Advisory Memorandum No. 1993-02

Section 26.1 To Whom Rules Apply - June 23, 1993

P-1 Retain until December 31, 1995 [Modified by GOER VRWS Guidelines]

TO: State Departments and Agencies
FROM: Peter Elmendorf, Director; Personnel Services Division
SUBJECT: Attendance and Leave Guidelines for Employees Participating in the Voluntary Reduction in Work Schedule Program

The Voluntary Reduction in Work Schedule (VRWS) Program which was continued for Managerial/Confidential (M/C) employees for fiscal years 1992-1993, 1993-1994, and 1994-1995, has also been extended for Professional, Scientific and Technical Services (PS&T) Unit employees for fiscal years 1993-1994 and 1994-1995 effective June 3, 1993, for administration payrolls and June 10, 1993, for institution payrolls. The program is described in detail in the Governor's office of Employee Relations (GOER) memorandum issued on May 27, 1993.

In summary, a full-time employee may reduce his or her work schedule by 30 percent or less, voluntarily trading income for time off. The adjustment in salary must be made in minimum increments of five percent. The corresponding adjustment in work schedule is accounted for by earning and charging a new category of accrued leave--Voluntary Reduction Credits (VR Credits). The participating employee and agency enter into a formal voluntary Reduction in Work Schedule agreement, setting the terms and conditions of the employee's participation in the program.

The following guidelines describe the way in which the leave provisions of the Attendance Rules, negotiated agreements, and related laws and policies apply to VRWS participants.

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ATTENDANCE AND LEAVE GUIDELINES
VOLUNTARY REDUCTION IN WORK SCHEDULE PROGRAM

Eligibility

The 1993-1995 VRWS Program is available to M/C and PS&T employees who have 26 consecutive payroll periods of full-time annual-salaried State service immediately prior to entering a VRWS program. Time on VRWS, sick leave at half-pay, short-term disability under the Income Protection Plan or absence due to a work-related injury or illness is counted as full-time annual-salaried service for this purpose.

An exception will be made to the requirement that employees have 26 consecutive payroll periods of full-time service for those PS&T employees who were participating in the fiscal year 1990-1991 VRWS program and who transitioned to part-time status upon termination of such program. The chart on page 12 provides a comparison of the leave benefits accruing to employees on a part-time schedule and those on a VRWS schedule to assist employees in making informed decisions.

Under the previous program guidelines, VRWS was available to employees in the PS&T Unit and to those designated M/C who were full-time annual-salaried employees as of April 1, 1984, and to employees who first entered these units between April 1, 1984, and April 1, 1986, as full-time annual-salaried employees. Employees eligible for VRWS under the previous guidelines continue to be eligible during 1993-1995 even if they never before participated in the program.

The Voluntary Reduction in Work Schedule Agreement

The employee and the agency must enter into a written agreement providing for voluntary reduction in work schedule and salary which specifies:

the duration of the agreement.
the percentage of salary reduction (5 percent increment--minimum 5 percent, maximum 30 percent).
the method in which the corresponding reduction in work schedule will occur. (The schedule adjustment may provide for liquidation of VR credits within the pay period in which they are earned, or the credits may be...

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..."banked" for future use. Credits may be liquidated according to a fixed preapproved schedule specified in the agreement, such as to shorten the workday or to take off every Friday or the month of August, or they may be used on an intermittent basis subject to prior supervisory approval.)

An employee's fixed schedule of VR time off, once the VR schedule has been agreed to by management, cannot be changed without the consent of both parties except in an emergency. In the event an employee's schedule is changed without his/her consent, the employee may appeal this action through an expedited grievance procedure.
VR time used as intermittent time off will be subject to scheduling during the term of the VRWS agreement and will require prior approval by the employee's supervisor.

VRWS agreements can be terminated at any time by mutual agreement of both parties.

Review of VRWS Denial

The procedure described in the GOER guidelines allows employees who have been denied participation in the VRWS program to request a written statement of the reason for such denial.

Earning VR Credits

An employee who has elected to reduce his/her salary and work schedule by 30 percent or less will accrue VR credits on a biweekly basis, in minimum increments of 5 percent of such employee's full-time biweekly schedule (75 or 80 hours) and in an amount equivalent to the percentage by which such employee has agreed to reduce his/her salary.

For example, an employee whose normal full-time work schedule is 75 hours in a biweekly pay period who elects to reduce his/her salary by 5 percent would be credited with 1/2 day (3 3/4 hours) of VR credits per pay period. An employee whose normal full-time work schedule is 80 hours in a biweekly pay period who elects to reduce salary by 20 percent would be credited with two days (16 hours) of VR credits per pay period.

