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2004 COMPENSATION MANUAL

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Police Union Eligible Pay Plan Police Non-Union Eligible Pay Plan
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Non-Uniform - Union Eligible Pay Plan Non-Uniform - Non-Union Eligible Pay Plan

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Introduction Compensation Objectives
New Hires Salary Progression
Promotions Demotions
Lateral Transfers Alternate Rate
Bumping Reclassifications, Upgrades, and Downgrades
Career Ladder Progressions Status Change Procedure
Privilege Pay Appendix - Definitions

INTRODUCTION

The policies and procedures in this manual were promulgated by the Director of Human Resources and approved by the City Manager of the City of Little Rock.

This document supersedes all previous policies concerning salary administration and compensation practices for full-time employees of the City of Little Rock.  These policies and procedures shall be considered subordinate where in conflict with current negotiated agreements.  Policies and procedures may vary among union and non-union employee groups.

These policies will be reviewed on an ongoing basis by the Classification and Compensation Division and necessary changes will be addressed.  Modifications may occur due to changes in the economy, labor market, and the City's financial position.  These modifications may include, for example, changing grades to and from ACES grades and Special Pay Line grades to address market compatibility and other issues.  This document shall be controlling unless superseded by written directions of the Director of Human Resources.

Exceptions regarding these policies must be approved in writing by the City Manager.  It is each Department Director's responsibility to ensure that money is available within his organization's budget to fund salary adjustments, if any, throughout the year. 

This manual provides a practical guide for understanding and discussing the City's compensation program.  It answers questions which frequently arise.  Staff in the Classification and Compensation Division are available to provide clarification and assistance upon request.

This manual should be utilized to ensure the uniformity and consistency of policy applications, and to promote fairness and equity to all City employees.  It is of the utmost importance that supervisors be knowledgeable of the philosophy as well as the policies and procedures that govern administration of the compensation program.

COMPENSATION OBJECTIVES

The City of Little Rock administers a compensation program with the following objectives:

  ·        to provide salary ranges that are fair and internally equitable;

  ·        to provide salary ranges that are externally competitive with relevant labor markets;

` ·        to ensure compliance with federal and state regulatory guidelines;

  ·        to review classifications on a timely schedule; and

  ·        to ensure administration of the compensation program on a fair and consistent basis.

  Specific exceptions to these policies must be approved in writing by the City Manager.

NEW HIRES

A.        NON-UNIFORMED CLASSIFICATIONS

The minimum of the salary range is considered to be an internally equitable and externally competitive salary for a new employee who meets the minimum qualifications required for the classification.

 

Notwithstanding the above, Department Directors shall have the discretion to approve a new hire salary rate up to the mid-point of the salary range of the grade based on the employee's qualifications.  Any salary recommendation in excess of the midpoint of the range will require the City Manager's written approval prior to the salary offer.  The Department of Human Resources will not process a new hire without documentation of that approval.

No employee will be hired below the minimum of the salary range of the classification.

Department Directors should ensure that internal equity exists in the salary structure before a salary is offered to a applicant.  In the event an inequity exists, the Director of Human Resources will have the discretion to approve salary adjustments up to mid-point of the salary range; salaries that require adjustment over mid-point of the salary range will require the City Manager’s approval.  An employee who believes a salary inequity exists in his/her division may request a review of the salary structure by the Director of Human Resources.

B.        UNIFORMED, UNION-ELIGIBLE CLASSIFICATIONS

New hires shall begin at the minimum of the salary range of the appropriate grade.

SALARY PROGRESSION

The effective date of annual salary increases will be the first day of the pay period for the first payday which falls in the new year, unless otherwise negotiated.

 

Such increases are separate from other salary adjustments, including career ladder, equity, promotional, reclassification, or other adjustments.

 

Salary increase amounts are determined by the City Manager and respective Department Directors, unless otherwise negotiated.

 

A.        NON-UNION ELIGIBLE CLASSIFICATIONS

 

            Newly-hired employees will be eligible for the normal merit increase at the completion of the first year of service.  If the employee completes the first year of service on or before December 31, the employee will be eligible for both the one year anniversary increase and the merit increase for the subsequent year, regardless of whether the one year of service is completed before the actual effective date of the increases for the subsequent year.  (EXAMPLE:  An employee with a hire date of December 31 will be eligible for both the one year anniversary increase effective December 31, and the merit increase for the following year which has an effective date of December 15.)

 

            Salary increase effective dates for non-uniformed non-union eligible employees moving into non-uniform non-union eligible positions will be as outlined above.

