METRO EMPLOYEE COMPENSATION PLAN

Comprehensive Compensation and Benefits for All Metro Employees

$27.4 Million Year 1 Investment in Louisville Metro’s Workforce
$136.6 Million Four-Year Total Commitment

THE PROBLEM

Louisville Metro Government has a two-tier workforce: union employees with strong contracts securing 21-24% raises over recent years, and non-union employees receiving only 5% raises. This creates:

❌ Inequality and resentment among 3,500 non-union employees
❌ Difficulty recruiting for non-union positions
❌ High turnover in administrative, technical, and professional roles
❌ Morale problems undermining service quality
❌ Inability to compete with private sector and other cities

Current Reality: Public safety unions secured 21-24% raises. Everyone else got 5%.
Our Solution: Metro Employee Compensation Plan guaranteeing ALL employees comparable benefits.
Impact: Equity, fairness, and competitive compensation for 6,000+ Metro employees.

WHAT THE METRO EMPLOYEE COMPENSATION PLAN GUARANTEES

Comprehensive Benefits for ALL Employees:

✓ 24% compounded wage increases over 4 years (7% + 5% + 5% + 5%)
✓ Cost-of-living adjustments (COLA) – Automatic quarterly inflation protection
✓ Performance bonuses – 3% of salary annually for meeting goals
✓ Zero-premium healthcare for ALL coverage tiers
✓ Enhanced retirement – CERS contributions plus voluntary 457(b)
✓ Generous paid time off – 13 holidays, up to 25 vacation days, sick leave, 2 weeks parental leave
✓ Life insurance – 2x salary at no cost, plus supplemental options
✓ Disability protection – Short-term (80%) and long-term (60%) coverage
✓ Educational benefits – Up to $6,000 tuition + $1,000 textbooks + $2,000 professional development
✓ Student loan assistance – Up to $5,250 annually
✓ Workplace protections – Grievance procedures, anti-discrimination policies, whistleblower protection

Total Employee Benefit Value: $25,000-$30,000 annually beyond base salary

COMPREHENSIVE COMPENSATION STRUCTURE

Base Wage Increases

FY2026: 7% base wage increase
FY2027: 5% base wage increase
FY2028: 5% base wage increase
FY2029: 5% base wage increase

Total: 24% compounded growth over four years

This matches the wage trajectory secured by public safety unions, ensuring equity across all employee categories.

Real-World Impact Examples:

Administrative Analyst ($52,000 current):

• After Year 1: $55,640 (+$3,640)
• After Year 4: $64,410 (+$12,410 total, +24%)
• Plus COLA, bonuses, and enhanced benefits

Library Professional ($42,000 current):

• After Year 1: $44,940 (+$2,940)
• After Year 4: $52,023 (+$10,023 total, +24%)
• Plus educational benefits worth up to $9,000/year

Parks Maintenance ($32,000 current):

• After Year 1: $34,240 (+$2,240)
• After Year 4: $39,637 (+$7,637 total, +24%)
• Plus wellness benefits, longevity pay, enhanced leave

Cost-of-Living Adjustments

Automatic quarterly inflation protection:

• Paid quarterly based on Consumer Price Index
• Estimated 1.5-2.0% annually
• Rolled into base pay in 2029
• Estimated total COLA value: $8,800-$10,500 over contract life

Performance-Based Compensation

Annual Performance Bonus:

• 3% of salary for meeting goals
• Range: 0-6% based on performance
• $52,000 salary = ~$1,560 annual bonus
• $5.8M annual program cost

Excellence Recognition Bonus:

• $500 to $5,000 quarterly awards
• For exceptional service and innovation
• $2.1M annual program cost (Year 2+)

HEALTHCARE BENEFITS

Zero-Premium Medical Coverage:

• $0 monthly premium for ALL tiers (employee, family, etc.)
• No deductible for preventive/primary care
• Out-of-pocket max: $3,000 individual / $6,000 family
• Value: ~$17,500 per employee annually

