3.54 FURLOUGH AND LAYOFFS

Effective: August 15, 2024

Purpose: The policy aims to establish procedures for furloughs and layoffs of University employees, ensuring compliance with state and federal regulations, with furloughs defined as unpaid leave and layoff procedures including notification, computation of layoff scores, and reemployment rights for affected employees.

Scope: This policy is applicable to unclassified academic personnel (non-exempt and exempt) and unclassified administrative personnel (non-exempt and exempt) appointed to regular, benefits- eligible (50% or greater) positions, except as excluded within and to University Support Staff.

Responsible Office: Human Resources; President’s Office

Policy Statement:

Unclassified Personnel

The Governor of Kansas and controlling State agencies may require ESU to implement mandatory furloughs of unclassified employees. Mandatory furloughs may also be an option that may be implemented by the University during times of budget constraints. In this case, it is the policy of the University that options other than mandatory furloughs shall be implemented first, and that mandatory furloughs are to avoid or delay layoffs and reductions in force due to budgetary constraints. The decision to implement a furlough shall be made by the President after consultation with the full Faculty Senate, which shall meet in executive session as appropriate. Any implemented furlough will be consistent with all Kansas State and federal laws in force at the time of the furlough action.

A furlough period can begin any time during a fiscal year, but it must end no later than the end of the fiscal year in which it was started. If another furlough period is necessary for the next fiscal year, then its implementation shall follow the full process of this policy. Mandatory furloughs shall be based on a specific, required budgetary reduction amount and shall be applied in order to achieve those temporary savings during a specified time period. The reduction amount may be modified during the period of budgetary constraint as the fiscal situation changes, resulting in a change to the required furloughs.

Furloughs shall be based on salary tiers. Faculty/staff making higher base annual salaries shall be assigned a larger proportion of the financial impact than those making lower salaries. The calculation of required furloughs days/hours associated with salary tiers shall be described in an implementation plan for the specific furlough period. The implementation plan shall be broadly disseminated prior to its execution. Employees shall be given as much advance notice as possible but not less than thirty (30) calendar days prior to implementation of the furlough plan.

To the extent possible during a furlough time period, faculty/staff shall be allowed to choose the timing of furlough days/hours. No form of paid leave can be substituted for furlough days.

Supervisors/managers shall work with faculty/staff to identify in advance what furlough days/hours shall be taken during the furlough period and to maintain effective operations and services. Supervisors/managers shall be required to plan staff furlough time in a manner that allows for essential services to be provided. The President, Provost, Deans, Directors, and other administrative supervisors are responsible for assuring that the requisite furloughs are taken within and reported for units reporting to them.

If unclassified exempt faculty/staff are required to take furlough days, then such faculty/staff members shall be considered as non-exempt for the work week in which the furlough occurs. They are not allowed to work during the furlough time chosen or to work overtime hours during the week in which the furlough time is taken. They shall report furlough days/hours taken through the same mechanism that they report leave taken.

In accordance with the provisions of the Fair Labor Standards Act, unclassified non-exempt (hourly) faculty/staff may take furloughs in appropriately sized increments (days, hours, fractional hours), and they shall record furlough time when reporting hours worked. Unclassified non-exempt staff are not allowed to work during the furlough days/hours chosen nor are they allowed to work overtime hours during the week in which furlough days/hours are taken.

The following provisions shall apply to employee benefits and University standing:

• University monetary contributions to employee benefit plans shall not be reduced due to a furlough action.
• University monetary contributions to employee retirement plans shall remain at pre-furlough levels. Employee and University contributions to employee retirement and Social Security plans may be reduced as required by applicable State of Kansas and/or Federal law.
• Unpaid furlough days shall be included for the purpose of calculating the amount of all leave as well as employee service credit that employees accrue.

The percentage of an employee’s work time reduction during a furlough shall be matched by an equivalent reduction of the employee’s performance expectations for employee recognition considerations.

Exclusions and Special Circumstances

The following categories of employees are excluded from mandatory furloughs: faculty/staff appointed to less than fifty percent (50%) regular positions, student employees, faculty/staff appointed to temporary positions, and faculty/staff with a visa type of H1-B. In addition, a minimum salary tier shall be established and faculty/staff whose annual base salary is within that minimum salary tier shall be excluded from mandatory furloughs.

Faculty/staff who are  one-hundred percent (100%) grant funded are excluded from mandatory furloughs. Faculty/staff who are funded partially by federal grants, contracts or sponsored projects shall be excluded from mandatory furloughs for that portion of their appointment which is not funded by state funds. (Adjustment shall be made to the split-funded individual’s payroll distribution for the furlough impact, reducing state funding charges. The percentage level of effort charged against federally funded projects shall be increased to reflect the appropriate relative effort spent on such sponsored activity, in accordance with OMB Circular A-21 principles.)

University Support Staff

In certain circumstances it may be necessary to furlough or layoff University support staff (USS) employees to preserve the financial wellbeing of the University. In addition, if a program is discontinued or situations of financial exigency exist, it may be necessary to furlough or layoff USS employees. Such procedures will be determined by and in compliance with state regulations and federal law and applicable Memorandums of Agreement. Complete details are available from HR.

If necessary, due to a shortage of funds, the University may furlough some or all employees. Such furloughs must be approved, no less than 10 days in advance, by the University President.

A furlough is defined as leave without pay for a preset number of hours each pay period covered by the furlough plan and can be used as an alternative to layoffs.

While on furlough, an employee's social security and retirement contributions are reduced in proportion to the reduction in gross pay, but all other benefits, including accrual of vacation and sick leave, continue.

Furloughs do not affect employees' continuous service, length of service, pay anniversary date, or eligibility for authorized holiday leave or pay.

Definitions: All words and phrases shall be interpreted utilizing their plain meanings unless otherwise defined in another University or Board of Regents policy or by statute or regulation.

Furlough - The placement of an employee in a temporary leave without pay status for a specified number of days/hours within a specified time frame. A furlough is not a termination, layoff, or reduction in workforce.

Procedures: All procedures linked and related to the policies above shall have the full force and effect of policy if said procedures have first been properly approved by the University’s administrator in charge of Human Resources procedures and General University procedures.

[Human Resources procedures - coming soon]

Related Policy Information: [coming soon]