HomeMy WebLinkAboutR-11317 amending compensation for Unrepresented Confidential EmployeesCity of San Luis Obispo, Human Resources, 990 Palm Street, San Luis Obispo, CA, 93401-3249, 805.781.7250, slocity.org
MEMORANDUM
DATE: November 17, 2023
TO: City Council
FROM: Nickole Domini, Director of Human Resources
SUBJECT: Administrative Correction to Council Resolution Nos. 11316 and
11317 (2022 Series) Compensation for Unrepresented Management
and Confidential Employees, respectively
It has been brought to staff’s attention that there is an unintended omission in the
“Vacation” sections of City Council Resolution Nos. 11316 and 11317 (2022 Series).
Currently, those sections state:
“… employees are eligible, once annually in December, to request
payment for up to 40 hours of unused vacation leave . Payment for
unused vacation leave is subject to the availability of budgeted
funds.”
The “Vacation” sections of the previous City Council resolutions for those
unrepresented groups (Resolution Nos. 11267 and 11268 (2021 Series)) states
(emphasis added):
“… employees are eligible, once annually in December, to request
payment for up to 40 hours of unused vacation leave. If an employee
reaches the annual accrual cap before December, the employee will
be able to request vacation payment one additional time during the
calendar year, in addition to the December cash out. However, no
more than forty (40) hours of unused vacation leave will be paid out
in any calendar year. Payment for unused vacation leave is subject
to the availability of budgeted funds.”
Due to an administrative error, the underlined portion of the “Vacation” sections of the
2021 Series resolutions were not incorporated into the 2022 Series resolutions. The
bolded words were variations between the resolutions for the groups. As a result of
the discovery, staff will be updating Council Resolution Nos. 11316 and 11317 (2022)
to reflect the intended language effective November 17, 2023.
R 11317
RESOLUTION NO. 11317 (2022 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, REGARDING COMPENSATION FOR THE
UNREPRESENTED CONFIDENTIAL EMPLOYEES AND SUPERSEDING
PREVIOUS RESOLUTIONS IN CONFLICT
WHEREAS, the City has designated classifications in City Administration, Finance,
Human Resources, and the City Attorney’s Office as confidential employees pursuant to the
Government Code 3507.5 and Employer-Employee Resolution 6620; and
WHEREAS, confidential employees are precluded from collective bargaining due to
their proximity to labor negotiations, and therefore are not governed by a collective
bargaining agreement; and
WHEREAS, the unrepresented confidential employees have remained committed to
providing high quality service to the community; and
WHEREAS, to achieve our service standards, the City must attract and retain highly
qualified employees who exemplify our organizational values; and
WHEREAS, fostering an environment attractive to such employees depends upon
many factors, including a competitive compensation program; and
WHEREAS, the City of San Luis Obispo has experienced challenges recruiting
and retaining employees in the unrepresented confidential group; and
WHEREAS, the City Council is committed to providing competitive compensation
to recruit and retain well qualified emp loyees, as provided in the City’s adopted Labor
Relations Objectives and Compensation Philosophy while also considering the long -term
fiscal sustainability of changes in compensation.
NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of San Luis
Obispo hereby revises unrepresented confidential compensation as follows:
SECTION 1. The City agrees to increase the salaries of unrepresented
confidential employees with a cost-of-living adjustment (COLA) effective on the following
dates: 1.5% COLA the first full pay period of July 2022, a 3% COLA the first full pay
period of July 2023, and a 3% COLA effective the first full pay period of July 2024 .
SECTION 2. The City shall continue to provide employees certain fringe benefits
as set forth in Exhibit “A”, fully incorporated by reference.
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Resolution No. 11317 (2022 Series) Page 2
R 11317
SECTION 3. The City agrees to implementation of the market equity adjustments
for specified classifications as set forth in Exhibit “B”, effective the first full pay period of
April 2022, fully incorporated by reference.
SECTION 4. The Director of Finance shall adjust the appropriate accounts to reflect
the compensation changes.
SECTION 5. This resolution shall be in effect from April 19, 2022 through June 30,
2025.
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Resolution No. 11317 (2022 Series) Page 3
R 11317
SECTION 6. Amendments to compensation for unrepresented confidential employees do
not constitute a “Project” under CEQA Guidelines Sec. 15378.
Upon motion of Vice Mayor Christianson, seconded by Council Member Marx, and
on the following vote:
AYES: Council Member Marx, Pease, Shoresman, Vice Mayor
Christianson, and Mayor Stewart
NOES: None
ABSENT: None
The foregoing resolution was adopted this 19th day of April 2022.
______________________________
Mayor Erica A. Stewart
ATTEST:
___________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
___________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ____________________________.
______________________________
Teresa Purrington
City Clerk
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4/21/2022 | 3:27 PM PDT
Term of Agreement:
April 19, 2022 to June 30, 2025
Unrepresented Confidential Employees Compensation
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Unrepresented Confidentials Resolution Exhibit A & B
Table of Contents
Exhibit A Sections
Section A Medical, Dental, Vision ................................................................................... 1
Section B Health Flex Allowance ................................................................................... 2
Section C Life and Disability Insurance .......................................................................... 3
Section D Retirement ..................................................................................................... 3
Section E Vacation ......................................................................................................... 5
Section F Administrative Leave ................................................................................ 6
Section G Holidays ......................................................................................................... 6
Section H Sick Leave ................................................................................................. 7
Section I Workers' Compensation Leave ................................................................. 8
Section J Overtime .................................................................................................... 8
Section K Work Out-of-Classification ............................................................................. 9
Section L Temporary Assignment ................................................................................. 10
Section M Bilingual Pay ................................................................................................. 10
Exhibit "B" Equity Adjustments for Unrepresented Confidential Employee
Classifications ................................................................................................................... 11
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Page 1
EXHIBIT "A"
Section A Medical, Dental, Vision
The City shall establish and maintain medical, dental and vision insurance plans for
confidential employees and their dependents. The City reserves the right to choose the
method of insuring and plans to be offered.
