Chapter 7 - Compensation

City of Redmond Personnel Manual

Chapter 7 - COMPENSATION

7.10 Pay Ordinance

7.20 Rates of Pay

7.30 Starting Pay

7.40 Overtime Pay

7.50 Compensatory Leave In Lieu of Overtime Pay

7.60 Emergency Callback and Standby Pay

7.70 Merit Pay Increases

7.75 Mandatory HRA VEBA Contributions for Non-Represented Employees

7.80 Longevity Pay

7.90 Working Out-of-Class

7.100 Pay Following a Demotion or Bumping

7.110 Separation Pay

7.120 Retirement Bonus Pay

7.10 Pay Ordinance

(rev. 7/2018)

Official rates of pay for all employees are adopted periodically by the City Council on recommendation of the Mayor. The Mayor may propose amendments or revisions to pay ordinances at any time.

7.20 Rates of Pay

(rev. 7/2018)

Standard Practice

Employees are paid within the limits of the pay ranges to which their positions are assigned, except as provided for elsewhere in this Manual.

Basis for Calculations

Pay for full-time employees is based on a full-time work year of 2,080 hours. Pay for part-time employees is proportionate to the full-time pay scale. For example, the salary of a part-time employee who is regularly scheduled to work half-time, or 20 hours per week, is based on a work year of 1,040 hours.

7.30 Starting Pay

(rev. 7/2018)

Initial Pay

New employees are normally appointed at the minimum of the classification

Premium Pay

A new employee may be appointed at a pay rate higher than the minimum (but no

greater than the maximum) of a classification's pay range when the employee’s knowledge, skills, abilities, experience, training and/or proven capabilities warrant, or when prevailing market conditions require, a starting rate greater than the minimum. Premium starting pay is awarded at the discretion of the hiring department director.

7.40 Overtime Pay

(rev. 7/2018)

Employees in positions defined as "non-exempt" under the Fair Labor Standards Act are entitled to overtime pay for hours worked in excess of 40 hours in one week.

Overtime pay is one and one-half (1 ½) times an employee's regular hourly rate of pay. Time worked in excess of 40 hours should be reported to the Payroll Office rounded to the nearest ¼ hour. When computing overtime, authorized holidays, sick leave and vacation leave are counted as time worked.

7.50 Compensatory Leave In Lieu of Overtime Pay

(rev. 7/2018)

Accrual

An employee entitled to overtime pay may request compensatory time in lieu of cash payment at the overtime rate. Supervisors have discretion to approve or disapprove requests for compensatory time on a case-by-case basis. If a supervisor or manager approves an employee’s request for compensatory time, the employee shall be credited with leave time at the rate of one and one-half (1 ½) times the number of hours worked as overtime. However, no employee may accumulate compensatory leave in excess of 80 hours at any time.

Use of Compensatory Leave

An employee should generally make requests to take compensatory leave in the same manner as when requesting vacation leave.

7.60 Emergency Callback and Standby Pay

(rev. 7/2018)

All employees are subject to callback in emergencies. A refusal to respond to a callback is grounds for disciplinary action.

Standby pay may be approved by the Mayor for specific positions when the Mayor deems that the pay is appropriate and the practice of providing such pay is supported by market data.

7.70 Merit Pay Increases

(rev. 6/2023)

New regular employees, upon successfully completing six months of their probation period, normally receive a merit increase which may include an increase on base and/or a lump sum payment.

Following their initial merit increase, employees are eligible for subsequent raises on their pay anniversary date (as defined below).

Exceptions to the norm must be approved by the Human Resources Director.

Pay Anniversary Dates

An employee's pay anniversary date is the anniversary of his or her initial pay increase or promotion to a higher grade. An employee’s pay anniversary date may be changed by written consent of both the employee and their supervisor. When an employee’s pay anniversary date is changed, merit pay may be pro-rated to reflect the change in the pay anniversary date.

Unless otherwise provided by law, pay anniversary dates shall be adjusted for leaves of absence exceeding three consecutive months.

Merit Increases for Non-Union Employees

Employees are eligible for merit pay increases on their pay anniversary date. Merit pay is based on the individual employee’s job performance. A performance appraisal is required to support a merit pay increase. During the performance appraisal, the employee will be evaluated on a four-point scale utilizing the City’s Employee Performance Appraisal Form. Point splitting is not permitted. That is, the supervisor may not issue scores such as, for example, a 2 ½ or a 2.8. Instead, for each performance criteria, the supervisor must give the employee one of the following scores:

1 – Does not meet standards

2 – Meets standards

3 – Exceeds standards

4 – Distinguished.

After all performance criteria have been scored, the scores are totaled and then divided by the total number of performance criteria to determine the average overall score. The average overall score will be used to determine the employee’s merit pay increase as set forth below:

Merit pay increases will be retroactive to the employee’s pay anniversary date.

Supervisors shall provide a six-month performance evaluation check-in with employees to advise them where they fall generally in terms of their performance score and to provide information to the employee on how they may improve their overall performance.