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There is no set maximum number of VR credits which may be accrued; rather, the amount of VR leave which can be accrued depends upon the length of the VRWS agreement, the rate at which VR credits are accrued, and arrangements for liquidating accrued VR credits.

Using VR Credits

VR credits may be used in units as small as 1/4 hour. VR credits may be used within the pay period in which they are earned or they may be "banked" for future use in accordance with the terms of the VRWS agreement. Unless the VRWS agreement specifically establishes a schedule for use of VR credits, employees must obtain prior supervisory approval before using them.

VR credits may be utilized to reduce the workday or the workweek or to provide a block of time off with pay. Such credits may be utilized to cover absences properly chargeable to any other leave category.

The following examples illustrate some of the ways in which VR credits may be used:

An employee who enters into a VRWS agreement to reduce his/her salary and work schedule by 20 percent and to utilize the VR credits accrued by taking Fridays off would work eight days per pay period, earn and liquidate two days of VR credits, and receive 80 percent salary.
If the same employee entered into an agreement to "bank" VR credits, such employee would continue to work ten days per pay period and receive 80 percent pay and two VR days to "bank" for future use; if this employee liquidated VR credits by taking off one pay period, the employee would receive 80 percent pay and two VR days for the pay period and would charge ten VR days to cover the ten-day absence.

Advancing VR Credits

Agencies may advance VR credits in an amount not to exceed the number of hours the employee is normally paid for in one pay period under the VRWS agreement. If an employee terminates his/her employment and has a VR debt, the agency shall recover the debt from the employee's lagged salary payment for his/her last pay period at work.

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Time Record Maintenance

Although there is no requirement that existing VR (or other leave credits) be exhausted prior to the beginning of a new VRWS agreement, agencies will need to segregate, for M/C employees, the recording of accrued and unused 1992-1993 VR credits from those earned under 1993-1995 VR agreements. VR credits earned by M/C employees under the 1992-1993 program are available for use as any other leave credits until September 30, 1993. Agencies should encourage employees to use these VR credits on a priority basis. (The previous VRWS program for PS&T employees ended March 31, 1991, and therefore PS&T employees will not have any previously earned VR credits.)

Separations

Employees who resign, retire, die, are laid off or terminated for any reason during the period of the agreement are entitled to a lump sum payment for all accrued and unused VR credits. There is no maximum number of days for which payment can be processed.

Promotion or Reassignment Within an Agency or Within a Facility or Institution

Employees who are promoted or reassigned within an agency or within a facility or institution carry forward unused VR credits. Continuation of the VRWS agreement is at the discretion of management.

Movement From one Agency to Another or Between Facilities or Institutions Within an Agency

Employees who move from one agency to another or between facilities or institutions within an agency are entitled to a lump sum payment for unused VR credits unless the employee requests and the new agency or facility/institution accepts the transfer of VR credit(s).

Provisions for Payment of Unused VR Credits in Exceptional Circumstances

The provision to provide for payment of unused VR credits in exceptional cases is continued. The procedures and very limited circumstances under which such payments can be made are described beginning on page 6 of the May 27, 1993, GOER memorandum.

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Overtime

Time charged to VR credits does not count as time worked for purposes of determining entitlement to overtime.

Holidays

Employees participating in a VRWS agreement continue to be treated like full-time employees and are, therefore, guaranteed twelve holidays per year.

If a holiday falls on a scheduled VR day, the employee observes the holiday and "banks" the VR day for future use. However, if an employee who is eligible for holiday compensation is required to work on a holiday which would have been his/her scheduled VR day, the employee "banks" the VR day and receives holiday pay or holiday leave as appropriate.

Personal Leave

On their personal leave anniversary date, VRWS participants are credited with prorated days of personal leave based on their VRWS percentage. An employee electing to participate in a VRWS program will have his/her existing personal leave balance prorated to reflect the VRWS percentage. Upon termination of participation in the VRWS agreement, the employee's unused personal leave balance will be adjusted. (This adjustment of personal leave is identical to the treatment of employees who change from full-time to part-time status or the reverse. For a full discussion of this adjustment, please refer to the Attendance and Leave Manual, Appendix D.)

Where the VRWS agreement provides for a preapproved schedule of VR time off, management approval is required when an employee requests to charge a prescheduled VR day to personal leave rather than to VR credits.

Vacation

Employees participating in a VRWS program accrue vacation and are credited with vacation bonus days on a prorated basis based on their VRWS percentage.

