UW System Proposed Furlough Implementation
Plan
Submitted to OSER for Approval
June 30, 2009 (Revised and Resubmitted July 3, 2009)
Approved by OSER July 3, 2009
Revised per OSER Directive July 16, 2009
University of Wisconsin System
Plan and Guidelines for Implementation of the Governor’s Mandated
Furlough for the 2009-2011 Biennium
Introduction
The Governor’s furlough mandate, established in response to the State’s projected budget shortfall, requires an effective cut in pay for all full-time 12-month employees equivalent to 16 days over the two-year period July 1, 2009 through June 30, 2011. The resulting furlough time off (FTO), required by the Governor and approved by the State Legislature, is required for all State and University employees, regardless of the funding sources used for their individual salaries and benefits. The mandatory furloughs result in a 3.065% annual pay reduction for each year of the biennium.
The UW System plan, described in these guidelines, has been developed for maximum flexibility and efficiency in administration, meeting specific requirements from the State and conforming to the academic calendars established at UW institutions. The plan attempts to minimize the negative impacts on individual employees, requiring an equitable administration of furloughs across institutions and employees. The guidelines are designed to comply with all applicable federal and state laws, union contracts, and existing UW System policies and procedures.
Implementing the Governor’s Mandated Furloughs
Implementing the State’s furlough plan for UW System presents a significant administrative challenge. Because this plan must comply with a complex web of Federal and State labor laws, the categories of employees (faculty, academic staff, classified staff) do not necessarily apply to the application of furlough procedures. These federal and state labor laws dictate that certain employees who do not normally report their work in hourly increments must do so when they are in “furlough status.” To ignore this requirement would mean that the State and the University would incur substantial monetary risk.
Tables A, B, and C (attached) provide a useful reference for employees to determine how the furlough implementation will affect them individually:
- Faculty, instructional academic staff, legal counsel, physicians,
non-exempt non-represented classified staff, and non-exempt
represented classified staff whose unions have agreed to the 3.065%
pay reduction option, will have their monthly/biweekly gross
pay automatically reduced by 3.065% for each pay period worked, and
will generate Furlough Time Off (FTO) for the individual based
on their percent time in regular pay status.
- Non-instructional academic staff, limited appointees (including
the UW System President, all 14 Chancellors, all 15 Provosts, all
Deans, and others), employees in training, and exempt non-represented
and exempt represented classified staff, will have monthly/biweekly
gross pay reduced only as FTO is taken, up to the maximum of 8 days
per fiscal year. The number of furlough days required will be proportional
to the employee’s percent time in regular pay status.
- Non-exempt represented classified staff whose unions have
not agreed to the 3.065% biweekly pay reduction will have
biweekly gross pay reduced as FTO is taken adhering to union contract
provisions, up to the maximum of 8 days per fiscal year based
on their percent time in regular pay status.
- Classified limited term employees (LTEs) and hourly academic
staff, will have their eligible work hours reduced by 3.065%
without any required FTO.
- Employees paid on a lump sum basis will have a 3.065%
reduction of gross pay without any required FTO.
- Employees whose employment requires student status (unclassified student assistants, e.g., TAs, RAs, PAs, GAs; and student hourly employees), will not be subject to the furlough.
Guidelines for Implementation
- UW System will use a mix of four “fixed” and four “floating” furlough
days in each year of the biennium to comply with the eight-day furlough
requirement. In accordance with plans at other State agencies, all
UW System institutions will be closed on the Friday after Thanksgiving
(Nov. 27, 2009 and Nov. 26, 2010). In addition, each UW System institution
must specify three additional fixed furlough days when the institution
will be closed and only essential staff will work (as with normal holiday
staffing). Essential staff who must work these days will be assigned
alternate furlough time off (FTO). The three (3) additional
fixed days for each year of the biennium may not conflict with UW System
guidelines and all must be approved in advance by the UW System President.
- Furlough time off (FTO) will be generated on a prorated basis according
to percent time in regular pay status. For example, full-time
12-month employees will be required to take a total of 8 FTO days each
year and full-time 9-month employees will be required to take 6 days
of FTO each year, including the fixed furlough days and the corresponding
number of floating furlough days.
- For employees whose gross pay is automatically reduced each paycheck
by 3.065%, the FTO time generated in a fiscal year must be used in
the same fiscal year. Unused furlough days cannot be carried over to
the next year or banked.
