ARTICLE 8. COMPENSATION
ARTICLE 8. COMPENSATION 8.1 Across the Board Increases . The Employer shall provide across the board wage adjustments for all classified employees covered by this Agreement as follows: 3.25% effective at the start of the second full pay period following ratification 3% effective the first full pay period after July 1, 2020 3% effective the first full pay period after July 1, 2021 The wages in effect for all classifications covered by this Agreement shall be set forth in the OHSU Compensation Plan, which is posted on the Employer’s intranet. 8.2 Progression Increases . Employees shall be eligible for consideration for wage increases on the first payroll period following completion of the initial twenty-six (26) payroll periods of continuous service as defined in Article 17, and annual periods thereafter until the employee has reached the maximum pay rate of the applicable pay range. The annual date for such eligibility is referred to herein as the anniversary increase date. 8.2.1 Progression within quartiles . Each pay range shall be divided into quartiles, with a minimum, 25th percentile, mid-point, 75th percentile and maximum. Progression increases for employees in each quartile will be as follows: First Quartile: 4.00% Second Quartile: 2.75% Third Quartile: 2.00% Fourth Quartile: 1.50% 8.2.2 Longevity rate . A longevity rate exists at 3% above the maximum of the range. Employees will be eligible for movement to the longevity rate after serving five (5) consecutive full years in the same classification at the range maximum. 8.2.3 Withholding of wage increase . A wage increase shall not be withheld without first providing written notice to an employee including the reason(s) withheld. Such notice shall be provided to the employee prior to the anniversary increase date. Withholding an increase shall be considered a disciplinary action. 8.3 Merit-Based Adjustments . The wage rates referenced in Section 8.1 constitute the minimum compensation levels to be provided to an employee. Nothing in this Agreement shall be construed as prohibiting the Employer from providing an employee at any time with a merit-based adjustment or lump sum bonus as determined by the Employer in its sole discretion. The Employer will permit the Union the opportunity to recommend, through an appropriate advisory committee, criteria for the Employer’s consideration of any lump sum bonus program. 8.4 Market-Based Adjustments . In addition to the pay adjustments provided above, the parties shall maintain a separate process for the annual determination of market based wage adjustments for designated classifications. 8.4.1 Annual review . The parties agree to meet annually to review information related to jobs for which market comparison, recruitment and/or retention are of concern to either party, and to develop joint recommendations to the executive leadership of the affected Administrative units. The Market-Based Wage Committee conducting this review will be comprised of up to five (5) representatives appointed by each party. Up to two (2) bargaining unit members shall be released with pay to attend the review if they provide advance notice of the meeting to their supervisor at least seven (7) days in advance. 8.4.2 Survey information . The parties will continue to utilize the best available data synthesized by the Employer and will continue to consider employers in the Portland metropolitan area to be appropriate market comparators. The Employer will continue its practice of permitting the Union to review survey data upon request. The Union agrees to review and utilize such data only for the purposes set forth in this section. 8.4.3 Upward adjustment . In the event that the pay range for a classification is adjusted upward pursuant to this Section 8.4, any pay adjustment for employees in that classification will be recommended by the Market-Based Wage Committee. Employees who receive no pay increase shall retain their original anniversary increase date. The new anniversary increase date of employees who receive a pay increase will be the first day of the pay period after twelve (12) months have passed. 8.4.4 Downward adjustment . In the event that the pay range for a classification is adjusted downward pursuant to this Section 8.4, the pay rate of employees in that classification will remain unchanged. If the employee’s rate is over the maximum of the new range, the employee’s pay will be frozen and the employee will not receive any increase on base pay until the top of the new range has exceeded the frozen rate of pay. 8.5 Salary Adjustments upon Change in Status. 8.5.1 Voluntary demotion . Pay for an employee voluntarily demoting to a job classification in a lower pay range shall be set at a rate mutually agreed to by the employee and the manager. The employee’s new pay rate, however, shall not be lower than the midpoint of the range into which the employee is demoting. In the event the midpoint represents an increase, the employee’s new pay rate will be no less than the employee’s current pay rate, provided that rate does not exceed the range maximum. Where an employee is demoting to a position for which s/he is not fully qualified but for which the Employer is willing to train the employee, the new wage rate will be determined in accordance with Section 18.4. 