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SECTION 8. Demotions Employees who are demoted to a lower grade shall receive compensation according to the grade and step in which they are piaced by the Department Head, Director of Personnel and approved by the Office of the City Manager. If an employee is demoted to a position one grade below the present classi- fication, the employee will receive a decrease equivalent to one step. If the demotion is two or more grades below the current classification, the employee will receive a decrease equivalent to two steps; however, in no case will an employee retain the same compensation that was received prior to the demotion, or be compensated at a rate less than the minimum for the grade to which demoted. SECTION 9. Transfers "Transfer" shall mean lateral re-assignment of an employee from one position classification to another position clas- sification of the same grade. Such transfer may occur within or between departments. Any employee transferred to another class of employment shall receive compensation at the same grade and step received prior to the transfer. The transfer activity may not be used to increase or decrease the salary of the transferred employee. No employee may be transferred without the prior approval of the Department Head(s) involved and the Director of Personnel. SECTION 10. Overtime Eligibility for overtime compensation shall be determined by the Department Head and the Director of Personnel in accordance with the Fair Labor Standards Act of 1938 (FLSA), as amended, including, but not limited to, the 1985 Amend- ments to the FLSA as same is applied to City employment through the adoption of the C~ty's Administrative Policy Directive pertaining to overtime. (b) Exempt and Non-Exempt classifications are indicated in the Classes of Positions Assigned to Pay Grades Section. The letter E after the Grade designation indicates positions that are EXEMPT from the provisions of the Fair Labor Stan- dards Act. The absence of the Letter E indicates that the position is NON-EXEMPT, and ~s subject to overtime according to (a) above. Cc) The City Manager ma~ authorize payment for overtime to any employee. SECTION 11. Additional Compensation Police Officers Firefighters and Ca) Any sworn officer of the Fire or Police Departments who is required to wear civilian clothes in the regular performance of official duties, shall be paid an additional $50.00 per month as clothing allowance. -4-