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O/~O - CHAPTER III - COMPENSATION The Human Resources Department coordinates the compensation and benefits programs for the City. Sections 3.05 to 3.40 apply to non-civil service employees only. Civil Service employees are subject to the provisions of Local Government Code Chapter 143. Each employee is paid in accordance with responsibilities and performance. Periodic surveys of the labor market will be conducted to maintain competitive pay scales. Section 3.05 - Compensation for New Employees: Generally new employees are hired at the minimum of the approved salary range. With written justification to the Director of Human Resources, the department director may authorize a starting salary of up to 5% above the minimum. A starting salary in excess of 5% ~ above minimum requires that the department director submit written justification through the Human Resources Director to the City Manager for approval. Following successful completion of the introductory period, an employee will be eligible to receive a merit increase. Section 3.10 - Merit Pay Increases: Each budget year the City Council will consider approval of a Merit Pay Program. If approved, the merit pay funds will be utilized for performance based increases according to an established salary increase matrix. The Merit Pay Program will be administered by the Human Resources Department. Performance appraisals will be conducted every six months and merit increases (if appropriated) will be determined by the employee's level of performance. Employees who have reached the top of the salary range for their position will be considered to have "topped out" and will not be eligible for merit pay increases. October 1992 Employee Handbook - City of San Marcos Page 3 - 1