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5.7 Salary Step When Salary Range is Increased Whenever the monthly schedule of compensation for a class is revised, each incumbent in a position to which the revised schedule applies shall be entitled to the step in the revised range which corresponds to the step held by him /her in the previous range. 5.8 Salary Step After Promotion or Demotion When an employee is promoted from a position in one class to a position in a higher class, he /she shall receive the minimum rate for the higher class; provided, however, that such step is at least five percent (5%) above his /her current wage rate. When an employee is demoted, whether such demotion is voluntary or otherwise, that employee's compensation shall be adjusted to the salary prescribed for the class to which he /she is demoted. The specific rate of pay within the range shall be determined by the City Manager, whose decision shall be final; provided, however, that the employee's rate of pay shall not be set at a lower rate than he /she would have received had he /she remained in the lower class. Section 6. Overtime Employees who are required to work in excess of their regular work day shall be entitled to overtime compensation for all hours so worked; provided, however, that the overtime rate shall be computed at one and one half (1-1/2) times the employee's regular rate of pay as calculated to the nearest one -tenth (1 /10) of an hour. If an employee who has completed his /her regular work day is called back to work (from home), he /she shall upon reporting within a reasonable time after notification, be compensated for all work performed outside of his /her regular duty shift at the overtime rate, commencing with the time of notification, but in no event shall he /she receive less than two (2) hours of overtime compensation for each such call back. Employees may be compensated for overtime worked either by monetary payment or by compensatory time off at the option of the employee. Compensatory time shall accrue at the rate of one and one half times the overtime hours worked. Compensatory time off which accrues in excess of eighty (80) hours must be liquidated by monetary payment. All monetary payments must be paid not later than the next bi- weekly payroll following the pay period in which the overtime was worked. Compensatory time must be taken in minimum of one (1) hour increments, except that after the first hour compensatory time may be taken in minimum increments of one half (1/2) hour. Utilization of compensatory time off shall be by mutual Memorandum of Understanding Page 6