Opinion ID: 2394524
Heading Depth: 1
Heading Rank: 3

Heading: Changes in the City's Pay Scale Structure

Text: The City also retains a pay scale structure similar to many other governmental jurisdictions. The pay scale is divided into a hierarchy of grades and, within each grade, a hierarchy of steps. In 1993, the City hired Yarger and Associates, Inc. to review salaries and job classifications within the City's civil service structure and provide recommendations on a reclassification that would make the City's pay level reasonably comparable to the appropriate labor market pay levels. The firm provided the City with a report (the Yarger Study) that recommended that the City increase its current pay level by ten percent or two grades. In 1995, the City Council adopted the recommendations set forth in the Yarger Study. Annapolis, Md., Resolution No. R-26-95 (May 22, 1995). As a result of this adoption, all active employees, including active duty police officers and fire fighters moved up two pay grades, but back two steps within the pay scale structure. This change left all active employees earning relatively the same salary as they were earning prior to the change. [5] The adoption of the Yarger Study, according to the City, resulted in employees receiving increased opportunities for additional in-grade increases, through the merit system. Under this plan, an active duty employee could receive an increase in pay equal to approximately five percent on his or her anniversary date of employment with the City if he/she achieved a satisfactory rating on a review from his or her superior(s). In addition, the City Council granted active City employees a two percent cost-of-living adjustment (COLA) or increase in their salaries. The City also granted retired employees, including Petitioners, a two percent COLA increase in their pension benefits. Thereafter, in 2001, the City hired Hendricks and Associates, Inc., to conduct a subsequent review of the City's job classifications and pay scale structure. The firm issued a report (the Hendricks Study) recommending an entirely new classification system. The Hendricks Study proposed compressing the then-current pay scale from forty grades to twenty grades and compressing the number of steps within each grade from eleven to ten. The study also proposed increasing the increment between in-grade steps from 5 percent to 5.36 percent. In addition, the Hendricks Study proposed the reassignment of all City positions to grades based upon job evaluations to be completed. The City Council adopted the proposed plan on June 11, 2001, to be effective on July 1, 2001. Annapolis, Md., Resolution No. R-12-01 (June 11, 2001). As a result of the adoption, [e]mployees were placed in whatever step within a newly assigned grade [that] would bring them closest to, but not less than, 102% of their current salaries. Employees were still eligible to receive merit-based salary increases on the anniversary date of their employment with the City. In addition to the significant pay scale structure change for active duty City employees, the City Council awarded retired employees a two-percent COLA increase, effective July 1, 2001. Annapolis, Md., Resolution No. R-14-01 (June 11, 2001).