 

            Based upon the discretion of the Department Director, a newly hired or promoted employee may be eligible to receive a salary increase upon completion of the six-month probationary period.  The granting of such increase up to five percent (5%) will require the approval of the Director of Human Resources; increases of more than five percent (5%) will require the approval of the City Manager.  Future merit increases will be in accordance with the normal merit increase cycle for a newly hired or promoted employee. 

 

All other salary progression shall be based upon performance or as authorized by the City Manager.

 

B.        NON-UNIFORMED, UNION-ELIGIBLE CLASSIFICATIONS

 

            Salary progression shall be based on negotiated increases.

 

C.        UNIFORMED, UNION-ELIGIBLE CLASSIFICATIONS

 

            Salary progression shall be based on negotiated increases.

PROMOTIONS

A.        DEFINITION

A promotion is a competitive process by which a regular full-time employee  moves to a classification which has a higher grade level than the classification the employee currently holds.

B.        TYPES OF PROMOTIONS

When moving within NON-UNIFORMED classifications, it shall be considered a promotion if the maximum of the range of the employee's new grade is greater than the maximum of the range of his current grade.

When moving within UNIFORMED POLICE OR FIRE classification systems respectively, it shall be considered a promotion if the employee moves to a higher rank.

When moving from a UNIFORMED classification to a NON-UNIFORMED classification or vice-versa; or when moving from a UNIFORMED POLICE classification to a UNIFORMED FIRE classification or vice-versa, it shall not be considered a promotion.  New hire salary procedures shall apply.

 Movement between classifications with the same grade, same maximum of the range of  the grade, or same title shall be considered a Lateral Transfer.

C.        AMOUNT OF PROMOTIONAL INCREASES

The amount of promotional increase for any uniform position not covered by an agreement with a recognized employee group is subject to review and evaluation on an annual basis.

In no instance shall an employee be paid below the minimum of the salary range of the classification.

1.         Uniformed, Union-Eligible Employees

(Moving Within Union-Eligible Classifications)

Upon promotion, an employee's salary will be increased to the minimum of the new grade salary range.

2.         POLICE SERGEANT PROMOTING TO POLICE LIEUTENANT

An employee who is promoted shall receive      the lesser of either:

a.         a ten percent (10%) promotional increase

OR

b.         the lowest-level salary of any employee currently within the Police Lieutenant rank.

3.         POLICE LIEUTENANT PROMOTING TO POLICE CAPTAIN

An employee who is promoted shall receive the lesser of either:

a.         a ten percent (10%) promotional increase

OR

b.         the lowest-level salary of any employee currently within the Police Captain rank.

4.         POLICE CAPTAIN OR POLICE LIEUTENANT PROMOTING TO ASSISTANT POLICE CHIEF

An employee who is promoted shall receive the lesser of either:

a.         a ten percent (10%) promotional increase

OR

b.         the lowest-level salary of any employee currently within the Assistant Police Chief rank.

5.         FIRE CAPTAIN PROMOTING TO BATTALION CHIEF

An employee who is promoted shall receive the lesser of either:

a.         twelve percent (12%) promotional increase

OR

b.         lowest-level salary of any employee currently within the Battalion Chief rank.

6.      PROMOTIONAL INCREASES FOR ALL OTHER EMPLOYEES

Department Directors shall consider internal equity considerations when offering promotional increases.  In no instance will a promotional increase be granted which does not maintain internal equity.

 In no instance shall an employee who is promoted receive a salary rate below the minimum of the salary range of the new classification.

While a normal general rule for a promotional increase is approximately ten percent (10%), Department Directors shall have the discretion to approve a promotional salary rate up to the midpoint of the salary range of the new grade.  Any salary recommendation in excess of the midpoint of the range will require the City Manager's approval prior to the salary offer.

7.         LIMITATION APPLICABLE TO ALL PROMOTIONAL INCREASES

            If the promotional increase would cause the employee's salary to exceed the maximum of the salary range for the new grade, a lesser percentage increase will be given such that the employee's new salary equals the maximum of the new grade salary range.  In no instance shall a promotional increase result in a salary which exceeds the maximum of the salary range of the new grade.

DEMOTIONS

A.        DEFINITION

A demotion is the movement of a regular full-time employee to a classification which has a lower grade level.

 B.        TYPES OF DEMOTIONS

When moving within NON-UNIFORMED classifications, it shall be considered a demotion if the maximum of the range of the employee's new grade is less than the maximum of the range of the employee's current grade.

When moving within UNIFORMED POLICE OR FIRE classification systems respectively, it shall be considered a demotion if the employee moves to a lower rank.

