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HomeMy Public PortalAboutADM-116_Furlough Policy_Effective 07-07-2020 City of Lebanon New Hampshire ADMINISTRATIVE POLICIES & PROCEDURES FURLOUGH POLICY Policy Number Effective Date Last Revision Page No. ADM-116 7/7/2020 7/7/2020 Page 1 of 5 Approved by: SECTION 1.0: PURPOSE This policy details the process for furloughing full and p art time employees when economic conditions, as determined by the City Manager, warrant the reduction of City personnel costs. The City Manager may designate the length of time for furloughs depending upon the position of the employee, the needs of the department, and the financial needs of the City. SECTION 2.0: SCOPE This Policy applies to all departments and functional areas under the authority of the City Manager. SECTION 3.0: DEFINITIONS Voluntary Furlough is when regular full time and part time employees request an unpaid voluntary furlough when economic conditions, as determined by the City Manager, warrant the reduction of City personnel costs. This may be granted at the discretion of the City Manager. During the time of the furlough the employ would not receive pay however some benefits would continue to be provided. Involuntary Furlough is when the City Manager designates a length of time for an involuntary furlough depending upon the position of the employee, the needs of the department, and the economic factors of the City. During the time of the furlough the employ would not receive pay however some benefits would continue to be provided. Layoff is when the City Manager terminates an employee’s employment status for reasons other than the employee’s actual performance such as when the financial situation of the City requires a reduction in force of personnel. Another reason could be when the employee’s position is no longer necessary to meet the needs of the City. Laid off employees are no longer eligible to receive benefits or compensation from the City other than those required by federal or state law upon termination of employment. Laid off employees may or may not return to employment with the City after termination. SECTION 4.0: POLICY DETAIL City of Lebanon New Hampshire ADMINISTRATIVE POLICIES & PROCEDURES FURLOUGH POLICY Policy Number Effective Date Last Revision Page No. ADM-116 7/7/2020 7/7/2020 Page 2 of 5 Approved by: The financial impacts of an economic downturn may require the need to reduce cost by reducing staffing temporarily until the City’s finances are sufficient to allow employees to return and be compensated. The language in this policy does not create any entitlement or contractual rights to employees. The City reserves the right to revise the contents of this document, in whole or in part at any time, or eliminate this program in its entirety. SECTION 5.0: PROCEDURES 5.1 Voluntary Furlough The voluntary furlough program is just that, voluntary. An employee who submits a form requesting a voluntary furlough thereby acknowledges that he or she has done so without coercion, undue influence, or intimidation. An employee cannot use a voluntary furlough for any reason which would be covered by the City's sick leave or disability programs. A voluntary furlough may not be used to extend time away from work under any other City leave program without prior approval. The City Manager shall have the sole right to approve any requests for voluntary furlough based on the department's workload, sufficient staffing, the employee's position, work record and recent performance, etc. The City Manager’s disapproval or postponement of a request for voluntary furlough shall not be subject to any grievance or any other appeal process. (1) Eligibility: Any exempt or non-exempt employee; regular full-time and part-time employees; and union employees covered by a collective bargaining agreement are eligible to apply for a voluntary furlough. (2) Procedure: An eligible employee desiring to use the voluntary furlough program shall submit the request form to their Dept. Head (or their designee). By requesting the leave, the employee certifies that he/she has reviewed this policy and is aware of the requirements. A voluntary furlough must be scheduled in advance in order to accommodate the scheduling needs of the City. Voluntary furloughs shall be granted in increments of days, to week(s), or more. Employees who take a voluntary furlough shall remain in the City’s payroll system. There shall be no break in service or in seniority. City of Lebanon New Hampshire ADMINISTRATIVE POLICIES & PROCEDURES FURLOUGH POLICY Policy Number Effective Date Last Revision Page No. ADM-116 7/7/2020 7/7/2020 Page 3 of 5 Approved by: Once voluntary furloughs have been approved by the City Manager, furlough days/week(s) may not be changed or cancelled by the employee except in cases where the employee is changing jobs, or is terminating employment, or has been laid off. 5.2 Involuntary Furlough (1) The involuntary furlough length of time may differ from employee to employee. (2) The City will keep employees informed of employment status changes that occur during this time. (3) Employees may be eligible for unemployment benefits under these circumstances. Employees should contact the local unemployment office for information on eligibility and applying for unemployment benefits. 5.3 Benefit and Payroll Matters (1) Employees who are furloughed shall continue to accrue seniority during the furlough period. (2) No overtime hourly costs are permitted to be incurred as a result of granting a furlough. Failure to return to work from a furlough as scheduled without permission, shall be considered job abandonment. (3) Employees will continue to accrue vacation and sick leave time during the furlough. (4) Employees who are furloughed will forfeit City paid holidays if the holiday occurs during the furlough. (5) No form of compensation (i.e. vacation, comp time, personal days or sick time etc.) may be taken during a voluntary or involuntary furlough. However, the cash value of vacation, personal, or comp. time may be used to cover the cost of employee paid benefits. (6) The City’s contributions toward City paid benefit programs may continue during the furlough (i.e. health, dental, short-term disability, etc.). City of Lebanon New Hampshire ADMINISTRATIVE POLICIES & PROCEDURES FURLOUGH POLICY Policy Number Effective Date Last Revision Page No. ADM-116 7/7/2020 7/7/2020 Page 4 of 5 Approved by: (a) Employee contributions towards payroll deductions for health, dental and short-term disability and other voluntarily elected benefits programs shall continue during the furlough. NHRS benefits are compensable based on earnable compensation (ie: Employees voluntarily or involuntarily furloughed for full weeks will not be contributing into the NHRS during the furlough period, however.) (b) All other payroll deductions, including but not limited to voluntary benefit deductions, such as, but not limited to, long-term disability, voluntary life insurance deductions, income deduction orders, child support, union dues, garnishments, etc. shall continue uninterrupted during the furlough. Employees will be required to use the cash value of vacation, comp. time, or personal time accruals as payments towards these deductions. Sick time accruals cannot be used for payment arrangements. Employees will be responsible for payments upon the exhaustion of paid vacation, personal, and comp. time accruals and will be contacted to arrange weekly payment plans. Failure to make payments for the employee cost of these benefits will result in cancelation of those benefits. If an employee's weekly earnings are insufficient to cover the expenses of any of the payroll deductions as listed above, or the employee does not return to employment, the employee will solely be responsible for payment of such expenses. Employees should contact the Finance Dept. for additional information regarding their net pay and deduction information prior to voluntary or involuntary unpaid furlough. (7) Furlough hours will be reported by the department’s supervisor as unpaid leave in the ADP payroll system. The City Manager will approve the unpaid furlough prior to submitting the department’s payroll to the Finance/Payroll Department. SECTION 6.0: REFERENCES (Charter/Code/State Statues) 1. City Charter C419:31 Power to Appoint and Remove SECTION 7.0: POLICY & PROCEDURE REVISION HISTORY City of Lebanon New Hampshire ADMINISTRATIVE POLICIES & PROCEDURES FURLOUGH POLICY Policy Number Effective Date Last Revision Page No. ADM-116 7/7/2020 7/7/2020 Page 5 of 5 Approved by: Section Revisions Date Original Adoption Initially adopted 7/7/2020