Teammate Handbook Cover

City of Morgan Hill Personnel Rules Effective Date: January 23, 2008

S ECTION 7 C OMPENSATION P LAN

7.1 Compensation Plan : The compensation plan and salary structure for each classification shall be established as follows:

a. For regular employee classifications represented by recognized employee organizations, compensation shall be established with salary schedules in multiple steps as delineated in the applicable Memorandum of Understanding adopted by the City Council. b. For regular employee management, professional and confidential classifications, compensation shall be established with salary ranges by resolution of the City Council.

c. For temporary employee classifications, salary ranges shall be established by resolution of the City Council.

d. For persons engaged under contract, compensation shall be established according to the terms of the contract.

7.2 Salary upon Original Appointment: Upon original appointment to a classification as a City employee, the employee may be assigned either the first step in the salary schedule that is comprised of multiple salary steps, or the lowest salary in a salary range that contains no steps. a. The Department Director may assign a higher salary up to Step C in a salary schedule or the midpoint of a salary range based on the employee’s qualifications and prior experience, provided that it is determined to be in the best interest of the City.

b. The Department Director may assign a salary higher than Step C or the midpoint in a salary range only if approved by the City Manager.

7.3 Salary upon Promotion or Reclassification: Upon promotion or appointment to a new classification with a higher salary range, the employee shall be assigned a salary step in a salary schedule or salary within a salary range, which produces the equivalent of at least 5% above the employee’s former salary. This provision, however, shall not result in a salary in excess of the highest salary for the new classification. 7.4 Salary upon Voluntary Demotion: Upon voluntary demotion to a classification with a lower salary schedule or range, the employee, at the discretion of the Appointing Authority, may be assigned the salary step which the employee held in his/her former classification, or to a salary which is comparable to the salary held in his/her former classification provided it does not exceed the maximum salary for the new classification’s salary range.

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