Section 100.       WAGE AND SALARY ADMINISTRATION

110.  Exempt/Non-Exempt Employee Status

120.  Salary Program Administration

Section 110

EXEMPT/NON-EXEMPT EMPLOYEE STATUS

I. PURPOSE

To define exempt and non-exempt employee status and to provide guidelines for determining this status according to law.

II. SCOPE

This policy applies to all City employees.

III. POLICY

All positions in the City will be classified as either exempt or non-exempt in compliance with law and for payroll administration purposes.

IV. DEFINITIONS

Definitions of exempt and non-exempt status are based on provisions of the Fair Labor Standards Act (FLSA) and state law. These definitions are summarized as follows:

Exempt. Exempt employees primarily include those individuals occupying bona fide executive, administrative, and professional positions under the FLSA.

Non-exempt. Non-exempt employees include hourly employees (where pay is directly related to the number of hours worked) and some non-exempt salaried workers (clerical, supervisory, and paraprofessional job categories). See OVERTIME: NON-EXEMPT EMPLOYEES #220.

V. PROCEDURE

A. In cases where the exempt/non-exempt status of an employee is in doubt, the City Manager will review position duties and responsibilities against FLSA exemption tests. New employees will be classified at time of hire.

B. The City Manager will make the final decision in all cases.


Policy 120

SALARY PROGRAM ADMINISTRATION

I. PURPOSE

To maintain a program of internally equitable and externally competitive salaries recognizing the importance and value of each individual and maintaining a system of fair pay for equal work in support of organizational goals.

II. SCOPE

This policy applies to all classified positions.

III. POLICY

The City strives to maintain a compensation system which is internally equitable and externally competitive with industry in our community, other competing markets, and similarly sized and similarly situated cities. Determination of salary policy is the responsibility of the City Manager to submit to the City Council for approval as a part of the annual budget. Administration is handled by individual Department Heads.

IV. SALARY PROGRAM ELEMENTS

A. Official Job Titles All positions shall be designated by official job titles. These official job titles shall be used on all official records, payroll and communications.

B. Salary Pay Grades Pay grades were established by a salary survey conducted by Ray Associates of Austin in 1999, and subsequent reviews/additions by the same firm. Each position is situated within the scale based on its cumulative points relative to other positions.

C. Salary Ranges Each salary pay grade has been assigned a salary range based on a range around market averages for similar positions. Within this framework, an employee's salary will be determined by starting qualifications. Movement through the range is based on demonstrated performance. Employees will receive a salary that is within the range limits of the applicable grade.

D. Pay for Performance Salary increases for incumbent employees will be based on performance in accordance with the City's Performance Appraisal system. A merit pay increase may be granted for consistently good performance in the same position which meets or exceeds expectations as defined in the City's Performance Appraisal system.

V. MAINTENANCE OF SALARY STRUCTURE

Salary ranges of the City pay structure and the pay for performance matrix will be reviewed by the City Manager each year to determine their adequacy for business conditions. Annual adjustments may be made to the salary range structure, subject to City Council approval.
 

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