Employees participating in a VRWS agreement continue to be subject to the same vacation maximum as a regular full-time employee. An employee's existing vacation balances are not...

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...prorated or adjusted upon commencement of a VRWS agreement or upon its termination. However, although vacation bonus days earned on an anniversary date which falls during a period of VRWS are prorated, there is no adjustment for this proration when the VRWS program ends.

Time charged against VR credits counts as time in full pay status for purposes of determining whether the employee meets the requirement of seven out of ten days in the pay period in full pay status to accrue vacation for that period.

An employee on approved vacation remains on his/her VR schedule, receiving reduced salary and earning the appropriate amount of VR credits.

Where the VRWS agreement provides for a preapproved schedule of VR time off, management approval is required when an employee requests to charge a prescheduled VR day to vacation rather than to VR credits.

Sick Leave

Employees participating in a VRWS program accrue sick leave on a prorated basis based on their VRWS percentage. An employee's existing sick leave balance is not prorated or adjusted upon commencement of a VRWS agreement or upon its termination. Employees on a VRWS program continue to be subject to the same sick leave maximum as a regular full-time employee.

Time charged against VR credits counts as time in full pay status for purposes of determining whether the employee meets the requirements of seven out of ten days in full pay status to accrue sick leave for that period.

An employee on approved sick leave remains on his/her VR schedule receiving reduced salary and earning the appropriate amount of VR credits. For example, an employee who has reduced his/her salary and work schedule by 30 percent and who is absent an entire pay period on sick leave continues to receive 70 percent salary, earns three VR days and charges ten days of accrued leave to cover the absence. Instead of "banking" the three days of VR leave for future use, such employee may charge seven days of sick leave and the three days of VR leave to cover the absence. When VR credits are used as sick leave, existing provisions concerning medical documentation apply.

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We have included on ~~pages 13-15~~ [a separate page] charts for accrual and grant rates for employees on VRWS.

Sick Leave at Half-Pay

Eligible permanent employees participating in VRWS agreements continue to be entitled to the sick leave at half-pay for which they are otherwise eligible. Accrued VR credits must be liquidated along with all other accruals prior to the grant of sick leave at half-pay.

The amount of half-pay salary received is one-half of the VRWS salary and such employee earns one-half the usual number of VR credits per pay period.

However, on the first day of the pay period following 28 consecutive calendar days of absence on sick leave at half-pay, the VRWS agreement is cancelled. At that point, the employee's salary becomes one-half of his/her normal full-time salary and such employee no longer accrues VR credits. (Of course, if the employee returns to work prior to the date on which the agreement would have been cancelled, that cancellation is voided. Also, VRWS agreements may be terminated at any time by mutual agreement.)

Income Protection Plan

Employees participating in a VRWS program who also participate in the Income Protection Plan earn sick leave on a prorated basis based upon their VRWS percentage and in accordance with the criteria established for the Income Protection Plan. (See Attendance and Leave Manual, Appendix F, Attendance Rules for Managerial/Confidential employees for details of the Income Protection Plan program.)

Employees covered under the Income Protection Plan have their VRWS agreement cancelled on the day they begin receiving STD/LTD benefits.

Workers' Compensation Benefits

Participation in a VRWS agreement has no impact on an employee's eligibility for or entitlement to workers' compensation benefits pursuant to Rule or contract. Initially, an eligible employee granted such benefit would continue his/her VRWS agreement receiving the reduced salary and earning the appropriate number of VR credits. A description of the impact that the four workers' compensation programs have on VRWS agreements follows.

P-9 The Leave Program

Pursuant to the provisions of the Attendance Rules and the negotiated agreements, for accidents occurring prior to April 1, 1986, for PS&T employees and September 1, 1986, for M/C employees, a waiting period in connection with workers' compensation leave may be required. The VRWS agreement would have no effect on that waiting period. For example, an employee who elects an 80 percent VRWS agreement continues to receive 80 percent of salary and earns two days of VR credits and charges ten days to sick leave accruals. Following the ten-day waiting period, the employee would charge absences to workers' compensation leave and bank VR time.

On the first day of the pay period following 28 consecutive calendar days of absence due to a work-related injury or illness, the VRWS agreement is cancelled. At that point, the employee receives workers' compensation leave benefits based on the full-time salary and no longer earns VR credits. (Of course, if the employee returns to work prior to the date on which the agreement would have been cancelled, that cancellation is voided. Also, VRWS agreements may be terminated at any time by mutual agreement.)