When moving from a UNIFORMED classification to a NON-UNIFORMED classification or vice versa; or  when moving from a UNIFORMED POLICE classification to a UNIFORMED FIRE classification or vice-versa, it shall not be considered a demotion.  New hire salary procedures shall apply.

Movement between classifications with the same grade, same maximum of the range of the grade, or same title shall be considered a Lateral Transfer.

C.        AMOUNT OF DEMOTION SALARY ADJUSTMENT

             When an employee requests a voluntary demotion to a lower classification, new hire procedures shall apply (see page V-2).  Discretion to grant the request for a voluntary demotion lies with the appropriate Department Director.

1.         PROBATIONARY EMPLOYEES FOLLOWING A PROMOTION

The employee's salary will be reduced to that which existed prior to the promotion.  Any interim annual salary increases shall apply.  This type of demotion will only be allowed when the position the employee was originally promoted from is vacant. 

2.         NON-PROBATIONARY EMPLOYEES MOVING WITHIN UNIFORMED, UNION-ELIGIBLE POSITIONS

The employee's salary will be reduced to the maximum of the salary range of the rank into which he was demoted.

3.         ALL OTHER EMPLOYEES

An employee who is demoted as a result of a disciplinary action shall receive the lesser salary of either:

            a.         ten percent (10%) demotional decrease

OR

            b.         maximum of the salary range of the new grade.

 

4.         LIMITATION APPLICABLE TO ALL DEMOTION SALARY ADJUSTMENTS

                                    If the ten percent (10%) demotional decrease would cause the employee's salary to fall below the minimum of the salary range of his new grade, a lesser percentage decrease will be given such that the employee's new salary equals the minimum of the new salary range.  In no instance shall a demotional decrease result in a salary which falls below the minimum of the salary range of the new grade.

LATERAL TRANSFERS

A.        DEFINITION

 A lateral transfer is defined as the movement of the a regular full-time employee to a classification which has the same grade, the same maximum of the range of the grade, or the same title as the classification the employee currently holds.  The criteria for this movement do not meet promotion or demotion requirements.

B.        TYPES OF LATERAL TRANSFERS

When moving within NON-UNIFORMED classifications, it shall be considered a lateral transfer if the maximum of the range of the employee's new grade is equal to the maximum of the range of his current grade, or if the new classification and the current classification have the same job title.

C.        AMOUNT OF LATERAL TRANSFER SALARY ADJUSTMENT

Lateral transfers do not result in salary adjustments. 

ALTERNATE RATE

A.        DEFINITION

 A regular full-time, non-uniformed employee assigned to work in a position with a higher rate of pay for a period of time which exceeds five (5) consecutive work days, shall receive an alternate rate of pay if both of the following conditions are met:

1.         He performs a majority of the duties of the higher classification;

AND

2.         He is held accountable for his performance in the same manner as a newly hired or promoted employee in the higher classification.

Alternate rate status shall not exceed thirty (30) consecutive calendar days without written approval by the City Manager.  After the initial thirty (30) calendar day period, continuation of the alternate rate assignment must be approved in writing by the City Manager every thirty (30) calendar day period.

An employee's anniversary date shall not change as a result of an alternate rate assignment.

While in alternate rate status in an overtime-eligible position, any time worked in excess of the forty (40) hours regularly scheduled workweek, as specified in this manual and current agreements, shall be paid at time and one-half the alternate rate amount.

B.        AMOUNT OF ALTERNATE RATE SALARY ADJUSTMENT

1.         NON-UNIFORMED, UNION-ELIGIBLE EMPLOYEES

An employee placed in alternate rate status shall receive a five percent (5%) salary adjustment for the duration of the alternate rate assignment retroactive to the first work day.

Non-uniform union eligible employees assigned to work in a non-uniform non-union position shall receive alternate rate as outlined in the non-uniformed non-union section.

2.         NON-UNIFORMED, NON-UNION ELIGIBLE EMPLOYEES

An employee placed in alternate rate status shall receive:

a.         Five percent (5%) salary adjustment for the initial thirty (30) calendar day period in alternate rate status.

b.         Beginning the thirty-first (31st) consecutive calendar day in alternate rate status, the employee shall receive the greater of an additional five percent (5%) salary adjustment, OR the minimum of the salary range of the higher classification.  This adjustment shall be effective for the duration of the alternate rate assignment.

3.         DEPARTMENT DIRECTORS

An employee placed in alternate rate status shall receive:

a.         Five percent (5%) salary adjustment for the initial thirty (30) calendar day period in alternate rate status.

b.         Beginning with the thirty-first (31st) consecutive calendar day in alternate rate status, the employee shall receive the greater of an additional five percent (5%) salary adjustment, or the minimum of the salary range of the higher classification.  This adjustment shall be effective for the duration of the alternate rate assignment.

c.         In cases of vacancies, the amount of alternate rate payable to the employee shall be determined by the City Manager.

