Last revised December 21, 2010. Document #5.37.
1. GENERAL
1.1 This document supplements Board adopted Policy HR 3.1, Compensation. Administrative procedures regarding employee compensation are outlined herein.
1.2 This document is divided into the following sections:
Section 1 – General
Section 2 – Definitions
Section 3 – Administration
2. DEFINITIONS
Regular Position – A position with a regular schedule of twenty or more hours per week, or a full or part-time salaried position.
Temporary, Seasonal or Extra-Help Position – A position with a schedule of seventeen or fewer hours per week, or that is on an on-call or project basis. This is considered provisional employment that may be terminated at any time.
Represented Classifications – Those classifications that are represented by a bargaining unit that negotiates wages, hours, and other terms and conditions of employment with the library on the employee’s behalf.
Non-Represented Classifications – Those classifications that are not represented by a bargaining unit. Terms and conditions of employment are specified by adopted policy or by action of the Library Board of Trustees. The Library Board of Trustees reserves the right to adopt or revise policies applicable to non-represented staff at any time.
Senior Administrative Classifications – Terms and conditions of employment are specified in a written agreement signed by the employee and the employer. Contractual terms will take precedence over any conflicting policy. Positions classified as senior administrative are generally at the highest levels in the organization, such as library director and deputy or assistant directors.
Probationary Period – A one-year trial period for newly hired or promoted employees during which performance is evaluated. Promotional probationary employees may be returned to their former classification provided that no employee with greater classification seniority is displaced, and entry probationary employees may be discharged anytime during the probationary period without rights to grieve the decision.
Regular Employee – An employee holding a regular position who has successfully completed the probationary period.
New Hire – The employment of an individual who has not previously been employed by the library, or a former employee whose rights to active employment have expired.
Promotion – The movement of an employee from a job classification in one pay grade to a classification with a higher pay grade.
Demotion – The movement of an employee from a job classification in one pay grade to a classification with a lower pay grade.
Lateral Change in Classification – The movement of an employee from a job classification in one pay grade to another job classification in the same pay grade.
Lateral Transfer – The movement of an employee to a position within the same job classification, with the same number of regularly scheduled work hours, but at another location or within another library department.
Reclassification – Moving a job from the current pay grade to a higher or lower pay grade based on a reevaluation of the content of the job and its internal and/or external value.
Market Adjustment – A cost of living or other across-the-board increase applied to all pay ranges or to specific pay ranges. A market adjustment is generally based on the Consumer Price Index or other similar indexes and/or on market rate data obtained from salary surveys. All employees in classifications affected by a market adjustment shall be given uniform treatment.
Step Increase – Increasing an employee’s pay from the current step to the next step in their pay range. This normally occurs when an employee reaches the anniversary date of employment or promotion to the current position, provided that performance is satisfactory and that pay is not currently at the top step of the range.
Merit Increase – Changing an employee’s base pay from the current amount to a higher amount within the applicable pay range. For employees on a merit pay plan, a merit increase may be awarded annually according to a formula that is based upon performance, the relationship of current compensation to the mid-point of the applicable salary range, and funds allocated for that purpose.
Merit Bonus – A one time bonus not to exceed one thousand dollars ($1,000) that is paid in a lump sum in recognition of exceptional performance, usually tied to a special project or assignment. Merit bonuses are awarded annually and paid in the same pay period that merit increases become effective. The merit bonus does not increase base pay.
Salary Survey – An analysis of overall rates of pay in relation to what others in the region and in the library community are paying for positions requiring similar skills, knowledge and behaviors, and encompassing similar responsibilities and working conditions. Salary surveys are used to determine the external, or market, value of a position.
Job Analysis – The process of gathering, analyzing and synthesizing information about jobs/roles and other aspects of work. A thorough job analysis supports job evaluation and compensation decisions and compliance with legal requirements such as equal employment and pay, as well as other organizational end uses.
Job Evaluation – A formal process for determining the relative value of jobs based on job content, e.g., skill, effort, responsibility and working conditions. Job evaluation is used to determine the internal value of a position.
3. ADMINISTRATION
3.1.1 The wage and salary structure is comprised of a series of pay grades that reflect competitive rates of pay for specific jobs, with jobs of similar value from a market and/or internal perspective grouped together. A pay range consisting of a minimum, maximum and midpoint or control point will be set for each regular position within the library. The appropriate pay range is determined by analyzing the job, preparing a job description based on the job analysis, and then comparing the job with others to determine the external and/or internal value of the position. The midpoint, or control point, is a calculated number that represents the competitive market rate for fully performing employees in jobs assigned to that range. The midpoint provides a guideline for slotting various jobs in appropriate pay ranges.
