COMPENSATION POLICY (HR2470) 08-21-2019.PDF

MARICOPA COUNTY INTERNAL POLICY
Policy Number: HR2470
Policy Title:
COMPENSATION POLICY Current Adoption Date: 08-21-2019
Current Implementation Date: 08-21-2019
Board Agenda Number: C-31-16-002-6-01
Approved by:
BOARD OF SUPERVISORS
Original Adoption Date: 06-09-1997
I. PURPOSE
To outline the County’s compensation philosophy, strategy, and tools as well as compliance with wage
laws.
II. AUTHORITY
This Policy has been adopted pursuant to A.R.S. § 11-251(38) which gives the Board of Supervisors
the authority to establish salary and wage plans that incorporate classifications and conditions
prescribed by the Federal Fair Labor Standards Act. All pay rates recommended by the County
Manager or an Elected Official are subject to Board approval. Any form of compensation not authorized
by this plan is subject to Board approval.
III. APPLICATION
This Policy applies to all Maricopa County elected offices and appointed departments as well as the
Flood Control District of Maricopa County and the Maricopa County Library District (Special Districts),
except for elected officials and their appointed chief deputies. The Board of Supervisors is authorized
to jointly adopt policies applying to the Special Districts under the Intergovernmental Agreement, C-
06-18-393-6-00, approved on April 11, 2018.
IV. DEFINITIONS
A. Applicable Qualifications: Qualifications that are quantifiable, relevant to a position, and
impact the employee’s job performance.
B. Appointing Authority: An elected official, the single administrative or executive head of a
department, or the designated representative authorized to act in this capacity.
C. Base Pay Rate: A rate of pay, exclusive of any differentials, incentives, or other pay.
D. Board: The Maricopa County Board of Supervisors.
E. Classified Employee: Employees covered by the Employee or Law Enforcement Officers’ Merit
Systems.
F. Contract Employee: At-will employees hired to work for a defined purpose or project and
defined time period (typically more than one (1) year but less than three (3) years).
G. Executive Compensation Package: A package of compensation, benefits, and leave options
established for executive positions equivalent to a department deputy director or above.
H. Executives: Elected officials’ chief deputies and department deputy directors and above.
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Policy Title: Policy Number: HR2470
COMPENSATION POLICY
Current Adoption Date: 08-21-2019
I. Fair Labor Standards Act (FLSA): The federal law that establishes minimum wage, Overtime
pay eligibility, recordkeeping, and child labor standards.
J. FLSA Exempt Employee: Employees who are exempt from Overtime pay under the FLSA.
K. FLSA Non-exempt Employee: Employees who are entitled to Overtime pay.
L. Hourly Rate: Determined by dividing the employee’s annual salary by 2080 (40 hours x 52 weeks).
M. Hours Worked: All time during which employees are permitted to work that does not include paid
or unpaid leave (e.g., vacation time, sick leave, floating personal day, holiday pay, leave without
pay, etc.).
N. HR Director: The Maricopa County Human Resources Director, or the designated
representative authorized to act in this capacity.
O. Independent Contractor: An individual who performs services under terms specified in a contract.
P. Management/Professional Assignment (MPA): A non-permanent assignment into a higher level
management or professional role that would otherwise typically be assigned to a budgeted position.
Q. Management/Professional Assignment Pay: A temporary amount of additional pay that an
employee may receive while on a Management/Professional Assignment.
R. Market Range Title (MRT): A group of similar positions in terms of nature, scope, level or
responsibilities. MRTs and their associated salary ranges are established by Human Resources
and approved by the Board.
S. Multilingual Pay: Additional pay for providing sign language or Non-English language services.
T. Overtime: Hours Worked over the maximum number of hours permitted by the FLSA in a FLSA
Non-exempt Employee's established workweek, excluding hours of paid and unpaid leave (for
most FLSA Non-exempt Employees, the maximum is 40 hours).
U. Premium Pay: Additional pay for working certain types of hours or under certain types of
conditions (e.g., Special Work Assignment pay, MPA pay, differential pay, Multilingual Pay,
standby pay, call back pay, etc.).
V. Promotion: The movement of an employee to a different position at a higher Base Pay Rate
through a recruitment process.
