Furlough Procedures
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DIVISION OF HUMAN RESOURCES FURLOUGH PROCEDURES Financial Renewal - Reducing Payroll Expenses - Furlough As with all layoffs and salary reductions, please consult with Central Human Resources and provide a plan for review prior to implementing any changes. Furlough Options to Reduce Payroll Expense A way to temporarily reduce salary expense is through the use of a furlough. This method is best for units that know their revenues will increase in the future, once the COVID-19 threat has been diminished. A furlough is not a layoff, so no layoff rights apply. There are two furlough options. 1. Full Furlough - Leave without pay. This is recommended for exempt Administration and nonexempt Staff employees when consecutive leave days are required. After appropriate notification, an employee will take a leave without pay for a period of one week or more. 2. Partial Furlough – Reduced FTE due to reduced days of work. The furlough is for less than one week or is taken intermittently across several weeks, a semester, or a year. Furlough Guidelines a. Employees may not substitute any paid leave for scheduled/designated furlough hours or days. b. Employees are prohibited from performing any actual work during a furlough, including checking work-related email or work-related voice mail. c. Furloughed employees may retain their existing employer provided health insurance. Employees are responsible for arranging employee contributions of benefit premiums when the earnings of their paycheck no longer support the deduction payments. d. Employees’ continuous service, hire date, and employment status will not be affected by any period of furlough. e. With a partial furlough, employees may still be eligible to accrue leave on a pro-rated basis. f. Employees’ furloughs should align with the University workweek of Friday through Thursday. i. Deductions from the pay for an exempt employee for absences due to furlough disqualify the employee from being paid on a salary basis in the workweek(s) when the furlough occurs. g. Written notice is required at least 14 days prior to the start date of the furlough. h. Employees may choose to take a holiday as unpaid to count towards any required unpaid furlough day(s). To Implement an approved furlough. After the furlough plan is approved by the appropriate Vice President and the Central Division of Human Resources, the following documents are required to implement the pay reduction in GEMS. Questions 974- 2970 11/4/2020 DIVISION OF HUMAN RESOURCES FURLOUGH PROCEDURES 1. Full Furlough - Leave without pay. a. Submit an ASF and include in the remarks “Leave of absence without pay - full furlough.” Include the start and end dates of the continuous leave period. b. Attach a copy of the written notification. c. Submit the ASF and Notification to the appropriate DHR Box. 2. Partial Furlough – Reduction in FTE for Exempt Administration employees a. Submit an ASF and in the remarks include the following: “Partial Furlough-FTE Decrease – XX furlough hours” b. Calculate the reduced FTE by subtracting the number of furlough hours in a workweek from 40. Use the FTE chart or Furlough Calculator to find the correct FTE and reduced salary for the partial furlough hours worked. For example, if the employee is taking one furlough day per week, the employee will be working 32 hours (40 - 8). c. Put the 3 digit FTE in the “Change To” column on the top portion of the ASF. Multiply the current Comp Rate by the FTE to calculate the “Change To/Add” Comp Rate Code. d. Attach a copy of the formal written notification issued to the employee. e. Submit the ASF and notification to the appropriate DHR Box. 3. Partial Furlough – for Staff/Non-Exempt Administration and Hourly Temporary employees a. Staff/Non-Exempt Administration and Hourly Temporary employees will track non-paid furlough hours in the “Tracking Furlough” column on their bi-weekly time sheet along with all hours worked. The hours worked will be certified through normal processes for Payroll. b. Departments will be responsible for tracking the total furlough hours taken by Staff/Non- Exempt Administration and Hourly Temporary employees. Questions 974- 2970 11/4/2020 .