8.5.2 Involuntary demotion . When an employee is involuntarily demoted for non-disciplinary reasons, the following provisions shall apply: a. Whenever an employee demotes to a job classification in a lower range, the employee will maintain the same wage rate in the lower range except as provided in subparagraph b below. b. Whenever an employee demotes to a job classification in a lower range, but the employee’s previous wage is above the maximum rate for the lower range, the employee shall be paid at the maximum rate for that pay range. When an employee is involuntary demoted as a result of disciplinary action, the employee will be placed on the pay range at a rate commensurate with his/her experience for the position. 8.5.3 Promotion . An employee upon promotion shall receive a pay increase of at least four percent (4%). Management has the discretion to award a higher increase based on the individual circumstances. The employee’s new anniversary increase date will be the first day of the pay period following twelve (12) months in the new position. 8.5.4 Lateral transfer . An employee’s pay rate shall remain the same when transferring from one position to another which has the same pay range. 8.6 Upward Adjustments . The wage rates referenced in Section 8.1 constitute the minimum compensation levels to be provided to an employee. Nothing in this Agreement shall be construed as prohibiting the Employer from, in its sole discretion, providing an employee at any time with an upward adjustment of the employee’s wage rate. 8.7 Reclassification. 8.7.1 Upward reclassification . An employee’s rate of pay upon upward reclassification shall be at the minimum pay rate in the new pay range, unless the old pay rate was higher than such minimum pay rate. In that case, the new rate of pay shall reflect a pay increase of at least four percent (4%). Management has the discretion to award a higher increase based on the individual circumstances. The effective date of reclassification payment shall be the first pay period following receipt of the reclassification request by the Human Resources Department. The employee’s new anniversary increase date will be the first day of the pay period following twelve (12) months in the new class. 8.7.2 Downward reclassification . When an employee is reclassified downward as described in Section 21.4, the employee’s pay rate will remain unchanged unless the employee’s rate is over the maximum of the lower range. In such a case, if the employee’s rate is at or above the longevity rate of the lower range, the employee will receive the longevity rate; if the employee’s rate is below the longevity rate of the lower range, the employee will be placed at the maximum pay rate for the lower range and will maintain prior years of credit toward the longevity rate. 8.8 Return from Layoff to Same Job Classification . When an employee is placed from the preferential hire list (PHL) to a position in the same class in which the person was previously employed, the employee shall be paid at the same rate at which he or she was being paid. When an employee separates from the Employer as a result of layoff and subsequently returns to the same job classification with the Employer, the employee’s previous anniversary increase date shall be adjusted by the amount of time served on the preferential hire list. 8.9 Travel Expenses and Allowances . Travel expenses and allowances shall be in accordance with the Employer’s policies. In the event that the Employer seeks to make a substantive change in its policies, it will notify the Union of such change at least thirty (30) days prior to implementation, and will bargain upon request regarding such change. 8.10 Final Paychecks . When an employee is involuntarily terminated, the Employer shall deliver the final paycheck to the employee at the same time and in the same manner as the written notice of such action. When an employee voluntarily resigns, the employee shall receive his/her final paycheck on the next regularly scheduled pay day. 8.11 Overpayments and Underpayments . An employee must notify the Payroll Department immediately upon becoming aware that he or she has received an overpayment. In the event of overpayment, the Employer may obtain repayment from the employee by payroll deduction for up to twelve (12) months of such overpayments preceding the date of the employee’s notification to Payroll or of the Employer’s notification to the employee of such overpayment. Absent special circumstances, the employee will be allowed to repay the total overpaid amount over the same period as the overpayments were made, up to a maximum of twelve (12) months or the employee’s termination of employment, whichever occurs first. In the event of underpayment, retroactive adjustment shall, unless otherwise required by the law, be applied to the period of the error, not to exceed twelve (12) months of such underpayments preceding the date of either the employee’s notification to Payroll or Payroll’s notification to the employee of the error.
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