The URL can be used to link to this page

Home My WebLink About4.F. Amendment to the Part-Time, Temporary and Season Pay Plan - Res. No. 7446General Business 4. F. SHAKO[�EE TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrator DATE: 05/06/2014 SUBJECT: Amendment to the Part-Time, Temporary and Seasonal Pay Plan - Res. No. 7446 Action Sought The Council is asked to offer Resolution No. 7446, a Resolution Amending the Pay Plan for Part-Time, Temporary and Seasonal Employees, and move its adoption. Background The State of Minnesota has enacted a three -step increase to the state's Minimum Wage, with the first increase taking effect August 1 of this year. As of that date, the minimum wage will be $8.00 per hour. (See attached summary from the League of Minnesota Cities for more detail regarding each step of the increase.) A review of the City's pay plans finds one position that is currently paid below this new minimum wage. The City typically employs one or two individuals each year through high school - sanctioned work experience programs -- most commonly to work as a Mechanic's Helper in the Public Works shop, but also occasionally to perform some basic cleaning work at the Community Center. We are preparing to hire a new Mechanic's Helper in early June who will work 40 hours a week during the summer and then two hours per day during the school year. Staff would like to adjust the wage now and hire the new Mechanic's Helper in at $8.00 per hour from the start. Budget Impact The existing Public Works Department budget can accommodate the wage increase for this one employee. However, as steps two and three of the three -part Minimum Wage increase take effect in 2015 and 2016, there will be additional part-time positions that will require a wage increase in order to remain in compliance with state law. These issues will be addressed during the budgeting process for upcoming years. Relationship to Vision This is a housekeeping item. Requested Action The Council is asked to offer Resolution No. 7446, a resolution amending the Pay Plan for Part-Time, Temporary and Seasonal Employees, and move its adoption. Attachments: LMC Summary of 2014 Minimum Wage Law �� m Res. No. 7446 Revised Part-Time Pay Plan RELEVANT LINKS: LMC information memo, FLSA: Ara Overriem. U.S. Dep't of Labor: Fair Pay Overtime Initiative. Minn. Stat. $ 177.24. 2014 Minn. Laws ch. 166. 1 amending kfinn. Stat. 3 43A,181 S. K. Fair Labor Standards Act While cities are covered by both the federal Fair Labor Standards Act (FLSA) and the Minnesota FLSA, cities are generally required to comply with the law that is least restrictive (e.g., more generous to employees). In most cases, this will be the federal law. 1. Federal minimum wage law The FLSA requires cities to pay at least the federal minimum wage, to pay time and one -half overtime after 40 hours worked, and to comply with certain record - keeping requirements. All cities are covered by the Fair Labor Standards Act (FLSA). However, some employees are exempt from the overtime requirements of the act. Generally speaking, council members (individuals who hold a political office and are not subject to any civil service laws) are not considered an employee under FLSA and, therefore, are not subject to the FLSA's minimum wage or overtime rules. 2. Minnesota minimum wage law Effective August 1, 2014, the Minnesota Fair Labor Standards Act increased the state minimum wage with yearly wage increases for the next few years and adjusted the definition of "large employer." This definition expansion effectively captures more cities to be classified as a "large employer," based on their city's total budget, which will in turn lead to a higher state minimum wage rate. As before, the minimum wage a city must pay depends on whether an organization is a large or small employer and if the employee is covered by the law. While the statute is not entirely clear, the League generally advises using the city's total budget amount to determine whether a city is classified as a large or small employer for Minnesota Fair Labor Standards Act purposes. For cities, annual gross volume of sales would likely be interpreted to mean the city's total budget. As of August 1, 2014, cities with a total budget over $500,000 will be considered large employers for purposes of the minimum wage law. Conversely, cities which have a total budget under $500,000 will be considered small employers. Prior to August 1, 2014, a large employer was considered one with a total budget of at least $625,000. As of August 2014, large employers must pay most employees covered by minimum wage law at a rate of at least $8 per hour, and small employers must pay all applicable employees at a rate of at least $6.50 per hour. The League generally advises cities