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HomeMy Public PortalAbout808.5 - Human Resources - Personnel Management - Pay Plans - Administration and MaintenanceHuman Resources Department Personnel Management Section 808.5 Policies and Procedures Manual Page 1 808.5: Pay Plans – Administration and Maintenance Objective: Provide a pay policy and compensation system that is internally equitable and competitive with the relevant labor market, so the City can attract, acquire, and retain competent employees. Unless stated herein, all positions except Appointed Officials, Police and Fire Management, and as may be otherwise provided for those covered by bargaining agreements, are governed by this policy. Authority: This policy amended by City Council June 20, 2022 Item A-1. Direction: Human Resources Director, as an appointed official, serves at the pleasure of the Mayor, and receives direction through the Chief Administrative Officer (CAO) or designee. Functions: 1. Definitions The following words or phrases, for the purpose of this procedure, shall be defined as: Human Resources Department Personnel Management Section 808.5 Policies and Procedures Manual Page 2 Contract Employee – An employee who is working under a specified employment contract, which is subject to City Council approval. Demotion – Movement of an employee from one classification to another classification with a lower pay grade. Intern – An undergraduate or graduate student who is currently enrolled in a regular course of study in an accredited college or university whose employment with the City earns college credits toward graduation. Terms of employment under this category are intended to include a mutually agreed upon schedule between the college and hiring department, not to exceed four (4) months in duration without reassessment. No benefits will be earned (see Internship Program, Section 800.2). Lateral Transfer – Movement of an employee from one classification to another classification with the same or equivalent pay grade. Length of Service – Service time will be calculated from an employee’s date of hire or adjusted date of hire with the City in a benefit eligible or contract position while covered under the City’s pension plan. When an employee is hired in a temporary position and moves into a permanent position, the employment date will be changed to the effective date that the employee moves to that permanent position. Merit Increase – An annual adjustment in an individual’s pay based on job performance. Actual percentage increase will be determined annually. Permanent Full-Time Position – A position designated as full-time and funded annually by City Council. Human Resources Department Personnel Management Section 808.5 Policies and Procedures Manual Page 3 Permanent Part-Time Position – A position in the City pay plan designated as permanent part-time and funded at a minimum of fifty percent (50%) (twenty (20) hours per week) annually by City Council. Probationary Employee – An employee assigned to a permanent position who has not completed a six (6) month probationary period of employment with the City in that particular position. Temporary and seasonal employees shall be considered probationary employees regardless of service tenure. Promotion – Movement of an employee from one classification to another classification with a higher pay grade. Regular Employee – An employee who has completed the probationary period in a permanent position. Seasonal Employee – An employee who is hired to work in a position, other than a permanent position, on an as needed basis. Such employees are not eligible for any City benefits. A temporary employment contract must be signed according to the City’s established procedure. Special Promotion – Movement of an employee to a higher position and pay grade upon successful completion of an established trainee or career ladder program. Temporary Employee – An employee who is hired to work in a position, other than a permanent position, on a regular basis for a specified length of time (not to exceed one year without reassessment of need). Such employees are not eligible for any City benefits. A temporary employment contract must be signed according to the City’s established procedures. Temporary Position – A position, other than permanent, approved and funded by City Council. The period of employment for a Human Resources Department Personnel Management Section 808.5 Policies and Procedures Manual Page 4 temporary position is for a specified length of time, and the rate of pay is determined by the Human Resources Director in conjunction with the Department Director of the requesting department. Transitional Employee – An employee in a non-Civil Service permanent position with the City who has been selected and transfers for the purpose of attending training to become a Police Officer or Firefighter. 