Employee Wellness Centers:

• $5 copay per visit
• Medical, physical therapy, behavioral health
• Generic medications $5 per 30-day supply
• Extended hours at multiple locations

Dental, Vision, Prescription Coverage:

• Preventive dental 100% covered
• Vision exam and $150 frames every 24 months
• Prescription copays: $10/$30/$60
• All included at zero additional premium

RETIREMENT & FINANCIAL SECURITY

CERS Pension:

• Employer contributions: 18.62% (nonhazardous) or 35.73% (hazardous)
• Value: $11,000-$21,000 annually per employee
• Employee contributes 5-6% of salary

Supplemental Retirement:

• Voluntary 457(b) plan available
• Pre-tax or Roth options
• Financial education provided

Student Loan Assistance:

• Up to $5,250 annually (IRS maximum)
• Helps recruit talent burdened by education debt
• $1.8M annual program cost

PAID TIME OFF

13 Paid Holidays including Juneteenth, plus 2 floating holidays

Generous Vacation:

• Start: 10 days, growing to 25 days at 16+ years
• Carry over up to 240 hours
• Cash out up to 80 hours annually

Sick Leave:

• 12 days annually with unlimited accrual
• 50% payout at separation (max 60 days)

Paid Parental Leave:

• 2 weeks (80 hours) for birth, adoption, or foster placement
• First time this benefit available to non-union employees

Bereavement & Personal Days:

• Up to 5 days bereavement for immediate family
• 2 personal days annually

EDUCATIONAL BENEFITS

Total Support: Up to $14,250 annually

Tuition Assistance: $6,000/year

• Certificate through PhD programs
• Direct payment to schools

Textbook Reimbursement: $1,000/year

Professional Development: $2,000/year

• Conferences, certifications, training

Student Loan Assistance: $5,250/year

• IRS tax-free maximum
• After 1 year of service

ADDITIONAL BENEFITS

Life & Disability Insurance:

• 2x salary life insurance at no cost
• Short-term disability: 80% of salary
• Long-term disability: 60% of salary

Wellness & Fitness:

• $500 annual reimbursement
• Free TARC passes
• $50/month parking subsidy downtown

Employee Assistance Program:

• Free confidential counseling
• Mental health, financial, legal support
• Up to 8 sessions per issue

Longevity Pay:

• $300-$1,200 annually based on years of service
• Rewards long-term commitment

WORKPLACE PROTECTIONS

Non-Discrimination: Protection against discrimination based on race, color, religion, sex, sexual orientation, gender identity, national origin, age, disability, veteran status

Harassment-Free Workplace: Zero tolerance policy with anonymous reporting hotline

Grievance Procedure: Four-step process for resolving disputes without retaliation

Whistleblower Protection: Safety for reporting fraud, waste, abuse, or illegal activity

Workplace Safety: OSHA compliance, right to refuse unsafe work, required safety training

HOW WE PAY FOR IT

Total Four-Year Cost: $136.6 Million

• Year 1: $27.4M (2.3% of $1.2B budget)
• Year 2: $34.6M (2.8% of budget)
• Year 3: $36.3M (2.8% of budget)
• Year 4: $38.3M (2.9% of budget)

Funding Sources (No New Broad-Based Taxes):

Budget Reallocations ($12.5M annually):

• Administrative efficiency: $4.5M
• Vacant position management: $3.2M
• Contract optimization: $2.8M
• Reduced overtime: $2.0M

Revenue Enhancements ($8.2M annually):

• Occupational license compliance: $3.5M
• Property tax delinquency collections: $2.1M
• Parking modernization: $1.4M
• Parks/rec non-resident fees: $1.2M

Efficiency Gains ($6.7M annually):

• Reduced turnover costs: $3.8M
• Improved employee health: $1.9M
• Productivity gains: $1.0M

No new broad-based taxes. Fiscally responsible. Fully funded.