PERS Health Benefit Program
The City has elected to participate in the California Public Employees' Retirement System
(CalPERS) Health Benefit Program. The City shall contribute an equal amount towards
the cost of medical coverage under the Public Employee's Medical and Hospital Care Act
(PEMHCA) for both active employees and retirees. The City's contribution toward
coverage under PEMHCA shall be the statutory minimum contribution amount
established by CalPERS on an annual basis. The City's contribution will come out of that
amount the City currently contributes to employees as part of the City's Section 125 Plan
"Cafeteria Plan". The cost of the City's participation in CalPERS will not require the City
to expend additional funds toward health insurance. In summary, this cost and any
increases will be borne by the employees.
Health Insurance Benefits for Domestic Partners
The City has adopted a resolution electing to provide health insurance benefits to
domestic partners (Section 22873 of the PEMHCA).
Conditional Opt Out
In order to receive the conditional opt-out incentive, employees will be required to
complete an affidavit and provide proof of other minimum essential coverage for
themselves and their qualified dependents (tax family) upon initial enrollment and
annually thereafter. Employees are required to certify that they are not enrolled in an
individual plan or in a medical plan offered under a federal marketplace or a state
exchange plan.
The monthly conditional opt-out incentive is $200.
The conditional opt-out incentive shall be paid in cash (taxable income) to the employee.
The employee must notify the City within 30 days of the loss of other minimum essential
coverage. The conditional opt-out payment shall no longer be payable if the employee
and family members cease to be enrolled in other minimum essential coverage.
Employees on an unpaid leave of absence, will not be eligible to receive the conditional
opt out payment.
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EXHIBIT "A"
Employees receiving the conditional opt-out amount will also be assessed $16.00 per
month to be placed in the Retiree Health Insurance Account. This account will be used
to fund the City's contribution toward retiree premiums and the City's costs for the Public
Employee's Contingency Reserve Fund and the Administrative Costs. However, there is
no requirement that these funds be used exclusively for this purpose nor any guarantee
that they will be sufficient to fund retiree health costs, although they will be used for
negotiated employee benefits.
Dental and Vision Insurance/Dependent Coverage
Employee participation in the City's dental and vision plans is optional. Employees who
elect coverage shall pay the dental and/or eye premium by payroll deductions on a pre•
tax basis through the City's Cafeteria Plan.
Section B Health Flex Allowance
Employees electing medical coverage in the City's plans shall receive a health flex
allowance, as defined by the Affordable Care Act (ACA) and shall purchase such
coverage through the City's Cafeteria Plan. If the health flex allowance is less than the
cost of the medical plan, the employee shall have the opportunity to pay the difference
between the health flex allowance and the premium cost on a pre-tax basis through the
City's Cafeteria Plan. In order to be eligible for the health flex allowance in a particular
pay period, an employee will need to get paid for more than half of their regularly
scheduled hours, unless the employee is on a protected leave. If the premium cost for
medical coverage is less than the health flex allowance, the employee shall not receive
any unused health flex in the form of cash or purchase additional benefits under the
Cafeteria Plan.
The monthly health flex allowance amounts for regular, full-time employees is outlined
below. Less than full-time employees shall receive a prorated share of the City's
contribution.
Level of Coverage 2022 Monthly
Rate
$600
$1,187
$1,607
Effective for the 2023, 2024, and 2025 premiums, the City's total health flex allowance for
group medical coverage will be modified by an amount equal to one-half of the average
percentage change for family coverage in the PERS health plans available in San Luis
Obispo County. For example: if three plans were available and the year-to-year changes
were +10%, +20%, and -6% respectively, the City's contribution would be increased by
4% (10% + 20% + -6% + 3 = 8% x 1/2).
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EXHIBIT "A"
The City agrees to continue its contribution to the health flex allowance for two (2) pay
periods in the event that an employee has exhausted all paid time off or leave approved
under the federal Family and Medical Leave Act (FMLA) and the California Family Rights
Act (CFRA), whichever is sooner, due to an employee's catastrophic illness. That is, the
employee shall receive regular City health flex allowance for the first two (2) pay periods
following the pay period in which the employee's accrued leave balances reach zero (0) or
FMLA/CFRA benefits have been exhausted.
Section C Life and Disability Insurance
The City shall provide the following special insurance benefits:
1.Long-term disability insurance providing 66 2/3% of gross salary (maximum
benefit $5,000 per month) to age 65 for any sickness or accident, subject to the
exclusions in the long-term disability policy, after a 30-day waiting period.
Note: The City is researching the option of enrolling in State Disability
Insurance. If approved by a majority vote of confidential employees, the City
will implement the program as soon as administratively possible.
2.In addition to $4,000 term life insurance purchased by the employee, the City
provides $25,000 term life insurance, including $29,000 for accidental death
and dismemberment through the City's Cafeteria Plan.
Section D Retirement
A.PERS Contracts
1."Classic Members First Tier" employees hired before December 6, 2012.
The City agrees to provide the Public Employees' Retirement System's (PERS)
2.7% at age 55 plan to all eligible employees. The 2.7% at 55 plan includes the
following amendments: 1959 Survivor's Benefit - Level Four, conversion of unused
sick leave to additional retirement credit, one-year final compensation, Military
Service Credit, and Pre-Retirement Optional Settlement 2 Death Benefit.
2."Classic Members Second Tier" employees hired on or after December 6, 2012.
The City agrees to provide the PERS 2% at 60 plan using the highest three-year
average as final compensation . The second-tier formula will include the following
amendments: conversion of unused sick leave to additional retirement credit, the
1959 Survivor's Benefit - Level Four, Military Service Credit option, and Pre•
Retirement Option Settlement 2 Death Benefit. Employees hired under this plan
will pay the full member contribution required under the plan, presently seven
percent (7%). CalPERS determines who is a "classic member" within the meaning
of the California Public Employees' Pension Reform Act (PEPRA).
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EXHIBIT "A"
3."New Members Third Tier" employees hired after January 1, 2013.
PERS determines are "New Members" within the meaning of the California Public
Employees' Pension Reform Act (PEPRA). The City will provide the PERS 2% at
62 plan using the highest three-year average as final compensation.
