Submitted by: Ron Brooks
Submitting Department: Finance
Agenda Section: Consent
Item Title:
title
Extension of the Premium Pay for City Essential Workers
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Suggested Action:
recommendation
I move that the Mayor and Council authorize an extension of the temporary Premium Pay program not to exceed (NTE) 4 additional pays within the eight-week period beginning with the first pay date in July 2022 and ending with the last pay date of August 2022 to provide additional pay to the City’s frontline essential employees whose income or hourly rate falls below 65% of the Area Median Income for Prince George’s County. The extension of the program will not exceed $57,500 in costs using American Rescue Plan funds.
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Summary Background:
The American Rescue Plan Act authorizes temporary payments to lower-income workers who are considered “essential” and must report for duty during a public health emergency. Premium Pay is not eligible for employees who conduct their work remotely
The Council previously authorized premium pay to front-line employees who earn under 65% of the Median Income for Prince George’s County for a single individual, $58,695/year, or $28.22/hour. The current approval will expire on June 24th, prior to the completion of the comparative compensation study.
This 8-week extension will allow the 59 essential frontline employees whose pay rate is below $58,695 per year to continue to receive the stipend until the study is complete and implemented. Eligible employees will receive $250 per pay period and eligible part-time employees $125 per pay period during the extension period from July 2022 to August 2022. The costs to extend the program will not exceed $57,500.
The HR Director expects to receive the results of the study in early July. It will reveal whether our employees are paid at a comparable rate to like size organizations and employees with similar duties and functions. The staff will evaluate the survey results and if applicable make permanent pay adjustments to those who are at or below market rate.
We are hopeful that the extension and potential pay adjustments will help with employee retention in the short and near term.
Next Steps:
Initiate payroll processing and inform eligible employees about extension of the temporary pay increase.
Fiscal Impact:
Costs not to exceed $57,500 of American Rescue Plan Act funds.
City Administrator Comments:
Recommends approval. We will work diligently to analyze compensation study results and make pay adjustments as feasible and recommended.
Community Engagement:
N/A
Strategic Goals:
Goal 4 - Foster Excellence in all City Operations
Legal Review Required?
N/A