or the City Administrator. Page 8 of 10
The starting salary is at Step 1 in a designated Step Plan or the minimum of a salary range. Exceptions require written justification by the department director and approval by the Human Resources Director prior to delivery of the offer letter. Starting salaries of more than five percent (5%) above the minimum of the pay grade require the approval of the City Administrator or his/her designee prior to the offer. 15. Step Plan Advancement Advancement takes place on an employee s annual review date based on the terms in the applicable collective bargaining agreement and achievement of satisfactory performance. 16. Stipend for Certification Pay A stipend may be awarded to eligible employees for attaining a qualifying professional designation or certification that benefits the City. Employees must register their intent to pursue certification or professional designations with their department director during the budget planning process for the intended year of training. Non-represented exempt employees who do not receive Management Incentive Pay and non-represented non-exempt employees may receive a stipend of up to a total of five percent (5%) of the base rate of pay for qualified professional designations or certifications as established in the City s Salary Plan. Additional designations for stipend shall be approved by the City Commission. The minimum standards for acceptance of designations for stipend eligibility shall be: a required testing component for the designation, a required re-certification; and industry wide recognition of the designation as an industry standard with City Administrator approval. Guidelines for the payment of stipends to represented employees and a listing of approved designations and stipend percentages allowed for each are established in the applicable collective bargaining agreement. Employees in the Fire and Police Management job classifications who achieve and maintain certifications relevant to their area of assignment are eligible to Page 9 of 10
receive the same incentive payments as members of the collective bargaining unit. The employee s supervisor will provide Human Resources a copy of the professional designation or certification and the Employee Status/Salary Change form and/or a memo from the department director. The stipend pay will be effective the beginning of the first pay period after the date of the certification or professional designation, but not before the certification incentive is approved/granted. 17. Transfer Transfers can be within the same department, between departments, or where the City Administrator deems such action to be for the good of the City. There are no compensation changes associated with a transfer. is effective on this 24 th day of December, 2007. Lois J. Frankel Mayor Page 10 of 10