Human Resources

 

Holloway Hall

Salisbury University
FY 2009 Furlough and Temporary Pay Reduction Plan
Frequently Asked Questions
 

What is a furlough?

A furlough is the placement of an employee in a temporary non-duty, non-pay status for budget-required reasons.

A furlough may be taken on an employee’s regularly scheduled workday in full day increments.

What purpose does a furlough serve?

A furlough permits the State to continue essential public services and functions while saving funds necessary to balance the State budget.  Furloughs are preferable to massive layoffs.

What is a “temporary salary reduction”?

A temporary salary reduction is an adjustment to affected rates of pay for a specified period of time.

Is a furlough the same as a temporary reduction in salary?

No. A furlough is the placement of an employee in a temporary non-duty, non-pay status for budget-required reasons, typically for a full day. A temporary reduction in salary, in the context of Salisbury University’s FY 2009 Furlough and Temporary Pay Reduction Plan (the Plan), will result in a temporary adjustment to affected rates of pay for employees subject to the Plan.

This Plan will permit SU to realize significant cost-savings while lessening the impact of such measures on the employee by spreading the deduction out over a period of time.

When will the FY 2009 Furlough and Temporary Pay Reduction Plan be in effect?

The Plan will be in effect from January 2 through June 30, 2009.    For those employees subject to a temporary reduction in pay, the reduction will occur over ten pay periods, starting with pay period ending February 10, 2009 (pay date February 18, 2009) and ending with  pay period ending June 16, 2009 (pay date June 24, 2009).

For employees required to take furlough days in addition to the designated furloughs days on which the campus is closed (i.e., January 2, January 19, and May 25, 2009), the flexible furlough days must be taken with supervisory approval as follows:

            Fourth furlough day between March 16 and March 20, 2009

Fifth and sixth furlough days between May 22 and June 30, 2009

Will the University be closed on January 2, 2009?

Yes, the campus will be closed on January 2, 2009, and only those employees who are designated as essential for that day will report to work.   Employees cannot use any of their own accrued/earned leave on that day and will either be placed on Administrative Leave or be furloughed as per the Plan.  Class schedules have been adjusted to facilitate the University’s closure and the Winter semester will begin on January 5, 2009.

Essential personnel who are required to work on this day will either be granted Administrative Leave or be furloughed on another day before July 1, 2009, as determined by the employee and management.    

Will the University be closed on January 19 (Martin Luther King Holiday) and May 25, 2009 (Memorial Day Holiday)?

Yes, as previously communicated, the University will be closed on these two holidays, and only those employees who are designated as essential for these days will report to work.  

As indicated by the Plan, employees will either receive Holiday pay, be placed on Administrative Leave or be furloughed, depending on annual earnings and/or FLSA status.  

Because the Martin Luther King and Memorial Day Holiday are formally observed State holidays, all regular employees shall be entitled to observance at an alternate time.   All regular employees subject to this plan shall be granted one-day (eight hours; or as proportionate for those working less than 100%) of holiday pay to be used after the holiday is accrued/earned but prior to July 1, 2009.

Essential personnel who are required to work on either of these two holidays, but are subject to taking additional Administrative Leave and/or furlough days beyond January 2, 2009, will be required to take the designated leave or furlough day(s) after the holiday but prior to July, 1, 2009.

Which employees are designated as “Essential Personnel”?

“Essential” employees are those in positions that have been designated as vital to the operation of the facility, whose presence is required regardless of the existence of an emergency condition, and whose absence from duty could endanger the safety and well-being of the campus population and/or physical plant.   Management retains the right to determine and designate personnel as “Essential” for the purposes of maintaining required services and operations.  If you have any questions whether your position has been determined as “essential,” please see your department manager.

If I am designated to take a Furlough day on January 2, January 19 (Martin Luther King Holiday) and/or May 25, 2009 (Memorial Day Holiday), am I permitted to work and substitute another day as a furlough day?

No, you must take the required furlough days on the designated day and/or holidays unless you are designated as essential personnel. 

May an employee work when scheduled off due to the furlough?

An employee may not work when scheduled off due to the furlough. In the event of an emergency, the employee’s appointing authority may revoke a furlough day and the employee shall be paid for work performed on that day. However, the employee will be required to take the furlough on some other day prior to July 1, 2009.

How is it determined which employee(s) will be subject to furlough?

Determinations were made by Salisbury University’s Administration, in consultation with SU’s Shared Governance groups (Faculty & Staff Senate and University Forum) and MCEA (Non-Exempt Employees Collective Bargaining representatives), based on annual earnings and FLSA classification as charged through the Governor’s Executive Order, and subsequently through the Board of Regents of the University System of Maryland. 

To maintain the highest possible level of campus safety and security during the affected periods, officers in the University Police department are exempted from furlough days and salary reduction plans.

Will part-time employees and contractual employees be affected by a furlough?

Yes, both part-time employees and contractual employees, including State and Federally Grant-funded employees, will be required to take furlough days. Part-time employees will be required to take furlough days on a pro-rated basis, based on their regular rate of pay as of December 31, 2008. 

Contingent I hourly employees will not work on fixed closed dates when the campus is closed, and thus will not be paid for hours not worked. 

