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401. Compensation Plan
402. City Salary Schedules Defined
403. Standards For Development Of Pay Plan
404. Administration And Amendments Of Pay Plan
405. Entry Level Pay Rates
406. Pay Rate Adjustments
407. Regular Pay Rate Defined And Exclusions Identified
408. Eligibility For Overtime Pay
409. Eligibility For Compensatory Time Off
410. Recordkeeping Under FLSA
411. Standby Pay
412. Trading Time Permitted
413. Flexible Work Schedule
414. Joint Employment Relationships
415. Reserved
416. Motivation Pay
417. Longevity Pay
418. Pay Practice For Acting Appointment
419. Retiree Recognition

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Table Of Contents

400 COMPENSATION

401. COMPENSATION PLAN. The Compensation Plan shall consist of monetary (wages/salaries) compensation and shall strive for fair market compensation.
402. TOTAL COMPENSATION. The combination of wages/salaries plus all other benefits of value to the employee which result in a cost to the City.
403. STANDARDS FOR DEVELOPMENT OF THE PAY COMPENSATION PLAN. The Compensation Pay Plan is directly tied to the Classification Plan and is determined on the basis of:
     1. Uniformity of pay for each class.
     2. Relative difficulty and responsibility of positions.
     3. Prevailing wages within the identified relevant public and private sectors markets.
     4. Cost of living index.
     5. Financial policies of the municipality.
     6. Difficulty in recruiting suitable employees.
     7. Other economic considerations.
404. ADMINISTRATION AND AMENDMENTS OF THE PAY COMPENSATION PLAN. The Human Resources Department will be responsible for administering the Compensation Plan. The Human Resources Department will administer the plan and keep it current by periodic cost of living reviews and comparative wage surveys with other municipalities as well as the private sector. Geographic adjustments of comparative wage surveys may be made using the data compiled by the Economic Research Institute (ERI).

     The Human Resources Department will recommend amendments to the City Manager as appropriate. If approved by the Manager, amendments may be recommended to the City Council for adoption.

405. ENTRY LEVEL PAY RATES. The entry level rate is the minimum rate in the pay grade for the position.

     A Department Director, subject to approval by the City Manager, may recommend for appointment a candidate above the entry level rate, to the midpoint of the pay grade if:

     1. There are a limited number of qualified applicants available at the entry level, or
     2. The applicant has exceptional qualifications.

     Above the mid-point if:

     1. Multiple recruitments have failed to yield a qualified candidate, or
     2. The applicant has qualifications which are unique or critical, or
     3. A test of the market reveals that the City is not competitive.
406. PAY RATE ADJUSTMENTS.
     1. Conditional Hires. If, after several recruitment attempts, no fully qualified candidate is identified, the hiring department may recommend a salary offer 5% lower than the entry level of the new pay range on a conditional basis of acceptable performance during the probationary period or thru the acquisition of appropriate licensures, certificates or experience. At the end of the probationary period, if the employee is performing the full scope of duties and responsibilities for the position, a pay rate adjustment shall be made to place the employee at the entry level for the position.
     2. Transfers (Also Defined as Reassignment). When an employee is transferred (reassigned) from one position to another within the same pay grade he/she shall continue to receive the same base rate
     3. Promotions. Placement of an employee within a higher grade than the employee’s current assign0ed grade.

        The employee will receive the higher of:

        1. Two and one half (2.5) percent when the new position is one salary grade higher, or
        2. Five (5) percent when the new position is two (2) salary grades higher, or
        3. Seven and one half (7.5) percent when the new position is three (3) salary grades higher, or
        4. Ten (10) percent when the new position if four (4) or more salary grades higher, or
        5. Twelve (12) percent if moving from a non-exempt to a higher exempt position, or
        6. Two and one half (2.5) percent above the minimum of the new pay grade.
     4. Conditional Promotions.

        If no qualified candidate is identified in multiple recruitment efforts, the hiring department may offer an internal candidate a conditional promotional opportunity.