B.Member Contributions
1."Classic Members First and Second Tier"
Effective June 2012, confidential employees began paying the full member
contribution required under the plan for first and second tier employees (8%
and 7% respectively) and the City discontinued their payment of the member
contribution. For purposes of this Section, employee contributions are based
on salary and special compensation as defined by PERS.
Effective the first full pay period in July 2019, all employees shall contribute
1.5% in addition to the employee contribution defined in the paragraph above.
Effective the first full pay period in July 2020, all employees' additional
contribution shall increase to 3%, in addition to the employee contribution
defined in the paragraph above. These additional contributions are in
accordance to the provisions of AB 340, §7522.30 and §20516.
All of the employee contributions are made on a pre-tax basis as allowed under
Internal Revenue Service Code Section 414 (h) (2).
2."New Members Third Tier"
Effective on their date of hire, new members will pay 50% of the normal cost,
as determined by PERS.
Effective the first full pay period in July 2019, all new members shall contribute
1.5% in addition to the employee paying 50% of the normal cost. Effective the
first full pay period in July 2020, all new members contribution shall increase to
3%, in addition to the employee paying 50% of the normal cost. These
additional contributions are in accordance to the provisions of AB 340,
§7522.30 and §20516.
All of the employee contributions are made on a pre-tax basis as allowed under
Internal Revenue Service Code Section 414 (h) (2).
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EXHIBIT "A"
Section E Vacation
Vacation leave is governed by Section 2.36.440 of the Municipal Code, except that it may
be taken after the completion of the sixth calendar month of service from the benefit date
or earlier with department head or designee authorization. Each employee shall
accrue vacation leave at the following rates for completed years of service with the City.
Part• time employees will accrue a prorated amount of vacation leave.
Years of
Completed
Service
Annual
Vacation
Accrual Days*
Annual
Vacation
Accrual Hours
O to 4 years 12 days 96 hours
5 to 9 years 15 days 120 hours
10 to 19 years 18 days 144 hours
20+ years 20 days 160 hours
*One day is equivalent to eight (8) hours for a 40-hour per week line-item position.
Effective as soon as administratively possible following Council adoption, employees will
be eligible for a year-for-year accelerated vacation accrual based on prior public sector
experience. For example, if an employee has ten (10) years of public sector experience
prior to working for the City of San Luis Obispo, their vacation accrual will be advanced
by ten (10) years.
Vacation leave shall be accrued as earned biweekly provided that not more than twice
the annual rate may be carried over to a new calendar year. Confidential employees
vacation time shall not exceed twice the annual rate. If an employee reaches the cap at
any time throughout the year, the employee will stop accruing vacation leave.
Vacation schedules for confidential employees shall be based upon the needs of the City
and then, insofar as possible, upon the wishes of the employee.
Confidential employees are eligible, once annually in December, to request payment for
up to 40 hours of unused vacation leave. If an employee reaches the annual accrual
cap before December, the employee will be able to request vacation payment one
additional time during the calendar year, in addition to the December cash out.
However, no more than forty (40) hours of unused vacation leave will be paid out in any
calendar year. Payment for unused vacation leave is subject to the availability of
budgeted funds. To request payment for unused vacation leave, employees must
submit an irrevocable election form to Payroll in December of each year, prior to the pay
period that includes January 1 of the year the cash out is to be paid, to receive
payment for accrued vacation effective on the pay period that includes January 1st of
the following calendar year, subject to IRS regulations. Late irrevocable election forms
will not be accepted, nor can they be changed after the deadline. The remaining
unused leave shall remain in the employee's vacation accrual bank. The hours which
are paid out are hours which will be accrued in following year .
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EXHIBIT "A"
Section F Administrative Leave
Confidential employees shall earn twelve (12) hours of administrative leave on January
1st of each year.
Administrative leave hours shall be pro-rated on a pay period basis when a confidential
employee is appointed or leaves employment during the calendar year. The employee's
final check will be adjusted to reflect the pro-rated hours, however there is no provision
to receive cash payment for unused administrative hours. Unused administ ration leave
will not be carried over year to year but can be taken through December 31 st of each year.
Section G Holidays
Confidential employees shall receive eleven (11) fixed plus two (2) floating holidays
per year. The following days of each year are designated as paid holidays:
•January 1 - New Year's Day
•Third Monday in January - Martin Luther King Jr. Birthday
•Third Monday in February - President's Day
•Last Monday in May - Memorial Day
•July 4 - Independence Day
•First Monday in September - Labor Day
•November 11 - Veteran's Day
•Fourth Thursday in November - Thanksgiving Day
•Friday after Thanksgiving
•December 25 - Christmas
•One half day before Christmas
•One half day before New Year's Day
When a holiday falls on a Saturday, the preceding Friday shall be observed. When a
holiday falls on a Sunday, the following Monday shall be observed. A holiday shall be
defined as eight (8) hours of paid time off for regular full-time employees.
When Christmas or New Year's Holiday falls on a Tuesday or Thursday, the City reserves
the right to close non-essential City services and offices on Monday or Friday (the day
adjacent to the observed holiday). Essential City services are determined at the
discretion of the Department Head. Employees scheduled to work in non-essential
functions on the days adjacent to the paid holidays would be required to use appropriate
personal leave or take the days as non-pay. The City would notify employees of closure
of non-essential City services and offices no later than October 31st of the same year in
order to provide employees with ample time to plan accordingly .
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EXHIBIT "A"
The two floating holidays (16 hours) will be provided in a floating holiday leave bank the
pay period that January 1st falls within and will be prorated on a pay period basis if an
employee starts later in the year . Employees will have the ability to use floating holiday
leave hours at any point during the calendar year. Unused floating holiday leave will not
be carried over year to year but can be taken through December 31st of each year.
If an employee terminates for any reason, the employee's final paycheck will be adjusted
to reflect the prorated hours calculated on a pay period basis; however, there is no
provision to receive cash payment for unused floating holiday hours.