Will Nonexempt, part-time and/or contractual employees be permitted to work more hours to “make up” for the hours not worked on the days that the University is closed?

No, an employee may not work in excess of the employee’s normal work week reduced by furlough time taken during such work week.  Permitting an employee to work extra hours during a week in which the employee takes a furlough day would reduce the savings achieved by the furlough.

Will H-1B Faculty members be affected by the furlough?

H-1B Faculty members should contact the Provost Office regarding how they are affected by the Plan.

Will new hires be affected by the FY 2009 Furlough and Temporary Reduction in Pay Plan?

Anyone who is hired during the Plan period will be required to participate in the furlough and/or salary reduction.  The number of days that the employee will be furloughed or have the salary reduction applied is determined by the employee’s salary upon hire. 

How will it be determined how many days each employee must be furloughed?

The number of furlough days taken by an employee will be determined by gross annual salary (not including overtime or shift differential) and FLSA status.  In order to determine how many furlough days an employee will be required to take, the salary figure that should be used is the annual salary as of December 31, 2008. 

An employee receiving acting capacity pay will not have furlough days determined based on the employee’s acting capacity pay rate. Furlough time for employees receiving acting capacity pay will be based on the employee’s regular rate of pay, not the employee’s acting capacity pay rate.

How is the amount of pay reduction determined?

All employees (faculty and staff) on “26 pays” will have 1/10th of their bi-weekly pay rate used as the “daily rate” for purposes of this plan.  Any other pay schedules or pay plans shall be pro-rated to the above-mentioned equivalent.

What if I would like to have the Pay Reduction taken out over one or two pay-periods, rather than spread out over 10 pay periods?

The employee must submit a written request to the Payroll Office (and CC: Human Resources and the direct supervisor) with this request, which would then be granted. 

Will the Plan affect an employee’s health benefits?

No. The employer and employee share of health benefits premiums will remain the same during the time frame that the Plan is in effect. The State will continue to make the same premium contribution and an employee’s deductions will be processed in the normal fashion for any week in which an employee has a furlough day.

Rarely, due to other factors such as a period of unpaid leave unrelated to the furlough, an employee may not receive a paycheck with sufficient funds to cover the employee’s portion of the benefit deductions. In such cases, the agency should treat this matter as it would any other no-pay situation.

Does the Plan have any impact on my retirement benefits?

This issue is addressed by Section H in the Executive Order.   Neither furlough days nor the salary reduction will impact retirement benefits. Furlough time is included in the calculation of earnable compensation and service credits.  

Will an employee’s leave accrual rates be affected by the Plan?

No. Neither a furlough nor a temporary salary reduction will have any impact on leave accrual rates.

Will Faculty members on Sabbatical Leaves be affected?

Yes, Faculty members on sabbaticals will also be furloughed per the Plan. 

Can an employee on paid military leave be scheduled for furlough?

No. Employees on paid military leave may not be scheduled for furloughs but may be furloughed if returning to full duty prior to June 30, 2009.  

Can an employee work overtime in a week in which the employee takes a furlough day?

No. Furlough time is considered work time for the purposes of calculating eligibility for overtime. Therefore, employees are not permitted to work overtime or additional time in a week in which furlough time is taken. Permitting an employee to earn overtime during a week in which the employee takes a furlough day would reduce the savings achieved by the furlough.  

May an employee substitute paid leave (annual, personal or sick leave, or compensatory time) for furlough days?

No. An employee may not substitute paid leave or compensatory time earned for furlough hours.

Are there restrictions on when I can take the paid leave or Holiday Leave in conjunction with a furlough day?

No.  Subject to supervisory and management approval, an employee may request to take additional leave before or after a paid or furloughed Holiday and this will not affect payment for the holiday, or the required deduction for the furlough. Additionally, for those employees taking flexible furlough days, an employee may take those furlough days in conjunction with other forms of paid leave.

How does an employee effectuate a request to take the required furlough time off?

In order to maximize coverage and ensure uninterrupted service, each employee must obtain supervisory approval to take off in the same manner that an employee would for any other absence.

What will happen if an employee fails to make a request to take the required number of furlough day(s)?

If, within a time frame required by a supervisor, an employee does not submit a request for specific time off to be counted toward the employee’s required number of furlough hours, the supervisor may schedule an employee for the appropriate number of furlough hours and require that the employee be off work in a non-pay status for that time.

What will happen if an employee fails to make a request to take unused Holiday leave earned on Martin Luther King and/or Memorial Day Holiday before July 1, 2009? 

The holiday leave will be forfeited.  

What happens if a person leaves University service before taking the appropriate number of furlough hours?

If an employee leaves University service, no action is necessary to recoup any remaining reduction in pay or furlough hours.

May an employee receive unemployment benefits to cover the loss of compensation due to the furlough or temporary salary reduction?

No, we do not expect that any employee will be eligible to receive unemployment benefits to cover the loss of compensation as a result of the furlough or the temporary salary reduction.

Does an employee have grievance rights regarding the furlough or temporary salary reduction?

Neither the placement of an employee on a furlough nor a temporary salary reduction gives rise to any grievance or appeal rights.