BUMPING

DEFINITION

Bumping is the process by which an employee designated for permanent layoff displaces a less senior employee in accordance with applicable policies and procedures.

A.        An employee exercising bumping rights will be compensated at the lesser of:

            1.         Current salary, if such salary falls within the salary range of the bumped-to classification

OR

            2.         Maximum of the salary range of the bumped-to position.

B.        If an employee, after exercising bumping rights, competes for and is promoted to a higher classification, normal promotion procedures shall apply.

C.        Bumping Rights Exhausted

An employee notified that he will be laid off, who has exhausted his bumping rights but is subsequently selected to fill a vacant position having the same or lower grade than the position from which the employee is laid off, may be paid up to midpoint of the range of the vacant position according to new hire salary procedures.

RECLASSIFICATIONS, UPGRADES, AND DOWNGRADES

A.        DEFINITIONS

 Reclassification:  A change in classification or pay grade of a position due to a change in duties and responsibilities.

Upgrade:  Progression from a lower pay grade to a higher pay grade due to administrative realignment or labor market factors.

Downgrade:  Reduction of a position from a higher pay grade to a lower pay grade due to an administrative realignment or labor market factors.

B.        AMOUNT OF RECLASSIFICATION OR UPGRADE SALARY ADJUSTMENT

 If an employee holds a classification that is reclassified or upgraded to a classification which has a higher maximum salary range than his current classification, he shall receive the greater of either:

            1.         five percent (5%) salary increase

OR

2.         minimum of the salary range of his new classification.

If the five percent (5%) salary increase would cause the employee's salary to exceed the maximum of the salary range of the new grade, a lesser percentage increase will be given such that the employee's new salary equals the maximum of the new grade salary range.  In no instance shall a salary increase result in a salary which exceeds the maximum of the salary range of the new grade.

C.        AMOUNT OF RECLASSIFICATION OR DOWNGRADE SALARY ADJUSTMENT

If an employee holds a classification that is reclassified or downgraded to a classification which has a lower maximum salary range than his current classification, his salary shall be redlined; however, there will be no salary adjustment to his base salary.  The employee shall not receive any further increases until his salary is less than the maximum of his new grade's salary range.

CAREER LADDER PROGRESSIONS

A.        DEFINITION

 A career ladder progression is a progression from one classification to another within a designated career path.

The Classification and Compensation Division of the Department of Human Resources shall maintain a current list of all positions which qualify for career ladder progressions.

B.        AMOUNT OF CAREER LADDER SALARY ADJUSTMENT

 When an employee has completed the required period of service in the lower classification, he shall receive an increase equal to the greater of either:

            1.         five percent (5%) salary increase,

OR

            2.         minimum of the salary range of the new classification.

If the five percent (5%) salary increase would cause the employee's salary to exceed the maximum of the salary range of the new grade, a lesser percent increase will be given such that the employee's new salary equals the maximum of the new grade salary range.  In no instance shall a salary increase result in a salary which exceeds the maximum of the salary range of the new grade.

 The amount of career ladder adjustment, including any raises to minimum of the salary range, will be applied before any other salary adjustments.

STATUS CHANGE PROCEDURE

A.        The HR-4 Form shall be initiated by the respective Department Director for all personnel actions, except for personnel actions coordinated by the Employment Division of the Department of Human Resources. 

B.         The Department of Human Resources reviews such requests and obtains proper authorization.  The personnel action shall not be considered final until all signatures of authorization have been obtained.

 C.        The Department of Human Resources shall complete the required data entry to update the data base and forward two copies of the HR-4 to the respective department for record-keeping purposes.

PRIVILEGE PAY

A.        DEFINITION

 Privilege pay is a payment to employees in the classification of Battalion Chief who work an additional twenty-four (24) hour work shift beyond their regularly scheduled work hours.

 The Fire Chief shall maintain a current list of all employees who are eligible for such assignments and privilege pay.  Assignments shall be made at the discretion of the Fire Chief.  Partial-shift assignments with pro-rated pay may be made at the discretion of the Fire Chief.  Privilege pay is not provided for any other required work.

 B.        AMOUNT OF PRIVILEGE PAY ADJUSTMENT

 When an employee has completed the additional twenty-four (24) hour work shift, he shall receive an amount equal to:

             1.         $664.70.  

The pay code for privilege pay (37), with the dollar amount of the privilege pay, shall be inputted into the payroll/personnel system by the timekeeper for the Fire Department, upon receiving written notification from the Fire Chief.

