Alabama § 45-58A-111.09 - Compensation Plan.

(a) The council, in consultation with the director, mayor, or city manager, and other city personnel it deems necessary, shall adopt by resolution a compensation plan as the basis of compensation for employees in the service of the city.

(1) The plan shall be constructed to provide fair compensation for all classes in the classification plan and exempt positions, taking into account the following factors:

a. Varying degrees of difficulty and responsibility in work between classes.

b. Prevailing rates of pay and benefits for similar employment in the area, in both the private sector and for other municipalities.

c. The recruiting experience for each class.

d. The city’s financial condition.

(2) The compensation plan shall contain the following provisions:

a. Guidance for implementing and administering the plan.

b. A pay grade for each class in the classification plan, containing the minimum, maximum, and intermediate pay steps within the class grade.

c. The time period measured for pay, indicating the number of weekly hours or any other appropriate measure for the class grade.

(c) The compensation plan shall be amended by one of the following procedures:

(1) When the mayor and the council by resolution add a new position to the classification plan and fix the salary grade, the job description shall assign the position to the appropriate pay grade.

(2) In the case of a proposed cost-of-living or other compensation plan amendment that has been previously approved in the council’s annual budget, the council’s approval of the amendment in the annual budget shall obviate the need for a separate resolution approving the amendment.

(d)(1) Each employee in the classified service shall be paid at a rate set forth in the compensation plan for the classification in which he or she serves.

(2) A new appointee to the regular classified service shall normally be paid the minimum pay step within the pay grade for the class in which the position falls, unless in the discretion of the hiring authority and the director, circumstances, skills, or experience dictate a higher pay step.

(3) Salary advancements within a pay grade shall be based on satisfactory job performance in the position as set out in the employee handbook and shall be implemented according to the administrative procedures in the compensation plan. A performance rating reflecting satisfactory performance shall be required for advancement. An employee with uninterrupted satisfactory service shall be eligible for a salary increase on an annual basis until the maximum step for the pay grade is reached.

(4) In the event a regular employee is promoted, demoted, or transferred pursuant to Section 45–58A–111.10, his or her rate of pay shall be deter-mined as follows:

a. Upon promotion, the employee’s regular base pay shall determine the new rate in the promotional class. The new rate shall be the larger of:

1. A one-step increase above the former rate; or

2. The entrance rate for the promotional class.

b. When an employee is demoted, compensation shall be reduced to the salary prescribed for the class or grade to which demoted or the step rate reduced if the employee remains in the position. In no event shall the pay grade exceed the maximum approved rate of the new classification.

c. When an employee is transferred from one department to another, the step in the pay range shall be in accord with the approved job description of the position to be occupied by the employee. All transfers shall be approved by the appointing authority.