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‘Red‑circle’ salaries: how Ramsey County plans to handle pay above new ranges
Summary
HR explained 'red‑circle' salaries—employees whose pay exceeds a job’s max range—and described options such as lump‑sum payments, freezing base pay, or board‑approved exceptions; commissioners asked for numeric examples and asked HR to flag affected employees.
Nicole, the HR consultant, briefed the commission about "red‑circle" salaries—cases where an employee’s current pay sits above the maximum of a newly established salary range—and laid out typical ways governments address them.
"Red circle means they're above... it's a red flag," Nicole said, noting causes include long tenure or special hiring circumstances. She provided an illustrative example for a hypothetical 4% increase that would raise an employee’s pay by roughly 96¢ per hour and equate to about $1,996.80 annually; in those cases she recommended paying part of the increase as a lump sum rather than permanently increasing base pay.
Nicole said common treatments include giving lump‑sum payments, continuing COLA in ways that avoid permanently increasing base pay above a range, or creating board‑approved exceptions in limited cases. Commissioners asked HR to produce a red‑circle numeric example and a list of affected employees so they can weigh budget impact and policy options.
