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HomeMy WebLinkAboutItem 06.j Date: Item No. Resolution Amending Liquor Department Salaries and Leave Policy for Part-time Sales Associates Proposed Action Staff recommends adoption of the following motion: Move to approve resolution amending salaries and leave policy for part-time sales associates. Overview It is the City’s goal to attract and hire well qualified employees, including part-time employees for the Liquor Department. To remain competitive in the retail market, it’s important to review our current compensation package for our part-time sales associate positions. Staff is recommending the elimination of vacation benefits in exchange for an increase in compensation effective October 8, 2017. Start 6-month 12-month 24-month 36-month 48-month Lead Sales Associates 14.10 14.60 15.10 15.65 16.20 16.75 Sales Associates 11.50 12.00 12.50 13.00 13.50 14.00 Proposed hourly rate schedule. The Liquor Committee reviewed and support the proposed changes for part-time lead sales and part- time sales associate positions. The proposed changes have been also been forwarded to the Personnel Committee for their review. Primary Issues to Consider • Increased compensation would attract stronger pool of candidates; reduce turnover rates; provide stability; increase flexibility in scheduling with the elimination of vacation leave for part-time sales associates; and reduce city liability for vacation compensation. Supporting Information • Part-time Sales Associate vacation and compensation information • Resolution Amending Liquor Store Position Classification and Pay Plan • Vacation Leave Policy (redlined) Financial Impact: $ Budgeted: Y☒ N☐ Source: Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Tammy Schutta, Human Resources Manager October 2, 2017 Enterprise Liquor Fund Part-time Sales Associates Vacation Accrual Eliminated vacation benefits in exchange for an increase in compensation would beneficial for the following reasons: • Eliminating vacation for part-time sales associates would increase flexibility in scheduling especially during peak vacation months since part-time employees are unable to work and use vacation time more than what their weekly average work hours. (IE: if an employee typically works three shifts per week, and are requesting three shifts off with vacation at the end of a week, we are unable to have them work shifts at the beginning of the week without eliminating their ability to use vacation time). • Part-time sales associate vacation liability is an estimated amount of $744 per pay period or $19,300 annually. Current part-time sales associates would have the opportunity to cash out their current leave balance or be allowed to continue to use it until it was exhausted. Part-time sales associates would stop accruing vacation leave tentatively October 8, 2017. There are currently eleven part-time sales associates that are within their first 6-months of employment. After the initial six months of the probationary period is completed, employees are currently entitled to vacation leave accrued from the start of employment. There would be a nominal cost for to cash out current leave balances to the eleven part-time sales associates. Part-time Sales Associate Compensation Currently, part-time sales associates advance to the next eligible step upon the completion of each 1040 hours worked. Part-time sales associates working less than 20 hours a week would not see their first step increase approximately 16 months after employment. To attract and retain employees, the following changes are recommended: • Part-time sales associates advance to next step after 6-months of employment. • Part-time sales associates advance to the next step on their employment anniversary date. Part- time sales associates would be evaluated by their immediate supervisor at 6-months and on their employment anniversary date. An evaluation that results in a satisfactory performance report would entitle the employee to progress to the next step in their position grade. A less than satisfactory performance would result in the employee being frozen in their position step until their performance improves to satisfactory. Proposed Compensation Schedule Start 6-month 1040 hrs 12-month 2080 hrs 24-month 3120 hrs 36-month 4160 hrs 48-month 5200 hrs Lead Sales Associates 14.10 13.36 14.60 13.84 15.10 14.36 15.65 14.89 16.20 15.45 16.75 16.02 Sales Associates 11.50 11.03 12.00 11.43 12.50 11.89 13.00 12.31 13.50 12.76 14.00 13.24 CITY OF LAKEVILLE RESOLUTION NO. ____ RESOLUTION GRANTING APPROVAL OF THE LIQUOR STORE POSITION CLASSIFICATION AND PAY PLAN AND ELIMINATING VACATION LEAVE ACCRUAL FOR PART-TIME SALES ASSOCIATES WHEREAS, the City Council has adopted pay plans