2. Policy The Human Resources Department is responsible for the administration and maintenance of the Pay Plans. Pay Plans are reviewed annually to determine the amount of adjustment, if any, needed to keep them competitive with the market. Recommendations for changes in the salary structures and merit increases are submitted to the Mayor for approval. Salary increases are based on performance or other actions as approved according to this policy. Employees will not be compensated at rates that are less than the minimum of their assigned pay range. If an employee is scheduled, and eligible for a Merit Increase and their probationary period is extended, the employee will receive fifty percent (50%) of the Merit Increase upon successful completion of probation (overall score is Meets or Exceeds Standards). (see Section 808.22 Performance Appraisal and Merit Increase Program). If an employee’s base salary exceeds the maximum of the assigned salary range, a lump sum payment will be granted unless an overall performance rating of “Below Standards” or “Needs Improvement” is received (see Section 808.22 Performance Appraisal and Merit Increase Program). Payment equals the hourly increase above the maximum, multiplied Human Resources Department Personnel Management Section 808.5 Policies and Procedures Manual Page 5 by 2,080 hours for full time employees (1,040 for permanent part -time employees) paid in one lump sum. This payment will be pensionable. 3. Description of Plan The Pay Plan governed by this procedure includes exempt positions which are considered administrative professional or managerial in nature (see Section 808.7 Classification Plan) and non-exempt positions, which are considered clerical, secretarial, technical or paraprofessional in nature, or first line supervisors. This plan provides a hierarchy of grades and pay ranges, based on internal as well as market considerations (see Section 808.7 Classification Plan). 4. Administration of Plan a. Starting Rates – (New Hires) Determination of starting pay for new hires is made by the hiring Department Director or designated Appointed Official and is based on several factors: i. Salaries offered to new employees must be within the applicable pay range. ii. The candidate’s qualifications and work experience relative to the job requirements iii. Current pay levels of incumbents in the same or similar positions within the Department. iv. Appointed Officials must review and consider salaries of current job incumbents prior to making the initial salary determination. b. New Hire Salary Guidelines Human Resources Department Personnel Management Section 808.5 Policies and Procedures Manual Page 6 i. The normal hiring range for new external employees is between the minimum and midpoint of the pay range. New hires meeting the minimum requirements for the position but possessing less than one year of relevant experience for the job will normally be hired at the minimum for the pay range. Candidates with more significant experience and qualifications may be hired closer to the midpoint of the pay range. ii. Requests for starting salaries above the minimum must be approved by the Division Manager and Department Director with final approval by the Human Resources Director before an employment offer is made. iii. There may be occasions when a candidate’s qualifications and relevant work experience warrant a starting salary that is greater than the midpoint of the pay range. Relevant experience is defined as those skills and attributes identified in the job description and uniformly recognized in the external market. All requests for hiring rates above the normal hiring range (above mid-point) must be approved by the Division Manager and Department Director and be submitted to the Human Resources Director for review and approval with concurrence from the Chief Administrative Officer before an employment offer can be made. c. Transfer Within a Pay Plan i. Promotion – Employees receiving a promotion will receive a pay increase equal to the midpoint differential between the pay grade their job is currently assigned and new position’s assigned pay grade, or to the minimum of the Human Resources Department Personnel Management Section 808.5 Policies and Procedures Manual Page 7 new range, whichever is greater. Such increase shall be capped at twenty-five percent (25%), unless the resulting rate is below the minimum of the new range, and shall be no less than seven percent (7%), unless the resulting rate is above the maximum of the new range. Exceptions to the policy for promotional increases for non-bargaining positions, may be authorized by the Chief Administrative Officer. Exceptions may be granted due to extenuating circumstances such as internal equity issues and compression in relation to large promotional increases. In such cases, an increase less than that provided for by policy may be proposed, however, the promotional increase will not be less than seven percent (7%) unless the resulting rate is