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Negotiators reach landmark agreement on new employee pay structure

November 13, 2024 | Sparks, Washoe County, Nevada


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Negotiators reach landmark agreement on new employee pay structure
In a recent government meeting, officials discussed the newly negotiated Collective Bargaining Agreement (CBA) set to take effect retroactively from July 1, 2024, through June 30, 2027. The agreement, reached after the previous CBA expired on June 30, 2024, includes several key changes that will impact employee compensation and city finances.

Effective July 1, 2024, base pay rates for all positions represented by the association will see a one-time increase of $750 to support cancer screenings, alongside a 5% overall increase for fiscal year 2025. This increase comprises a 3.5% cost of living adjustment and a 1.5% adjustment that replaces a previously standalone uniform allowance. The net cost of these changes is projected to be $211,321 for fiscal year 2025.

The CBA also stipulates cost of living adjustments of 3% for fiscal years 2026 and 2027, which will add $66,235 and $68,222 to the city's expenses, respectively. Additionally, educational incentive pay will rise from 6% to 8% for relevant bachelor's degrees and from 8% to 10% for master's degrees, incurring costs of $39,330 in fiscal year 2025, $38,538 in fiscal year 2026, and $33,677 in fiscal year 2027.

Longevity pay has been revised, increasing the maximum from $7,700 to $9,000 in fiscal year 2025, $10,000 in fiscal year 2026, and $11,000 in fiscal year 2027, with associated costs of $12,949, $10,261, and $10,601, respectively. An additional incentive pay of 1.5% of base pay will be introduced for employees with advanced EMT certifications, expected to cost $27,386 in fiscal year 2025, increasing in subsequent years.

The agreement also raises the deferred compensation matching contribution from $100 to $150 per pay period, adding $11,700 to the city's budget in fiscal year 2025. While there are no changes to overtime pay language, the overall adjustments are anticipated to increase overtime costs by $18,766 in fiscal year 2025, with smaller increases in the following years.

These changes reflect a significant investment in employee compensation, with total projected costs rising steadily over the next three fiscal years.

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