W. Reduction in Force (RIF): The involuntary separation of employees from County employment
as the result of an organizational or departmental decision to eliminate positions.
X. Reclassification: The assignment of a position to another Market Range Title.
Y. Regular Rate of Pay: The Base Pay Rate plus all pay for employment (i.e., pay differentials and
other pay that is paid for Hours Worked) except certain payments excluded by the FLSA.
Z. Release of Claims: A binding commitment in exchange for payments and consideration
described in a Severance Agreement whereby the employee, as a free and voluntary act,
agrees that the payments and consideration made are in full satisfaction of any and all known
or unknown claims against the County.
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Policy Title: Policy Number: HR2470
COMPENSATION POLICY
Current Adoption Date: 08-21-2019
AA. Salary Advancement: An increase in an employee’s Base Pay Rate not obtained through a
recruitment process or appointment to an unclassified position.
BB. Severance Agreement: An agreement between an employee and Maricopa County in which
the County provides Severance Pay and/or a tangible benefit to the employee in exchange for
a Release of Claims.
CC. Severance Pay: A discretionary payment in exchange for a Release of Claims from an
employee.
DD. Special Work Assignment (SWA) Pay: A temporary amount of additional pay that an
employee receives while on a special work assignment. SWA Pay is only paid on hours actually
worked.
EE. Temporary Employee: At-will employees hired to work less than one (1) year or sporadically
on an as-needed basis (e.g., election workers).
FF. Unclassified Employee: At-will employees not covered by the Employee or Law Enforcement
Officers’ Merit Systems.
V. COMPENSATION PHILOSOPHY
Maricopa County is committed to attracting, retaining, and motivating a talented, engaged, and
diverse workforce within available financial resources so that County citizens can enjoy living in a
safe and healthy environment. The County strives to provide an internally equitable and externally
competitive total rewards package which includes compensation, benefits and paid leave, work-life
balance, performance management and recognition, and development and career opportunities.
VI. COMPENSATION STRATEGY
Maricopa County’s compensation strategy is performance driven and market based. After initial
placement, movement through a salary range is primarily based on performance and, when
applicable, market adjustments. Performance-based retention increases may be awarded when
financial conditions allow and market adjustments are provided when warranted by job market
conditions.
VII. REQUIREMENTS FOR CERTAIN EMPLOYEES
A. Contract Employees (does not include Independent Contractors): May be offered benefits
as long as they meet the same eligibility requirements of regular employees.
B. Elected Officials: Annual salaries are established by state statute.
C. Temporary Employees: Temporary Employees who exceed the work hours below are required
to participate in the Arizona State Retirement System.
1. Work 20 or more hours per week for up to 19 weeks and less than 20 hours per week for
the remainder of the fiscal year.
2. Work 20 or more hours per week for less than 20 weeks in a fiscal year.
3. Work less than 20 hours per week for the entire fiscal year.
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Policy Title: Policy Number: HR2470
COMPENSATION POLICY
Current Adoption Date: 08-21-2019
VIII. FAIR LABOR STANDARDS ACT (FLSA) COMPLIANCE
All Maricopa County employees are covered by the FLSA except for elected officials and their
personal staff, and policy making appointees.
A. Overtime: See HR2471 Hours Worked and Overtime.
B. Minimum Wage: The FLSA and Arizona’s Minimum Wage Act (A.R.S.§ 23-364 (A)) establish
the minimum rate of pay an employee must receive. If the federal minimum wage differs from
Arizona’s minimum wage, the higher of the two wages is used.
C. Youth Employment: The FLSA and Arizona’s youth employment laws (A.R.S.§ 23-230 et seq.)
establish the hours youth can work and prohibit certain occupations in which they can be
employed. With limited exemptions, these rules apply to minors under the age of 18. Prior to
hiring any minors under the age of 18, departments must obtain approval from Human
Resources who will ensure that the hire is consistent with federal and state youth employment
laws. Departments must monitor the work of minors until they reach the age of 18 to ensure
compliance with federal and state youth employment laws.