        The employee will receive half the promotion rate as defined in three (3) above.

        At the end of the conditional period or thru the acquisition of appropriate licensures, certificates or experience, if the employee is performing the full scope of duties and responsibilities for the position, a pay rate adjustment shall be made to place the employee at the full promotional rate as defined above.

     5. Reclassifications
        Reclassification is the reassignment of a position from one class to a different class to recognize a significant change in the duties and responsibilities of the position/employee. For an upward reclassification the percentage increase will be the higher of:
        1. Two and one half (2.5) percent when the new position is one salary grade higher, or
        2. Five 5) percent when the new position is two (2) salary grades higher, or
        3. Seven and one half (7.5) percent when the new position is three (3) grades higher, or
        4. Ten (10) percent when the new position if four (4) or more salary grades higher, or
        5. Twelve (12) percent if moving from a non-exempt to a higher exempt position, or
        6. Two and one half (2.5) percent above the minimum of the new pay grade.
        7. For a downward reclassification the affected employee should be placed in the lower of their current percentile rank, or the maximum of their new pay grade

     6. Demotion. The placement of an employee within a lower grade than the employee’s current assigned grade resulting in a decrease in pay.

        In the case of a demotion, the employee shall be placed in the pay grade for the position they are being demoted to at their same percentile rank or the maximum of the new pay grade, whichever is lower.

        In the event that an unrepresented or represented employee is demoted into a represented position, the employee shall be placed in the pay grade for the position they are being demoted to at the average wages of all employees within that position with the similar length of service with the City. In the event that no such match exists the new salary will be determined by the City Manager.

     7. Full Reinstatement. When reinstated from layoff for lack of work, the employee shall be restored to the same grade and percentile rank of the grade the employee had at the time of the layoff.
     8. Reinstatement to a Lower Grade. If reinstated from a layoff to a lower grade, for whatever reason, the employee shall be placed in the pay grade for the position they are being reinstated to at their same percentile rank or the maximum of the new pay grade, whichever is lower.
     9. Merit Increases. Effective July 1, 2004 and the start of each subsequent fiscal year, all full- and part-time regular, non-contract employees, in good standing, and employees who were hired before December 1st of the preceding year, shall be eligible for a prorated merit increase based on overall performance evaluation ratings, the employees current percentile rank, and merit budget allocated by the City Council in its annual budget. Merit increases will range from 0% up to 6% of the employees base rate, and will be added to the base pay the first full pay period in December beginning December 2005.

        Employees near the top of their pay grade are eligible to receive performance increases based on their overall performance evaluation. The increase will be applied to the employees’ base salary but any amount in excess of the salary grade maximum will be awarded as a lump sum payment, and will not be added to base pay.

     10. Merit Lump Sum Awards. An employee eligible for a merit award who has met or surpassed the maximum of their pay grade shall be eligible for a merit lump sum award based on overall performance evaluation ratings and percentile rank of the employee. Merit lump sum awards will not be added to the employee’s base rate. Lump sum merit awards will range from 0% up to 3% of their base rate and will be distributed in December beginning December 2005.
     11. Cost-of-Living/General Wage Adjustments. The City Council may allocate funds for general wage adjustments. These adjustments may be made to the pay grades. All eligible employees will receive the amount of the adjustment that does not cause the employee to exceed the maximum of the grade.
     12. Exempt Employee Initial and Last Paycheck. Exempt employees will be paid a proportionate part of the employee’s full salary for the time actually worked in the first and last week of employment at an hourly equivalent of the employee’s full salary.
     13. The City Manager has discretion to review an individual's salary and make adjustments in the interest of parity or equity. Such salary adjustments are extraordinary and unusual and are to be considered, without precedent, on a case-by-case basis.

