Common use of Merit Pay Increases Clause in Contracts

Merit Pay Increases. Employees are eligible for merit pay increases on their pay anniversary date. Merit pay is based on the individual employee’s job performance. A performance appraisal is required to support a merit pay increase. During the performance appraisal, the employee will be evaluated on a four-point scale utilizing the City’s Employee Performance Appraisal Form. Point splitting is not permitted. That is, the supervisor may not issue scores such as, for example, a 2 ½ or a 2.8. Instead, for each performance criterion, the supervisor must give the employee one of the following scores: 1 – Does not meet standards; 2 – Meets standards; 3 – Exceeds standards; or 4 – Distinguished After all performance criteria have been scored, the scores are totaled and then divided by the total number of performance criteria to determine the average overall score. The average overall score will be used to determine the employee’s merit pay increase as set forth below: Merit pay increases will be retroactive to the employee’s pay anniversary date. In the event the employee’s current base rate of pay is lower than the top of the pay range, any merit pay increase will be added to the employee’s base rate of pay. If the employee’s merit pay increase is larger than the difference between the employee’s current base rate of pay and the top of the pay range, the employee’s base rate of pay will be increased to the top of the pay range and the balance of the merit pay award will be issued by the City as a lump sum. Finally, if the employee’s current base rate of pay is already at the top of the pay range, the amount of the merit pay award will be issued by the City as a lump sum payment. In the event an employee receives an average overall score between 1.0 – 1.99 and, therefore, receives no merit pay increase, the employee’s supervisor is required to develop a written performance improvement plan in consultation with the Human Resources Department. Thereafter, the supervisor shall provide the written plan to the employee, and, after the employee signs, the supervisor shall forward a copy of the signed performance improvement plan to the Human Resources Department.

Merit Pay Increases. Employees are eligible for merit pay increases on their pay anniversary date. Merit pay is based on the individual employee’s job performance. A performance appraisal is required to support a merit pay increase. During the performance appraisal, the employee will be evaluated on a four-point scale utilizing the City’s Employee Performance Appraisal Form. Point splitting is not permitted. That is, the supervisor may not issue scores such as, for example, a 2 ½ or a 2.8. Instead, for each performance criterion, the supervisor must give the employee one of the following scores: 1 – Does not meet standards; 2 – Meets standards; 3 – Exceeds standards; or 4 – Distinguished After all performance criteria have been scored, the scores are totaled and then divided by the total number of performance criteria to determine the average overall score. The average overall score will be used to determine the employee’s merit pay increase as set forth below: Merit pay increases will be retroactive to the employee’s pay anniversary date. In the event the employee’s current base rate of pay is lower than the top of the pay range, any merit pay increase will be added to the employee’s base rate of pay. If the employee’s merit pay increase is larger than the difference between the employee’s current base rate of pay and the top of the pay range, the employee’s base rate of pay will be increased to the top of the pay range and the balance of the merit pay award will be issued by the City as a lump sum. Finally, if the employee’s current base rate of pay is already at the top of the pay range, the amount of the merit pay award will be issued by the City as a lump sum payment. In the event an employee receives an average overall score between 1.0 – 1.99 and, therefore, receives no merit pay increase, the employee’s supervisor is required to develop a written performance improvement plan in consultation with the Human Resources Department. Thereafter, the supervisor shall provide the written plan to the employee, employee and, after the employee signs, the supervisor shall forward a copy of the signed performance improvement plan to the Human Resources Department.