General
To be eligible for acting pay, the employee must temporarily work in a position that has a higher pay level assignment than the employee’s regular position. The employee acting in position retains his/her regular job title, with an “acting” designation in the human resources information payroll system.
In all cases, the employee must return to his or her regular position and regular rate of pay when the temporary assignment is over. Regular rate of pay means the rate that would have been paid at that point in time had the temporary assignment not happened.
In many cases, the acting pay is based on a percentage increase over the employee’s regular pay rate (as opposed to provisions in collective bargaining agreements calling for a dollar increase). In such cases, any fiscal-year general increase occurring while the employee is serving in the temporary assignment will equal what the employee would have received without the temporary assignment, increased by the initial acting pay percentage.
For example, if the initial acting pay percentage increase was 10 percent, peg what the non-acting salary rate would have been after the fiscal-year general adjustment, and add 10 percent (in this example).
For exceptions, follow Procedure 3 in the APPENDIX.
Again, when the temporary assignment is over, it’s back to the rate that would be in effect had the temporary assignment not happened.
Plans with Steps
In certain pay plans with steps, pay for employees temporarily working out of classification is specified in their respective memorandums of understanding, compensation plans, or Civil Service Commission rules.
Where not specified under collective bargaining agreement, compensation plan, or Civil Service Commission rule, an acting pay increase may be given at the department director’s discretion. If the employee is temporarily serving as an acting incumbent in a job covered by a plan with steps, the department may award any step that is not higher than the employee’s regular step by more than 10.29 percent.
If the acting pay step is 10.3 percent or higher than the employee’s regular pay step, it must be approved by the Mayor or the Mayor’s designee. Follow Procedure 3 in the APPENDIX.
Plans with Ranges
A pay increase given to an employee working out of classification in a plan with ranges may not exceed ten percent of the employee’s regular pay rate. Any exception must be approved by the Mayor or Mayor’s designee. Follow Procedure 3 in the APPENDIX.
General Increases to Base Salary
When fiscally able, the City gives most employees a general increase on or about July 1 each year. Such increase must be approved by the City Council, and may vary between pay series depending on fiscal ability, equity considerations, and collective bargaining agreements.
Plans with Steps
Routinely, a general increase to a plan with steps means that the pay grades—along with the steps they contain—are raised by a specified percentage. This is often called a cost of living adjustment (COLA). However, the resulting base salary increase may be driven by other factors, including market comparison. In any case, each employee usually gets the same percentage increase.
Plans with Ranges
In contrast, a general increase to a plan with ranges usually means that the pay grades are raised by a specified percentage based on market trend for pay structure increases. Then each employee’s base salary increase depends on two factors: The first factor is the funding level provided by the City, referred to as the general percentage increase (GPI). The second factor is the distance between the employee’s fiscal year-end salary (usually on or about June 30) and the new fiscal-year (July 1) midpoint of his or her grade. This distance is expressed as a percent of midpoint, and is used to adjust the general percentage increase (GPI) for each individual.
Each year, payroll calculates for all City divisions this routine base salary adjustment for every professional and appointed employee. The calculation is illustrated by the following example.
Assume the City announces a budgeted GPI of 2.5 percent for professional employees’ pay raises; that an incumbent’s June 30 salary is $1,600 bi-weekly; and that her new (July 1) range midpoint is $1,700 bi-weekly. To calculate the routine base pay addition:
1. Divide $1,600 (current salary) by $1,700 (range midpoint). Result: .94. Remove the decimal and add the % sign. (94%)
2. Find in the BASE PAY ADJUSTMENT SCHEDULE (in the APPENDIX) the adjustment factor range for 94 % of midpoint. Result: 1.3.
3. Multiply the adjustment factor, 1.3, by .025 (general increase percentage). Result: .0325, or 3.25 %.
4. Multiply current (pre-increase) salary ($1,600 bi-weekly) by 3.25 %. Result: $52.00 bi-weekly.
So in this example, $52 is the bi-weekly raise in base pay, an increase of 3.25 percent. Now assume all the same data, but set the current salary at $1,800 bi-weekly. The resulting increase in base pay is 2.5 percent. The increase percentage is the same as the basic GPI, because a range position that is equal to or greater than midpoint calls for an adjustment factor of 1.0 This is in contrast to the case when range position is low, causing the adjustment factor to be higher than 1.0. Again, the aim is to accelerate in-range pay progression during the phase when the employee’s salary is below market average.
Supplemental Pay
A supplemental payment is a one-time, lump sum payment that is not added to base salary. There are four kinds of supplemental payments: Routine, Special, Performance-Based and Retention Incentive. These are different than awards provided under the City’s Recognition Program. (See Policy 3.01.06.)
Plans with Steps
For plans covered by collective bargaining agreements, the supplemental payment is relatively infrequent. In some years, a routine supplemental payment has been given in lieu of a base wage increase
Employees in stepped plans whose compensation is not determined by collective bargaining agreements (e.g., police and fire supervisory), may receive a special supplemental payment if the Mayor or Mayor’s designee approves a department head’s request under Procedure 4 in the APPENDIX.
Plans with Ranges
In some years, the City has given a routine supplemental payment in lieu of or in addition to a base salary increase. The City’s decision to provide or not provide such a payment in any fiscal year will depend on its funding ability. Employees in plans with ranges may receive a special supplemental payment if the Mayor or Mayor’s designee approves a department head’s request under Procedure 4 in the APPENDIX.
Performance-based supplemental payments apply only to appointed employees, and are decided by department heads with the approval of the Mayor or CAO, or City Council if the case involves a Council employee.
Overtime
All City positions are classified as being either non-exempt or exempt from the overtime requirements of the Fair Labor Standards Act. See the chart on page 1.
· By law, except for combat fire personnel, the City must pay for non-exempt work at 1½ times the regular hourly rate for all hours worked in excess of 40 during a seven-day workweek.
· By law, for combat fire personnel, the City must pay for non-exempt work at 1½ times the regular hourly rate for all hours worked in excess of 204 during a 27-day cycle.
· By collective bargaining agreement or other resolution, the City may conduct its pay programs under provisions more liberal than those required by the FLSA.
Non-Exempt Positions
· All hours worked must be recorded, counted and sent to payroll.
· Rules regarding payment of overtime for the various non-exempt pay series are given in the respective collective bargaining agreements or compensation plans.
· Employees whose duties are non-exempt may not waive the overtime premium.
Exempt Positions
Employees in exempt positions are not paid for the hours they work; they receive set salaries for the jobs they do. The amount of time required to get the job done will vary from week to week, but not the salary. Only under the circumstance of time off without pay would this not be the case.
Managers, supervisors and timekeepers are not to record, count or send to payroll any hours worked by exempt employees, where the purpose of such recording or counting is to determine or affect the employees’ pay. Exception: If the Mayor or City Council has issued a proclamation of local emergency, an exempt employee may receive overtime pay for hours worked and reported beyond 40 in one workweek during the emergency period. See compensation plan.
Exempt employees may be allowed flexible work schedules to the extent permitted by the business needs of their respective divisions or work units. Each department director will decide for all divisions under his or her management how much flexibility (if any) can be permitted without compromising the attainment of City objectives.