Alabama Attorney General Opinion 1979-0141

OFFICE OF THE ATTORNEY GENERAL 14 LEE L. HALE DEPUTY ATTORNEY GENERAL WILLIAM M. SEKURS. JR. EXECUTIVE ASSISTANT WALTER S. TURNER CHIEF ASSISTANT ATTORNEY GENERAL JANIE NOBLES ADMINISTRATIVE ASSISTANT CHARLES A. GRADDICK ATTORNEY GENERAL STATE OF ALABAMA AUG 10 1919 ADMINI IVE BUILDING II NORTH UNION MONTGOMERY, ALABAMA 36150 AREA 11061. 113463150 Honorable Chalmers Bryant Mayor City of Andalusia Post Office Box 429 Andalusia, AL 36420 Municipalities - City of Andalusia Public Employees City of Andalusia may include as part of annual salary of city employees an Employee Safety Incentive Plan. Opinion by Assistant Attorney General Solomon. Dear Mayor Bryant: The request for an opinion of this office submitted by the City Council of the City of Andalusia has been received concerning the legality of the City implementing, as a part of City employees' annual salary, a Safety Incentive Plan. The amount is to be I% of the employees' annual salary and shall be contingent on each individual's safety record and shall be reduced according to the individual's loss ratio. The method of computing the loss ratio is set out in the Resolution adopting the plan. Honorable Chalmers Bryant layor City of Andalusia Page Two Code of Alabama 1975, § 11-43-7, states in part as follows: "All employees of any city or town whose compensation is not fixed by law shall receive such salary or fees for their services as the council may by ordinance from time to time prescribe." This section vests in the governing bodies of cities and towns broad discretion in establishing the salary and fees for employees of such bodies. The authority to include a safety incentive pay plan as a portion of an employee's compensation comes within the authority granted such governing bodies by this section. While this opinion approves the concept of allowing this method of payment as a part of an employee's total compensation it should be noted that this does not constitute an endorsement of this plan or any particular type plan. Furthermore, any such plan which may be adopted must clearly spell out in advance of the performance of services by the employees the terms and conditions of such plans and the plan must be administered in a fair and impartial manner for all employees. Sincerely yours, CHARLES A. GRADDICK Attorney General