Retroactive Step Adjustments Clause Samples
The Retroactive Step Adjustments clause allows for changes to previously established payment or performance steps based on new information or circumstances that arise after the fact. In practice, this means that if a contract includes milestone payments or tiered obligations, these steps can be recalculated or modified retroactively if certain conditions are met, such as errors in calculation or changes in underlying assumptions. The core function of this clause is to ensure fairness and accuracy in ongoing contractual relationships by allowing adjustments to past steps, thereby addressing discrepancies and preventing unjust enrichment or loss.
Retroactive Step Adjustments. Effective May 15, 2008 adjustments will be implemented for additional recognition for past experience based on the audit conducted of the personnel files of each RN. The audit will involve a review of each employee’s employment application and/or resume and related materials already contained in the personnel files.
8.5.1 Employer will use the following formula to evaluate additional recognition for past experience. The Total years of prior experience (RN experience prior to NWH) minus the years of experience credited at time of hire, equaling the number of unrecognized full years of experience. Partial years of service shall not be recognized for purposes of this formula. If as a result of the above formula an RN is deemed to have unrecognized full years of experience, an adjustment will be given as follows: a one-step adjustment will be made each time the nurse is scheduled for a step increase, up to a maximum of 2 steps during the life of this contract.