from time to time to provide for the compensation of employees in various positions; and WHEREAS, the pay plan should be adjusted from time to time in consideration of the changes in the cost of living as measured by the U.S. Department of Labor, market conditions and positions evaluations. NOW, THEREFORE, BE IT RESOLVED that the following liquor store positions are set forth and amended effective (insert date). A. WAGE STRUCTURE: PART-TIME SALES ASSOCIATE EMPLOYEES A-1. Part-time sales associate employees hired will start employment at the start step unless credit is given for prior relevant work experience. A-2. Part-time sales associate employees will be evaluated by their immediate supervisor at six months and on their employment anniversary date. An evaluation that results in a satisfactory performance report will entitle the part-time sales associate employee to progress to the next step in their position grade. A less than satisfactory performance will result in the employee being frozen in their position step until their performance improves to satisfactory. Start 6-month 12-month 24-month 36-month 48-month Lead Sales Associates 14.10 14.60 15.10 15.65 16.20 16.75 Sales Associates 11.50 12.00 12.50 13.00 13.50 14.00 BE IT FURTHER RESOLVED by the City Council approves the amendment to the vacation leave policy to eliminate vacation leave accrual for part-time sales associate for the Liquor Department. ADOPTED AND APPROVED by the by the Lakeville City Council this 2nd day of October, 2017. ______________________________ Douglas P. Anderson, Mayor _________________________________ Charlene Friedges, City Clerk 146 VACATION LEAVE 1.00 POLICY 1.1 The vacation year will be the calendar year, and each full -time employee will earn vacation computed on a bi-weekly basis, or every two weeks. Employees are encouraged to take consecutive days rather than one day at a time. 1.2 During the probationary period new hire employees will not be entitled to vacation leave. After completion of probationary, the full-time employee will be entitled to vacation leave accrued from the start of employment. 1.3 The vacation schedule for full-time employees is as follows: 1st year of employment, 10 days 80 hours 2nd year of employment, 10 days 80 hours 3rd year of employment, 11 days 88 hours 4th year of employment, 12 days 96 hours 5th year of employment, 13 days 104 hours 6th year of employment, 14 days 112 hours 7th year of employment, 15 days 120 hours 8th year of employment, 15 days 120 hours 9th year of employment, 15 days 120 hours 10th year of employment, 15 days 120 hours 11th year of employment, 16 days 128 hours 12th year of employment, 17 days 136 hours 13th year of employment, 18 days 144 hours 14th year of employment, 19 days 152 hours 15th year of employment, 20 days 160 hours 1.4 Request for vacation leave must be initiated on forms submitted to the immediate supervisor and department at least two weeks prior to anticipated vacation absences. 1.5 If the nature of the work makes it necessary to limit the number of employees on vacation at the same time, the employee with the greater seniority will be given the choice of vacation period if the employee's request is made thirty (30) days prior to the vacation time desired. When requests are made less than thirty (30) days prior to the vacation time desired, vacation will be granted on a first come first served basis. 1.6 Except as specifically approved in writing by the City Administrator and the City Council, employees will not be allowed to carry over more than the number of hours they earned in the two previous calendar years for vacation leave. 1.7 Any employee leaving City employment in good standing, after giving proper notice of such termination of employment, will be compensated for vacation leave accrued up to the maximum amount permitted and unused to the date of 147 separation. An employee who leaves employment will be given prorated vacation pay for that part of the year worked. 1.8 No employee will be permitted to waive vacation leave for the purpose of receiving double pay. 1.9 Employees using earned vacation leave will be considered to be working for the purpose of accumulating vacation or sick leave. 1.10 Part-time Liquor Department employees will accrue vacation hours at the same rate as a full-time employee prorated upon the total number of hours worked. 1.111.10 Every effort will be made to grant requests for vacation but consideration will be given to previous time off, ability and depth of labor force within the department, holidays and upcoming special events. 1.121.11 Once approved, you will receive confirmation that your vacation request has been approved in the form of a copy of your original request signed by store management.