Section H Sick Leave
Sick leave is governed by Section 2.36.420 of the Municipal Code. An employee shall
accrue sick leave with pay at the rate of twelve (12) days or the prorated shift equivalent
per year of continuous service since the benefit date. An employee may take up to 48
hours per calendar year of sick leave if required to be away from the job to personally
care for a member of their immediate family as defined in Section 2.36.420, Labor Code
233 and/or Assembly Bill 1522. This may be extended to 56 hours if a household family
member is hospitalized, and the employee submits written verification of such
hospitalization.
In conjunction with existing leave benefits, confidential employees with one year of City
service who have worked at least 1,250 hours in the previous year may be eligible for up
to 12 weeks of Family/Medical Leave within any 12-month period. If eligible for
Family/Medical Leave, employees must use all available sick, vacation, compensatory time
off, and floating holiday pay prior to receiving unpaid Family/Medical Leave. Further details
on Family/Medical Leave are available in the City's Family and Medical Leave Policy.
Sick leave may be used to be absent from duty due to the death of a member of the
employee 's immediate family as defined in Section 2.36.420, provided such leave shall
not exceed forty working hours for each incident. The employee may be required to
submit proof of relative's death before being granted sick leave pay. False information
concerning the death or relationship shall be cause for discharge.
Upon retirement the employee may choose: 1) a payout of the employee's accumulated
sick leave balance based on years of service according to the following schedule, 2) to
convert a portion or all of the employee's sick leave balance to service credit in
accordance with CalPERS regulations, or 3) a combination of these two options.
(A)Death - 25%
(B)Retirement and actual commencement of PERS benefits:
(1)After ten years of continuous employment - 10%
(2)After twenty years of continuous employment - 15%
(3)After twenty-five years of continuous employment - 20%
(4)After thirty years of continuous employment - 25%
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EXHIBIT "A"
Section I Workers' Compensation Leave
An employee who is absent from duty because of an on-the-job injury in accordance with
State workers' compensation law and is not eligible for disability payments under Labor
Code Section 4850 shall be paid the difference between their base salary and the amount
provided by workers' compensation law during the first ninety (90) business days of such
temporary disability absence. Eligibility for workers' compensation leave requires an
accepted workers' compensation claim.
If an employee is eligible for Total Temporary Disability benefits after their salary
continuation as defined in the paragraph above, the employee will receive such payment
directly from the City's workers' compensation administrator and will only be able to
supplement one-third pay with accrued sick leave.
Section J Overtime
City Overtime Definition
Overtime is defined as all hours preauthorized by management and worked by the
employee in excess of forty (40) hours worked in a work week. An employee's failure to
have overtime preauthorized may be subject to discipline up to and including termination.
All paid leave hours shall be counted as hours worked for purposes of calculating overtime
to include Vacation, Holiday, Sick Leave, and Compensatory Time Off (CTO). All overtime
shall be authorized by the department head or designee prior to being compensated.
FLSA/Statutory Overtime
For the purpose of complying with the Fair Labor Standards Act (FLSA) overtime
requirements under 29 USC section 207(a), the City has adopted a dual calculation
method whereby it calculates FLSA overtime based on all hours actually worked by
overtime eligible employees in excess of forty (40) hours in the seven -day work period.
To the extent the City's dual calculation method determines that FLSA overtime owed for
the seven-day work period exceeds the amount of City overtime paid for the same seven•
day work period, the difference will be paid to the employee by way of an "FLSA
Adjustment" in the following City pay period.
Compensation
All overtime as defined in this Section shall be paid in cash at one and one half (1 1/2)
the employee's base rate of pay, plus incentives as defined below, or in time off (CTO) at
the rate of one and one-half (1 1/2) hours for each hour of overtime worked. All overtime
shall be compensated to the nearest five (5) minutes worked.
Separate and apart from the City's contractual obligation to pay overtime in accordance
with this Section, the City is obligated to calculate and pay, at a minimum, FLSA overtime
based on the federally defined regular rate of pay which includes cash in lieu in
compliance with the Flores v. City of San Gabriel. This calculation will be administered
in accordance with the FLSA/Statutory Overtime' section above.
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EXHIBIT "A"
Compensatory Time Off (CTO)
A confidential employee eligible for overtime compensation as defined in this Section may
elect compensation in the form of time off (CTO}. An employee may not be compensated
in CTO for more than sixty (60) hours of overtime worked in the calendar year.
Accumulated CTO may be taken through December 31st of each calendar year.
Accumulated CTO not taken by midnight December 31st shall be compensated in cash
at straight time. Such compensation shall be paid in January of the following year.
Work Week for Calculation of Overtime
For all confidential employees working a regular 5/40 work schedule or a 4/10 alternative
work schedule, the work week for the purpose of calculating overtime as defined in this
Section shall be seven consecutive days, beginning at 12:00 am Thursday and ending at
11:59 pm Wednesday.
For all confidential employees working a 9/80 alternative work schedule, the work week
for the purpose of calculating overtime as defined in this Section shall be seven
consecutive days, beginning exactly four hours into their eight-hour shift on the day of the
week which constitutes their alternative regular day off.
Pay Incentives to be Included in the Base Rate for Overtime
•Bilingual Pay
•Work out of Classification Pay
•Temporary Assignment Pay
Section K Work Out-of-Classification
An out-of-class assignment is the full-time performance of all the significant duties of an
available, funded position in one classification by an individual in a position of another
classification. An employee assigned in writing by management to work out-of-class in a
position that is assigned a higher pay range which is vacant pending an examination or
is vacant due to an extended sick or disability leave, shall receive no less than five percent
(5%), but in no case more than the top salary of the higher range, in addition to their
regular base rate commencing on the eleventh consecutive workday of the out-of-class
assignment. In order to receive out of class pay, an employee must be working in the out
of class assignment and cannot have a leave of absence longer than two (2) consecutive
weeks, unless approved otherwise.
