Standards and procedures for payment of performance incentives.

Denver Revised Municipal Code § 18-74

in effect

Sec. 18-74. - Standards and procedures for payment of performance incentives. Subject to the availability of a prior appropriation therefor as provided in section 18-73, the mayor may authorize the disbursement of performance-based incentive pay for employees according to the following standards and procedures: (a) The head of the department or agency shall, prior to January 1 of any fiscal year and subject to the prior written approval of the mayor and the Office of Human Resources Executive Director, adopt and make available to all employees within his or her department or agency objective criteria for earning incentive pay within that fiscal year. The head of the department or agency in the first quarter of each year may propose modifications to the criteria based upon actual performance for the prior year, subject to the prior written approval of the mayor and the Office of Human Resources Executive Director. Any approved amendments to the criteria shall be made available to all employees within his or her department or agency. (b) Any criteria adopted pursuant to this subsection shall include performance targets for the department or agency sufficient to allow the head of the department or agency to measure cost savings, enhanced revenues, increased productivity, operating efficiencies, enhanced service delivery, or any similar objective measure of performance or productivity. (c) Any criteria adopted pursuant to this section shall provide that incentive pay may be earned by employees throughout the department or agency or any subdivision thereof, based upon the overall performance of the department, agency or subdivision, or, in the alternative, may be earned by individual employees based upon individual achievement in meeting the performance targets established by the head of the department or agency. (d) The maximum amount of any performance-based incentive payment for which any employee shall be eligible shall be as set forth in the criteria adopted by the expending authority in accordance with subsection (b) and (c) of this section; provided, however, no incentive payment shall exceed the maximum lawful incentive payment amount as provided in subsection 18-73(a). (e) No incentive payment shall be made, and incentive payments remain discretionary, until certified by the department or agency head; provided however, that for career service employees working for the district attorney, clerk and recorder and auditor, incentive payments remain discretionary and shall not be paid until approved by the district attorney, clerk and recorder and auditor for their respective offices pursuant to subsection 18-71(c). The process for certification is the following: the head of the department or agency documents and certifies to the mayor and the Office of Human Resources Executive Director that the performance targets established in accordance with subsections (b) and (c) have been or are projected to be met for the year, and the mayor and the director have approved the same in writing. The certification by the appointing authority of the department or agency shall specifically identify all employees eligible to receive the incentive payment as a result of having met the performance target, and a copy of the certification shall be provided to the manager of finance. (f) Unless otherwise provided in the criteria adopted by the head of the department or agency pursuant to this section, any incentive payment shall be made in the final month of the fiscal year. The incentive payment shall be deemed to be compensation in addition to, and not a part of, the employee's regular base rate of pay and any merit increase in pay as provided in the classification and pay plan, and shall be subject to any and all withholdings for taxes, employee contributions for benefits, and any other similar withholding that may be required by law or authorized by the employee. (Ord. No. 959-05, § 1, 12-19-05; Ord. No. 862-06, § 1, 12-26-06; Ord. No. 775-07, § 20, 12-26-07; Ord. No. 701-08, § 1, 12-15-08; Ord. No. 661-12, § 3, 12-26-12)

Source: City and County of Denver, Revised Municipal Code and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/co/denver/codes/code_of_ordinances?nodeId=TITIIREMUCO_CH18EMOFPABE_ARTIICLPAPL_DIV4INPAREBO_S18-74STPRPAPEINFetched: 10/27/2026