In the event the employee’s current base rate of pay is lower than the top of the pay range, any merit pay increase will be added to the employee’s base rate of pay. If the employee’s merit pay increase is larger than the difference between the employee’s current base rate of pay and the top of the pay range, the employee’s base rate of pay will be increased to the top of the pay range and the balance of the merit pay award will be issued by the City as a lump sum. Finally, if the employee’s current base rate of pay is already at the top of the pay range, the amount of the merit pay award will be issued by the City as a lump sum payment.

In the event an employee receives an average overall score between 1.0-1.99 and therefore receives no merit pay increase, the employee’s supervisor is required to develop a written performance improvement plan, provide the written plan to the employee, and forward a copy to the Human Resources Department.

Merit Increases for Union Employees

While administration of merit increases for union employees is generally similar to the administration of merit increases for non-union employees, individual collective bargaining agreements may differ. In the event of conflict between this Personnel Manual and a collective bargaining agreement, the collective bargaining agreement shall govern. Thus, individual employees and their supervisors should be mindful of the provisions of the relevant collective bargaining agreement when administering merit pay increases.

Effective Dates of Merit Increase

Merit pay increases are to be effective on the employee's pay anniversary date. In the event an employee’s performance is evaluated after the employee’s pay anniversary date, any merit pay increase will be retroactive to the employee’s pay anniversary date.

Mayor's Approval of Merit Increases for Non-Union Employees Above Those Outlined in the Merit Matrix

Under exceptional circumstances the Mayor may approve increases above those outlined in the Merit Matrix. Any such exceptional increase shall become effective on the employee’s pay anniversary date. Supervisors consult with the Human Resources Director and secure the Mayor's approval of the exceptional increase before informing the affected employee of the exceptional increase.

Pay Range Adjustments

The Mayor may propose, and the Council may grant, adjustments to pay ranges for specific groups or classifications of non-represented employees.

7.75 Mandatory HRA VEBA Contributions for Non-Represented Employees

(rev. 7/2022)

Effective July 1, 2022, mandatory non-represented Employee contributions shall be deducted from each non-represented Employee’s pay and deposited into that Employee’s HRA VEBA account.  The HRA VEBA contributions shall equal fifty dollars ($50.00) per pay period, totaling one hundred dollars ($100.00) per month.

7.80 Experience Recognition Pay

(rev. 4/2023)

Experience Recognition Pay will be paid to regular full-time employees, listed on the “N” Pay Plan, who have completed five (5) continuous years of service. Employees will receive a flat rate per month that will not be affected by the COLA. Experience Recognition Pay will start on the 6th year of service per the following schedule:

Completed Years            Added Continuous Service Monthly Salary
5 years                              $200.00

Experience Recognition Pay will be paid to regular part-time employees in a prorated amount per the following schedule:

Part Time Hours/Week                  Longevity Pay Accrual Ratio
20.0 to 22.4                                      0.50
22.5 to 27.4                                      0.625
27.5 to 32.4                                      0.75
32.5 to 37.4                                      0.875
37.5 to 40.0                                      1.00

7.90 Working Out-of-Class

(rev. 7/2018)

Hours/Pay

An employee temporarily assigned to a higher paying classification and who assumes the preponderance of the duties of the higher classification, as determined by the department director (or his/her designee), for a period of forty (40) consecutive hours or more shall be paid at a rate of five percent (5%) over the employee’s regular salary, or at the minimum salary rate of the higher classification, whichever is greater, retroactive to the beginning of the temporary assignment. Weekends, holidays, and any sick leave or vacation leave used during the first forty (40) hours in which the employee is assigned to a higher paid classification will not disrupt the continuity of hours. “Weekends,” for purposes of this section, means Saturday and Sunday for employees whose working out-of-class assignment is a Monday through Friday work schedule, and means the three days in which an employee is not scheduled to work if the working out- of-class assignment is a four-day-per-week work schedule.

The out-of-class salary adjustment will be seven percent (7%) over an employee’s regular salary, or the minimum of the higher classification, whichever is greater, when a non-exempt employee works out-of-class in an exempt classification for forty (40) or more consecutive hours. In this situation, the non-exempt employee does not receive overtime pay for extra hours worked; instead, he or she receives four (4) hours of professional leave as provided for in Section 9.40 Professional Leave for Non-Union Exempt Employees, for each thirty (30) calendar days worked in the exempt out-of- class assignment.

Voluntary temporary assignments for training are excluded from any pay increase accruing to out-of-class appointments.

Holidays

Holidays occurring within the period of a temporary assignment shall be included in the calculation of whether the temporary assignment is forty hours or more.

Paid Leave

Paid leave used during a working out-of-class assignment will be paid at the working out-of-class rate.

7.100 Pay Following a Demotion or Bumping

(rev. 7/2018)

Involuntary Demotion

An employee demoted in a disciplinary action normally receives a reduction in pay. The specific amount of reduction is determined by the department director in consultation with the Human Resources Director. There is no change in a demoted employee's pay anniversary date.