407. REGULAR RATE, PREMIUM RATE AND HOURS WORKED DEFINED AND EXCLUSIONS IDENTIFIED.
     The regular rate is the hourly equivalent of all straight time compensation received by a non-exempt employee for work divided by the number of hours that money is intended to compensate.

     The premium rate is the regular rate plus all other compensation for work made by the employer to, or on behalf of, the employee.

     Hours worked includes all time an employee must be on duty, or on the employer’s premises or at any other prescribed place of work.

     Exclusions from the regular and premium rate include payment for occasional periods when no work is performed due to vacation, holiday, illness, failure of employer to provide sufficient work, absence due to authorized leave, jury duty, leave without pay, or any payments to an employee which are not made as compensation for the employee’s regular hours of employment.

408. ELIGIBILITY FOR OVERTIME PAY.
     1. FLSA non-exempt employees (except seasonal workers) shall become eligible to be compensated at 1-1/2 times the premium rate per hour for all time worked in excess of 40 hours during a regularly scheduled seven-day work week (212 hours per 28-day period for 56-hour non-union fire service personnel). Occasional periods when no work is performed due to lack of work, paid leave or unpaid leave cannot be counted as time worked. Those periods, whether paid or not, must be deducted and cannot be included as time worked.
     2. Waiting time; rest and meal periods; sleep; travel time during the course of the work day; out-of-town travel; pre-shift and post-shift activities; lecture and training time; civic and charitable time; and voting time may be counted as hours worked. Out-of-town travel expenses will be reimbursed in accordance with the FLSA, state law, and the City Manager ’s Travel Policy.
     3. Overtime pay for FLSA exempt employees will not be paid when those employees work more than 40 hours per 7-day period. (212 per 28 day period for 56 hours non-union fire service personnel.)

409. ELIGIBILITY FOR COMPENSATORY TIME OFF.

     Management is authorized to compensate non-exempt employees with time off when they work in excess of 40 hours in a 7-day period (212 hours per 28 day period for 56 hour non-union fire service employees), or for work hours designated as eligible for premium overtime pay. Management must advise employees scheduled to work overtime that he/she will be rewarded monetarily at 1-1/2 times the regular rate for all time worked in excess of 40 hours in a 7-day period (212 hours per 28 day period for 56 hour non-union fire service employees) or with time off at 1-1/2 times all time worked in excess of 40 hours per 7-day period (212 hours per 28 day period for 56 hour non-union fire service employees).

     1. The use of compensatory time off in lieu of cash overtime compensation for non-exempt employees must be by agreement or understanding between the employer and employee. This agreement must be reached before the work in question is performed.
     2. Management shall not permit non-exempt employees who were compensated with time off to accrue more than:
        1. 480 hours of unused compensatory time (320 hours of overtime worked) if engaged in public safety or emergency response activities.
        2. 60 hours of unused compensatory time (40 hours of overtime worked) for unrepresented employees.
        3. When employee’s reach the maximum compensatory time accrual, they can no longer accrue compensatory time and must be paid in cash for all overtime hours worked.

     3. Requests to use earned compensatory time shall be processed in the same manner as requests to use annual leave.

     4. Unused compensatory time earned during the twelve months of the fiscal year must be paid out at the end of the fiscal year and cannot be carried forward, except with the written authorization of the City Manager.
     5. Compensatory time off should be allowed when requested by the employee provided it does not unduly disrupt the activities of the Department/Section.
     6. Sections/Departments may direct the use of compensatory time.
     7. Upon termination for any reason, employees will be paid for unused compensatory time. Payment shall be computed by multiplying unused compensatory time by the employee's final regular per hour rate.
     8. If an employee demotes or transfers from one non-exempt position to another non-exempt position; or from one department/section to another within a classification eligible for compensatory time, the employee’s accrued compensatory time off balance, up to the maximum allowable accrual will be carried forward with the employee. Any accrual in excess of the allowed maximum shall be paid at the time of promotion, transfer or demotion.
     9. If an employee promotes from one non-exempt position to another non-exempt position, the employee’s accrued compensatory time off balance shall be paid by the department/section the employee is promoting from at the employee’s current regular rate of pay before promoting.
     10. Compensatory time accrual balances will be paid by the department/section the employee is moving from at the employee’s current regular rate of pay before demoting or transferring when the new classification is not eligible for compensatory time or accruals of compensatory time exceed the maximum of the employee’s new job classification.
410. RECORD KEEPING UNDER FLSA.

