Published: April 28, 2020
This material contains general information; it should not be used as a substitute for legal advice. Any attorney general opinions cited in this material are available on request from the League’s Research and Information Service 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)