§ XIV. Compensation and classification.

A.

This policy defines procedures for a fair and equitable classification and compensation plan.

B.

Human resources will prepare and administer a classification and compensation plan based upon analysis of position duties and responsibilities. The current plan is approved by city ordinance.

C.

Classification and compensation plan maintenance. Positions will be assigned to appropriate salary grades based upon objective factors and market surveys. Human resources will review city position duties and responsibilities on an ongoing basis and recommend necessary compensation plan adjustments. Employees may request position reviews for proper salary grade through their supervisors or department.

D.

Position reviews. There are two (2) situations in which department directors may ask human resources to review positions within their area. The first occurs when a department director believes a position should be reviewed for equitable rank in relationship to other positions in the city or paid properly in relationship to other positions within the market. The second occurs when an incumbent's duties have changed significantly and warrant an audit for position reclassification recommendation.

1.

Compensation equity issue (upgrade/downgrade). This issue considers whether a position is properly ranked or compensated in relationship to other city or market positions. The issue is compensation, not duties or classification.

2.

Reclassification. When an employee's job duties have changed or been altered significantly, there is a question of the position's proper classification. A job audit may be requested for position reclassification recommendation. Position reclassification usually results in a job title and salary change.

a.

Compensation equity issues. Requests for compensation studies will be initiated by a department director and forwarded to human resources. The requests will explain the reasons for the compensation study. It is human resources responsibility to maintain the compensation plan in accordance with market conditions. Human resources evaluates positions (classifications) for internal equity using the position evaluation system. When positions are upgraded, incumbents' salaries will be adjusted by an amount that is fair to the employee being reclassified and allows the city to maintain equity within the position and grade.

b.

Downgraded position. The pay rate for an employee who is in a position that is downgraded will not be reduced by the downgrade.

c.

Reclassification issue process. Reclassification study requests will be initiated by a department director and forwarded to human resources. Requests will contain detailed explanations specifying how the duties have changed. Reclassification requests may be made at any time. Human Resources will conduct appropriate studies, audits or surveys to evaluate the issue.

3.

Promotions. A promotion is defined as an employee moving from one (1) job to a different job in a higher classification. The new pay rate for an employee who is promoted will be equal to the lowest step in the new grade that provides an amount that is fair to the employee being promoted and allows the city to maintain equity within the position and grade. Under extenuating circumstances, the city administrator can approve a different pay adjustment.

4.

Voluntary or involuntary reassignment to a lower classified position. An employee who voluntarily is reassigned to a lower classified job will be paid at the same percentile in the lower classified position as his/her current rate of pay in the higher classified position.

5.

Lateral transfer. A lateral transfer occurs when an employee transfers to a position that is in the same grade as the employee's current position. If a lateral transfer occurs, the employee's rate of pay will not change.

6.

Temporary assignment. If an employee is temporarily assigned to a position in a higher classification, the employee's rate of pay will be adjusted by five (5) percent or to the minimum of the higher pay grade, whichever is greater but no higher than the maximum rate of pay for the position. For nonexempt employees to be eligible for temporary assignment pay, the period of time of the temporary assignment must be a minimum of one (1) hour. For exempt employees to be eligible for temporary assignment pay, the period of time of the temporary assignment must be more than five (5) consecutive work days.

7.

Shift differential. A nonexempt employee assigned to work a second or third shift may receive an hourly shift differential bonus as established by the city's annual salary ordinance.

8.

Longevity. All regular employees will receive a longevity pay bonus according to the following schedule:

a.

After five (5) consecutive years of continuous service, a ten dollar ($10.00) per month bonus will be added to monthly base pay.

b.

After ten (10) consecutive years of continuous service, a fifteen dollar ($15.00) per month bonus will be added to monthly base pay.

c.

After fifteen (15) consecutive years of continuous service, a twenty dollar ($20.00) per month bonus will be added to monthly base pay.

d.

After twenty (20) consecutive years of continuous service, a twenty-five dollar ($25.00) per month bonus will be added to monthly base pay.

e.

After twenty-five (25) consecutive years of continuous service, a thirty dollar ($30.00) per month bonus will be added to monthly base pay.