     All Sections must maintain and preserve records for three (3) years of:

     1. Timesheets for each non-exempt employee and leave authorizations for all employees.
     2. Authorization by the Section Administrator/Manager for all overtime worked.
     3. The number of compensatory hours earned each workweek, or other applicable work period, by each employee. The hours must be calculated at a rate of one and one-half hours.
     4. The number of hours of compensatory time used each workweek, by the employee.
411. STANDBY PAY. Standby pay will be used to compensate non-exempt employees required to make their time available to the City after regular working hours.
     1. Definitions:
        1. Standby Employee: An individual who, though off duty, is required to be available and able to respond to inquiries by telephone, pager or radio and/or, if necessary, return to duty.
        2. Standby Pay. Compensation paid in addition to the hourly base rate to individuals required to be “on call.” Extra compensation is paid to the on call employee for making their time available to the City after regular working hours.
        3. Standby Period - All those hours spent on call during a 24 hour period established by the department/section.
        4. Straight Overtime Rate – Calculated at 1-1/2 the hourly base rate x the number of hours in excess of 40 hours worked per week.
        5. Premium Rate - Regular hours + overtime x hourly rate + standby pay divided by total hours x 1.5.
        6. Show Up Pay. Sometimes referred to as call-back pay. This payment is awarded to designated non-exempt employees who are not on stand-by but are required to report for duty from off-duty status and who are responding for less than two hours of duty. It is calculated at 150% x hourly base rate x 2 hours.

     2. Procedure:
        1. The Section Administrator/Manager will decide specifically which employee(s) in each job title will be assigned to take “standby duty” and receive the additional compensation. These decisions shall be made fairly and equitably using work and skill related factors, unless operational needs dictate otherwise.
        2. The employee should receive clear advance notice that he/she will be “on stand-by ”.
        3. Standby period begins after the completion of the regularly scheduled work day and continues until resuming work the following work day, unless a defined length of time is determined prior to the time on call status begins. Stand-by status includes providing coverage during the lunch period.
        4. Employees on standby will be considered engaged by the City of Las Cruces at the time they leave home until the work is completed. This time will be counted as time worked time and will be recorded as such on the Standby Report by the employee. Travel time shall not apply when the employee is requested to report before or after their regular starting time. The employee will be paid 1-1/2 times their regular rate of pay for extra hours worked if it results in hours worked in excess of 40 hours for the pay period.
        5. An employee who is stand-by must meet the following criteria:
           1. Thoroughly check the working status of the beeper, cell phone or radio before “standby” status begins and maintain it in operational mode at all times;
           2. Stay within beeper, cell phone or radio range;
           3. When notified by beeper, radio or telephone, the employee must call in within five (5) minutes;
           4. Must leave the location where the call is received within 10 minutes or less after receiving the call; and
           5. Must arrive in “fit” condition.
           Failure to adhere to these criteria may result in the loss of stand-by pay for the period.

