Item No. 8b Supp Meeting date: 11/13/18 2019 Salary and Benefits Introduction November 13, 2018 1 Topics to Cover • Background of the Salary and Benefits Resolution • Recommended Updates and changes - Pay Range Adjustment - Changes and Clarifications - Retiree Medical Plans - Paid Leave Plans 2 Background • RCW 53.08.170 authorizes Commission to establish salaries and benefits via resolution • The Salary and Benefits Resolution covers non-represented employees • The Resolution includes delegation of authority not included elsewhere • The 2019 Salary and Benefits Resolution 3752 will incorporate changes to the Salary and Benefits Policy Directive 3 Recommended Updates 4 Pay Range Adjustment • The recommended pay range adjustment is 3.5% to maintain market competitive pay ranges • Costs associated with the range adjustment are minimal - Less than 40 employees affected - Cost is approximately $42,000 • 2019 Seattle Minimum Wage will be $16/hour - Grade 7 range minimum will be slightly less than $16/hour - HR staff will review in 2019 - No employees will be paid less than the City of Seattle minimum wage - High School intern rate will be $16.81/hour 5 Changes and Clarifications • The Internal Audit Director reporting relationship will clarified • A slight change to the definition of the probationary period that it is an extension of the hiring process • NEW: Outside counsel recommended updating the definition of at-will jobs. The footnote reference to at-will jobs will be also removed from Exhibit A 6 Healthcare Plan Changes • Eliminating Retiree Medical Plans - Following years of declining enrollment and increasing premiums we will discontinue the retiree medical plans after the end of 2018 - As a result, in Section 5.3, subsections (B) and (C) related to medical benefits for retirees and their dependents are repealed - Section 5.4(B)(1), delete existing paragraph (b) relating to medical benefits for commissioners eligible for retiree medical 7 Paid Leave Plans • Prompted by feedback from the 2016 Employee Benefits Survey and 2017 focus groups • Researched local public employers and general industry market data and found we lagged the market average in this area • Recommended Addition: - One (1) Personal Day per year - Administered similar to a holiday with no liability accruing to the Port, no accrual or carry forward of the day to the following year - Taken as a full day off, cannot be split up and taken as multiple partial days off 8 Washington State Paid Family & Medical Leave • Mandated by state - benefits available 1/1/2020 - Provides partial pay (max $1,000/week) benefits for up to 12 weeks of medical (18 weeks in some pregnancy situations) - Funded by employee and employer premiums beginning 1/1/2019 - State rulemaking will not be completed until approximately 3Q 2019 • The Port has applied to opt-out of the State plan with a voluntary plan offering benefits that are at least as good as the State plan - The State must approve employers' applications to opt out - We anticipate that our plan will be approved this year and become effective in 2020 • Details on participation in either the State program or the Port's plan will be discussed during next year's process. 9 Questions? 10