IX. EMPLOYEE BASE PAY
A. Factors Used to Determine Employees’ Salaries
1. Applicable and Quantitative Qualifications:
a) Knowledge, Skills, and Abilities: What employees know and are able to do.
b) Productivity/Proficiency: Goods or services employees produce in a certain amount of
time.
c) Applicable Experience: Current and prior experience at the same level of
responsibility, scope, and relevancy to the position in question. This does not include
lower level experience that helped the applicant qualify for the position.
d) Certification: Must be job related and beneficial to perform the job.
e) Education: Must be job related and beneficial to perform the job.
f) Performance: Demonstrated exceptional proficiency in accomplishing assigned tasks.
2. Internal Equity: Employees’ salaries with similar applicable and quantitative qualifications
need to be considered to ensure pay equity.
3. Midpoint: Offers above midpoint are typically reserved for applicants with significant Applicable
Qualifications that allow them to be experts in their field.
B. Job Offers
1. Below First Quartile: Departments determine offers up to the first quartile and should not
make offers higher than current employees unless the applicant has higher level Applicable
Qualifications. Promotions within the first quartile that are above 5% require approval from
Human Resources, unless the Promotion rate is equal to the minimum of the salary range.
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Policy Title: Policy Number: HR2470
COMPENSATION POLICY
Current Adoption Date: 08-21-2019
2. Above First Quartile: All job offers above the first quartile of the salary range must be
approved by Human Resources before they can be extended. An offer above the first
quartile of the salary range that is extended without Human Resources’ approval can be
rescinded or reduced to a lower amount.
C. Promotions: When an employee’s current salary is at or above his/her placement within the
promotional position’s salary range, the new salary will be determined as a percentage increase
based on the employee’s new responsibilities while considering internal equity.
D. Demotion: Human Resources must review employees’ salaries who are demoted into lower salary
ranges.
E. Lateral Transfers: Employees transferring to another department within the same or comparable
salary range will typically not receive an increase in salary.
F. Salary Compression: Employees with varied levels of Applicable Qualifications can be paid
similarly.
G. Market Adjustments: When determining salaries during market adjustments, the larger increases
will be focused on major retention or recruitment issues within the salary range. Typically,
movement will be more aggressive at the lower end of the range as that is where the majority of
the retention and recruitment issues exist. Movement above the midpoint will be less aggressive
and focus more on top performers.
H. Minimum of Salary Range: Employees may be paid below the minimum of a salary range.
I. Executive Salaries: Salary offers for Executives are reviewed by the Board or the County
Manager depending on the reporting relationship and state statutes.
J. The Board must approve any rate that exceeds the maximum of the salary range.
X. SALARY ADVANCEMENTS
A. A Salary Advancement is the only mechanism to increase an employee’s Base Pay Rate other
than through a recruitment process or appointment to a new position.
B. Salary Advancements may be considered for:
1. Board or department funded market adjustments when recruitment or retention issues exist
because of pay disparity with the market.
2. Board approved performance-based pay plans.
3. Additional Board approved increases.
C. Eligibility: Employees must have a rating equivalent to at least a “meets” or “successful” on their
most recent performance evaluation completed within the last 12 months. Until employees who
are not meeting expectations improve their performance to at least a rating equivalent to “meets”
or “successful”, they:
1. Are not eligible for increases.
2. May be paid below the minimum of their assigned range.
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Policy Title: Policy Number: HR2470
COMPENSATION POLICY
Current Adoption Date: 08-21-2019
3. Will receive any warranted Salary Advancements prospectively after their performance
improves to at least a “meets” or equivalent.
D. Effective Date: The first day of the next pay period following receipt of the request by Human
Resources.
E. Salary Range Maximum: Salary Advancements cannot exceed the position’s salary range
maximum.
F. Funding: Departments must fund Salary Advancements within their existing budget and
demonstrate they do not create future unfunded obligations.
G. Approval: Human Resources will review Salary Advancements for accuracy and compliance
with policy. Salary Advancements may not be approved. As such, it is imperative not to
communicate with employees regarding Salary Advancements until all approvals have been
received.
H. Reductions: In the event of an error or miscalculation of an approved Salary Advancement, an
employee’s Base Pay Rate may be reduced to the correct Base Pay Rate so long as the correction
is made within six (6) months of the date the error occurred.
XI. SPECIAL WORK ASSIGNMENTS
A. SWAs may be given: (1) to perform the duties of a vacant or temporarily absent position; or (2) to
perform a major project or higher level responsibilities for a defined time.
