HR Reference Manual Chapter 4: Compensation

See accompanying model documents below.

This content conveys general information. Do not use it as a substitute for legal advice. Any attorney general opinions cited are available from the League’s Research staff.

Learn effective and legal compensation practices and policies. Find explanations of compensation or pay plans and tools such as market studies, merit pay, broad banding,  performance or skill pay, cost of living and other types of  pay increases . Review minimum wage and overtime laws.  Covers state requirements on salary caps, and pay equity. Understand payroll issues like when wages are due and permitted withholding and payroll deductions.

Use these model documents with the discussion on “Compensation”:

• City Compensation Practices Self Audit Checklist, LMC model form (doc)
• Classification and Compensation Plan Framework for Smaller Cities (doc)
• Job Description, LMC model form (doc)
• Overtime and Compensatory Time, LMC model policy (doc)
• Social Security and Medicare Withholding Chart (doc)

See Table of Contents: HR Reference Manual