Report Prepared by: Suzanne Fierro, Human Resources Manager
Title
SUBJECT: Approval of Resolution to Amend the Compensation Plan for Management Employees
REPORT IN BRIEF
Considers approving a Resolution to Amend Section 4.01 of the Compensation Plan for Management Employees.
RECOMMENDATION
City Council - Adopt a motion approving Resolution 2024-71, a Resolution of the City Council of the City of Merced, California, to Amend the Compensation Plan for Management Employees.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Deny; or,
3. Refer back to staff with instructions.
AUTHORITY
Resolution No. 80-106 - Resolution of the City Council of the City of Merced establishing an Employer-Employee Organizations Relations Policy.
CITY COUNCIL PRIORITIES
As provided for in the 2024-25 Adopted Budget.
DISCUSSION
The Compensation Plan for the Unrepresented Management Employees effective on July 1, 2021, included a collective 3% Premium Pay (1% in 2021, 1% in 2022 and 1% in 2023) in addition to base salary wages. The American Rescue Plan Act was the intended source for funding this compensation add-on, however, other funds were ultimately used. Currently, this compensation add-on is set to sunset on June 24, 2024, and the impacted employees are set to receive a 3% reduction as a result. This employee group is the only group facing this impact.
Approving the Resolution to Amend the Compensation Plan for Management Employees will allow the effected employees to keep the 3% Premium Pay and maintain its current level of wages until a new Management Compensation Plan is adopted by the City Council.
IMPACT ON CITY RESOURCES
Funding has been included in the City Manager’s Recommended FY 2024/25 budget. No additional budget appropriation is necessary.
ATTACHMENTS
1. Resolution 2024-71
2. Management Compensation Plan