B. SWAs for vacant or temporarily absent positions:
1. Position must be assigned to a higher level classification than the employee’s current
position.
2. SWA Pay: Up to the amount the employee would receive for a permanent assignment into
the position (cannot exceed the maximum of the higher level position’s salary range). The
higher level responsibilities need to be considered in relation to the employee’s current job.
It may not be appropriate to pay the entire amount if the employee is not taking on the
majority of the duties.
If two (2) or more employees receive a SWA to cover for one position, the SWA Pay will be
divided by the number of employees performing the duties based on the division of duties.
C. SWAs for major projects or higher level responsibilities for a defined time period:
1. Additional duties or projects must be so significant that they would justify the assignment of
the employee’s position to a higher classification.
2. SWA Pay: Ordinarily, may not exceed 5% above the employee’s current base pay.
D. Duration: SWAs must be for a minimum of 30 consecutive calendar days. Ordinarily, SWAs for
temporary assignments to vacant or temporarily absent positions should not extend beyond six
(6) months while SWAs for major projects should not extend beyond the project completion.
SWAs that extend beyond the approved estimated end date require a renewal request approval
or the SWA will end.
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Policy Title: Policy Number: HR2470
COMPENSATION POLICY
Current Adoption Date: 08-21-2019
E. Selection of Employees: Appointing Authorities must follow a fair and equitable process to select
employees for these assignments. Employees must meet the minimum qualifications for the
assignment.
F. Effective Date: The date the Appointing Authority determines that the employee officially began
the assignment. Whenever possible, SWAs should begin at the beginning of a pay period.
G. Funding: Departments must fund SWAs within their existing budget and demonstrate it does
not create a future unfunded obligation.
H. Returning from SWAs: Departments must end SWAs once they are no longer necessary. A
reduction in, or rescission of, a SWA does not constitute a demotion and is not subject to appeal
to the Merit Commission. Whenever possible, SWAs should end at the beginning of a pay
period.
I. SWAs vs MPAs: SWAs differ from Management/Professional Assignments (MPAs) in that
SWAs are for shorter, more temporary time frames and are only paid on hours actually worked.
MPAs can be for an indefinite period of time, are for roles that would otherwise typically be
assigned to regular budgeted positions, and are paid during non-work paid hours such as
vacation time and sick leave.
J. Human Resources will review SWAs for accuracy and compliance with this policy. SWAs may
not be approved or may be approved at an amount lower than the amount requested. As such,
it is imperative not to communicate with employees regarding SWAs until they are approved.
XII. MANAGEMENT/PROFESSIONAL ASSIGNMENTS
A. In lieu of promoting employees into higher level budgeted positions, Appointing Authorities may
assign them into non-permanent, higher level management or professional roles where MPA Pay
may be authorized.
B. The Board must approve MPA Pay amounts.
C. Number of MPAs: Determining the number of assignments for a department will follow a process
similar to that used by departments to request a permanent position. A department’s reason for
increasing the number of assignments will be reviewed by Human Resources and the Budget
Office.
D. Selection of Employees: Appointing Authorities must follow a fair and equitable process to select
employees for these assignments. Employees must meet the minimum qualifications for the
assignment.
E. Effective Date: The date the Appointing Authority determines that the employee officially began
the assignment. Whenever possible, MPAs should begin at the beginning of a pay period.
F. Funding: Departments must fund MPA Pay within their existing budget and demonstrate it does
not create a future unfunded obligation.
G. Returning from MPAs: Once a MPA is no longer necessary, the department should end the
MPA immediately. A reduction in, or rescission of, MPA Pay does not constitute a demotion and
is not subject to appeal to the Merit Commission. Whenever possible, MPAs should end at the
beginning of a pay period.
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Policy Title: Policy Number: HR2470
COMPENSATION POLICY
Current Adoption Date: 08-21-2019
H. MPAs vs SWAs: MPAs differ from special work assignments (SWAs) in that MPAs can be for
an indefinite period of time, are for roles that would otherwise typically be assigned to regular
budgeted positions, and are paid during non-work paid hours such as vacation time and sick
leave. SWAs are for shorter, more temporary time frames and are only paid on hours actually
worked.
