Common use of Denial of Step Increase Clause in Contracts

Denial of Step Increase. An employee who receives two consecutive overall below satisfactory performance evaluation ratings shall not be advanced to the next salary step. The department head may reduce the monthly salary of an employee by up to two (2) steps in any twelve (12) month period on the basis of two consecutive overall below satisfactory performance evaluation ratings. No evaluation done prior to July 1, 1987, shall be used to reduce an employee in salary. Furthermore, no employee shall receive a reduction in salary exceeding two (2) steps in a five-year period. Finally, no employee who received fifth step under the five-step plan prior to July 1, 1987, shall receive a reduction to a step below the ninth step.