COMPENSATION POLICY (HR2470) REDLINED 08-21-2019.PDF
Extracted text (via pymupdf_layout)
59441 characters
MARICOPA COUNTY INTERNAL POLICY Policy Number: HR2470 Policy Title: 08-21-2019xx- Current Adoption Date: COMPENSATION POLICY xx-2019 08-21-2019xx- Current Implementation Date: xx-2019 Board Agenda Number: C-31-16-002-6-01 Approved by: BOARD OF SUPERVISORS Original Adoption Date: 06-09-1997 MARICOPA COUNTY INTERNAL POLICY Policy Number: B7000 Policy Title: 10-21- Current Adoption Date: 2015 COMPENSATION POLICY Current Implementation 10-21- Date: 2015 Board Agenda Number: Approved by: BOARD OF SUPERVISORS Original Adoption Date: 06-09- 1997 XXIII.I. PURPOSE The purpose of the Maricopa County Employee Compensation Plan is to ensure that County employees are paid consistently, equitably, and in a manner that is competitive with the marketplace, so they are motivated to provide excellent service to the residents of Maricopa County.To outline the County’s compensation philosophy, strategy, and tools as well as compliance with wage laws. It is the policy of Maricopa County not to unlawfully discriminate against any person for any reason. Maricopa County does not use age, disability, race, color, sex, national origin, or other non-work related criteria as a basis for any decisions regarding an employee’s pay. Employees, supervisors, and/or managers who unlawfully discriminate against a person for any reason are subject to disciplinary action up to and including termination. This policy must be read in conjunction with other County policies. XXIV.II. AUTHORITY This pPolicy 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 (merit status) 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 by the Board. Any form of compensation not authorized by this plan is subject to Board review by Employee Compensation and then approval by the Board. XXV.III. APPLICATION Page 1 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 This pPolicy 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 that follow Maricopa County’s compensation plan, policies, and procedures. This includes all full or part-time employees that are probationary, contract, classified, unclassified, or temporary. This policy does not apply to individual elected officials and their appointed chief deputiesy. 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. Volunteers and independent contractors are not employees and therefore are not subject to the provisions of this plan. XXVI.IV. DEFINITIONS A. Applicable Qualifications: Qualifications that are quantifiable, relevant to a position, and impact the employee’s job performance.Alternative Work Schedule: Any schedule that differs from the traditional schedule of 8 hours per day, 5 days per week. (See HR2427 Alternative Work Schedules Policy and B7006 Hours Worked and Overtime Policy) B. Appointed Employee: The statutory chief deputies of the Assessor, Clerk of Superior Court, County Attorney, Recorder, Sheriff, Superintendent of Schools, and Treasurer, and any other employee so designated by the Board. Appointed Employees are unclassified. A. C.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. D. Appointment: Assignment of an employee into an unclassified position. C. Base Pay Rate: An employee’s established rate of pay, exclusive of any differentials, incentives, or other premium pay. E.D. Board: The Maricopa County Board of Supervisors. XXVI. Board: The Maricopa County Board of Supervisors, the Maricopa County Flood Control District Board of Directors, the Maricopa County Library District Board of Directors, and the Maricopa County Stadium District Board of Directors. G. Budgeted Rate of Pay: The amount allocated to a position in the budget. An employee's base pay rate cannot exceed the budgeted rate of pay for the employee's position. H. Career Path Plan: A formal plan adopted by an Appointing Authority and approved by Employee Compensation and the Board that establishes a career enhancement and advancement strategy for specifically identified Market Range Titles. I.E. Classified Employee: Positions and/or eEmployees covered by the Employee or Law Enforcement Officers’ Merit Systemsone of the established sets of Merit System Rules. Excluded are those positions and/or employees identified as temporary, contract, or unclassified. J.F. Contract Employee: An unclassified, aAt -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) whose terms and conditions of employment are subject to a written agreement. Page 2 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 XXVI. Demotion: A change in the assignment of a classified employee to a lower base pay rate. L. Department: A governmental unit within Maricopa County that has an approved annual budget. This also includes special districts where the Board of Supervisor acts as the Board of Directors. M.G. Executive Compensation Package: A package of compensation, benefits, and leave options established for executivetop management positions that are equivalent to a department deputy director or above. N.H. Executives Staff: The County Manager and his/her direct reports, statutory chief deputies of elected officials, department directors, and executive staff of the BoardElected officials’ chief deputies and department deputy directors and above. O.I. Fair Labor Standards Act (FLSA): TheA federal law act that establishes minimum wage, Overtime pay eligibility, recordkeeping, and