Office of Origin: Human Resources
Responsibility: Executive Director, Human Resources
Original Date Adopted: 12-10-24
Dates Reviewed: 10-9-24 (C), 7-7-25, 9-19-25(C)
Last Date Board Approved: 7-7-25

Eligibility for Raise
An employee must have been employed for at least 90 days prior to the date of the raise to be eligible for the raise.

Exceeding the Maximum Pay Rate
At the time of an across-the-board pay increase, if an employee’s current pay rate exceeds the maximum pay rate on the DBM grade on the pay scale, no across-the-board pay increase will be given to the employee until their pay falls below the maximum rate. This applies to all pay rate adjustments related to the above scenarios as well as across-the-board pay increases.

COLA Wage Adjustment for Non-Bargaining Unit Employees
Effective January 1 each year, Lake Michigan College (LMC) will provide a Cost-of-Living Adjustment (COLA) to the base wages of all non-bargaining unit employees. The adjustment will be based on the COLA rate published by the Social Security Administration (SSA) each October.

Wage Adjustment for Employees Fully Funded by a Grant
All pay related decisions for employees whose positions are fully funded by a grant- are dependent on available grant funding. All grant-funded employees’ pay must adhere to the parameters of the grant’s budget.

Wage Adjustment for Bargaining Unit Employees
Employees covered by a bargaining unit should refer to their respective union agreements for details on compensation adjustments and related matters.

Effective Date of Wage
Raises will take effect at the beginning of the next pay period following January 1 each year, or on January 1 if that date is the beginning of a pay period.

COLA Rate Application
The COLA will be applied to current base wages as of January 1, with the new base wage remaining in effect until December 31. The COLA increase will range from a minimum of 2% to a maximum of 4.5%, regardless of the published SSA rate.

Communication
Human Resources will communicate the COLA to impacted employees once the SSA announces the rate in mid-October.

Data Source
LMC will use the COLA published by the SSA, which is based on the Consumer Price Index for Urban Wage Earners & Clerical Workers (CPI-W). CPI-W reflects changes in the prices of goods and services paid by wage earners and clerical workers and is prepared by the U.S. Bureau of Labor Statistics (BLS). This widely recognized source ensures consistency and accuracy in reflecting changes in the cost of living.

Exceptions
Exceptions to this policy may be made at the discretion of the President.

References: Compensation Philosophy & Pay Setting policy