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HelenN (Virginia)
Posts: 7
Posted:
When is it proper to discuss individual employee hourly rates, in an executive session or in the regular open board meeting.
RogerB (Colorado)
Posts: 5,067
Posted:
Quote:
Posted By HelenN on 08/18/2013 6:39 AM
When is it proper to discuss individual employee hourly rates, in an executive session or in the regular open board meeting.

Executive session. Meanwhile I would recommend not hiring as an employee but rather as an independent contractor.
HelenN (Virginia)
Posts: 7
Posted:
Our HOA President announced the hourly rate of our current Office Manager via unsecured email, emails were then seen by other employees, family members, work associates etc. Did she violate this employees rights? The other BOD expressed concern of this "announcement", citing that it had always been discussed in Exec session, and it was blown off as "it's not a secret". Our rules state that we must post aggregate salaries, which we do, never individual.
FredS7 (Arizona)
Posts: 927
Posted:
> Did she violate this employees rights?

Personally I don't know, maybe others do.

However there is a difference between illegal and inappropriate and inadvisable. I think it is at least the latter.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Helen,

The simple answer is yes. However, any actual decision on how much to pay needs to be done in open session.

VA law, § 55-510.1, addresses board meetings. Per that law [emphasis added]:

C. The board of directors or any subcommittee or other committee thereof may convene in executive session to consider personnel matters; consult with legal counsel; discuss and consider contracts, pending or probable litigation and matters involving violations of the declaration or rules and regulations adopted pursuant thereto for which a member, his family members, tenants, guests or other invitees are responsible; or discuss and consider the personal liability of members to the association, upon the affirmative vote in an open meeting to assemble in executive session. The motion shall state specifically the purpose for the executive session. Reference to the motion and the stated purpose for the executive session shall be included in the minutes. The board of directors shall restrict the consideration of matters during such portions of meetings to only those purposes specifically exempted and stated in the motion. No contract, motion or other action adopted, passed or agreed to in executive session shall become effective unless the board of directors or subcommittee or other committee thereof, following the executive session, reconvenes in open meeting and takes a vote on such contract, motion or other action which shall have its substance reasonably identified in the open meeting. The requirements of this section shall not require the disclosure of information in violation of law.

Additionally, although not a legal document but created based on Virginia laws, Chapter 2 of the
Fairfax County Community Association Manual adds this warning when using executive sessions:

An executive session is only one part of an open board or membership meeting. A motion identifying the specific subject(s) and reason(s) for an executive session must be made, seconded, approved and recorded
in the minutes of the open meeting. Following the closed session, the directors must reconvene in the open meeting and any agreement or decision resulting from the closed discussions must be voiced and
substantially identified and/or voted in the reconvened open meeting for purpose of recordation in the minutes. While agreements can be decided, no votes are permitted in such executive session because the laws prohibit secret voting in board matters. Too often, the purpose and legal provisions for executive
session are misunderstood, and sometimes flagrantly misused. It is a clear violation of state law
to “adjourn the meeting to go into closed executive session” as many associations have
routinely practiced. It is also a violation to convene and conduct an executive session prior
to the start of any meeting regardless of how practical or well-intentioned the reason. The board could
invite a lawsuit by enforcing a closed-session decision that was not substantially identified and recorded in a reconvened open meeting, and not publicized to the association members.

Hope this helps,

Tim
HelenN (Virginia)
Posts: 7
Posted:
Thanks Tim

The employee in question wasn't being considered for a raise or even part of a motion. The President stated her hourly rate in conversation with other BOD via email as a basis of an upcoming possible new-hire. Needless to say, that employee whose wages were stated was very upset since her co-workers were now privy to her hourly rate. I believe she is justified in being upset. We Directors have always discussed (not voted on) all personnel matters in our Executive session. Our yearly budget states the aggregate salaries for all employees. Sadly, our President thinks we are being "secretive" when in fact we are following our by-laws and believes we should state in open meeting what all of our employees hourly rate is.

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