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EXHIBIT "A"
Section L Temporary Assignment
An appointing authority or designee may temporarily assign an employee to a different
position for a specific period not to exceed ninety (90) days, after which the employee
returns to their regular duties and position from which they were regularly assigned. The
temporary assignment may be extended past ninety (90) days if agreed to by the
employee in writing. Such action shall have the prior approval of the Human Resources
Director or designee . An appointing authority may assign an employee to a different
position for a period not to exceed ninety (90) days, provided the employee has received
twenty-four (24) hours written notice which includes reasons for the assignment.
Employees who are subject to temporary assignment shall be compensated in
accordance with Section K. In order to receive out of class pay, an employee must be
working in the out of class assignment and cannot have a leave of absence longer than
two (2) consecutive weeks, unless approved otherwise.
Section M Bilingual Pay
Employees certified as bilingual in Spanish through a testing process and certified as being
required to regularly use their Spanish speaking skills shall receive a bilingual payment of
thirty-five ($35) dollars per pay period. Employees are eligible for this incentive the first full
pay period following qualification. Additional languages may be approved by the City based
upon demonstrated need. Regardless of certification and payment, all employees shall use
any language skills they possess to the best of their ability.
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EXHIBIT "B"
Exhibit "B" Equity Adjustments for Unrepresented Confidential Employee Classifications
Job Title Barg Current
Grade
Future Current Proposed Actual %
Unit Grade Biweekly Max Biweekly Max Increase
Administration Executive Assistant CNF 365 257 $ 2,593 $ 2,800 8.0%
Application System Specialist Confidential CNF 385 299 $ 3,843 $ 4,535 18.0%
Human Resources Administrative Assistant I CNF 360 240 $ 2,176 $ 2,350 8.0%
Human Resources Administrative Assistant II CNF 363 245 $ 2,291 $ 2,474 8.0%
Human Resources Administrative Assistant Ill CNF 365 257 $ 2,593 $ 2,800 8.0%
Human Resources Information System Technician CNF 363 245 $ 2,291 $ 2,474 8.0%
Human Resources Specialist CNF 368 261 $ 2,683 $ 2,898 8.0%
Legal Assistant I CNF 363 245 $ 2,291 $ 2,474 8.0%
Legal Assistant 11 CNF 369 266 $ 2,829 $ 3,055 8.0%
Management Fellow CNF-C 300 252 $ 2,531 $ 2,658 5.0%
Payroll Specialist CNF 368 261 $ 2,683 $ 2,898 8.0%
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Term of Agreement:
April 19, 2022 to June 30, 2025
Unrepresented Confidential Employees Compensation
Unrepresented Confidentials Resolution Exhibit A & B
Table of Contents
Exhibit A Sections
Section A Medical, Dental, Vision .............................................................................. 1
Section B Health Flex Allowance ............................................................................... 2
Section C Life and Disability Insurance ...................................................................... 3
Section D Retirement ................................................................................................. 3
Section E Vacation ..................................................................................................... 5
Section F Administrative Leave.................................................................................. 6
Section G Holidays ..................................................................................................... 6
Section H Sick Leave ................................................................................................. 7
Section I Workers’ Compensation Leave .................................................................. 8
Section J Overtime .................................................................................................... 8
Section K Work Out-of-Classification ......................................................................... 9
Section L Temporary Assignment ............................................................................ 10
Section M Bilingual Pay ............................................................................................ 10
Exhibit “B” Equity Adjustments for Unrepresented Confidential Employee
Classifications ............................................................................................................... 11
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EXHIBIT “A”
Page 1
Section A Medical, Dental, Vision
The City shall establish and maintain medical, dental and vision insurance plans for
confidential employees and their dependents. The City reserves the right to choose the
method of insuring and plans to be offered.
PERS Health Benefit Program
The City has elected to participate in the California Public Employees’ Retirement System
(CalPERS) Health Benefit Program. The City shall contribute an equal amount towards
the cost of medical coverage under the Public Employee’s Medical and Hospital Care Act
(PEMHCA) for both active employees and retirees. The City’s contribution toward
coverage under PEMHCA shall be the statut ory minimum contribution amount
established by CalPERS on an annual basis. The City's contribution will come out of that
amount the City currently contributes to employees as part of the City’s Section 125 Plan
“Cafeteria Plan”. The cost of the City's participation in CalPERS will not require the City
to expend additional funds toward health insurance. In summary, this cost and any
increases will be borne by the employees.
Health Insurance Benefits for Domestic Partners
The City has adopted a resolution electing to provide health insurance benefits to
domestic partners (Section 22873 of the PEMHCA).
Conditional Opt Out
In order to receive the conditional opt -out incentive, employees will be required to
complete an affidavit and provide proof of other minimum essential coverage for
themselves and their qualified dependents (tax family) upon initial enrollment and
annually thereafter. Employees are required to certify that they are not enrolled in an
individual plan or in a medical plan offered under a federal marketplace or a state
exchange plan.
The monthly conditional opt-out incentive is $200.
The conditional opt-out incentive shall be paid in cash (taxable income) to the employee.
The employee must notify the City within 30 days of the loss of other minimum essential
coverage. The conditional opt-out payment shall no longer be payable if the employee
and family members cease to be enrolled in other minimum essential coverage.
Employees on an unpaid leave of absence, will not be eligible to receive the conditional
opt out payment.
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EXHIBIT “A”
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Employees receiving the conditional opt-out amount will also be assessed $16.00 per
month to be placed in the Retiree Health Insurance Account. This account will be used
to fund the City's contribution toward retiree premiums and the City's costs for the Public
Employee's Contingency Reserve Fund and the Administrative Costs. However, there is
no requirement that these funds be used exclusively for this purpose nor any guarantee
that they will be sufficient to fund retiree health costs, although they will be used for
negotiated employee benefits.
Dental and Vision Insurance/Dependent Coverage
Employee participation in the City's dental and vision plans is optional. Employees who
elect coverage shall pay the dental and/or eye premium by payroll deductions on a pre -
tax basis through the City’s Cafeteria Plan.
