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HomeMy WebLinkAbout300-36 POLICY & PROCEDURE Subject: CANDIDATE REIMBURSEMENT OF EXPENSES Index: HRRM Number: 300-36 Effective Date: 5/6/2020 Supersedes: 8/3/1981 Page: 1 of 4 Staff Contact: Ellen Bradley-Mak Approved By: 1.0 PURPOSE: To establish a policy and procedures for the reimbursement of certain expenses incurred by candidates competing for Executive Level, Department Head, Division Head, or Manager positions for the City of Renton. This policy is intended to recognize certain circumstances where recruiting a sufficient representation of qualified candidates may be limited locally and require a broad recruitment effort. 2.0 ORGANIZATIONS AFFECTED: All departments/divisions. 3.0 REFERENCES: Appendix A: Relocation Reimbursement & Repayment Agreement 4.0 POLICY: 4.1 As further set forth in this policy, the City of Renton will provide reimbursement to candidates meeting the eligibility requirements for expenses incurred in conjunction with their participation in the selection process, and/or relocation due to a job offer, for Executive Level, Department Head, Division Head, or Manager positions: 4.1.1 Eligibility for selection process reimbursement: Candidates invited to the City of Renton to compete for Executive Level, Department Head, Division Head, or Manager positions may be eligible for reimbursement of expenses related to the selection process such as those incurred in interviewing, city visits, and/or house hunting, as further set forth in this policy. Positions outside of the categories listed above that are deemed ‘hard-to-fill’, would be considered only after review, and approval, by the hiring department’s Administrator and the HRRM Administrator. Video conferencing options are available for first round interviews. Candidates that do not meet policy eligibility requirements are otherwise required to travel at their own expense. Policy 300-36 Candidate Reimbursement of Expenses p. 2 4.1.2 Eligibility for relocation reimbursement: Only non-represented positions classified as Executive Level, Department Head, Division Head, or Manager may be eligible for reimbursement of expenses related to relocating, as further set forth in this policy. Exceptions will not be considered. 4.2 Selection process reimbursement limits for 2nd round interview/City visit: 4.2.1 Travel: Whichever travel method is least expensive; either round trip airline expenses (coach class) for travel in excess of 250 miles (one-way), or, travel in excess of 100 miles (one-way), but less than 250 miles, may be eligible for mileage reimbursement. If traveling by car, mileage is reimbursed at the allowance rate established by the Internal Revenue Service. Other methods of transportation will be evaluated on a case-by- case basis. 4.2.2 Lodging: Expenses for one night's accommodations not to exceed the area's average rate for single occupancy. A stay may be extended if deemed necessary for the recruitment and selection process. 4.2.3 Meals: Expenses not to exceed $50.00 per day. 4.2.4 Transportation service: Actual expenses incurred from using a shuttle service, or a ridesharing company, for travel to and from airport and interview location. 4.2.5 City visitation and/or house hunting visit: The purpose of such a visit shall be to either enable a prospective employee to become initially acquainted with the city, or to allow a prospective employee to begin a search for a new home. If approved per this policy, the following related expenses may be reimbursable if incurred at a reasonable rate as determined in the City’s sole discretion: airfare, car rental, hotel accommodations, and meals for a maximum of three days limited to expenses for the prospective employee and a spouse or partner. 4.2.6 Tax consequences: The candidate is solely responsible for any tax consequences that may result from reimbursement by the City of Renton. Policy 300-36 Candidate Reimbursement of Expenses p. 3 4.3 Reimbursement for relocation expenses: 4.3.1 Relocation expenses may be available and will be considered after acceptance of a job offer under the following circumstances: x The distance between Renton City Hall and the prospective employee’s current residence is at least 50 miles. x The hiring department has demonstrated that making an offer to pay relocation expenses is in the best interest of the City through an analysis of factors such as the identification of the unique or special skills of the candidate; difficulty of recruitment; evaluation of market factors, etc. 4.3.2 Allowable expenses for relocation expenses are limited to: x Packing, moving, and unpacking of routine household items not to exceed 15,000 pounds. Items that are unusually large or requiring special handling are not considered routine household items. x Cost of moving of no more than two family cars. x Maximum insurance coverage of $75,000; any additional insurance will be the responsibility of the prospective employee. x The prospective employee must provide the hiring manager with copies of three written quotes from moving companies. The City will reimburse up to the amount of the lowest quote provided. x Storage while in transit at either the origin, or destination, for up to 30 days total. x Transportation and lodging expenses, one-way for relocation of the prospective employee and immediate family members. Allowable lodging expenses will be determined on the assumption that the prospective employee will be driving 500 miles per day. The prospective employee is solely responsible for any tax consequences that may result from payments covering relocation expenses. If the City determines that any relocation expense payment meets IRS guidelines for taxable income, that amount will be included on the employee’s year-end W-2 form. 4.3.3 Interim housing expenses may be negotiated as necessary. Covered expenses are limited to the specific negotiated amount and may not exceed $15,000. Individuals approved for interim housing expenses are not eligible to receive reimbursement for relocation expenses also. However, an individual may choose to use the interim housing expenses allowance to cover moving expenses at their discretion. The prospective Policy 300-36 Candidate Reimbursement of Expenses p. 4 employee is solely responsible for any tax consequences that may result from interim housing expenses reimbursed by the City of Renton. 