- For employees whose pay is reduced only as the FTO is taken, the
mandated furlough days must be taken during each fiscal year. The
amount of furlough time taken per employee will be monitored and any
required furlough time not taken will result in further action to accomplish
the furlough mandate.
- For full-time staff (prorated for part-time staff) whose gross pay
is reduced as FTO is taken, the FTO must be taken in at least two(2)
hour increments which must total one day (8 hours) during one week
to limit the number of weeks exempt employees need to be considered
non-exempt. In addition, only one day (8 hours) per week of FTO may
be taken to avoid generating unemployment insurance claims.
- Employees must be specifically directed not to work any time during
which they are scheduled to be on furlough, without the specific authorization
of their supervisor or manager. Such work includes being physically
present in the work place, work at home, work online, work on the telephone, “working
lunches,” work on a Blackberry or work on a cell phone. All such
unscheduled, unapproved work in furlough weeks is prohibited. Violation
of this prohibition may result in discipline.
- Revised July 16, 2009: For full-time (prorated for
part-time staff) faculty, instructional academic staff, legal counsel
and physicians (Table A) whose gross pay is automatically reduced by
3.065% each pay period, FTO may be used before it is accrued and may
be used in half day (four-hour) increments. A maximum of
one day (8 hours) per week of FTO may be taken to avoid generating
unemployment insurance claims.
For full-time (prorated for part-time staff) staff in Tables B and C whose gross pay is automatically reduced by 3.065% each pay period, FTO may be used before it is accrued and must be taken in at least two (2) hour increments and must not exceed one day (8 hours) during one week to avoid generating unemployment insurance claims.
- Supervisors are responsible for approving and scheduling of FTO
before it is used/taken, just as they are responsible for approving
other scheduled leave time. Supervisors should work with employees
to monitor FTO taken and avoid situations where individual employees
face unexpected financial hardship because they must then take all
or most of the unused floating furlough days in the last month of the
fiscal year or contract period. If needed, supervisors may direct involuntary
scheduling of floating FTO days to accommodate operational needs and
to ensure full compliance with the furlough mandate.
- If necessary, for employees whose pay is being reduced each paycheck
and who leave UW System employment, adjustments will be made in the
final pay check to reconcile any required furlough pay by reimbursing
excess FTO taken.
- An employee may substitute furlough days/hours for any approved
paid leave as long as the use of the furlough time meets the requirements
of the UW System furlough plan and is approved by her/his supervisor. For
example, an employee may use furlough time in conjunction with an approved
vacation schedule or in substitution for a sick day, as long as such
furlough time is limited to 8 hours per week. In addition, employees
may not forfeit other paid leave such as vacation instead of taking
unpaid furloughs.
- Employees on unpaid medical leaves will be able to charge up to
64 hours per fiscal year of that leave to furlough. During the
period that the employee is both medically unable to work and unpaid,
the furlough hours per week may total up to the employees budgeted
FTE.
- Employees on military leave for active duty (excluding annual military
leave) are not subject to furloughs. Employees who have been
on active duty and return to their university position will have prorated
furloughs for their remaining furlough obligation.
- Employees may not volunteer to work on university business while
on furlough, which will result in a reduction in productivity.
- All time that employees spend on furlough must be recorded as FTO. Distinct
pay type codes for FTO identification will be entered on the UW Service
Center payroll.
- Faculty and instructional academic staff will not schedule furlough
days that conflict with their direct instructional duties, including
labs, recitation/discussion sections, and scheduled examinations.
- Furloughs for sessional employment (summer, interim, winterim, etc.)
will be accomplished by a 3.065% reduction in payment for those paid
on a lump sum basis and by generation of up to 2 days of furlough requirement
for those working full-time (pro-rated for part-time) for two months
or more in the summer. In no case will an employee generate an
FTO requirement of more than 8 days for each year of the 2009-2011
biennium.
- Existing employment agreements with H-1B and E-3 visa holders will not be subject to salary reduction, and these employees will not be furloughed per federal law. Employment agreements entered into beginning July 1, 2009, for new H-1B and E-3 hires, or for current H-1B or E-3 employees requiring visa extensions, covering any time during the furlough period will have a reduction of 3.065% to salary with no furlough days taken just as is done with lump sum payments. However, no reduction of salary for a new or continuing H-1B or E-3 employee shall lower the salary below the prevailing wage established for that employee through the prevailing wage process mandated by the federal Department of Labor.
Table Attachments:
Printer-friendly equivalent of UW System Furlough
Plan (including tables) 