        6. If an employee does not meet the criteria defined in “E”, he/she will forfeit “standby” pay from the time of the first attempt to contact him/her to the end of the standby period and may be subject to disciplinary action.
        7. Each employee on standby after regular working hours will receive adequate compensation for standby status at the designated rate of $65/week or $9.29/day.
        8. A standby employee who is called back to work for two hours or less, after leaving the worksite at the end of the regular work period, during the standby period will be paid two hours of show-up pay, except as defined in K” below.
        9. If the employee remains at work following the expiration of the 2-hour period or is called back before its expiration, they will be compensation with overtime pay at the premium overtime rate for additional time worked beyond the two (2) hour period.
        10. If the employee is released from work after the expiration of that 2 hour period, and re-called to work, the employee shall be compensated only for additional hours worked at the premium overtime rate.
        11. A standby employee who remains at work directly at the end of a scheduled work shift or is called to report early (within two hours of their scheduled work time) or remain late when call out continues to the regular starting time, will be paid for straight overtime for the extra hours worked if the additional hours result in hours worked in excess of 40 hours in the work week.
        12. The stand-by employee is expected to respond to telephone inquiries during the on call period without additional compensation.
        13. An employee responding to a call-out shall assess the situation and need prior to calling out additional staff and shall describe the justification for additional staff on the Stand-By Form.
        14. Employees called out shall complete the Stand-by Form for each situation and submit the completed forms to their immediate supervisor by the start of the next business day.

     3. Miscellaneous:
        1. Positions designated for standby status will be recommended and justified to the City Manager by Department Directors.
        2. A listing of all positions designated for standby status and written approval from the City Manager will be sent to Finance (payroll section) and Human Resources Department January 1st and June 1st of each calendar year.
        3. Time sheets will list approved personnel on standby status
        4. An internal audit of all stand-by positions will be conducted every six months by the Office of the Internal Auditor.
412. TRADING TIME PERMITTED. Employees may mutually agree to exchange scheduled work days, shifts or hours of work with the advance approval of their supervisor provided:
     1. Both employees have given supervision prior notification regarding the trade.
     2. It is voluntary on the part of both employees.
     3. It is at the employee's request and not the employer's.
     4. The trade must be between two employees who have the same type of job.
     5. Such change does not result in the application of overtime or compensatory time off.
413. FLEXIBLE WORK SCHEDULE
     Employees may be allowed flexibility in scheduling their weekly and daily work hours with their supervisor’s approval.
414. JOINT EMPLOYMENT RELATIONSHIPS. Personnel employed by the City in more than one capacity and/or for more than one department, or section must be paid on the basis of total time worked. The exception to this extends to salaried non-exempt employees who volunteer to work after regular hours in City sponsored recreational activities or other casual assignments that are unrelated to the employee's regular position. No employee may volunteer to work for the City after regular hours when the volunteer activities are related to the employee’s regular position.

     ** NOTE: For more information specific to employees working in more than one job, please contact the Human Resources Department or refer to FLSA regulations governing joint employment relationships.

415. MERIT INCREASES AND CASH INCENTIVES

     Deleted March 15, 2004

416. MOTIVATION PAY. Motivation pay has been discontinued for all new hires and promotions effective July 1, 1999.

417. LONGEVITY PAY. Effective July 1, 2004 Longevity pay has been deleted.

     Effective April 15, 2002, Las Cruces Police Sergeants and Lieutenants will not be eligible for longevity increases. Pay for sergeants, lieutenants and Deputy Chiefs shall be governed by pay tables for those positions.

     Pay for Fire Department Battalion Chiefs and Deputy Chiefs will be governed by the pay table s for those positions.

418. PAY PRACTICE FOR ACTING APPOINTMENTS.
     1. When an acting appointment exceeds 30 days, additional compensation to the minimum of the assigned pay grade or a 5% pay increase, whichever is greater, shall be awarded. Acting appointments shall not be continued for more than six months, except when, due to extraordinary circumstances, the City Manager extends the acting appointment.
     2. Employees appointed to acting positions may be eligible for additional compensation prior to the 30 day threshold if the acting assignment is significantly more responsible, difficult, or technical than the employee’s regular duties.
419. RETIREE RECOGNITION AWARD.

     In order to recognize retiring employees for their years of service to the City of Las Cruces, the City shall give a retiree an award as part of their compensation, as follows:

     1. $110 for 15 to 20 years of service to the City.
     2. $160 for 20 or more years of service to the City