child labor standards requirements for tracking of employees’ hours worked for purposes of calculating overtime and other pay for full and part-time workers. (See B7006 Hours Worked and Overtime Policy) P.J. FLSA Exempt Employee: An eEmployees who are exempt from Overtime pay under meets the FLSA.the definition of an executive, administrative, professional or computer professional employee as defined in the FLSA. Employees who are designated as exempt are not eligible for overtime pay. (NOTE: This exemption has no effect on an employee's classified or unclassified status in relation to merit system rules.) Q.K. FLSA Non-exempt Employee: An eEmployees who isare covered by the provisions of the FLSA and entitled must be compensated for to oOvertime hours workedpay. R. Hiring Range: Ordinarily the minimum of the market range to the maximum of the range for internal recruitments and the minimum of the market range to the midpoint of the range for external recruitments. The use of a different hiring range must be approved by Employee Compensation prior to recruitment. Departments should use a hiring range that is within their funding capabilities and are required to comply with the County's Funded Position Policy (see B3001 Funded Positions Policy) ensuring that applicants are extended a rate that is supported by the department's budget. S.L. Hourly Rate: The hourly rate is dDetermined by dividing the employee’s annual salary by 2080 (40 hours x 52 weeks). T.M. Hours Worked: All time during which an employees areis required or permitted to work that, which does not include paid or unpaid leave time as defined in the County’s Employee Leave Plan (e.g., vacation time, sick leave, floating personal daybereavement leave, civic duty leave, witness leave, crime victim leave, military holiday payleave, administrative leave, holiday, floating personal day, and leaves without pay, etc.). Hours worked do not include personal waiting time prior to or after work hours as long as the employee is not required or permitted to work. (See B7006 Hours Worked and Overtime Policy) N. HR Director: The Maricopa County Human Resources Director, or the designated representative authorized to act in this capacity. U.O. Independent Contractor: An individual who performs services pursuant to a public bid for servicesunder terms specified in a contract. Page 3 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 V. Initial Probation: A specified period of time following the employment or reemployment of an employee into a classified position. Until an employee successfully completes probation, the employee is considered unclassified and not subject to any of the protections set forth in any of the merit rules. W. Leave Adjustment Incentive: Increased vacation and sick leave accrual rates and/or hours added to an employee’s leave bank when their position is identified as critical, difficult to fill or retain. 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. X.Q. Management/Professional Assignment Pay: A temporary amount of additional pay that an employee may receives while on a Board approved mManagement/pProfessional aAssignment. Y. Market Range: A range of pay based on an analysis of the competitive market associated with a specific Market Range Title, established by Employee Compensation, and approved by the Board. Any rate exceeding the maximum of the market range requires the express approval of the Board as an exception to this Plan. Z.R. Market Range Title (MRT): A title assigned to a group of similar positions in terms of nature, scope, level or performing similar or related duties and responsibilities. Market Range Titles and their associated market salary ranges areshall be established by Human Resources Employee Compensation and approved by the Board. AA. Market Range Title Adjustment: The assignment of a position to another Market Range Title that is at an equivalent level, lower level or higher level Market Range Title than currently assigned, which may or may not result in a base pay rate increase for the incumbent. (See B7003 Market Range Title Review and Adjustment Policy) BB. Market Study: Employee Compensation’s formal review of a market range associated with a Market Range Title. (See B7003 Market Range Title Review and Adjustment Policy) CC. Merit System Rules: The established sets of rules that provide a uniform and equitable system of personnel administration. The three merit systems are: Maricopa County Employee Merit System Rules, the Maricopa County Law Enforcement Officers Merit System Rules, and the Judicial Merit System Rules. S. Multilingual Pay: Additional pay for providing sign language or Non-English language services. DD.T. Overtime: Hours wWorked over the maximum number of hours permitted by the FLSA in a FLSA nNon-exempt eEmployee's established workweek, excluding hours of paid and unpaid leave and personal waiting time (for most FLSA nNon-exempt eEmployees, the maximum is 40 hours). (See B7006 Hours Worked and Overtime Policy) EE. Performance or Merit Increase: An adjustment to an employee’s base pay rate in recognition of meritorious performance. Increase is based on established performance criteria, and is justified through an evaluation of the employee’s performance as demonstrated through the achievement of mutually agreed upon results under the provisions of the Maricopa County performance management