above the maximum of the new range. Requests for a promotional increase less than provided for by policy must be sent to the Human Resources Director for review and recommendation, with final approval by the Chief Administrative Officer. ii. Demotion – An employee who is demoted either voluntarily or involuntary will receive a decrease in pay equal to seven percent (7%) or the maximum of the new grade, whichever decrease is greater, except when an employee is demoted during the probationary period, the employee’s previous rate will apply. Exceptions to this policy due to special circumstances may be requested by the applicable Department Director through the Human Resources Director for review and recommendations with final approval by the Chief Administrative Officer. iii. Lateral Transfer – A lateral transfer will not result in a salary change. Human Resources Department Personnel Management Section 808.5 Policies and Procedures Manual Page 8 d. Transfer Between Pay Plans – When an employee moves from one pay plan to another, the following guidelines will be used to determine whether the movement is treated as a promotion, demotion or lateral transfer. i. Promotion – The midpoint of the grade to which the employee is being transferred is five percent (5%) or greater than the midpoint of the employee’s current grade. The promotional increase will be equal to the midpoint differential between the paygrade of the currently assigned position and the new position’s pay grade. Such increase shall be capped at twenty-five percent (25%) unless the resulting rate is below the minimum of the new range and shall be no less than seven percent (7%). ii. Demotion –The midpoint of the grade to which the employee is being transferred is lower than the midpoint of the employee’s current grade by no less than five percent (5%). An employee who is demoted either voluntarily or involuntarily will receive a decrease in pay equal to seven percent (7%) or the maximum of the new grade, whichever decrease is greater, except when an employee is demoted during the probationary period, the employee’s previous pay will apply. Exceptions to this policy due to special circumstances may be requested by the applicable Department Director through the Human Resources Director for review and recommendations with final approval by the Chief Administrative Officer. iii. Lateral Transfer –The midpoint of the employee’s current grade and that of the position to which the employee is being transferred, differ by less than five percent (5%). No change to the employee’s base pay. However, if current salary exceeds the new maximum, the hourly rate Human Resources Department Personnel Management Section 808.5 Policies and Procedures Manual Page 9 is reduced to the new grade maximum and the amount above maximum is paid in a one-time lump sum. e. Intern – An employee who is hired as an intern shall be paid at a rate according to provisions outlined in Section 800.2, Internship Program. Approval must be obtained from the Human Resources Director before employing an intern. A brief job description must be sent to the Human Resources Director stating work to be done, job requirements, intended length of employment, weekly hours, and qualifications which enable them to perform these tasks. A Temporary Employment Contract, must be signed according to the City’s established procedure. f. Trainee Status – If a qualified applicant cannot be found to fill a position, the position may be temporarily converted to “trainee” status at one (1) pay grade below that of the permanent position. The Office Head/Division Manager will submit a written request to the Human Resources Director outlining a plan (method) and time standard in which the applicant will meet the minimum qualifications for the regular position, not to exceed two (2) years. Required certification(s) must be obtained within six (6) months of placement in trainee position. The applicant will acknowledge, in writing, that if the requirements and time standards are not met, the employee will be terminated, and the position will revert to the regular grade. i. Starting Rates 1. If the “trainee” position is filled with an outside applicant (new hire), the starting salary will be Human Resources Department Personnel Management Section 808.5 Policies and Procedures Manual Page 10 determined by the hiring Department Director in accordance with 4.a. above. 