HomeMy WebLinkAboutAgenda Report - November 15, 2016 D-01 SMCITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA ITEM
D-
AGENDA
TITLE: Adopt Resolution Approving Salary Adjustment for the Literacy/Volunteer Manager
to Comply with New Salary Requirements for Exempt Employees Under the Fair
Labor Standards Act
MEETING DATE:
SUBMITTED BY:
November 15, 2016
Human Resources Manager
RECOMMENDED ACTION: Adopt resolution approving salary adjustments for the
Literacy/Volunteer Manager to comply with new salary requirements
for exempt employees under the Fair Labor Standards Act.
BACKGROUND INFORMATION: In 2014, President Obama directed the Department of Labor to
update and modernize the regulations governing the exemption of
Executive, Administrative, and Professional (EAP) or "White Collar"
employees from the minimum wage and overtime pay protections
of the Fair Labor Standards Act (FLSA or ACT). On May 23, 2016, the Wage and Hour Division,
Department of Labor published its Final Ruling to update the regulations. To be considered exempt
under part 541 of the FLSA, employees must meet certain minimum requirements related to their primary
job duties and, in most instances, must be paid on a salary basis at not Tess than the minimum amounts
specified in the regulations.
The new regulations increase the salary threshold needed to qualify for overtime exemption from $455
per week ($23,600 per year) to $913 per week ($47,476 per year). It also establishes a mechanism for
automatically updating the salary and compensation levels every three years to maintain the levels and to
ensure that they continue to provide useful and effective tests for exemption.
The effective date of the Final Ruling is December 1, 2016, with future automatic updates to the salary
threshold every three years, beginning January 1, 2020.
Upon review of the City's salary schedules for exempt positions, the Literacy/Volunteer Manager is the
only classification impacted by the changes to the salary basis. As such, staff requests Council approve
increases to the salary range for the LiteracyNolunteer Manager, to be compliant with the new FLSA
regulations. The proposed salary range would be $47,521 to $57,762, effective December 1, 2016. The
salary will be re-evaluated prior to the next increase effective January 1, 2020.
FISCAL IMPACT: Annual increase of approximately $2,000
FUNDING AVAILABLE: Funding available through the Library budget.
AdeIe Post, Human Resources Manager
Joorrd n Ayers, Deputy City Ma ager/Internal Services Director
1
Stephen Schwa • e , Manager
APPROVED:dlic
RESOLUTION NO. 2016-207
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING
SALARY ADJUSTMENT FOR THE LITERACYNOLUNTEER
MANAGER TO COMPLY WITH NEW SALARY REQUIREMENTS
FOR EXEMPT EMPLOYEES UNDER THE FAIR LABOR
STANDARDS ACT
WHEREAS, on May 23, 2016, the Wage and Hour Division, Department of Labor
published its Final Ruling to update salary requirements for exempt employees; and
WHEREAS, the City of Lodi, in accordance with the Fair Labor Standards Act has
adjusted the salary for the LiteracyNolunteer Manager to comply with new salary requirements
for exempt employees.
NOW, THEREFORE, BE IT RESOLVED that the new salary range for
LiteracyNolunteer Manager is hereby approved and shall be as follows:
Classification
LiteracyNolunteer
Manager
Step 0 Step 1 Step 2
$47,521.38
Dated: November 15, 2016
$49, 897.45
Step 3 Step 4
$52,392.33
$55,011.94
$57,762.54
hereby certify that Resolution No. 2016-207 was passed and adopted by the Lodi City
Council in a special meeting held November 15, 2016 by the following vote:
AYES: COUNCIL MEMBERS — Johnson, Kuehne, Nakanishi, and Mayor Chandler
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Mounce
ABSTAIN: COUNCIL MEMBERS — None
)-y\
NNIFE {t . FERRAIOLO
City Clerk
2016-207