process. Page 4 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 FF. Placement in Range: The strategy developed by Employee Compensation and approved by the Board of Supervisors, which is used to determine an individual employee’s salary within an approved market range. (See B7009 Placement in Range Policy) GG. Position Control Number: A number used to identify a specific position. Each position has a unique position control number. HH.U. Premium Pay: An aAdditional pay for working certain types of hours or under certain types of conditionsment that must be included in the calculation of an employee’s pay (e.g., . Examples of premium pay are sSpecial wWork aAssignment pay, MPAmanagement/professional assignment pay, differential pay, mMultilingual pPay, standby pay, and call back pay, etc.). (See Policies B7001 Special Work Assignments Policy, B7004 Pay Differentials Policy, and B7005 Multilingual Pay Policy) II.V. Promotion: The movement of an employee to a classified position with a different position control number at a higher bBase pPay rRate through a recruitment process that complies with the applicable merit rules. 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. JJ. Regular Employee: As defined in the Maricopa County Employee Merit System Rules, an employee occupying a classified position who has successfully completed an initial probationary period. KK.Y. Regular Rate of Pay: The bBase pPay rRate plus all pay for employment (i.e., pay differentials and other pay that is paid for hHours wWorked or available to work) except certain payments excluded by the FLSA. This rate is in full compliance with the FLSA. LL. Regular Status: The status a classified employee achieves under the applicable Merit System Rules after successful completion of the initial probation period. 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. AA. Salary Advancement: An increase in an employee’s bBase pPay rRate to a higher base pay rate not obtained throughas the result of any process other than a recruitment process or appointment to an unclassified position with a different position control number. 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. MM. (See B7002 Salary Advancement Policy) NN.CC. Severance Pay: A discretionary payment to a classified or unclassified employee in exchange for a Rrelease of all cClaims from which an this employee may have against the County. Severance pay must be approved by the Board and is available in very specific and Page 5 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 limited circumstances as identified by the Board. (See HR2423 Severance pay for Release of Claims Policy) OO.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.(See B7001 Special Work Assignments Policy) PP.EE. Temporary Employee: An aAt-will employees hired to work less than one (1) year or sporadicallywho works on an as-needed basis (e.g., election workers) does not accrue or receive paid leave, and is not eligible for benefits. QQ.FF. Unclassified Employee: At-will A position and/or employees not covered by the Employee any set of Merit Systemor Law Enforcement Officers’ Merit Systems Rules. . Volunteer: A person who performs hours of service for civic, charitable, or humanitarian reasons, without promise, expectation, or receipt of compensation for services rendered. An employee may not volunteer to perform the same, similar, or related duties for Maricopa County that he/she is normally paid to perform. . Workweek: A fixed period of 7 consecutive 24 hour days (total of 168 hours) that is used to determine whether overtime has been worked by a non-exempt employee. Each workweek stands alone in determining whether overtime has been worked. For most Maricopa County employees, the workweek begins on Monday at 12:01 am and ends on Sunday at midnight. Certain alternative work schedules may require the establishment of an alternative workweek for non-exempt employees. . Working Title: An informal title given to a position by a department, and approved by Employee Compensation, to more clearly identify its individual function. For many positions, the Working Title is the same as the Market Range Title. 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 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) within available financial resources to attract, retain, and motivate a talented, engaged, and diverse workforce so that County citizens can enjoy living in a safe and healthy environment. 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. XXX.VII. REQUIREMENTS FOR CERTAIN EMPLOYEES Page 6 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 A. Contract Employees (does not include Independent Contractors): May be offered benefits as long as they meet the same eligibility requirements of regular employees. XXX. Elected Officials: The aAnnual salaries of Elected Officials are flat rates that are established by state statute.Classified Employee: Covered by one of the established sets of Merit System Rules. B. B. Contract Employee: An at-will employee whose terms and conditions of employment are subject to a written agreement. The written agreement must be in a form approved by Employee Compensation and the Director of Human Resources, and shall expressly provide that the contract employee is unclassified (i.e., not covered by the provisions of an otherwise applicable set of Merit System Rules and may be released