Hard-copy records of privilege pay will be maintained in the Fire Department.

APPENDIX
DEFINITIONS

ADDITIONAL COMPENSABLE ELEMENTS (ACES) - Relatively enduring characteristics of jobs which may justify differential compensation.  ACES usually derive from the physical, temporal or perceptual conditions under which work must be done (context).  ACES are measured as the job is expected to be performed by a qualified incumbent.  It is assumed that all appropriate action necessary to eliminate or minimize undesirable conditions has been taken; what remains is unavoidable.

 ADMINISTRATIVE REALIGNMENT - An adjustment of position(s) or duties within an organization to achieve better distribution of job tasks and responsibilities.

ANNIVERSARY DATE - The effective date of appointment, promotion, reclassification, or demotion. 

BUMPING - The process by which an employee designated for permanent layoff displaces a less senior employee in accordance with applicable policies and procedures.

CLASSIFICATION - The assignment or grouping of positions regardless of location, that are similar enough in duties and responsibilities to be given the same title, pay grade, and require substantially the same qualifications.

DEMOTION - The movement of a regular full-time employee to a classification which has a lower grade level than the classification the employee currently holds.

DOWNGRADE - Reduction of a position from a higher pay grade to a lower pay grade due to internal or external equity considerations.

EMPLOYEE PERFORMANCE APPRAISAL SYSTEM (EPAS) - A system of behavioral standards to measure individual performance and achievement of goals.

HAY POINT FACTOR JOB EVALUATION SYSTEM - A job evaluation plan that ranks the relative value of jobs on “know-how,” “problem solving,” and “accountability” factors. 

HR-1 FORM - REQUEST FOR PERSONNEL - This form is submitted by the affected department to the Department of Human Resources as notice of vacancy and request to initiate selection procedures to fill the vacancy.  This form is also used to provide and track equal employment opportunity recommendations for filling job vacancies.

 HR-2 FORM - CLASSIFICATION REPORT - This form is initiated by the Department of Human Resources to create or modify classifications.

 HR-2A FORM - CLASSIFICATION REVIEW REQUEST - This form is used by Department Directors, or incumbents via the chain of command, to request a review of the classification of a position.

HR-3 FORM - POSITION MAINTENANCE AUTHORIZATION - This form is completed by the Department of Human Resources.  It is used to create or modify positions or classifications in the personnel/payroll computer system.

HR-4 FORM - EMPLOYEE STATUS CHANGE FORM - This form is used to document new hires, salary increases, promotions, transfers, terminations, or any other personnel action.  The Department of Human Resources will complete this form for hire and rehire actions. Individual departments will initiate this form for all other personnel actions after the initial employment.

HR-6 FORM - DEPARTMENT DIRECTOR REQUEST FOR PAC EVALUATION - This form is used by Department Directors to appeal to the Position Appeal Committee.

LATERAL TRANSFER - The movement of a regular full-time employee to a classification which has an equivalent grade level or the same title as the classification the employee currently holds.

MAXIMUM - The highest rate of pay in a particular salary range.

MIDPOINT - The salary that is halfway between the minimum and the maximum of a salary range.

MINIMUM - The lowest rate of pay in a particular salary range.

PAY GRADE - A grouping of jobs with the same or similar organizational value for compensation purposes.  In the City's system, a three (3) digit numerical code indicates the pay grade.

PROBATIONARY PERIOD - The period of time immediately following an employee's date of hire, promotion, or demotion, in which his performance is closely monitored to determine whether or not the employee will be granted regular status.  Unless specified by policy to be otherwise, probation shall be six months.

PROMOTION - A competitive process by which a regular full-time employee moves to a classification which has a higher grade level than the classification the employee currently holds.

RECLASSIFICATION - A change in classification or pay grade of a position due to a change in duties and responsibilities.

REDLINED RATE - A salary rate that exceeds the salary range maximum.

 REGULAR BASE PAY GRADE – The pay grade assigned to a job classification based on the evaluation (versus ACES or Special Pay Line grades).

SPECIAL PAY LINE - A salary range which takes the labor market into account.  Some classifications which require unique, “hard to find” skills, exist in a highly competitive labor market or are under other circumstances where the market does not supply the demand, may be placed in a Special Pay Line category at the discretion of the Director of Human Resources.  As market conditions or other factors dictate, such classifications may be reviewed and returned to their previous corresponding regular base pay grade, at the discretion of the Director of Human Resources.

UNIFORMED POSITIONS - Ranking positions in the Fire and Police Departments.

UPGRADE - Progression from a lower pay grade to a higher pay grade due to internal or external equity considerations.