Teammate Handbook Cover

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

7.5 Reclassification and “Y” Rate: With approval of the Appointing Authority, an employee may be “Y” rated when his/her present salary exceeds the salary schedule or range assigned to the new classification to which he/she is being reclassified, or if his/her present classification is being assigned a new salary schedule or range. When an employee is “Y” rated, his/her current salary will remain the same until the salary schedule or range assigned to the new classification exceeds the salary the employee earned at the establishment of the “Y” rate. The employee’s salary may then be increased to any higher level in the new salary schedule or range.

7.6 Eligibility for Merit Increases: An employee may be eligible to receive a merit increase at the discretion of the Department Director as follows:

a. After the first six months after original appointment to a classification or promotional appointment to a new classification, provided the employee demonstrates overall performance above expectations or outstanding performance on his/her most recent performance evaluation. b. After the first 12 months after original appointment or promotional appointment to a new classification, whether or not a merit increase was granted after the first six months after original or promotional appointment to a classification.

c. Thereafter, on the anniversary date of original appointment or the anniversary date of the employee’s promotion or reclassification.

d. At any other time the Department Director, with the approval of the City Manager, determines a merit increase is warranted.

e. In no case shall an employee be eligible for a merit increase which exceeds the maximum salary range of the employee’s classification.

7.7 Granting of Merit Increase: Merit increases may be granted at the discretion of the Department Director based on the following:

a. A merit increase of one salary step in a salary schedule or up to a 5% increase in a salary range may be granted provided the employee demonstrates overall satisfactory performance on his/her most recent performance evaluation. b. A merit increase of greater than one salary step in a salary schedule or greater than 5% up to 10% in a salary range may be granted with approval of the City Manager, provided the employee demonstrates overall performance above expectations or outstanding performance on his/her most recent performance evaluation.

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