Page | 48 Basic Eligibility Requirements – In order to have sufficient time to fairly evaluate job performance, an employee must have performed full duty (e.g., able to perform all essential job functions) for his/her job classification for a minimum of 1,744 hours during the 12-month rating period. For the purposes of this procedure, any periods of paid or unpaid leave, or any periods performing light or modified duty, will not count toward the minimum hours worked requirement. If the employee has not met the 1,744 hours requirement by his/her anniversary date, the performance appraisal and eligibility for merit base pay increase or lump-sum bonus will be delayed until the 1,744 hours worked requirement has been met. The date on which the hours requirement has been met, rounded to the beginning of the closest pay period, will be established as the employee’s new anniversary date (and beginning of a new 12-month rating period). Performance Appraisal Rating & Merit Pay Increase Determination – Provided all basic eligibility requirements have been met, the employee’s merit pay increase will be determined by the applicable merit pay increase matrix published by Human Resources for each payroll year. Implementation of a merit increase cannot increase employee base compensation above the maximum of the applicable pay range. Employees near the maximum of their assigned pay range will receive the portion of their merit increase that gets their salary to the maximum of the range. The balance of the merit increase may be paid as a one-time lump sum. Effective Date of Pay Changes – Merit base pay increases or lump-sum bonuses are effective at the beginning of a pay period which is closest to the employee’s merit review date. FAIR LABOR STANDARDS ACT SAFE HARBOR 507 It is the City of Hutchinson’s intent to pay exempt employees on a salary basis. Therefore, the City prohibits the making of improper deductions from the salaries of exempt employees because of variations in the quality or quantity of the work performed. Unsatisfactory quality or quality of work will be addressed, not by reductions in salary, but rather through regular performance management methods including the evaluation and discipline processes. Other deductions from exempt employees’ salaries, the City views as improper and therefore are prohibited include the following: • Absences of less than a full workweek occasioned by the City or by the operating requirements of the business; • Absences of less than a full workweek caused by jury duty or attendance as a witness in a judicial proceeding (although the City may offset against the regular salary any amount paid as jury or witness pay); • Absences of less than a full workweek caused by temporary military leave (although the City may offset against the regular salary any military pay the employee receives); and • Partial day absences for personal reasons or because of sickness or disability. Deductions from an exempt employee’s salary are permitted in the following circumstances: • Employee works less than a full workweek in the initial or final week of employment; • Full-day absences caused by sickness or disability taken in accordance with the City’s other policies providing pay for those absences; • Full-day absences caused by sickness or disability, even if unpaid, if the employee is not yet eligible for pay or pay has been exhausted under the City’s other policies providing pay for those absences; • Hours taken as unpaid leave under the Family and Medical Leave Act (FMLA); • Full-day absences for personal reasons other than sickness or disability;
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