Adopted by the Mayor & Board of Aldermen 10/7/98

Section 1       Definition

The pay plan includes the basic salary schedule and the ?List of Classes arranged by Grades? adopted by the Board of Aldermen.  The salary schedule consists of steps for minimum or beginning, maximum, and intervening rates of pay for all classes of positions.

Section 2       Administration and Maintenance

The Town Manager, assisted by the Human Resource Manager, shall be responsible for the administration and maintenance of the pay plan.  All employees covered by the pay plan shall be paid at a rate listed within the salary range established for the respective position classification, except for employees in trainee status or employees whose existing salaries are above the established maximum rate following transition to a new pay plan.

The pay plan is intended to provide equitable compensation for all positions, reflecting differences in the duties and responsibilities, the comparable rates of pay for positions in private and public employment in the area, changes in the cost of living, the financial conditions of the Town, and other factors.  To this end, from time to time the Human Resource Manager shall make comparative studies of all factors affecting the level of salary ranges and will recommend to the Town Manager such changes in salary ranges as appear to be pertinent.  Such assignments will be made by increasing or decreasing the assigned salary grade for the class and adjusting the rate of pay for employees in the class when the action is approved by the Town Board of Aldermen.

Section 3      Starting Salaries

All persons hired into positions approved in the position classification plan shall be employed at the minimum salary for the classification in which they are employed; however, exceptionally well qualified applicants may be employed above the minimum of the established salary range upon approval of the Town Manager.

Section 4      Trainee Designation and Provisions

Applicants being considered for employment or Town employees who do not meet all of the requirements for the position for which they are being considered may be hired, promoted, demoted, or transferred to a ?trainee? status.  In such cases, a plan for training, including a time schedule, must be prepared by the department head.  ?Trainee? salaries shall be one or (no more than) two grades below the minimum salary established for the position for which the person is being trained.  A new employee designated as ?trainee? shall concurrently serve a probationary period.  However, probationary periods shall be no less than six months and trainee periods may extend from six to twelve months.

 A trainee shall remain a probationary employee until the trainee period is satisfactorily completed. If the training period is not successfully completed to the satisfaction of the Town, the trainee will be dismissed.  If the training is successfully completed, the employee shall be paid at least at the minimum rate established for the position for which the employee was trained.

Section 5      Probationary Pay Increases

Employees hired, promoted, or reclassified into the minimum rate of the pay range shall receive a salary increase within the range of approximately 5% upon successful completion of the probationary period.  Employees serving a twelve month probationary period are eligible for consideration for this pay increase after six months of successful employment.  Employees hired or promoted at or above step 3 of the pay table are not eligible for a probationary increase.

Section 6      Merit Pay

Upward movement within the established salary range for an employee is not automatic but rather based upon specific performance-related factors.  Employees may be considered for advancement within the established salary range based on the quality of their overall performance.  Procedures for determining performance levels and performance pay increases shall be established in procedures approved by the Town Manager.

Section 7      Merit Pay Bonus

Employees who are at the top step of the salary range for their position classification are eligible to be considered for a Merit bonus at their regular performance evaluation time.  Merit bonuses shall be awarded based upon the performance of the employee as described in the performance evaluation and shall be the same percentage of annual salary as employees within the salary range with the same performance level.  Merit bonuses are not part of base pay and shall be awarded in a lump sum payment.

Section 8      Salary Effect on Promotions, Demotions, Transfers, and Reclassifications

Promotions.  When an employee is promoted, the employee?s salary shall normally be advanced to the minimum level of the new position, or to a salary which provides an increase of approximately 5% over the employee?s salary before the promotion; provided, however, that the new salary may not exceed the maximum rate of the new salary range.  The purpose of the promotion pay increase is to recognize and compensate the employee for taking on increased responsibility.

Demotions.  When an employee is demoted to a position for which qualified, the salary shall be set at the rate in the lower pay range which provides the smallest decrease in pay if demotion is not ?for cause.?  If the current salary is within the new range, the employee?s salary may be retained at the previous rate, or placed at a rate commensurate with the employee?s qualifications for that job.  If the demotion is for cause, the salary shall be decreased approximately 10%, not to exceed the maximum of the new range.

Transfers.  The salary of an employee reassigned to a position in the same class or to a position in a different class within the same salary range shall not be changed by the reassignment.

Reclassifications.  An employee whose position is reclassified to a class having a higher salary range shall receive a pay increase of approximately 2.5% or an increase to the minimum of the new  pay range, whichever is higher.  If the employee has successfully completed probation, the employee?s salary shall be advanced to at least the probation completion amount in the range.

If the position is reclassified to a lower pay range, the employee?s salary shall remain the same.  If the employee?s salary is above the maximum established for the new range, the salary of that employee shall be maintained at the current level until the range is increased above the employee?s  salary.

Section 9       Salary Effect of Salary Range Revisions

When a class of positions is assigned to a higher salary range, employees in that class shall receive  a pay increase of approximately 2.5% or to the minimum step of the new pay range, whichever is higher.  If the employee has successfully completed probation, the employee?s salary shall be advanced at least to the probation completion amount in the new range.  When a class of positions is assigned to a lower salary range, the salaries of employees in that class will remain unchanged.  If this assignment to a lower salary range results in an employee being paid at a rate above the maximum step established for the new class, the salary of that employee shall be maintained at that level until such time as the employee?s salary range is increased above the employee?s current salary.

Section 10      Transition to a New Salary Plan

The following principles shall govern the transition to a new salary plan:

1) No employee shall receive a salary reduction as a result of the transition to a new salary plan.

2) All employees being paid at a lower rate than the minimum rate established for their respective classes shall have their salaries raised to the new minimum for their classes.

3) All employees being paid at a rate below the maximum rate established for their respective

4) classes shall be paid at a rate listed in the salary schedule; all employees not at a listed rate shall have their salaries raised to a listed rate.

5) All employees being paid at a rate above the maximum rate established for their respective classes shall be maintained at that salary level until such time as the employee?s salary range is increased above the employee?s current salary.

Section 11      Effective Date of Salary Changes

Salary changes approved after the first working day of a pay period shall become effective at the beginning of the next pay period, or at such specific date as may be provided by procedures approved by the Town Manager.

Section 12      Payroll Deductions

Deductions shall be made from each employee?s salary, as required by law.  Additional deductions may be made upon the request of the employee on determination by the Town Manager as to capability of payroll equipment and appropriateness of the deduction. 

Section 13      Longevity Pay (amended 7/10/01)

Employees shall receive longevity pay in the last payroll in November that reflect years of service as of July 1, of each year according to the following schedule:

Effective 7/1/01, in each fiscal year employee will receive longevity pay in the last payroll of November, each year that reflects the years of service as of July1, of that fiscal year. Any employee that retires from service with the Town between July 1, and the date when that last payroll of November is issued, shall receive the longevity check at their time of retirement. An employee shall only be entitled to receive one longevity in any fiscal year.