from employment for or without cause). Each contract employee shall at the beginning of each fiscal year execute a form acknowledging their continued contract employment as herein defined. C. A contract employee may be offered benefits at the option of the Appointing Authority as long as the employee meets the same eligibility requirements of classified and unclassified employees. Contract employees/positions are subject to the provisions of the Maricopa County Employee Leave Plan and the same fully funded budgetary requirements as regular positions. D. Employee who Retires from the Arizona State Retirement System (ASRS): An employee who retires from the Arizona State Retirement System is statutorily limited to the number of hours he/she may work for the first year following his/her retirement date. If one of these employees returns to work within that time period, he/she may be offered only part-time benefits, regardless of the number of hours he/she is scheduled to work, at the option of the Appointing Authority, while the employee waits for the one year limitation on hours worked to expire. When the employee meets the ASRS limitation on hours worked, he/she shall revert to meeting the requirements of all other contract employees as stated above. E.C. Temporary Employees: Temporary Employees who exceed the work hours below are required to participate in the Arizona State Retirement System.Must meet one of the following conditions: 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.; or 0. Is not subject to Social Security coverage under Section 218 of the Social Security Act (e.g., some student employees). 0. If a temporary employee exceeds any of these work hour standards, the employee will be required to participate in the Arizona State Retirement System. 0. Temporary employees are not eligible for holiday pay; however, all hours worked by temporary employees on a Maricopa County observed legal holiday will be paid. Temporary employees may be eligible for pay increases through the salary advancement Page 7 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 process. Temporary employees are not covered by any provisions of any Merit System Rules. XXXIV. Unclassified Employee: Generally occupies an executive or policy making position at the highest level in the organization, including the County Manager, Deputy County Manager, assistant county managers, department directors, top level policy advisors, and appointed employees as defined above. Employees who are categorized as temporary or contract are also unclassified. Employee Compensation determines the appropriate classified or unclassified status. XXXV. (ELECTED OFFICIALS The annual salaries of Elected Officials are flat rates that are established by state statute. XXXVII.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, legal advisors, volunteers, independent contractors and prisoners. Those employees who are not covered by the FLSA are not subject to any provisions of the Act including minimum wage and overtime requirements. Some employees who are covered by the FLSA may still be exempt from its requirements (see definition of FLSA Exempt Employee). A. Overtime: See HR2471 Hours Worked and Overtime Policy (HR2471). A.B. Minimum Wage: The Fair Labor Standards Act (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, departments must comply with both minimum wage laws by paying at least the higher of the two wages is usedto all employees. When either the federal minimum wage or Arizona’s minimum wage increases, Employee Compensation will contact affected departments to ensure they are in compliance with the new minimum wage. Departments who feel the minimum wage does not apply to a specific situation (i.e., youth minimum wage) should consult with Employee Compensation prior to making an offer of employment. B. Overtime: (See B7006 Hours Worked and Overtime Policy) 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 Employee CompensationHuman Resources who. Employee Compensation will ensure that the hire is consistent with federal and state youth employment laws. C. Should approval of hiring a minor be granted, the dDepartments must monitor the work of a minors until they reach the age of 18 to ensure compliance with thefederal and state FLSA’s federal youth employment provisions and Arizona’s youth employment laws. . An employee may not volunteer to perform the same, similar, or related duties for Maricopa County that he/she is normally paid to perform. Departments should address any concerns they might have to Employee Compensation. Once a minor reaches 18 years of age, his/her employment is no longer subject to the federal and state youth employment provisions. Page 8 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 IX. EMPLOYEE BASE PAYPlacement in Range: A. Factors Used to Determine Employees’ Salaries 1. Applicable and Quantitative Qualifications: Examples 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. 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. Page 9 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 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. 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. Page 10 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 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. (See B7009 Placement in Range PolicySPECIAL 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. 