2. If a current employee is promoted to a “trainee” position, the employee will not receive an increase in salary, unless current hourly rate is below the minimum of the new “trainee” range. ii. Merit Increases – Employees in a “trainee” status are eligible for a merit increase (see Section 808.22). iii. Promotional Increases – The position will be converted to the regular grade upon completion of the “trainee” program and the employee will receive the applicable promotional increase (see Section 4.c, Promotion), or an increase to the minimum of the salary range of the regular position grade, whichever is greater. g. Career Ladder Promotion – Career Ladder/ Promotion Program may be established when all the following criteria are met: i. The Trainee Status has been considered (see section 4.f. above.). ii. The required knowledge and skills are not readily available in the Labor Market. iii. A lengthy training period is required to gain proficiency or a training/apprenticeship period to obtain required license/certification. iv. All employees will perform the same duties once they reach proficiency. Requests to establish this type of program must be submitted to the Human Resources Department for review. Upon successful completion of the Human Resources Department Personnel Management Section 808.5 Policies and Procedures Manual Page 11 career ladder/special training program, employees will receive a promotional increase. The employee will not be placed in a probationary status upon promotion within the career ladder. The supervisor must submit a request, in writing, to promote the employee. Human Resources Department reviews the request to ensure the employee meets the minimum qualifications, performance standards and any other qualifications set by the department. Human Resources Department then responds, in writing, whether the request is approved or denied. If approved, the salary increase is effective the start of the next pay period. h. Contract Employees – An employee in a “contract” pay status will receive pay and benefits as outlined in the approved contract (see Policy and Procedure 808.9 Contract Positions). A Contract, reviewed by the City Attorney’s Office, must be signed and approved by City Council prior to employment. i. Transitional Status – Transitional employees‟ salaries will be adjusted to the established rate for those attending training. They will continue to accrue City benefits, excluding management leave and compensatory time, held prior to entry into the training program. Upon becoming a probationary Police Officer/Firefighter, the employee will receive City benefits as prescribed in bargaining agreements. Should the employee fail to complete the prescribed training, including the Field Training Program, the employee may be transferred to another vacant City position for which they are qualified, if available. The employee will not lose earned benefits, excluding management leave and floating holidays, when transferring to Human Resources Department Personnel Management Section 808.5 Policies and Procedures Manual Page 12 or from the Civil Service position. Pension date will change to the effective date of the permanent position. j. Working out of Class – Any non-bargaining employee who is assigned to work out of classification in a higher non-Civil Service position, will be given an increase equal to the midpoint differential between the employee’s current position and the higher position’s midpoint, or to the minimum, whichever is greater, capped at twenty-five percent (25%); unless the resulting rate is below the minimum of the new range, and shall be no less than seven percent (7%), unless the resulting rate is above the maximum of the new range. Should the higher classification be a Civil Service position, the employee may be granted an increase not to exceed seven percent (7%). To be eligible for the higher pay, the employee must: i. Perform substantially all the required duties for the higher classification. Employees working in a higher classification for thirty (30) days or less do not have to meet the minimum qualifications for the higher level job unless required by law or ordinance. Employees working for more than thirty (30) days in a higher classification must meet minimum requirements for that job. ii. Work in the higher classification for at least 8 hours of their regularly scheduled shift. iii. Be in a permanent position. Out of Class Pay will only be granted when an existing position is vacant due to vacation, termination, illness, etc. and not for temporary reassignment for special projects. Exceptions to the “vacant position” requirement of this policy can only be made due to extenuating or emergency circumstances. Exceptions must be requested Human Resources Department Personnel Management Section 808.5 Policies and Procedures Manual Page 13 in writing (before) being paid, through the appropriate Department Director to the Human Resources Director for final approval. All other provisions of this policy must be met. Out of Class Pay will be granted only for time actually worked and will not include time spent by employee on personal leave, holidays, or sick leave, or other absence from the job. After an employee has worked out of classification for ninety (90) days, the Office Director/Division Manager will be required to review and consider any extension of the out of classification status. Such extension to be approved only if the employee meets the