4.3.4 After a job offer is accepted, should the new employee resign, that individual will be required to reimburse the City for relocation expenses the City paid on the individual’s behalf according to the following schedule, and as established in an agreement (Appendix A) with the City of Renton: 0 - less than 12 months 100% repayment 12 - less than 18 months 75% repayment 18 - less than 24 months 50% repayment 24 - less than 36 months 25% repayment 36 months and beyond 0% repayment 5.0 DEFINITIONS: Not applicable. 6.0 PROCEDURE: 6.1 A department desiring to offer reimbursement for expenses should first obtain approval from the HRRM Administrator. 6.2 After obtaining approval from the HRRM Administrator, the applicable department shall, on behalf of the City, negotiate a reimbursement and repayment agreement with the applicable prospective employee for relocation expenses. No prospective employee shall be eligible for reimbursement of relocation expenses pursuant to this policy until an agreement is fully executed. 6.3 All claims for expenses shall be on a reimbursable basis only. Sufficient and proper documentation, such as vouchers, receipts, statements, etc. for all eligible expenses incurred must be submitted by the candidate, or prospective employee, for review and processing by the Finance Department. Payment shall be by check. 6.4 All relocation expenses must be incurred, and submitted for reimbursement, within 180 days from the hire date. Expenses incurred and/or submitted after this period will not be eligible for reimbursement. 6.5 The hiring department’s budget will absorb all costs associated with reimbursement expenses. Policy 300-36 Candidate Reimbursement of Expenses p. 5 APPENDIX A CITY OF RENTON RELOCATION REIMBURSEMENT AND REPAYMENT AGREEMENT This agreement (the “Agreement”) is entered into this _____ day of ___________, 20___, by the City of Renton, hereinafter referred to as the "COR" and ____________________, hereinafter referred to as the "New Employee". Together, the COR and the New Employee are the “Parties.” Once fully executed by the Parties, this Agreement is effective as of the last date signed by both parties. RECITALS Whereas, pursuant to COR policy #300-36, the New Employee acknowledges and agrees that reimbursement paid under this Agreement is in consideration for relocation costs incurred in association with the offer of employment by the COR for Executive Level, Department Head, Division Head, or Manager positions. Whereas, this Agreement does not alter the nature of the New Employee’s employment as at-will or not at-will. AGREEMENT Now, therefore, the COR and the New Employee do mutually agree as follows. 1. RECITALS. The above recitals are incorporated herein. 2. REIMBURSEMENT SCOPE AND LIMITS AND REPAYMENT OBLIGATIONS. The COR will provide the New Employee reimbursement for expenses incurred related to relocating as referenced in section 4.3 of policy #300-36 in an amount not to exceed a total of ____________________________. If the New Employee resigns, the New Employee will repay the COR for relocation costs the COR paid on the individual’s behalf according to the following schedule based on the New Employee’s duration of employment with the COR: Policy 300-36 Candidate Reimbursement of Expenses p. 6 0 - less than 12 months 100% repayment 12 - less than 18 months 75% repayment 18 - less than 24 months 50% repayment 24 - less than 36 months 25% repayment 36 months and beyond 0% repayment The New Employee hereby agrees that the COR may collect any repayment due from the New Employee via payroll deductions, and the New Employee hereby authorizes the COR to make such payroll deductions. 3. PROCEDURE FOR REIMBURSEMENT. As referenced in section 6.0 of policy #300-36, all claims for expenses under this Agreement shall be on a reimbursable basis only. The New Employee shall provide sufficient documentation of nature and amount of eligible reimbursable expenses such as vouchers, receipts, and statements. The New Employee shall submit all such documentation for review and processing by the COR Fiscal Services Division. All expenses must be incurred, and submitted for reimbursement, within 180 days from the hire date. Expenses incurred and/or submitted after this period will not be eligible for reimbursement. Payment shall be by check. 4. ENTIRE AGREEMENT; MODIFICATION. This Agreement represents the entire and integrated agreement between the COR and the New Employee and supersedes all prior negotiations, representations, or agreements written or oral. No amendment or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the Parties. 5. SEVERABILITY. If any term, condition or provision of this Agreement is declared void or unenforceable or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. 6. APPLICABLE LAW; VENUE; ATTORNEYS FEES. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the Parties specifically understand and agree that venue shall be in King County, Washington. The prevailing party in any such action shall be entitled to its attorney’s fees and costs of suit. Policy 300-36 Candidate Reimbursement of Expenses p. 7 7. COUNTERPARTS. The New Employee and the COR may execute this Agreement in any number of counterparts, each of which shall constitute an original, and all of which will together constitute this one Agreement. COR Signature New Employee Signature Name (print) Name (print) Mailing address for payment(s): Title _______________________________________ _______________________________________ Date Date