The Supplemental Pay Program

Effective for accidents on or after April 1, 1986, and before July 1, 1993, for PS&T employees and on or after September 1, 1986, and before July 1, 1992, for M/C employees, disabilities are covered by the Workers' Compensation Supplemental Pay Program described in the Attendance and Leave Manual, Section 21.8, pages C-1 through C-9 and
C-21 through C-33.

Under the Workers' Compensation Supplemental Pay Program an employee who is disabled will continue on his/her VRWS agreement pending placement on the supplemental payroll or until the last day of the pay period following 28 consecutive calendar days of absence, whichever occurs first. At the time the employee becomes eligible to be recredited with the leave used during this period, all credits charged, including VR credits, are recredited to the employee. For example, an employee absent for three weeks who is on an 80 percent VRWS agreement will charge 15 days to leave credits, earn three days of VR time, and 80 percent of salary. When he/she is recredited with time used, this employee will be recredited with the 15 days of leave credits used, including any VR...

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...credits charged. If a waiting period is served, the employee charges leave credits and banks VR time. (Of course, if the employee returns to work prior to the date on which the agreement would have been cancelled, that cancellation is voided. Also, VRWS agreements may be terminated at any time by mutual agreement.)

PS&T Medical Evaluation Program

For accidents occurring on or after July 1, 1993, PS&T employees are covered by the Medical Evaluation Program. Under this program a disabled employee who elects the Medical Evaluation Program may charge credits during the five workday waiting period and will then be placed on leave without pay. The VRWS agreement is cancelled effective the first day of leave without pay.

Employees who do not charge credits for the waiting period and those who choose coverage under the Workers' Compensation Law only, will be on leave without pay as of the first day of absence and the VRWS agreement will be cancelled immediately.

At the point the VRWS agreement is cancelled, the employee receives workers' compensation leave benefits based on the full-time salary and no longer earns VR credits.

M/C Interim Benefit

For accidents occurring on or after July 1, 1992, the interim M/C benefit applies. The employee charges leave credits effective the first day of absence. On the first day of the pay period following 28 consecutive calendar days of absence due to a work-related injury or illness, the VRWS agreement is cancelled. (Of course, if the employee returns to work prior to the date on which the agreement would have been cancelled, that cancellation is voided. Also, VRWS agreements may be terminated at any time by mutual agreement.)

Jury/Court Leave

An employee granted jury/court leave pursuant to the provisions of the Attendance Rules remains on the VR schedule, receiving reduced salary and earning the appropriate number of VR credits. Where jury duty coincides with scheduled VR time, the VR leave is cancelled and the employee is placed on jury leave, "banking" the VR credits.

P-11 Military Leave

An employee granted military leave pursuant to provisions of the Military Law remains on the VR schedule, receiving reduced salary and earning the appropriate number of VR credits. Where a day of military leave (with or without pay) coincides with a scheduled VR day, the approved VR leave is cancelled and the employee is placed on military leave, "banking" the VR credits.

For purposes of calculating a reservist's entitlement to 30 calendar days or 22 workdays of military leave with pay per year, scheduled VR days are treated as scheduled workdays for which the employee has a preapproved request for leave; that is, when a conflict exists between a scheduled VR day and ordered military duty, the "request" for VR leave is cancelled and the day then becomes a day of military leave chargeable against the 30 calendar day or 22 workday maximum entitlement.

Leave for Pregnancy, Childbirth, Child Care and Adoption

Employees participating in a VRWS agreement continue to be eligible for leave for pregnancy, childbirth, child care and adoption as described in the Department of Civil Service policy statements on this subject dated January 28, 1982, and March 11, 1982, and incorporated into contractual agreements. Employees requesting such leave should be reminded of the appropriate expiration date for VR credits.

Civil Service Examinations and Interviews

An employee granted time off without charge to credits for the purpose of participating in Civil Service examinations (and related interviews) pursuant to provisions of the Attendance Rules and negotiated agreements remains on VRWS, receiving reduced salary and earning the appropriate number of VR credits. Where a scheduled examination or interview coincides with scheduled VR time, the employee is granted leave without charge to credits to take the examination and "banks" the equivalent amount of VR time. For example, an employee whose scheduled VR day is Monday and who takes a Civil Service examination on Monday morning is placed on leave with pay without charge to accruals on Monday morning and banks 1/2 day of VR credit. He/she continues to be absent Monday afternoon as previously scheduled on VR time.

Continue to [P-12 thru 15] Tables of Comparisons of Leave Benefits & Accruals and Grant Rates.

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