3.1.2 A flat pay rate will be determined for temporary, seasonal, and extra help positions based on the market and/or internal value of the job. Temporary, seasonal and extra help positions are not assigned a pay range.
3.2 Establishing Pay Rates
3.2.1 Hiring Rate – Unless the applicant possesses qualifications clearly exceeding those generally required for the position, or competitive conditions indicate the starting rate should be increased, employees are hired at step one (step pay plan), or at the minimum (merit pay plan), of the applicable pay range.
3.2.2 Promotional Rate – When an employee is moved to a position with a pay grade that is higher than that of their current position, pay will be as follows:
- on the step pay plan, at the step within the new range that is equal to or greater than a one-step increase in their current pay range, or
- on the merit pay plan, at the rate within the new pay range approved by the Library Director. In no instance will pay exceed the top step, or maximum, of the new pay range.
3.2.3 Rate Upon Demotion – When an employee is moved to a position with a lower pay grade, the new rate will be that which reflects the employee’s accumulated seniority, or the rate that is equal or closest to, but not greater than, the current pay rate, depending on circumstances. The Human Resources Manager will determine the appropriate rate.
3.2.4 Newly Created Positions – Before a position may be filled it must be classified and established in the current budget. In order to determine appropriate compensation for a new position the work will be analyzed, a job description will be prepared, and the position will be evaluated in comparison to existing positions and, if necessary, to the market. If the body of work does not fit within an existing job classification a new job classification will be established. The new classification will be assigned to the appropriate pay grade within the wage and salary structure. If the work falls within the general body of represented work, the bargaining unit will be notified and the pay grade designation will be subject to negotiations upon request.
3.2.5 Exceptions – Any exceptions to policy in establishing pay rates will require the written approval of the Library Director or his/her designee.
3.3 Wage or Salary Adjustments – Step Pay Plan
3.3.1 Step Increase, Completion of the Probationary Period – When an employee reaches the anniversary date of employment or promotion, and provided that performance is satisfactory, the pay rate will be increased to
the next step of the pay range. The change will be effective at the beginning of the pay period in which the anniversary date falls. If performance does not meet expectations employment may be terminated or the employee may be demoted to a previously held position at any time during the probationary year. Prior to demoting or terminating a probationary employee the Human Resources Manager will be consulted to determine the appropriate course of action.
3.3.2 Probationary Period Extension – When performance does not meet expectations as the anniversary date approaches, but it is believed that with additional training or time on the job performance will meet expectations, the supervisor may apply for an extension of the probationary period. If an extension is granted no step increase will be awarded until the extended probationary period has been completed. An extension may be appropriate in the case of an extended leave of absence, timing issues for training, or other unanticipated like issues. Generally, it is expected that the probationary year will be sufficient time to learn the job and perform satisfactorily.
3.3.3 Step Increase, Anniversary Date – At each anniversary date of employment or promotion employees will be awarded a step increase, provided that performance is satisfactory, until the top step of the range is reached. The top step equates to a competitive salary or wage for an individual with considerable experience who has mastered all aspects of the job.
3.3.4 Market Adjustments – A cost of living or other across-the-board increase may be applied to all pay grades or a group of pay grades. This adjustment is applied uniformly, increasing pay at each step within the affected pay ranges without upgrading or downgrading classifications. An adjustment may also be applied to a select classification because of a change in marketplace value. Upgrading a classification due to market adjustments is not considered a promotional increase. If the classification being upgraded is represented, the bargaining unit will be notified of the anticipated change and the decision will be subject to negotiations upon request. The new pay rate for each individual holding a position in that classification will be at the step within the new pay range closest to, but not less than, the current rate of pay. This adjustment will not affect date in class for seniority and compensation management purposes.
3.3.5 Position Reclassification – Reclassifications may be made when a major change in position content occurs. When a position warrants reclassification the work will be analyzed and a new position description will be prepared. The position will be reevaluated and assigned to the proper position classification and pay grade. If the position is represented, the bargaining unit will be notified of the anticipated change and the decision will be subject to negotiations upon request. If, as a result of reevaluation, a position is changed to a higher or lower pay grade, the incumbent’s pay will be adjusted to the step in the new pay grade that is closest to, but in the case of an upgrade not less than, the current salary or wage. In the case of a promotional reclassification library administration may choose to set compensation at the level equal to or greater than a one step increase. Depending on circumstances, the library may chose to waive the promotional probationary period. Any waiver will be written and explicit. Depending on circumstances, a reclassification may generate a new date in class for seniority and compensation management purposes.
