HomeMy WebLinkAbout13.E.1. Approve Military Differential/Readjustment Pay-Res. No. 6406
13. E. J.
City of Shakopee
Memorandum
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Kris Wilson, Assistant to the City Administrator
SUBJECT: Military Differential/Readjustment Pay
DATE: Aprill2,2006
INTRODUCTION
The City Council is asked to consider adding language to the City's Personnel Handbook
related to differential pay for employees called to active military duty, and to consider a
retroactive request for such pay by one city employee.
BACKGROUND
During the City's contract negotiations with the Public Works Union, the issue of
military readjustment pay was brought up. Through the process of negotiations, the City
agreed to consider the issue outside of the contract, on a case-by-case basis.
The issue, which has been discussed in the media and at the state legislature in recent
years, arises from cases of individuals called to active duty in the National Guard or U.S.
Armed Forces Reserves who experience a loss in income as a result of military pay rates
that fall below what those individuals earn in their regular civilian employment. This can
cause financial hardship for individuals and families at a time when they are making
significant sacrifices for our state and country.
While the initial request was for the City to consider some form of Readjustment Pay
upon an employee's return to work, it seems that this would only address the issue after
the fact. Rather than providing financial assistance to employees after they have already
experienced the loss of pay, it seems more appropriate to provide some form of Military
Differential Pay during the employee's deployment.
From staffs research it appears that there are very few metro-area cities providing
differential payor other benefits to employees called to active military duty except what
is required by state law. Given that fact, and the City's relatively limited experience with
employees being called to active duty, staff is recommending that the City adopt a
flexible policy that will allow us to balance individual circumstances and available City
resources on a case by case basis.
RECOMMENDATION
Staff recommends that the City Council adopt the following policy regarding Military
Differential Pay:
The City of Shako pee values the sacrifices made by employees who volunteer to
serve their country through the National Guard and u.s. Armed Forces
Reserves. The City desires to support such employees when they are called to
active duty, and have them return safely and resume their civilian role with the
City. In an effort to balance this desire with the realities of the City budget, the
City offirs employees the following opportunityin addition to theprotections and
benefits guaranteed by state and federal law.
Full-time employees called to active military duty in the National Guard or U.S.
Armed Forces Reserves for a period exceeding 30 days may request differential
pay and/or continuation of benefits, if their expected military pay is less than their
City pay. Requests must be made prior to the employee's departure and will be
considered by the City Council on a case by case basis. Employees called to
active military duty between January 1, 2003 and January 1, 2006 may request
such assistance retroactively as long as such requests are submitted no later than
July 1, 2006. In the case of requests for retroactive assistance, the amount shall
be limited to no more than $2500.
Staff also recommends that the Council approve the payment of $2500 to Rodney Beck, a
full-time employee with the City's Public Works Department who recently experienced a
loss of income as a result of being called to active military duty for a period of two-years.
BUDGET IMPACT:
The $2,500 for Mr. Beck would be charged to the Public Works Division personnel line
item. It would be treated as taxable income.
REQUESTED ACTION:
If the Council concurs, it should offer a motion to adopt the following:
RESOLUTION NO. 6406, AMENDING SECTION V-I OF THE PERSONNEL
HANDBOOK FOR EMPLOYEES OF THE CITY OF SHAKOPEE TO INCLUDE
LANGUAGE RELATED TO MILITARY DIFFERENTIAL PAY.
If the Council concurs, it should authorize the payment of $2500 to Rodney Beck as
retroactive Military Differential Pay.
RESOLUTION NO. 6406
A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA, AMENDING SECTION V-I
OFTHE PERSONNEL HANDBOOK FOR EMPLOYEES OFTHE CITY OF SHAKOPEE TO
. INCLUDELANGUAGE RELATED TO MILITARY DIFFERENTIAL PAY.
WHEREAS, on May 2, 1995, the City Council adopted Resolution No. 4213, adopting a new
Personnel Handbook for the Employees of the City; and
'M' -WHEREAS, it is the City's, goal to provide fair and equitable policies to all employees; and
WHEREAS, as trends and benefits continually change, it is necessary to update and modify
policies in order to continue attracting and retaining top-quality staff; and
WHEREAS, it is therefore necessary to amend the Personnel Handbook.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SHAKOPEE,MINNE~OTA, AS FOLLOWS:
The Personnel Handbook for Employees of the City of Shakopee is hereby amended as follows:
V - I. Military Leave
A. State and Federal Law
Every employee to whom Minnesota Statutes Section 192.26 or 192.261, or V.S.C. Title
28, Sec. 2021 applies is entitled to the benefits those sections list, subject to the
conditions in the law. An employee promoted or hired to fill a vacancy created by a
personbeing on military leave may be appointed to the position subject to the return of
the absent elnployee, if the law so provides. Upon such return, a promoted employee
may be restored to the employee's original position or an equivalent position. A
replacement employee may be subject to layoff if no other position is available, if the law
so provides.
B. Differential Pav.
The City of Shakopee values the sacrifices made by employees who volunteer to serve
their country through the National Guard and U.S. Armed Forces Reserves. The City
aims to support such employees when they are called to active duty, and have them
return safely and resume their civilian role with the City. In an effort to balance this
desire with the realities of the City budget. the City offers employees the following
opportunity in addition to the protections and benefits guaranteed by state and federal
law.
Full-time employees called to active military duty in the National Guard or D.S.Armed
Forces Reserves for a period exceeding 30 days may request differential pay and/or
continuation of benefits. if their expected military pay is less than their City pay.
Requests must be made prior to the employee's departure and will be considered by the
City Council on a case by case basis. Employees called to active military duty between
January 1. 2003 andJanuary L 2006 may request such assistance retroactively as long as
such requests are submitted no later than July L 2006. In the case of requests for
retroactive assistance, the amount shall be limited to no more than $2500.
And re-n:umber subsequent sections of Chapter V: Holidays and Leaves.
Passed in session of the City Council of the City of Shakopee,
Minnesota, held this 18th day of April 2006.
Mayor of the City of Shakopee
Attest:
City Clerk