Section B Health Flex Allowance
Employees electing medical coverage in the City’s plans shall receive a health flex
allowance, as defined by the Affordable Care Act (ACA) and shall purchase such
coverage through the City’s Cafeteria Plan. If the health flex allowance is less than the
cost of the medical plan, the employee shall have the opportunity to pay the difference
between the health flex allowance and the premium cost on a pre-tax basis through the
City’s Cafeteria Plan. In order to be eligible for the health flex allowance in a particular
pay period, an employee will need to get paid for more than half of their regularly
scheduled hours, unless the employee is on a protected leave. If the premium cost for
medical coverage is less than the health flex allowance, the employee shall not receive
any unused health flex in the form of cash or purchase additional benefits under the
Cafeteria Plan.
The monthly health flex allowance amounts for regular, full -time employees is outlined
below. Less than full-time employees shall receive a prorated share of the City’s
contribution.
Level of Coverage 2022 Monthly
Rate
Employee Only $600
Employee Plus One $1,187
Family $1,607
Effective for the 2023, 2024, and 2025 premiums, the City’s total health flex allowance for
group medical coverage will be modified by an amount equal to one -half of the average
percentage change for family coverage in the PERS health plans available in San Luis
Obispo County. For example: if three plans were available and the year-to-year changes
were +10%, +20%, and -6% respectively, the City’s contribution would be increased by
4% (10% + 20% + -6% ÷ 3 = 8% x 1/2).
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EXHIBIT “A”
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The City agrees to continue its contribution to the health flex allowance for two (2) pay
periods in the event that an employee has exhausted all paid time off or leave approved
under the federal Family and Medical Leave Act (FMLA) and the California Family Rights
Act (CFRA), whichever is sooner, due to an employee's catastrophic illness. That is, the
employee shall receive regular City health flex allowance for the first two (2) pay periods
following the pay period in which the employee’s accrued leave balances reach zero (0) or
FMLA/CFRA benefits have been exhausted.
Section C Life and Disability Insurance
The City shall provide the following special insurance benefits:
1. Long-term disability insurance providing 66 2/3% of gross salary (maximum
benefit $5,000 per month) to age 65 for any sickness or accident, subject to the
exclusions in the long-term disability policy, after a 30-day waiting period.
Note: The City is researching the option of enrolling in State Disability
Insurance. If approved by a majority vote of confidential employees, the Ci ty
will implement the program as soon as administratively possible.
2. In addition to $4,000 term life insurance purchased by the employee, the City
provides $25,000 term life insurance, including $29,000 for accidental death
and dismemberment through the City’s Cafeteria Plan.
Section D Retirement
A. PERS Contracts
1. “Classic Members First Tier” employees hired before December 6, 2012.
The City agrees to provide the Public Employees' Retirement System’s (PERS)
2.7% at age 55 plan to all eligible employees. T he 2.7% at 55 plan includes the
following amendments: 1959 Survivor’s Benefit – Level Four, conversion of unused
sick leave to additional retirement credit, one -year final compensation, Military
Service Credit, and Pre-Retirement Optional Settlement 2 Death Benefit.
2. “Classic Members Second Tier” employees hired on or after December 6, 2012.
The City agrees to provide the PERS 2% at 60 plan using the highest three -year
average as final compensation. The second-tier formula will include the following
amendments: conversion of unused sick leave to additional retirement credit, the
1959 Survivor's Benefit – Level Four, Military Service Credit option, and Pre -
Retirement Option Settlement 2 Death Benefit. Employees hired under this plan
will pay the full member contribution required under the plan, presently seven
percent (7%). CalPERS determines who is a “classic member” within the meaning
of the California Public Employees’ Pension Reform Act (PEPRA).
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EXHIBIT “A”
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3. “New Members Third Tier” employees hired after January 1, 2013.
PERS determines are “New Members” within the meaning of the California Public
Employees’ Pension Reform Act (PEPRA). The City will provide the PERS 2% at
62 plan using the highest three-year average as final compensation.
B. Member Contributions
1. “Classic Members First and Second Tier”
Effective June 2012, confidential employees began paying the full member
contribution required under the plan for first and second tier employees (8%
and 7% respectively) and the City discontinued their payment of the member
contribution. For purposes of this Section, employee contributions are based
on salary and special compensation as defined by PERS.
Effective the first full pay period in July 2019, all employees shall contribute
1.5% in addition to the employee contribution defined in the paragraph above.
Effective the first full pay period in July 2020, all employees’ additional
contribution shall increase to 3%, in addition to the employee contribution
defined in the paragraph above. These additi onal contributions are in
accordance to the provisions of AB 340, §7522.30 and §20516.
All of the employee contributions are made on a pre -tax basis as allowed under
Internal Revenue Service Code Section 414 (h) (2).
2. “New Members Third Tier”
Effective on their date of hire, new members will pay 50% of the normal cost,
as determined by PERS.
Effective the first full pay period in July 2019, all new members shall contribute
1.5% in addition to the employee paying 50% of the normal cost. Effective the
first full pay period in July 2020, all new members contribution shall increase to
3%, in addition to the employee paying 50% of the normal cost. These
additional contributions are in accordance to the provisions of AB 340,
§7522.30 and §20516.
All of the employee contributions are made on a pre -tax basis as allowed under
Internal Revenue Service Code Section 414 (h) (2).
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EXHIBIT “A”
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Section E Vacation
Vacation leave is governed by Section 2.36.440 of the Municipal Code, except that it may
be taken after the completion of the sixth calendar month of service from the benefit date
or earlier with department head or designee authorization. Each employee shall accrue
vacation leave at the following rates for completed years of service with the City. Part-
time employees will accrue a prorated amount of vacation leave.
Years of
Completed
Service
Annual
Vacation
Accrual Days*
Annual
Vacation
Accrual Hours
0 to 4 years 12 days 96 hours
5 to 9 years 15 days 120 hours
10 to 19 years 18 days 144 hours
20+ years 20 days 160 hours
*One day is equivalent to eight (8) hours for a 40 -hour per week line-item position.
Effective as soon as administratively possible following Council adoption, employees will
be eligible for a year-for-year accelerated vacation accrual based on prior public sector
experience. For example, if an employee has ten (10) years of public sector experience
prior to working for the City of San Luis Obispo, their vacation accrual will be advanced
by ten (10) years.