minimum qualifications as contained in the job description of the higher classification. Requests for Working Out of Class Pay must be submitted by authorized personnel using the online Form by going to TeamLink, the City of Orlando Intranet page, under Procurement, Payroll & Accounting, Payroll, select Pay & Compensation, and Working Higher Class Adjustment. Requests are to be submitted to the Human Resources Department by 12:00 Noon on Friday. k. Effective Date – Personnel changes will be effective the beginning of a pay period, unless otherwise approved by the Human Resources Director. The workweek begins on Sunday at 12:01 AM and ends Saturday at 12:00 midnight; therefore, transfers, promotions, demotions, etc. must be effective on Sunday. l. Longevity – An employee in a permanent full time, permanent part-time, non-bargaining, non-civil service, contract position with benefits, and elected and appointed officials will receive an annual longevity payment based on length of service. Human Resources Department Personnel Management Section 808.5 Policies and Procedures Manual Page 14 i. Service time will be calculated from the latest date of employment or an adjusted date of employment, if applicable. To be eligible for this payment , the employee must have completed the specified number of years of service on or before October 1st of each year and must be employed as of the date of payment, unless retiring from the City service or beginning to receive Long Term Disability benefits in September or October. Note: Time spent as a contract employee during which the employee was a participant in the City’s pension plan (on or after October 30, 1989) will be counted as service time for longevity purposes. ii. The following schedule of payment will be used: 0 – 4 years $0.00 5 – 9 years $600.00 10 – 14 years $1,100.00 15 – 19 years $1,600.00 20 – 24 years $2,000.00 25 years + $2,300.00 Employees in permanent part-time positions will receive fifty percent (50%) of the above payment schedule. Payment will be made as a separate lump sum each year and will be subject to required deductions. Longevity payments will be made during the month of October. Note: Payment will be made based upon the pay plan to which employee is assigned as of October 1st. m. Special Pay Adjustments – When it becomes necessary to adjust an employee’s salary under certain limited Human Resources Department Personnel Management Section 808.5 Policies and Procedures Manual Page 15 circumstances, a Department/Office Director shall process a request for adjustment through the Human Resources Director for review and recommendation. The Chief Administrative Officer shall have final approval authority over adjustments requested under this section. Examples of situations where an adjustment may be requested include the retention of a mission critical key employee when that employee has a documented offer of employment at a higher compensation level, adjustments for internal equity purposes (pay compression or distortion resulting from new hires or promotions from within), and adjustments for key positions severely out of line with market conditions whose loss would adversely affect critical City operations. Approved salary adjustments will be absorbed by the requesting Department. This paragraph does not apply to positions covered by bargaining unit agreements. Forms: Form 808.51.1 – Request for Working Out of Class Pay. Committee Responsibilities: None. Reference: City Council Minutes, November 3, 1963; amended February 14, 1966; amended June 23, 1969; Item 35; amended April 20, 1970, Item 27; amended March 22, 1971, Item 34; amended November 13, 1972, Item 12; amended October 24, 1977, Item 13: was renumbered from 708.6 and amended October 8, 1980, Item 8; amended May 18, 1981, Item 17; amended July 20, 1981, Item 11; amended May 17, 1982, Item 12V; Human Resources Department Personnel Management Section 808.5 Policies and Procedures Manual Page 16 amended October 4, 1982, Item 15X; renumbered from 708.5 and amended January 24, 1983, Item 15S; amended January 23, 1984, Item 13A-19; amended September 8, 1986, Item 28A-22; amended May 16, 1988, Item 19A-5; amended February 11, 1991, Item 3/7. amended June 21, 1993; Item 2-P; amended December 12, 1994, Item MM; amended July 10, 1995, Item UU; amended March 11, 1996, Item 3KK; amended March 23, 1998, Item 3KKK; amended May 24, 1999, Item 5-LL; amended April 3, 2000, Item 2PPP; amended May 22, 2000, Item 8-ZZ; amended April 2, 2001, Item B6; amended June 3, 2002, Item B24; amended December 2, 2002, Item a18; amended July 28, 2003, Item a4; amended September 15, 2003; amended August 9, 2004, Item A4; amended December 13, 2004, Item A8; amended July 25, 2005, Item A11; amended February 13, 2006, Item A5; amended June 18, 2007, Item A2; amended May 10, 2010, Item A2.; amended October 7, 2019, Item A3; amended June 20, 2022, Item A- 1. Date: This policy effective June 20, 2022.