Voluntary Demotions

An employee who voluntarily demotes will continue to receive the same pay if the existing pay rate falls within the pay range of the new position. However, if the former rate of pay prior to the demotion is greater than the maximum for the new position, then the voluntarily demoted employee’s pay shall be reduced to the maximum rate in the new pay range. The pay anniversary date does not change.

Bumping

A represented employee bumping into a lower classification as a result of bumping rights under a collective bargaining agreement receives the same rate of pay as in the former position unless the former pay is greater than the maximum allowed for the lower classification. In such an event, the employee's pay shall be reduced to the maximum allowed for the lower classification. There is no change in the employee's pay anniversary date.

7.110 Separation Pay

(rev. 7/2020)

Upon separating from the City, an employee shall be paid for:

- All hours worked up to and through the date of separation, including overtime; and,

- Any accrued but unused vacation time through the last full month of employment; and,

- Any accrued but unused compensatory time off (non-exempt employees only); and,

- Any accrued but unused holiday time (uniformed police and fire service employees only); and,

- If the floating holiday has not been used, four hours pay if separating prior to July 1, or eight hours pay if separating after June 30; and

- Upon retirement, such sick leave payouts as may apply;

- Such other payments as may be provided for by ordinance, or, in cases of dismissal, by agreement between the employee and the City as approved by the Mayor.

Note: As an alternative to receiving a lump sum payment for accrued but unused vacation and/or floating holiday, the employee may elect to utilize those hours to extend the effective date of separation from City employment.

Severance Pay for At-Will Employees

If an at-will employee is terminated, the Mayor may provide that employee with severance pay. The amount of severance pay may range from a minimum of one month's salary up to a maximum of six months’ salary. Severance pay shall not be provided if the termination is for misfeasance, malfeasance, or conviction of a crime involving moral turpitude. Severance pay, if approved, is in addition to other pay upon separation.

HRA VEBA Contributions for Separation and Release Agreements

If, upon separation from the City, an employee enters into a Separation and Release Agreement, the City will contribute to the Employee’s HRA VEBA account an amount equal to three months of COBRA premiums based on the Employee’s enrollment in the City’s medical, dental, and vision plans at the time of separation. This contribution will be made as soon as practicable after the date of the Employee’s final paycheck.  This language in the Separation and Release Agreement cannot be individually negotiated and the contribution may not be paid as cash or as COBRA premiums.

7.120 Retirement Bonus Pay

(rev. 1/2020)

Eligibility

The City provides Retirement Bonus Pay when an employee who has obtained retirement eligibility leaves City employment. To be eligible for a retirement bonus, an employee does not have to actually begin drawing a state retirement. Rather, at the time the employee leaves City employment, the employee need only be eligible to retire under the state retirement system covering his or her position in order to receive a retirement bonus.

PERS I Employees

An employee eligible for retirement under PERS I who leaves City employment receives payment for the following:

- All accrued but unused vacation leave up to a maximum of 240 hours, and

- 25% of all accrued but unused sick leave, less 48 hours. That is after calculating 25% of the employee’s sick leave hours, 48 hours are deducted from the result. For Non-Union Employees, the Sick Leave portion of the Retirement Bonus Pay shall be deposited into the retiring employee’s Health Reimbursement Arrangement (HRA) Voluntary Employees’ Beneficiary Association (VEBA) account.

Additionally, the employee may take paid leave before his or her official retirement date for:

- Any accrued but unused vacation in excess of 240 hours,

- Any accrued but unused floating holiday,

- The first 48 hours of the 25% of accrued but unused sick leave.

EXAMPLE:

Employee Jones is about to retire. He has 300 vacation hours, 800 sick leave hours, and an eight-hour floating holiday on the books. He receives:

PERS II, PERS III, PSERS and LEOFF II Employees

An employee eligible for retirement under PERS II, PERS III, PSERS, or LEOFF II who leaves City employment is entitled to receive payment for the following:

- All accrued but unused vacation leave,

- Any accrued but unused floating holiday,

- 25 percent of all accrued but unused sick leave in the Washington State Sick Leave (WASL) and Regular Sick Leave (RSL) banks, up to the maximum accrual of 960 hours. Employees who have not reached the maximum accrual will receive a proration of their frontloaded WASL hours based upon the weeks worked for that year. For example, an employee receives 52 hours of sick leave frontloaded on January 1. If the employee retires July 1 and has not used any WASL hours, 26 hours (52 hours -26 weeks = 26 hours) would be included in the accrued but unused sick leave banks. For Non-Union Employees, the Sick Leave portion of the Retirement Bonus Pay shall be deposited into the retiring employee’s Health Reimbursement Arrangement (HRA) Voluntary Employees’ Beneficiary Association (VEBA) account.

Payment to Beneficiary

In event of a retirement eligible employee's death, the retirement bonus shall be paid to the employee’s beneficiary. In the event the employee has failed to designate a beneficiary the retirement bonus shall be paid to the employee's estate.