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. Page 11 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 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. 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 Page 12 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 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. 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 Page 13 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 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: 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.)The base pay rate of a classified employee who is reassigned per the Maricopa County Employee Merit Rules shall be at the same pay rate received prior to the reassignment. (See Maricopa County Employee Merit Rule 8.03) Page 14 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 . 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 in Hours Worked and Overtime Policy (HR2471). . New Employee Entrance Salary . Upon initial employment or reemployment in a classified, unclassified, contract, or temporary position, each employee shall be assigned to a position with an established Market Range Title. The entrance salary for classified, unclassified, contract, and temporary employees must follow the County’s placement in range policy, be within the advertised hiring range, not exceed the budgeted rate of pay for the position, and cannot create inequities with current staff. Employee Compensation must approve all salaries above the minimum of the range before job offers can be extended by Appointing Authorities. (See B7009 Placement in Range Policy) . Salary When Changing Positions and/or Market Range Titles . The base pay rate for classified, unclassified, contract, and temporary employees who change positions and/or Market Range Titles must follow the County’s placement in range policy, be within the advertised hiring range, not exceed the budgeted rate of pay for the position, and cannot create inequities with current staff. Employee Compensation must approve all salaries above the minimum of the range before job offers can be extended by Appointing Authorities. (See B7009 Placement in Range Policy) . Promotions and Appointments: The salary offered through a promotional process or appointment to an unclassified position must follow the guidelines outlined above. At the discretion of the Appointing Authority, an offer may be extended below the current salary of the employee who applied for the position but cannot be less than the minimum of the market range for the position’s Market Range Title. . Lateral Appointments and Transfers: Unless otherwise approved by Employee Compensation, the pay rate of a classified, unclassified, contract, and temporary employee who is competitively or non-competitively assigned or transferred to another position within the same Market Range Title, or another Market Range Title with an equivalent market range, shall not exceed the employee’s same pay rate received prior to this action. . Reduction in Pay (Demotion): An employee’s new base pay rate as the result of a demotion will be determined by Employee Compensation based on each individual situation/circumstance considering, but not limited to, the following factors: employee’s direct experience, base pay rate prior to promotion, internal equity, scope of responsibilities of demoted job in relation to current job, budgeted rate of pay for new position, and any other criteria indentified as appropriate to the specific situation. . Unsatisfactory Promotional Probation Period: Promotional probation will only occur following an announced recruitment for a classified position. An employee who fails to satisfactorily complete a promotional probationary period and who is returned to his/her previous position shall receive the same base pay rate received prior to the promotion plus any market or general rate increases Page 15 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 which occurred subsequent to the promotion that would have been applicable to the employee. If the employee is demoted to another position, his/her base pay rate shall be reduced to an amount within the established market range of that position, approved by Employee Compensation, and at or below the budgeted rate of pay of the position the employee will occupy. . Involuntary Demotion: The base pay rate of an employee who has been demoted following formal disciplinary action may be reduced. The new base pay rate must be within the approved market range, approved by Employee Compensation, and at or below the budgeted rate of pay for the position. . Voluntary Demotion: Any pay reduction as a result of a voluntary demotion must be agreed to in writing between the Appointing Authority and the employee. The base pay rate must be within the approved market range, approved by Employee Compensation, and at or below the budgeted rate of pay for the position. If the voluntary demotion is the result of an announced recruitment process, the salary offered must follow the County’s placement in range policy, be within the advertised hiring range, not exceed the budgeted rate of pay for the position, and cannot create inequities with current staff. Employee Compensation must approve all salaries above the minimum of the range before job offers can be extended by Appointing Authorities. . Market Study Review and Adjustment: (See B7003 