Vacation leave shall be accrued as earned biweekly provided that not more than twice
the annual rate may be carried over to a new calendar year. Confidential employees
vacation time shall not exceed twice the annual rate. If an employee reaches th e cap at
any time throughout the year, the employee will stop accruing vacation leave.
Vacation schedules for confidential employees shall be based upon the needs of the City
and then, insofar as possible, upon the wishes of the employee.
Confidential employees are eligible, once annually in December, to request payment for
up to 40 hours of unused vacation leave. Payment for unused vacation leave is subject
to the availability of budgeted funds. To request payment for unused vacation leave,
employees must submit an irrevocable election form to Payroll in December of each year,
prior to the pay period that includes January 1 of the year the cash out is to be paid, to
receive payment for accrued vacation effective on the pay period that includes Janua ry
1st of the following calendar year, subject to IRS regulations. Late irrevocable election
forms will not be accepted, nor can they be changed after the deadline. The remaining
unused leave shall remain in the employee’s vacation accrual bank. The hours which are
paid out are hours which will be accrued in following year.
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EXHIBIT “A”
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Section F Administrative Leave
Confidential employees shall earn twelve (12) hours of administrative leave on January
1st of each year.
Administrative leave hours shall be pro -rated on a pay period basis when a confidential
employee is appointed or leaves employment during the calendar year. The employee’s
final check will be adjusted to reflect the pro -rated hours, however there is no provision
to receive cash payment for unused administrative hours. Unused administration leave
will not be carried over year to year but can be taken through December 31 st of each year.
Section G Holidays
Confidential employees shall receive eleven (11) fixed plus two (2) floating holidays per
year. The following days of each year are designated as paid holidays:
• January 1 – New Year’s Day
• Third Monday in January – Martin Luther King Jr. Birthday
• Third Monday in February – Presidents’ Day
• Last Monday in May – Memorial Day
• July 4 – Independence Day
• First Monday in September – Labor Day
• November 11 – Veteran’s Day
• Fourth Thursday in November – Thanksgiving Day
• Friday after Thanksgiving
• December 25 – Christmas
• One half day before Christmas
• One half day before New Year’s Day
When a holiday falls on a Saturday, the preceding Friday shall be observed. When a
holiday falls on a Sunday, the following Monday shall be observed. A holiday shall be
defined as eight (8) hours of paid time off for regular f ull-time employees.
When Christmas or New Year’s Holiday falls on a Tuesday or Thursday, the City reserves
the right to close non-essential City services and offices on Monday or Friday (the day
adjacent to the observed holiday). Essential City services are determined at the
discretion of the Department Head. Employees scheduled to work in non -essential
functions on the days adjacent to the paid holidays would be required to use appropriate
personal leave or take the days as non-pay. The City would notify employees of closure
of non-essential City services and offices no later than October 31st of the same year in
order to provide employees with ample time to plan accordingly.
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EXHIBIT “A”
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The two floating holidays (16 hours) will be provided in a floating holiday leave bank the
pay period that January 1st falls within and will be prorated on a pay period basis if an
employee starts later in the year . Employees will have the ability to use floating holiday
leave hours at any point during the calendar year. Unused floating holiday leave will not
be carried over year to year but can be taken through December 31st of each year.
If an employee terminates for any reason, the employee’s final paycheck will be adjusted
to reflect the prorated hours calculated on a pay period basis; however, there is no
provision to receive cash payment for unused floating holiday hours.
Section H Sick Leave
Sick leave is governed by Section 2.36.420 of the Municipal Code. An employee shall
accrue sick leave with pay at the rate of twelve (12) days or the prorated shift equivalent
per year of continuous service since the benefit date. An employee may take up to 48
hours per calendar year of sick leave if required to be away from the job to personally
care for a member of their immediate family as defined in Section 2.36.420, Labor Code
233 and/or Assembly Bill 1522. This may be extended to 56 hours if a household family
member is hospitalized, and the employee submits written verification of such
hospitalization.
In conjunction with existing leave benefits, confidential employees with one year of City
service who have worked at least 1,250 hours in the previous year may be eligible for up
to 12 weeks of Family/Medical Leave within any 12-month period. If eligible for
Family/Medical Leave, employees must use all available sick, vacation, compensatory time
off, and floating holiday pay prior to receiving unpaid Family/Medical Leave. Further details
on Family/Medical Leave are available in the City’s Family and Medical Leave Policy.
Sick leave may be used to be absent from duty due to the death of a member of the
employee’s immediate family as defined in Section 2.36.420, provided such leave shall
not exceed forty working hours for each incident. The employee may be required to
submit proof of relative’s death before being granted sick leave pay. False information
concerning the death or relationship shall be cause for discharge.
Upon retirement the employee may choose: 1) a payout of the employee’s accumulated
sick leave balance based on years of service according to the following schedule, 2) to
convert a portion or all of the employee’s sick leave balance to service credit in
accordance with CalPERS regulations, or 3) a combination of these two options.
(A) Death – 25%
(B) Retirement and actual commencement of PERS benefits:
(1) After ten years of continuous employment – 10%
(2) After twenty years of continuous employment – 15%
(3) After twenty-five years of continuous employment – 20%
(4) After thirty years of continuous employment – 25%
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EXHIBIT “A”
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Section I Workers’ Compensation Leave
An employee who is absent from duty because of an on-the-job injury in accordance with
State workers’ compensation law and is not eligible for disability payments under Labor
Code Section 4850 shall be paid the difference between their base salary and the amount
provided by workers’ compensation law during the first ninety (90) business days of such
temporary disability absence. Eligibility for workers’ compensation leave requires an
accepted workers’ compensation claim.
If an employee is eligible for Total Temporary Disability benefits after their salary
continuation as defined in the paragraph above, the employee will receive such payment
directly from the City’s workers’ compensation administrator and will only be a ble to
supplement one-third pay with accrued sick leave.