XIII. MULTILINGUAL PAY
A. The use of Multilingual Pay is not required. An Appointing Authority may authorize Multilingual
Pay for FLSA Exempt or Non-exempt Employees when a business need is identified for the use
of sign language or the ability to speak, read, or write a language other than English.
B. If Multilingual Pay is authorized by an Appointing Authority, it must be applied consistently to all
similarly-situated employees. Multilingual Pay is subject to rescission at any time, and rescission
of Multilingual Pay does not constitute a demotion and is not subject to appeal to the Merit
Commission.
C. Rates and Funding: The Board approves Multilingual Pay rates. Departments must fund
Multilingual Pay within their existing budgets and demonstrate it does not create a future
unfunded obligation.
D. Levels of Pay: Multilingual Pay may be authorized at one of two levels: Associate or Journey.
1. Associate Level - Employees must use multilingual capabilities an average of at least 5%
of their work time and be able to translate and communicate accurately.
2. Journey Level - Employees must use multilingual capabilities an average of at least 25%
of their work time and must pass a multilingual test with a score of at least 70%. An employee
who fails the test may not retake it for 90 days. An employee must also retake the test if:
a) The employee has stopped receiving Multilingual Pay for more than a year.
b) The employee leaves the County for more than a year and subsequently returns.
c) The multilingual test is modified.
E. Audit: Prior to authorizing Multilingual Pay for an employee, departments must conduct and
maintain a 10-day, uninterrupted work period audit that demonstrated the requisite level use of
multilingual capabilities. These audits must be performed and submitted to Human Resources:
1. When initially authorizing Multilingual Pay for an employee.
2. Periodically to ensure employees still qualify for Multilingual Pay.
3. When an employee receiving Multilingual Pay is appointed, promoted, or demoted to
another position.
4. When an employee receiving Multilingual Pay leaves County employment and then returns.
F. Effective Dates: The effective date for Associate Level Multilingual Pay is the first day of the
next pay period following a valid 10-day audit. The effective date for the Journey Level Multilingual
Pay is the first day of the next pay period after the employee passes the test.
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Policy Title: Policy Number: HR2470
COMPENSATION POLICY
Current Adoption Date: 08-21-2019
G. Time Worked Only: Multilingual Pay shall only apply to actual time worked and is not paid on
non-productive time (e.g., sick leave or vacation time).
H. Ending Multilingual Pay: Departments must end Multilingual Pay when multilingual skills are
no longer necessary.
I. Additional Requirements: An Appointing Authority may impose additional limitations or
business-related requirements on the use of Multilingual Pay as long as those requirements do
not conflict with this policy and are applied fairly and consistently in comparable situations.
XIV. RECLASSIFICATIONS
A. Reclassification requests may be initiated by Appointing Authorities or the Human Resources
Department.
B. A position that belongs in a different MRT will be assigned to the appropriate one through (1) a
Reclassification or (2) the creation of a new position.
C. Reclassifications:
1. A Reclassification may be warranted when:
a) The County’s MRTs are modified and the position belongs in another MRT.
b) Significant changes in a position’s duties occur over time.
2. Requests resulting from the following will generally not be considered for a Reclassification:
a) Changes in duties that are within the same scope of responsibility (e.g., a larger
workload).
b) Modifications to duties that are temporary in nature.
c) Assignment of significantly different duties that are not the result of changes over time
(e.g., the immediate addition of duties that should be handled through a selection
process).
d) Assignment of duties for which the employee is receiving a special work assignment.
e) Movement from a Fair Labor Standards Act non-exempt position to an exempt position.
f) Movement from a non-supervisory position to a supervisory position.
g) Movement to MRTs where the incumbents do not meet the minimum qualifications.
3. Reclassifications should not be used as a mechanism to increase employees’ pay; rather, they
should be used to ensure positions are assigned to the appropriate MRTs based on duties.
Reclassifications are not demotions or Promotions nor are they used as a disciplinary action
or incentive. Reclassifications do not warrant a new probationary period.
4. Effective Date: The first day of the next pay period following approval.
D. Creation of New Positions:
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Policy Title: Policy Number: HR2470
COMPENSATION POLICY
Current Adoption Date: 08-21-2019
1. An immediate addition of significantly different duties to an existing position may warrant the
creation of a new position, resulting in a reassignment of duties through a selection process.
