HomeMy WebLinkAboutRelocation and Hiring Incentive Program1
RELOCATION AND HIRING INCENTIVE PROGRAM
PURPOSE
The purpose is to establish guidelines and procedures for the eligibility, approval, and
processing of relocation and referral incentives for employees. The Relocation and Hiring
Incentive Program is designed to support the City’s Compensation Philosophy that seeks to
attract and retain well-qualified employees who exemplify the organizational values. This
program aims at easing the burden for those candidates who accept employment with the City
from out of the area and therefore face a professional and personal transition due to the need to
relocate.
POLICY
It is the policy of the City of San Luis Obispo to recruit well-qualified employees who exemplify
the City’s organizational values.
The City will reimburse relocation costs that are directly related to an employee’s relocation of
50 or more miles to San Luis Obispo County.
ELIGIBILITY REQUIREMENTS
To be eligible for the relocation incentive the applicant must:
1. Accept employment with the City of San Luis Obispo, and;
2. Relocate his/her home to San Luis Obispo County, and;
3. Relocate 50 miles or more, and;
4. Fill a regular full-time position that is deemed difficult to fill by the Human Resources
Director.
RELOCATION BENEFITS
1. Department Head positions. Total relocation benefits up to $15,000 (subject to
applicable taxes).
a. Sick leave advance. City Manager may authorize a one-time advance of up to
twelve days of sick leave upon hire of a new Department Head to alleviate
concerns about loss of accrued sick leave with a prior employer.
2. All other positions. Total relocation benefits up to $10,000 (subject to applicable
taxes).
ELIGIBLE EXPENSES
Eligible expenses are those incurred in the movement and relocation of a personal residence
meeting the eligibility requirements outlined above including the following:
1. Movement of household goods. The costs associated with packing, loading,
transporting, and unloading personal household goods.
2. In-transit expenses. Gas, food, lodging during the actual move from the employee’s
home at time of hire to his/her new temporary or permanent home in San Luis Obispo
County.
Packet Pg. 70
Item 7
2
3. Temporary living expenses. Hotel or motel, or other temporary lodging such as Airbnb
or short-term rentals, necessary to allow the employee to start work.
4. First month rent and/or deposits. Costs associated with securing a residence in San
Luis Obispo County such as the first month rent and security deposits for the new
residence and costs associated with terminating a lease or rental agreement.
5. Closing costs. Costs associated with the sale of the employee’s primary residence or
purchase of a home in San Luis Obispo County.
6. Hiring Incentive. A lump-sum payment to provide an incentive to a new employee to
accept employment with the City. Depending on the amount of the incentive it may be
split to encourage retention as well.
a. If the hiring incentive is more than $5,000, then half of it will be granted on the
employee’s first paycheck and the other half will occur on the paycheck following
eighteen months of work and successful completion of probation.
7. Other eligible expenses as defined by the Internal Revenue Service (IRS) in Publication
521, Moving Expenses.
CONTINUED SERVICE REQUIREMENT
Failure to continue in the City service for three years, due to voluntary resignation, will result in
the need to repay a proportional amount, of the relocation and hiring incentive. For example, an
employee who receives a $4,000 sign-on bonus and is reimbursed $5,000 in moving expenses,
and resigns after 24 months with the City, will be responsible for repaying the City $3,000
9,000 total incentive divided by 36 months times remaining months to fulfill three-year
commitment). The employee agrees that the Finance Department is authorized to make a
deduction from the employee’s final payroll check for the appropriate amount of relocation and
hiring incentive to be repaid. Employees who are terminated or released from probation are not
required to repay the relocation benefits or hiring incentive.
PROCEDURES
All authorized benefits described above will be fully documented in a new employee offer letter
and the employee will sign acknowledging the benefits, potential tax consequences, and
repayment requirements prior to starting work for the City.
It is the employee’s responsibility to research and communicate with their personal tax advisor
what expenses to submit for reimbursement. Once determined, the employee shall submit a
completed Moving Expense Request Form with original receipts to his/her Department Head for
approval. The Department Head will forward the form indicating approval to Payroll or
disapproval to the Director of Human Resources, within five working days.
When Payroll receives an approved Moving Expense Request Form it will be documented
whether each item is taxable or non-taxable. Payroll will provide a copy of the Moving Expense
Request Form, once completed and processed, to the employee.
When the Department Head and the Director of Human Resources does not approve a
submitted expense, an appeal may be made to the City Manager for a final decision.
Packet Pg. 71
Item 7