IS - 2082 Pay Adjustments	Human Resources Release Date: 7/18/01 Revision 1:  8/xx/07
Policy

CNM Board Policy  

Employee Handbook 5.01, Wage and Salary Policies: Definitions
Employee Handbook 5.02, Staff

Administrative Directive

Introduction

This Administrative Directive addresses possible pay changes employees who are covered by the Master Salary Schedule may experience within a pay grade level.  For pay changes when moving to a different pay grade, refer to IS-2078 Employee Status Change.

The Governing Board reviews pay annually and may adjust pay ranges for pay grades.  It may also adjust individual employee pay.  In the case of highly specialized jobs, it is sometimes in the best interest of the College to adjust individual pay to reflect market pressures.  These jobs are designated as key market positions.

This directive is superseded by existing Collective Bargaining Agreements and Administrative Directive Hiring for Contract and Grant Funded Positions, as applicable.

1.  Annual Pay Plan Adjustment for Pay Grades

1.1 Every year, the Governing Board approves a pay plan for pay grades that goes into effect on the first day of the coming fiscal year.

1.2 The pay plan can affect minimum and/or maximum rates of pay for pay grades.  The plan can maintain pay grade rates, increase them, or lower them.

1.3 If the Governing Board approves a change in pay rates for pay grades, the change applies to the minimum pay rate for pay grades.  For an example, refer to the Annual Pay Plan Pay Grade Adjustment chart.  In this example, the Governing Board approves 3% pay grade raise for Year 2.  The pay grade minimum rises 30 cents per hour, which is 3% of the old pay grade minimum of $10.00 per hour.  The new pay grade minimum for Year 2 is then $10.30 per hour.  The new pay grade maximum is $15.96 per hour, which is 155% percent higher than the new pay grade minimum, as outlined in IS-2076 Pay Grades. 

2.  Annual Pay Plan Adjustment for Employees

2.1 Every year, the Governing Board approves a pay plan for incumbent employees (employees who were hired before February 1 of the current fiscal year) that goes into effect on the first day of the coming fiscal year.

2.2 The Governing Board’s pay plan can produce pay adjustments that affect rates of pay for employees.  The plan can maintain employee pay, increase it, or lower it.

2.3 Employees who were hired after February 1 of the current fiscal year do not receive the pay adjustments for incumbent employees (employees who were hired before February 1 of the current fiscal year.)  For example, in a year with a 3% pay grades increase and a 6% incumbent employee increase, the employee who was hired after February 1 of the current fiscal year at the minimum of the pay grade would receive the 3% pay grade increase, not the 6% incumbent employee increase. 

Employees Below the Maximum for Pay Grade

2.4 Every year, any adjustment is based on the employee’s present pay.  In the Annual Pay Plan Employee Adjustment chart, the employee’s pay in Year 1 is $8.00 per hour.  After the Governing Board approves a 6% employee raise, the employee earns $8.48 per hour in Year 2.

Employees Above the Maximum for Pay Grade

2.5 An employee’s pay adjustment can cause the employee’s pay to go over the new maximum for the pay grade.  But regardless, the employee still receives the entire pay adjustment.  The employee’s pay is given as base pay (a rate that does not go over the maximum of the pay grade) plus nonrecurring pay (any pay that exceeds the base pay), as follows:

2.5.1 The new maximum for the pay grade becomes the employee’s new base pay.  Any part of the employee pay increase that goes over the new maximum for the pay grade is paid as a nonrecurring amount with the regular biweekly pay.  For an example, refer to the Employee Pay Analysis chart.  Note that the pay grade receives a 3% increase in Year 2, so the pay grade maximum rises from $10.00 per hour to $10.30 per hour.  The employee receives a 6% increase in total pay, so the employee’s total pay rises from $10.00 per hour to $10.60 per hour.  Since the pay increase to $10.60 brings the employee’s total pay above the new pay grade maximum of $10.30, the employee receives 30 cents of the pay increase as a nonrecurring amount.  

 *NR—Non-recurring pay

2.5.1.1 Pay plan adjustments for employees are based upon the employee’s base pay, not upon the employee’s total pay.  The pay adjustment is added onto the employee’s total pay.  For an example, refer to the Annual Pay Plan Adjustment for Employee who Exceeds the Pay Grade Maximum chart.  The employee’s total pay in Year 1 is $10.60 per hour.  When an employee pay adjustment of 6% goes into effect, the pay increase is calculated from the employee’s base pay.  The employee receives an increase of 61 cents per hour based upon a 6% increase over the employee’s base pay of $10.30 per hour. 

*NR—Non-recurring pay

2.6 An employee’s retirement benefits are calculated upon the employee’s total pay (base pay plus nonrecurring pay, if any).

3.  Market Pay Adjustment

3.1 A market pay adjustment is an adjustment applied to an incumbent’s salary within a classification and does not result in a grade change for the position.

3.2 Market Pay adjustments are requested by an employee’s department head.

3.3 The President determines the pay rate for employees in key market positions.

3.4 Some or all of the following conditions may be considered as factors in identifying key market positions:

• a significant turnover in the position

• demonstrated difficulty in hiring/lack of qualified applicants

• documented rejection of job offers

• other conditions that affect the best interests of CNM

4. Definitions

Forms:	Not applicable
Support Materials:	IS-2012, Classification/Reclassification of Positions IS-2076, Pay Grades IS-2078, Employee Status Change IS-2514, Hiring for Contract and Grant Funded Positions
Reference Materials:	Employee Handbook 5.01, Wage and Salary Policies:  Definitions Employee Handbook 5.02, Staff    Master Salary Schedule Collective Bargaining Agreements