3.4 Wage or Salary Adjustments – Merit Pay Plan
3.4.1 Performance Evaluation – The general purpose of the merit pay system is to ensure the attainment and maintenance of quality service and customer satisfaction by directly linking individual compensation to the achievement of individual and organizational goals. Therefore, each employee’s performance will be evaluated by their immediate supervisor between September 1 and November 30 each year, in accordance with the Library’s guidelines for performance appraisal. Human Resources will notify supervisors of the scheduled appraisal date for each of their subordinate employees. It is expected that appraisal meetings with employees will be scheduled in a timely manner so that signed appraisals will be received by human resources no later than December 1.
3.4.2 Annual Allocation of Merit Fund – Funds for merit increases and bonuses are budgeted each year by the Library Board, based on a recommendation from Library Administration. Merit pay is allocated from that fund and may be paid in the form of a merit increase, a merit bonus, or a combination of the two as determined by the Library Director.
3.4.3 Merit Salary Increase – Salary increases are allocated to employees from the merit fund, based upon performance over the last year and the relationship of each employee’s current salary to the mid-point of the applicable salary range. The chart attached as Exhibit ‘A’ demonstrates how increases might be allocated in a given year. Each year the Human Resources Manager will prepare an allocation grid similar to Exhibit ‘A’ based upon current funding and, using current salary and performance ratings as applied to that grid, will prepare a recommended merit increase plan for the Director’s approval. The specific amount of any increase will be at the sole discretion of the Library Director, but will in no case exceed the top of the pay range set by the Library Board for that position. Merit increases will generally be effective the beginning of the pay period in which July 1 falls, although that schedule may be altered from year to year. Once merit increases have been approved by the Director, each employee will receive notification of their salary and the effective date of
any change.
3.4.4 Merit Increase for New Employees – Newly hired employees who have worked at least six months, but less than twelve months at the time merit pay is allocated may receive a pro-rated increase. For instance, an employee who has worked for six months and who would be eligible for a 4% increase based upon the grid, would receive 2% instead (.04 / 12 * 6 = .02).
3.4.5 Merit Increase, Leave of Absence – The merit increase for an employee who has been away from work for an extended period of time during the performance year may be pro-rated or delayed depending on the circumstances and the library’s ability to accurately evaluate performance.
3.4.6 Merit Bonus – Bonuses are awarded to employees from the merit fund depending upon available funding, and based upon an employee’s extraordinary accomplishments, usually related to a project or assignment that is not an ongoing part of the employee’s regular work. Merit bonuses are awarded annually and paid in the same pay period that merit increases become effective. The bonus may be awarded in any amount not exceeding one thousand dollars ($1,000), as determined by the Library Director. Total pay in the year the bonus is awarded may exceed the maximum of the applicable salary range. Merit bonuses do not increase the base pay amount, nor do they affect retirement benefits. Payroll taxes will be deducted from the bonus amount, but contributions to retirement, 457 deferred compensation accounts, and any other like deductions will not be taken.
3.4.7 Market Adjustments – Job classifications may be moved from one pay grade to another from time to time because of a change in marketplace value. Upgrading a classification due to market adjustments is not considered a promotional increase. Each individual holding a position in that classification will be moved to the new pay grade at their current rate of pay, or the pay rate closest to their current rate if their current rate does not fall within the new pay range. This adjustment will not affect date in class for seniority purposes.
3.4.8 Position Reclassification – Reclassifications may be made when a major change in position content occurs. When a position warrants reclassification the work will be analyzed and a new position description will be prepared. The position will be reevaluated and assigned to the proper position classification and pay grade. If, as a result of reevaluation, a position is changed to a higher or lower pay grade, the incumbent will be moved to the new pay grade at their current rate of pay, or the rate closest to their current rate if that rate does not fall within the new pay range. In the case of a promotional reclassification library administration may choose to set compensation at a higher level, but in no case will the new pay rate exceed the maximum of the new pay range. Depending on circumstances, the library may chose to waive the promotional probationary period. Any waiver will be written and explicit. Also depending on circumstances, a reclassification may generate a new date in class for seniority purposes.
3.5 Pay for Working Out of Classification
3.5.1 When a represented employee is asked by his or her supervisor to temporarily work at a higher classification the employee will be compensated at the step in that position’s pay range that is equal to or greater than a one-step increase in the employee’s current pay range. Pay will in no case exceed the top step of the higher-level position’s pay range. The employee will be paid on an hour-for hour basis for up to four hours. If the employee works for a period of four or more hours, he or she will be compensated at the higher rate for the entire work shift. To qualify for out-of-grade pay the employee must be fully trained and must perform the full range of duties of the higher classification. Time in training for the higher classification will not qualify for out-of-grade pay.
