#07 - Payroll and Compensation Policy Update

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PAYROLL & COMPENSATION DEFINITIONS Direct Deposit – As permitted by state law, all city employees are required to participate in direct deposit. FICA (Federal Insurance Contributions Act) – FICA is the federal requirement that a certain amount be automatically withheld from employees’ earnings. Specifically, FICA requires an employee contribution of 6.2 percent for Social Security and 1.45 percent for Medicare. The city contributes a matching 7.65 percent on behalf of each employee. Certain employees are exempt or partially exempt from these withholdings (e.g., firefighters). Pay Period – A fourteen (14) day period beginning at 12:001 a.m. on Saturday through midnight 11:59 p.m. on Friday, fourteen (14) days later. Holiday Pay – Compensation (8 hours) received when City offices are closed for an observed holiday. Firefighter Holiday Leave Bank – In lieu of holiday pay, career firefighters will accrue leave (8 hours) when City offices are closed for an observed holiday. The eight (8) hours of leave will be earned in the pay period in which the observed holiday falls and can be used at a time mutually agreed upon by the employee and the employee’s supervisor. Accrued hours do not carry over from year to year and are not paid out upon separation of employment. Full-time employees of the city will be compensated as determined by the City Council. Unless approved by the Council, employees will not receive any amount from the city in addition to the pay authorized for the positions to which they have been appointed. Expense reimbursement or travel expenses may be authorized in addition to regular pay. Expense reimbursement checks will be paid through direct deposit. Compensation for seasonal and temporary employees will be set by the City Council at the time of hire, or on an annual basis. Under the Minnesota Wage Disclosure Protection Law, employees have the right to tell any person the amount of their own wages. While the Minnesota Government Data Practices Act (Minn. Stat. §13.43), specifically lists an employee’s actual gross salary and salary range as public personnel data, Minnesota law also requires wage disclosure protection rights and remedies to be included in employer personnel handbooks. To that end, and in accordance with Minn. Stat. §181.172, employers may not: • Require nondisclosure by an employee of his or her wages as a condition of employment. • Require an employee to sign a waiver or other document which purports to deny an employee the right to disclose the employee’s wages. • Take any adverse employment action against an employee for disclosing the employee’s own wages or discussing another employee’s wages which have been disclosed voluntarily. • Retaliate against an employee for asserting rights or remedies under Minn. Stat. §181.172, subd. 3. The city cannot retaliate against an employee for disclosing his/her own wages. An employee’s remedies under the Wage Disclosure Protection Law are to bring a civil action against the city and/or file a complaint with the Minnesota Department of Labor and Industry at (651) 284-5070 or (800) 342-5354. DIRECT DEPOSIT As provided for in Minnesota law, all employees are required to participate in direct deposit. Employees are responsible for notifying the administrative services director of any change in status, including changes in address, phone number, names of beneficiaries, marital status, etc. When paydays fall on a holiday, deposits will be made the day before the holiday. Expense reimbursement checks will be paid through direct deposit. Improper Deduction and Overpayment Policy