Common use of Step Plan Clause in Contracts

Step Plan. A. Description of Step Plan Each pay grade will be divided into "steps", with the minimum of each grade being step 0 and the maximum of each grade being step 12. There will be 3.5% between each step, for a total approximate spread of 51% between the minimum and maximum of each grade. Any future cost of living increases will increase the minimum (step 0) of each pay by whatever percentage COLA is applied. Then, the steps in each pay grade will be adjusted by applying the 3.5% difference between each step starting at step 1. B. Anniversary Step Increases: Eligible employees will receive a one step increase on their "hire" date anniversary. Their step increase will be awarded in conjunction with receiving their annual performance evaluation, which will also be given on their "hire" date anniversary. The following criteria apply: *The step increase will take effect at the beginning of the next full pay period following the employee's "hire" date anniversary. *The step increase will apply only to the employee's "base" rate (without incentives). Incentives will then be added back into the employee's new "base" rate to create their new "current" rate. *In the years following an employee's reaching the maximum of their pay range, our Employee Handbook Policy 6.09 (EXCEL) will apply. *If an employee is already on performance improvement probation on their anniversary date, or if they are placed on performance improvement probation as a result of their anniversary evaluation, they will not receive a step increase until the beginning of the first full pay period following their removal from such probationary status. They will receive no retroactive consideration after returning to regular non-probationary status.