COMMISSION AGENDA – Action Item No. 8b Page 3 of 4
Meeting Date: November 27, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Other Adjustments
The Internal Audit Director’s administrative reporting relationship will be updated to specify
that performance reviews will be prepared and conducted by the Executive Director rather than
the Chief Financial Officer. The Internal Audit Director will continue to report to the Audit
Committee who are charged with providing input to the Executive Director on the Internal
Auditor Director’s performance.
We will also be making a slight change to the definition of the “probationary period” to specify
that it is an extension of the hiring process.
Per direction from outside counsel, we will be updating the at-will definition to more clearly
specify the process for indicating that a job is at-will when it is posted, and a job offer is made.
Other Information Not Included in Salary and Benefits Policy Directive
We also want to bring visibility to the upcoming State mandated Paid Family and Medical Leave
program. Benefits through this program will become available on January 1, 2020. This new
program will provide partial pay (up to a maximum $1,000 per week) to employees when they
require time off for a serious medical condition, to care for a family member with a serious
medical condition, when they welcome a new child to their family (parental leave), or for
certain military situations. There will be a one week waiting period before benefits are
available, and the program will provide benefits for up to 12 weeks (up to 18 in some
pregnancy situations). The State program is funded through employee and employer
contributions that total about 0.4% of payroll with employers paying about 34% and employees
paying about 66% of the total premium. The Port contribution to the premium beginning in
2019 is estimated to be approximately $270,000. Premium collection will begin January 1,
2019. Full details about this program are not yet available from the State.
Employers may opt out of the State administered plan by providing their own plan with benefits
that are at least as good as the State plan. Employers who opt out do not pay premiums, either
employer or employee portions, to the State. The State must approve an employer’s
application to opt out of the state plan and the application process includes a review of the
requesting employer’s proposed plan and related policy. The Port applied to the State to opt
out of the State plan on October 31, 2018. We anticipate that our plan will be approved and
will become effective in 2020. This means the Port will not have to pay employer, or collect
employee, premiums for the State plan if our application is accepted by the end of this year.
We believe this will be an increased benefit to Port employees as they will not be responsible
for contributing to a program that they may not have need for.
In the event our application to opt out of the State plan is not approved before the end of this
year, we will begin collecting premiums from employees and remitting them together with the
Port’s contributions to the State. If our application is not approved, we will attempt to
resubmit our application. We will include details on either the Port’s participation in the