RETURN ON INVESTMENT

Quantifiable Annual Returns: $13.6 Million

• Reduced turnover: $9.0M
• Enhanced service delivery: $2.3M
• Reduced legal/HR costs: $800K
• Employee innovation: $1.5M

Additional Benefits:

• Competitive talent recruitment
• Equity between union/non-union employees
• Enhanced community reputation
• $34M+ economic boost to local businesses

COMPARISON TO PEER CITIES

| City | 4-Year Wage Growth | Tuition Assistance | Healthcare Premium |
|——|——————-|——————-|——————-|
| Louisville (with Bill of Rights) | 24% | $6,000/year | $0 |
| Indianapolis, IN | 12-15% | $3,000/year | $50-150/month |
| Nashville, TN | 18-20% | $5,250/year | $0-75/month |
| Cincinnati, OH | 10-14% | $2,500/year | $25-100/month |
| Memphis, TN | 8-12% | $1,500/year | $75-200/month |

Louisville becomes a LEADER in employee benefits among peer cities.

WHO THIS HELPS

All 6,000+ Louisville Metro Employees

Union Members (2,500):

• Your contracts are honored (not superseded)
• Your benefits remain intact
• Your precedent protects non-union colleagues

Non-Union Employees (3,500):

• Administrative and professional staff
• Library, parks, public works employees
• Technical specialists and analysts
• All other non-represented employees

Every Department Benefits:

• Library: 300+ employees
• Parks: 450+ employees
• Public Works: 200+ non-union positions
• Administrative/Professional: 2,500+ employees

FISCAL RESPONSIBILITY

This Plan IS:

✅ Fully funded through reallocations and targeted revenue
✅ Sustainable – built into base budget
✅ Fair to ALL employees
✅ Competitive with peer cities
✅ Smart – reduces costs through lower turnover
✅ Equitable – closes union/non-union gap
✅ Transparent – quarterly public reporting

This Plan is NOT:

❌ New broad-based taxes
❌ Deficit spending
❌ Political gimmick
❌ Attack on unions
❌ Reduction of existing benefits

ADDRESSING CONCERNS

Q: Can we afford this?
A: Yes. 2.3-2.9% of annual budget. Funded through efficiency, not new taxes. Saves money long-term through reduced turnover ($9M annually).

Q: Why should non-union get same as union?
A: Because EVERYONE deserves fair pay. Current inequality hurts morale and service quality.

Q: Will this make union contracts more expensive?
A: No. This matches current union benefits, doesn’t exceed them. Sets parity, not new precedents.

Q: What about the $1.2 billion budget?
A: Corrected. Actual budget is $1.2 billion. Metro Employee Compensation Plan based on accurate figures.

Q: How do we measure success?
A: Track turnover, recruitment quality, employee satisfaction, service quality. Quarterly public reports from Metro Employee Compensation Plan Oversight Committee.

THE CHOICE

Current Approach:

• Union: 21-24% raises
• Non-union: 5% raises
• Inequality and resentment
• High turnover costing millions
• Unable to compete for talent

Our Approach:

• ALL employees: 24% raises
• COLA protection
• Performance bonuses
• Comprehensive benefits
• Competitive with peers
• Louisville as destination employer

The Metro Employee Compensation Plan is about respect, fairness, and quality government.

OUR PROMISE

To Metro Employees:
You matter. Your service deserves fair compensation. Union or non-union, you’ll be treated equitably.

To Louisville Residents:
Better compensation = better service. No new taxes. Fiscally responsible. Investment in quality government.

To Everyone:
This is about building a Louisville where public service is valued, respected, and fairly compensated.

DAVE BIGGERS FOR MAYOR
Fair Pay. Fair Benefits. Fair Treatment. For Everyone.

For complete Metro Employee Compensation Plan document and budget impact analysis:
Visit davebiggers.com/employee-bill-of-rights

Version 2.0 – Updated with Metro Employee Compensation Plan | October 12, 2025