3.5.2 An employee performing work usually performed by employees in a lower classification than their own will be compensated at their normal rate of pay.
3.5.3 Compensation issues will be decided on a case-by-case basis when a management or professional employee is temporarily assigned work outside his or her normal job responsibilities.
3.5.4 Temporary, seasonal and extra-help employees will be paid the established rate for the work assignment. These employees do not work out of classification, but may substitute at any level for which they are qualified. They will, however, substitute for a represented employee only when another represented employee cannot reasonably be made available to perform the work.
3.6 Premium Pay
3.6.1 Overtime – Represented employees will be compensated at time and one-half their hourly rate of pay for all work performed in excess of eight (8) hours in a workday, forty (40) hours in a workweek, or on a regular day of rest. Compensatory time accruals may be substituted for overtime pay. Temporary, seasonal and extra help employees will be compensated at time and one-half their hourly rate of pay for all work performed in excess of forty (40) hours in a workweek. Generally, management and professional employees are employed on a salaried rather than an hourly basis and do not receive additional compensation for hours worked beyond forty in a workweek. However, each individual job must be analyzed to determine whether the overtime provisions of the FLSA apply. For those positions classified as management and professional that fall under the provisions of the FLSA, overtime is defined as any work performed in excess of forty (40) hours in a workweek. For additional information please refer to the policy on Overtime and Compensatory Time.
3.6.2 Longevity Pay – Represented employees will be paid longevity pay in accordance with the schedule found in the Collective Bargaining Agreement. Longevity pay will be paid biweekly as it is earned and will apply to time worked or paid as leave.
3.6.3 Shift Differential Pay – In accordance with the Collective Bargaining Agreement, represented employees who are scheduled to begin work later than 9:30 a.m., and end work later than 6:00 p.m., will be paid a shift differential for time worked after 4:00 p.m. A higher differential will be paid for hours worked between midnight and 8:00 a.m. More than one rate may apply to any designated hours of work.
3.6.4 Call-In Time – A represented employee called in to work at a time other than the scheduled work shift shall be paid for a minimum of four (4) hours at time and one-half. Represented employees called in up to one (1) hour prior to the start of their regular shift will be paid overtime for that time only. Call-in provisions do not apply to employees who are offered substitute opportunities that may be accepted or refused.
3.7 Rest Periods
3.7.1 Employees will be provided one paid fifteen (15) minute break during each four hour work period. Employees working five or more hours will be provided an unpaid meal break of at least thirty (30) minutes.
3.7.2 Any represented employee required to work overtime of four (4) or more hours beyond an eight (8) hour work shift will be entitled to a paid fifteen (15) minute rest period before starting the overtime.
3.7.3 Minors under eighteen years of age will be provided a ten (10) minute paid rest period every two hours, and a thirty (30) minute unpaid meal period no later than four (4) hours into the work shift.
3.8 Time Reporting and Pay Schedule – The Library is on a biweekly pay schedule, with pay weeks running from Sunday through Saturday. Time cards will be completed and signed by each employee, and delivered to the supervisor no later than Tuesday of the second week of each pay period. Paychecks will be distributed every other Friday for the period covering the pay period ending the previous Saturday. Paychecks will be distributed on Thursday by the end of the work shift to those employees not scheduled to work on Friday. Holidays or extenuating circumstances may alter the issuance of payroll checks.
3.9 Deductions from Pay – Mandatory payroll deductions include federal withholding
tax, social security (FICA) tax, Medicare tax, state industrial insurance premiums and a $10 monthly deduction for the Retirees Medical Fund. The employee’s share of retirement contributions will be deducted from all regular employees’ pay. Other deductions may be taken from pay when authorized by Library policy and elected by the employee, or as required by law.
3.10 Pay at Termination of Employment – Wages or salary due an employee who is leaving library employment will be paid on the first regular payday following the termination date. Any payoff of accrued leave that may be due will be included in the final check, provided that the necessary paperwork has been submitted. A delayed leave accrual payoff will be processed with the next regular payroll.
3.11 Location of Records – Time and payroll records for the current and prior two years are kept in the business office. Records for prior years are archived offsite. Records of dates of employment, positions held, and individual wage or salary rates are a part of the personnel files kept by human resources.
3.12 Confidentiality – Payroll records and individual employment records are considered to be confidential and will generally not be disclosed to third parties without specific written permission from the employee(s) whose information is requested. However, some library records may be subject to disclosure when requested pursuant to a written public records request. Whenever a request for such records is received library administration will consult with the city’s legal department before disclosing the information.