with a total budget of $500,000 or more to comply with the higher Minnesota minimum wage rate (i.e., in August 2014 paying the $8.00 hour rate). League of Minnesota Cities Human Resources Reference Manual 4/8/2014 Compensation Chapter 4 1 Page 7 RELEVANT LINKS: League of Minnesota Cities Human Resources Reference Manual 4/8/2014 Compensation Chapter 4 1 Page 8 On Aug. 1 of 2015 and 2016, the Minnesota minimum wage is scheduled to increase for both large and small employers. As of Aug. 1, 2015, the Minnesota minimum pay rate will increase to $9 per hour for large employers, and to at least $7.25 per hour for small employers. Then, on Aug. 1, 2016, the Minnesota minimum pay rate will increase to $9.50 per hour for large employers, and to at least $7.75 per hour for small employers. There are two exceptions to these wage amounts for younger employees. First, large employers must pay employees under age 18 a rate of at least $6.50 per hour. Second, all employers may elect to pay employees under age 20 at a rate not less than $6.50 per hour, but only for their first 90 consecutive days of employment. After the 90 days, the minimum hourly rate becomes $8. Both of these rates are effective Aug. 1, 2014, and both amounts are scheduled to increase each year. As before, these minimum wage requirements do not pertain to elected officials; individuals who serve on any governmental board, commission, committee, or other similar body; city volunteers; or any individual employed, directly or indirectly, by the city to provide police or fire protection services. Also continuing is the cities responsibility to pay time and one -half overtime to non - exempt employees for those hours worked over 48 in one workweek. Beginning in 2017 and each year after, the Department of Labor and Industry will determine with feedback of stakeholders any appropriate minimum wage increase. The minimum wage increase, if any, will be effective in August of the following year. L. Family and Medical Leave Act U.S. Dep't of Labor: Family & Medical Leave. The Family and Medical Leave Act provides certain employees with up to 12 weeks of unpaid, job- and benefit- protected leave per year. Leave for U.S. Dept of Labor Wage and Hour Div., fanu[v amd military family leave may be taken for up to 26 weeks in a 12 -month Medical Leave :pct. period. FMLA requires that their group health benefits be maintained LMC information memo, during the leave. FMLA is designed to help employees balance their work ruxnuv.md ,l./edtical Lc„ e and family responsibilities by allowing them to take reasonable unpaid Act leave for certain family and medical reasons. All public agencies are covered; however, employees must still meet eligibility requirements. League of Minnesota Cities Human Resources Reference Manual 4/8/2014 Compensation Chapter 4 1 Page 8 RESOLUTION No. 7446 A RESOLUTION AMENDING THE PAY PLAN FOR PART -TIME, TEMPORARY AND SEASONAL EMPLOYEES OF THE CITY OF SHAKOPEE WHEREAS, Resolution No. 7395, a resolution adopting the 2014 Pay Plan for Part- Time, Temporary and Seasonal Employees of the City of Shakopee, was adopted on December 17, 2013; and WHEREAS, since that date the State of Minnesota has enacted an increase in the state's Minimum Wage; NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, that the 2014 Pay Plan for Part-Time, Temporary and Seasonal Employees is hereby amended to eliminate Grade J and add "High School Sanctioned Work Experience Programs" to Grade H. Adopted in session of the City Council of the City of Shakopee, Minnesota, held this 61 day of May, 2014. Mayor of the City of Shakopee ATTEST: City Clerk City of Shakopee Part -Time, Temporary and Seasonal Pay Plan Step 1 Step 2 Step 3 Step 4 Step 5 Grade A Personnal Trainer Market Rate Certified Fitness Instructor Grade B $15.50 $16.45 $17.45 $18.40 $19.40 On -Call Snow Plow Operator Grade C $14.60 $15.50 $16.45 $17.35 $18.25 Recreation Coordinator Recreation Instructor Learn to Skate Instructor Grade $12.00 $12.75 $13.50 $14.25 $15.00 Assistant Aquatic Manager Grade E $11.20 $11.90 $12.60 $13.30 $14.00 Alcohol / Tobacco Compliance Assistant Building Supervisor Arena Supervisor Water Safety Instructor (WSI) Lead Lifeguard Aquatic Park Maintenance Laborer Recording Secretary Cable Technician Live Sound Technician Student Intern (any department) Grade F $10.25 $10.90 $11.55 $12.20 $12.80 Service Desk Attendant Lifeguard Grade G $9.80 $10.40 $11.00 $11.65 $12.25 Teen Center Supervisor Birthday Party Host Huber Park Site Host Recreation Leader Grade H $8.00 $8.50 $9.00 $9.50 $10.00 Recreation Assistant Aquatic Assistant Rink Attendant (indoor and outdoor) High- School Sanctioned Work- Experience Programs Grade I $10.00 $11.00 $12.00 $13.00 Public Works Maintenance Laborer Grade i (MiWimum wage) ✓ s