OSPS E-News ~ Management and unclassified unrepresented furloughs and salary freeze

[Announcements from OSPS to the users of the Oregon State Payroll Application]

OSPS has been asked to forward this information to our payroll mailing
list.  

 

 

 

Subject: Management and unclassified unrepresented furloughs and salary
freeze

 

To:                    Agency Directors

Human Resource Directors and Managers

Payroll Managers                   

 

From:                Scott L. Harra

Director

 

Re:                   Management and unclassified unrepresented
(including executive service) employee mandatory unpaid time off
("furloughs") and salary freeze 

 

 

On behalf of the Office of the Governor, I would like to express
gratitude to all employees who have made personal sacrifices due to cost
reductions, yet continue to serve the citizens of Oregon with their best
efforts. Everyone in state government understands how profoundly the
recent economic downturn has affected the state's financial condition. 

 

State government will continue to take steps to reduce costs as we move
forward through the 2009-2011 biennium. For September 2009 through June
2011, we will continue the use of mandatory unpaid time off
("furloughs") for all management and, unclassified unrepresented
(including executive service) employees throughout the Executive Branch.
These employee groups will take a minimum number* of furlough days based
on the following monthly salary tiers:

 

*          Tier 1:               $2450 and below            10 furlough
days

*          Tier 2:               $2451 and $3100           12 furlough
days

*          Tier 3:               $3101 and above            14 furlough
days

 

Except for 24/7 operations, state government will observe the following
10 closure dates:

 

*          Friday, October 16, 2009

*          Friday, November 27, 2009

*          Friday, March 19, 2010

*          Friday April 16, 2010

*          Friday, June 18, 2010

*          Friday, August 20, 2010

*          Friday September 17, 2010

*          Friday, November 26, 2010

*          Friday, March 18, 2011

*          Friday May 20, 2011

 

Employees in Tiers 2 and 3 will take their remaining furlough days
(i.e., 2 and 4 days respectively) as "float" days. Employees in 24/7
operations will take all required furlough days as "float" days as
scheduled by agencies.

 

To reduce costs further, we will continue the salary freeze implemented
on March 1, 2009. This includes no step increases, a prohibition on
special salary increases and continuation of the roll-back of the
"add/drop" step effective July 1, 2008.

 

These measures affect all Executive Branch agencies, excluding the
Secretary of State, State Treasurer, Lottery, the Oregon University
System and Semi-Independent agencies. 




 

The Human Resource Services Division will provide more detail and
applicable instructions for the administrative aspects of these
cost-reducing measures early next week. The following is basic
information concerning the implementation of furloughs and the salary
freeze:

 

Furloughs

 

o        Vacation and sick leave.  Furloughs will not affect accrual of
vacation and sick leave.

 

o        Health insurance premiums.  Furloughs will not reduce the
employer's contribution to health insurance premiums.

 

o        PERS contributions.  Furloughs will reduce PERS contributions
in accordance with the resulting decreases in pay.

 

o        Affected employees.  Furloughs affect management and
unclassified unrepresented (including executive service) employees in
the Executive Branch, regardless of location and funding type.

 

o        Float days. Except for 24/7 operations, we will implement most
furloughs on 10 pre-scheduled closure days. Employees taking more than
10 furlough days because of their tier take their remaining furloughs on
a "floating" day basis. All employees in 24/7 operations take their
furloughs on a "floating" day basis. Agencies may begin scheduling
floating furlough days in September 2009.

  

o        Exemption for Fair Labor Standards Act.  Furloughs affect the
FLSA exemption for pay purposes. An employee who is FLSA-exempt becomes
non-exempt during the entire workweek of his or her furlough day(s). The
supervisor must manage the employee's hours worked accordingly.

 

o        24/7 operations. Each agency with 24/7 needs will determine how
to allocate furlough days to ensure adequate service delivery and staff
coverage.

 

o        Furlough tracking.  We will use a state payroll code to track
furlough days to keep furlough days from affecting health premiums and
leave accruals and to ensure that we achieve the Governor's goal of
reducing costs.

 

Salary Freeze

 

o        Step increases.  The state will award no additional step
increases or special salary increases during the freeze. The rolled back
the "add/drop" steps that became effective on July 1, 2008, remain in
effect.  

 

o        Affected employees.  The freeze affects management, and
unclassified unrepresented (including executive service) employees in
the Executive Branch, regardless of location and funding type.

 

The Human Resource Services Division is holding an HR forum on Sept. 1,
2009 from 1 - 4 p.m. at the Employment Department Auditorium to answer
agency implementation questions. Information on this forum will be
communicated soon.

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