Thursday, April 9, 2015

Research Q of the Week: Limits on City Employee Pay (4/9/15)

Question: Is there a limit on how much we can pay a city employee?

Answer:
Yes. Well, kind of—I’ll explain.

State law limits compensation for city employees to 110 percent of the governor’s annual salary with annual adjustments made based on the Consumer Price Index. The governor’s salary for 2015 is $123,912, so *pulls out calculator* the limit for city employees is $165,003.

That’s not a bad chunk of change! Most city employees in Minnesota do not earn nearly that much annually, but there are a few cities that offer these higher salaries in hopes of attracting and retaining the best-of-the-best in highly skilled positions.

The limit does not include other benefits offered like insurance or sick leave. There is also a waiver process a city can go through if they believe the position should be paid more than the limit. For more information on this topic, see the League’s memo on the governor’s salary cap law.

Are you curious now what fair salaries for your city are? We have a tool that can help cities with that! After your city has shared your own salary data, you then gain access to the League's annual Minnesota Local Government Salary & Benefits Survey. The survey results include information on public sector services, salaries (union and non-union), and non-salary benefits. 

Written by Amber Eisenschenk, staff attorney with the League of Minnesota Cities. Contact: aeisenschenk@lmc.org or (651) 281-1227.

This blog post conveys general information. It’s not legal advice. Please check with your city attorney before acting on this information.

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