Market Range Title Review and Adjustment Policy) . Pay for Reassignments: The base pay rate of a classified employee who is reassigned per the Maricopa County Employee Merit Rules shall be at the same pay rate received prior to the reassignment. (See Maricopa County Employee Merit Rule 8.03) XVI. ADDITIONAL COMPENSATION AND TOTAL REWARDS A. Executive Compensation Packages: The Board may establish Executive Compensation Packages (ECPs) for seniortop management positions at a level equivalent to department deputy director or above. See HR2415 the Employee Leave Policy (HR2415) 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. Page 16 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 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. Appointing Authorities should consult with the HR Director and submit Severance Agreements and justification for such agreements to Legal Counsel for review. 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. LII. EXECUTIVE COMPENSATION PACKAGES The Board may establish Executive Compensation Packages (ECPs) for top management positions at a level equivalent to department deputy director or above. The County Manager or designee may approve ECPs that adjusts classified, unclassified, and contract employees’ leave bank(s) and/or classified and unclassified employees’ accrual rates as part of a total rewards package for top management positions that are equivalent to department deputy director or above. ECPs granting additional paid leave shall not exceed 80 hours of vacation time, 80 hours of sick leave, and/or a leave accrual rate of 6.90 hours per pay period of vacation time and 2.3 hours of sick leave per pay period for classified employees; 4.6 hours of sick leave per pay period for unclassified employees. Unclassified and classified recipients of additional vacation leave and/or accrual rates via an ECP will only be paid out for unused vacation time after completing at least twelve (12) months of continuous employment at the County. Contract employees are not eligible for any vacation payout upon termination of the contract. LEAVE ADJUSTMENT INCENTIVES The County Manager or designee may approve adjustments to classified, unclassified, and contract employees’ leave banks and/or classified and unclassified employees’ accrual rates as part of a total rewards package when necessary to retain or fill critical and difficult to fill positions. Departments must show how the position is critical and difficult to fill. Additional paid leave shall not exceed 80 hours of vacation time, 80 hours of sick leave, and/or a leave accrual rate of 6.90 hours per pay period of vacation time and 2.3 hours of sick leave per pay period for classified employees; 4.6 hours of sick leave per pay period for unclassified employees. Page 17 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 Unclassified and classified recipients of additional vacation leave and/or accrual rates via a Leave Adjustment Incentive will only be paid out for unused vacation time after completing at least twelve (12) months of continuous employment at the County. Contract employees are not eligible for any vacation payout upon termination of the contract. PERMANENT SALARY ADJUSTMENTS Salary increases must be budgeted in the current fiscal year, shall be subject to the department’s ability to demonstrate the availability of sufficient funds for the next fiscal year’s budget, and be consistent with Maricopa County’s long-range financial plans. The salary adjustment may not exceed either the maximum of the established market range or the budgeted rate of pay for the specific position and cannot create inequities with current staff. Salary Advancement: A salary advancement is the only mechanism to increase an employee’s base pay rate other than through a recruitment process or appointment to an unclassified position with a different position control number. All salary advancements must be analyzed and approved by Employee Compensation. (See B7002 Salary Advancement Policy) Pay Reduction (Non-Merit Systems Employee): The base pay rate of a temporary, contract, or other unclassified employee may, subject to Board approval, be reduced. Career Path: An Appointing Authority, with the approval of Employee Compensation and the Board, may adopt a formal plan that establishes a career enhancement and advancement strategy for specifically identified functional areas and/or Market Range Titles. Each plan shall establish specific criteria for salary advancement and movement along and within the career path, and may provide separate, clearly defined paths for professional growth and for management functions, and may utilize peer or client/customer review committees. All salary adjustments made in accordance with a career path must follow the County’s salary advancement policy. A career path may also include a provision for a separate management career path. A management career path for certain identified professional work groups may utilize management/professional assignments and management/professional assignment pay in lieu of permanent positions. Professional work groups that could be considered for management/professional assignment pay typically fall within the definition of “professional” employment under the FLSA. Examples of professions which may be considered for career path plans are attorneys, engineers, information technology, and nurses. All