Section J Overtime
City Overtime Definition
Overtime is defined as all hours preauthorized by management and worked by the
employee in excess of forty (40) hours worked in a work week. An employee’s failure to
have overtime preauthorized may be subject to discipline up to and including termination.
All paid leave hours shall be counted as hours worked for purposes of cal culating overtime
to include Vacation, Holiday, Sick Leave, and Compensatory Ti me Off (CTO). All overtime
shall be authorized by the department head or designee prior to being compensated.
FLSA/Statutory Overtime
For the purpose of complying with the Fair Labor Standards Act (FLSA) overtime
requirements under 29 USC section 207(a), the City has adopted a dual calculation
method whereby it calculates FLSA overtime based on all hours actually worked by
overtime eligible employees in excess of forty (40) hours in the seven-day work period.
To the extent the City’s dual calculation method determines that FLSA overtime owed for
the seven-day work period exceeds the amount of City overtime paid for the same seven -
day work period, the difference will be paid to the employee by way of an “FLSA
Adjustment” in the following City pay period.
Compensation
All overtime as defined in this Section shall be paid in cash at one and one half (1 1/2)
the employee's base rate of pay, plus incentives as defined below, or in time off (CTO) at
the rate of one and one-half (1 1/2) hours for each hour of overtime worked. All overtime
shall be compensated to the nearest five (5) minutes worked.
Separate and apart from the City's contractual obligation to pay overtime in accordance
with this Section, the City is obligated to calculate and pay, at a minimum, FLSA overtime
based on the federally defined regular rate of pay which includes cash in lieu in
compliance with the Flores v. City of San Gabriel. This calculation will be administered
in accordance with the FLSA/Statutory Overtime’ section above.
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EXHIBIT “A”
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Compensatory Time Off (CTO)
A confidential employee eligible for overtime compensation as defined in this Section may
elect compensation in the form of time off (CTO). An employee may not be compensated
in CTO for more than sixty (60) hours of overtime worked in the calendar year.
Accumulated CTO may be taken through December 31st of each calendar year.
Accumulated CTO not taken by midnight December 31st shall be compensated in cash
at straight time. Such compensation shall be paid in January of the following year.
Work Week for Calculation of Overtime
For all confidential employees working a regular 5/40 work schedule or a 4/10 alternative
work schedule, the work week for the purpose of calculating overtime as defined in this
Section shall be seven consecutive days, beginning at 12:00 am Thursday and ending at
11:59 pm Wednesday.
For all confidential employees working a 9/80 alternative work schedule, the work week
for the purpose of calculating overtime as defined in this Section shall be s even
consecutive days, beginning exactly four hours into their eight -hour shift on the day of the
week which constitutes their alternative regular day off.
Pay Incentives to be Included in the Base Rate for Overtime
• Bilingual Pay
• Work out of Classification Pay
• Temporary Assignment Pay
Section K Work Out-of-Classification
An out-of-class assignment is the full-time performance of all the significant duties of an
available, funded position in one classification by an individual in a position of another
classification. An employee assigned in writing by management to work out -of-class in a
position that is assigned a higher pay range which is vacant pending an examination or
is vacant due to an extended sick or disability leave, shall receive no less than fiv e percent
(5%), but in no case more than the top salary of the higher range, in addition to their
regular base rate commencing on the eleventh consecutive workday of the out -of-class
assignment. In order to receive out of class pay, an employee must be wor king in the out
of class assignment and cannot have a leave of absence longer than two (2) consecutive
weeks, unless approved otherwise.
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EXHIBIT “A”
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Section L Temporary Assignment
An appointing authority or designee may temporarily assign an employee to a different
position for a specific period not to exceed ninety (90) days, after which the employee
returns to their regular duties and position from which they were regularly assign ed. The
temporary assignment may be extended past ninety (90) days if agreed to by the
employee in writing. Such action shall have the prior approval of the Human Resources
Director or designee. An appointing authority may assign an employee to a different
position for a period not to exceed ninety (90) days, provided the employee has received
twenty-four (24) hours written notice which includes reasons for the assignment.
Employees who are subject to temporary assignment shall be compensated in
accordance with Section K. In order to receive out of class pay, an employee must be
working in the out of class assignment and cannot have a leave of absence longer than
two (2) consecutive weeks, unless approved otherwise.
Section M Bilingual Pay
Employees certified as bilingual in Spanish through a testing process and certified as being
required to regularly use their Spanish speaking skills shall receive a bilingual payment of
thirty-five ($35) dollars per pay period. Employees are eligible for this incentive the first full
pay period following qualification. Additional languages may be approved by the City based
upon demonstrated need. Regardless of certification and payment, all employees shall use
any language skills they possess to the best of their ability.
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EXHIBIT “B”
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Exhibit “B” Equity Adjustments for Unrepresented Confidential Employee Classifications
Job Title Barg
Unit
Current
Grade
Future
Grade
Current
Biweekly Max
Proposed
Biweekly Max
Actual %
Increase
Administration Executive Assistant CNF 365 257 $ 2,593 $ 2,800 8.0%
Application System Specialist Confidential CNF 385 299 $ 3,843 $ 4,535 18.0%
Human Resources Administrative Assistant I CNF 360 240 $ 2,176 $ 2,350 8.0%
Human Resources Administrative Assistant II CNF 363 245 $ 2,291 $ 2,474 8.0%
Human Resources Administrative Assistant III CNF 365 257 $ 2,593 $ 2,800 8.0%
Human Resources Information System Technician CNF 363 245 $ 2,291 $ 2,474 8.0%
Human Resources Specialist CNF 368 261 $ 2,683 $ 2,898 8.0%
Legal Assistant I CNF 363 245 $ 2,291 $ 2,474 8.0%
Legal Assistant II CNF 369 266 $ 2,829 $ 3,055 8.0%
Management Fellow CNF-C 300 252 $ 2,531 $ 2,658 5.0%
Payroll Specialist CNF 368 261 $ 2,683 $ 2,898 8.0%
DocuSign Envelope ID: 5316051A-0D2C-4789-80AE-E4F4EA3B51E3