Fiscal Note
No appropriation required. Central Payroll may make pay advances under a hardship program; these funds will be recovered in subsequent pay checks. Overtime and compensated time off costs in certain agencies are expected to decrease by an estimated $100,000 annually. Agencies primarily affected include Police, Fire, Engineering and Metro Transit.
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2nd SUBSTITUTE Amending Section 4.10 of the Madison General Ordinances to increase the number of days for processing the City payroll.
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DRAFTER'S ANALYSIS: Under the current ordinance, the City pay period ends on a Saturday and employees are paid on the subsequent Friday. This schedule only allows two days to perform timekeeping functions within City Agencies. Under the proposed ordinance change, the pay period would end on a Saturday but City employees would be paid on the second subsequent Friday which allows payroll clerks and management in City agencies seven days to complete the timekeeping/certification responsibilities for payroll, instead of two. This seven-day processing period is comparable to most large employers including the State of Wisconsin and Dane County. While the processing period is increasing, employees will still be paid every two weeks as has been the longstanding City practice.
The additional five days of processing time reduces overtime costs for the City particularly in larger departments like Police, Fire, Metro and Engineering. Increasing processing time will also enhance the accuracy of paychecks because it ensures that employees have sufficient time to report hours worked or compensated absence accrual use on the final days of the pay period. Further it provides supervisors, managers and payroll clerks sufficient time to validate those reported hours to ensure accuracy before Department/Division heads certify payroll. The additional time also allows worker’s compensation incident reports to be processed by our Third Party Administrator ensuring employees are rec...
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