career paths which call for the use of management/professional assignment pay must be approved by the Board. PREMIUM PAY The Board, upon the recommendation of Employee Compensation, may authorize the payment of different types of premium pay (i.e., management/professional assignment pay, special work assignment pay, differential pay, multilingual pay, standby pay and call back pay). Premium pay is not required and is non-permanent pay. Application of premium pay shall be made at the discretion of the Appointing Authority, with the concurrence of Employee Compensation, to all similarly-situated employees. A reduction in, or rescission of, premium pay does not constitute a demotion and is not subject to appeal to the Merit Commission. For non-exempt employees, premium pay must be included in the calculation of overtime. When market or industry standards warrant it, the Board, upon the recommendation of Employee Compensation, may authorize a schedule of premium pay for certain employees. Employee Page 18 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 Compensation shall monitor all premium pay rates, conduct reviews as needed, and make recommendations to the Board when adjustments are needed. Management/Professional Assignment: With the approval of the Board, a career path may provide for non-permanent assignments to a management/professional role, which may be accompanied by a temporary amount of additional pay (“management/professional assignment pay”). Upon the conclusion of the management/professional assignment, the additional pay will end. A reduction in, or rescission of, management/professional assignment pay does not constitute a demotion and is not subject to appeal to the Merit Commission. A management/professional assignment differs from a special work assignment in that a management/professional assignment is limited to career path plans approved by the Board, can be for an indefinite period of time, and does not require renewal at the beginning of each fiscal year. Employees may not receive a management/professional assignment at the same time they are receiving a special work assignment and may not receive more than one management/professional assignment at any given time. Special Work Assignment: (See B7001 Special Work Assignment Policy) Differential Pay: (See B7004 Pay Differentials Policy) Multilingual Pay: (See B7005 Multilingual Pay Policy) Standby Pay: (See B7006 Hours Worked and Overtime Policy) Callback Pay: (See B7006 Hours Worked and Overtime Policy) Management Incentive Pay: (See B7007 Management Incentive Pay Policy) ALTERNATIVE COMPENSATION The Board, upon the recommendation of Employee Compensation, may approve a plan for an alternative method of compensation, such as piece rate or production pay, when the specific circumstances indicate that there will be an ultimate benefit to Maricopa County to have such a plan in place. Such plans must be clearly defined and well documented. TUITION REIMBURSEMENT Subject to the availability of appropriated funds for such purposes, the County Manager may adopt a tuition reimbursement program. (See HR2430 Education Assistance Policy) LXXXI. RECOGNITION REWARDS The Board may approve a recognition rewards program. In addition, Appointing Authorities may provide employees with plaques, certificates of achievement, pins, and similar nominally priced, non- monetary items as recognition for exemplary performance, attendance, and/or other types of job- related achievements. LXXXIII. Employee Gainsharing Program: (See B7008 Employee Gainsharing Policy) Page 19 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 LXXXIV.XVIII. SEPARATIONS LXXXIV. In addition to any wages due at the time the employee (not including contract or temporary employees) is separated from Maricopa County service, the employee shall be paid at the employee’s regular base pay rate (premium pay and other similar pay shall not be used to calculate the base pay) for all accrued vacation time hours if the employee has completed at least 6 months of continuous eligible employment. B.A. An eEmployees who is officially retireing from Maricopa County under an approved Arizona State retirement plan, as verified by the applicable retirement system and will receive a pension under one of the state retirement systems, and who at the time of retirement havehas accumulated a minimum of 1,000 hours or more of sick leave, are is eligible to receive a $10,000 tax free contribution to fund an investment account for the payment of post employmentpost-employment qualified medical expenses. C. An employee who is involuntarily separated may be eligible to receive severance pay, contingent upon Board approval. (See HR2423 Severance Pay for Release of Claims) D. No other payments are allowed absent express Board approval. E.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. LXXXV.XIX. Employees who turn in their resignation from County employment, shall not be allowed to “burn off” their vacation time by extending their last day of employment through the use of vacation time or sick leaveThe County Manager or designee may approve administrative exceptions to this Policy that are consistent with the intent of the Policy. Page 20 of 21 Policy Number: HR2470B7000 Policy Title: COMPENSATION POLICY 08-21- Current Adoption Date: 201909-09- 20159 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) Page 21 of 21