2. A new position will not be considered when staffing levels do not support the creation of the
position or the department cannot fund the position on an annual basis within its existing
budget.
E. Human Resources will review each request for accuracy and compliance with County MRTs.
XV. PREMIUM PAY RATES
Human Resources monitors Premium Pay rates and recommends changes to the Board when
adjustments are needed. For FLSA Non-exempt Employees, Premium Pay is included in the
calculation of Overtime. See Maricopa County Premium Pay Rates and Standby and Callback Pay
HR2471 Hours Worked and Overtime.
XVI. ADDITIONAL COMPENSATION AND TOTAL REWARDS
A. Executive Compensation Packages: The Board may establish Executive Compensation
Packages (ECPs) for senior management positions at a level equivalent to department deputy
director or above. See HR2415 Employee Leave for additional leave granted under ECPs.
B. Recognition Rewards: Appointing Authorities may provide employees with plaques, certificates
of achievement, pins, and similar nominally priced items as recognition rewards.
C. Departments may pay for licensures, certifications, memberships, classes, conferences, or other
trainings.
XVII. SEVERANCE PAY
Under limited circumstances, Appointing Authorities may request approval of Severance Pay for
employees separating from employment where it is appropriate to obtain a Release of Claims. An
employee may not receive Severance Pay without signing a Severance Agreement.
A. Severance Agreement Justification – Should Contain:
1. Business reason for offering a Severance Agreement in exchange for a Release of Claims.
2. Total amount of Severance Pay or tangible benefit.
3. Verification from the Budget Office of available funding to cover the Severance Pay or tangible
benefit.
4. Basis upon which the amount of Severance Pay or tangible benefit was calculated.
B. Approval Process
1. Appointing Authorities must work with Legal Counsel and the HR Director throughout every
step of the approval process.
2. Appointed departments’ Appointing Authorities must notify their Deputy/Assistant County
Manager of proposed Severance Agreements as soon as the decision to request such an
action has been made.
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Policy Number: HR2470
Policy Title:
COMPENSATION POLICY
Current Adoption Date: 08-21-2019
3. After legal review, Elected Offices’ Appointing Authorities and Appointed Department
Deputy/Assistant County Managers should review the Severance Agreements and requests
with the County Manager.
4. Final approval of Severance Pay is contingent upon Board approval.
XVIII. SEPARATIONS
A. Employees who retire from Maricopa County under an approved Arizona State retirement plan,
and who at the time of retirement have 1,000 hours or more of sick leave, are eligible to receive a
$10,000 contribution to fund an investment account for the payment of post-employment qualified
medical expenses.
B. Wages and vacation time hours may be paid to the heir, beneficiary or estate of a deceased
employee upon the receipt and approval of appropriate authorizing documentation.
XIX. The County Manager or designee may approve administrative exceptions to this Policy that are
consistent with the intent of the Policy.
Revision History
Version Revision Description of Revision
Date
1 06-09-1997 Initial version (C-31-97-013-8-01)
2 11-30-1998 Established 228 pay grades (C-31-99-027-6-00)
3 12-16-1998 Made technical corrections (C-31-99-028-6-00)
4 02-03-1999 Modified premium pay section and promotion timing (C-31-99-034-6-00)
5 07-26-2000 Exempted Chief Deputies of Elected Officials (C-31-01-003-6-00)
Defined “Appointed Employee” and established Compensation Review Committee
6 08-09-2000
for salary advancements over 10% in a 12 month period (C-31-01-007-6-00)
Changed Post Employment Health Plan from $3,000 to $10,000 (C-35-07-011-6-
7 12-20-2006
00)
8 12-15-2010 Major revision to entire policy (C-49-11-036-6-00)
9 09-28-2015 Revised ECP language and added Leave Adjustment Incentive (C-31-16-002-6-00)
Renumber to HR2470. Remove outdated language, update definitions, rearrange
policy language for consistency with the current policy format, added compensation
philosophy and strategy, eliminated the return-to-work retiree part-time benefit
10 08-21-2019 exception, and combine language from other HR policies HR2473 Employee Pay,
HR2474 Salary Advancement, HR2475 Special Work Assignment, HR2476
Management/Professional Assignments, HR2477 Multilingual Pay, HR2478
Reclassification, and HR2423 Severance Pay. (C-31-16-002-6-01)
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