Frequently Asked Questions (FAQs) regarding the FY 2011 Furlough Program

Posted: April 14, 2010
Last Updated: June 28, 2010

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This list is designed to answer general questions about the University of Arizona’s FY 2011 Furlough Program, and is based on information that is currently available. It is important to note that more extreme budget actions, including the prospect of additional furlough days, will become necessary if Proposition 100 fails at the ballot on May 18th.

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What is a mandatory furlough?
A furlough is time off without pay that is implemented as a cost savings measure.

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Why is The University of Arizona implementing a furlough?
This is a cost saving measure designed to respond the March 12, 2010 budget reduction directive issued by the Arizona Board of Regents. Furloughs provide temporary dollars and that allow the University to transition to a smaller state salary base using voluntary attrition rather than layoffs or contract non-renewals.

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Who is required to participate in a mandatory furlough?
Almost all benefits-eligible UA employees, regardless of funding source, will participate. Those not participating include: student employees, graduate teaching and research assistants and associates, ancillary employees, postdoctoral scholars who serve under the conditions of Post Doctoral Service (UHAP Chapter 12, Conditions of Post Doctoral Service), employees on H-1B visa status, police and security officers, and individuals who provide direct patient care.

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Should employees on a J-1 Visa participate in the furlough program?  Added 4/23/10
J-1 visa holders who are paid by The University of Arizona are expected to participate in the furlough program. Some J-1 visa holders are paid by sources outside the University and are not on the University's payroll; those individuals are not expected to take furlough days.

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Why are employees paid on non-state funds required to take furlough time?
The University of Arizona is emphasizing consistency as one of the chief principles in implementing the furlough program. A grant or auxiliary funded employee does not become ineligible for certain benefits because of funding source (i.e. , access to health insurance or pay out of vacation balance at time of termination, etc. ) and likewise, should not automatically be exempted from other employee requirements, policies or programs.

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How many days do I have to take off as furlough days?
The amount of furlough you are required to take is based on your annualized salary:

• $40,000 and below - no furlough days will be required
• $40,001 to $60,000 – 1 day (or 8 hours)
• $60,001 to $90,000 – 2 days (or 16 hours)
• $90,001 and above – 3 days (or 24 hours)

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When will the furlough program be effective?
The university wide furlough program will be implemented for fiscal year 2011 (July 1, 2010 – June 30, 2011).

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When can I take my furlough time?  Updated 6/28/10
All assigned furlough hours must be taken between July 1, 2010 and June 30, 2011 for fiscal year employees and between August 16, 2010 and May 22, 2011 for academic year employees.  Employees and their supervisors should work together to determine an appropriate schedule to take furlough time so that the impact to operations can be minimized. Some departments and supervisors may establish specific days when all or most department employees will take furlough time. Employees may request to take furlough time in partial-day or full-day increments. The smallest allowable increment is ONE HOUR. Supervisors will pre-approve the furlough schedule for each individual in accordance with departmental needs.

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How do I submit my request for furlough days?
Furlough requests will be handled like departmental annual leave requests.

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How will I record my furlough time?
Employees will document furlough hours using UAccess.

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Will classes be cancelled (or offices/services shut down)?
Classes will not be cancelled and departments will schedule furloughs in such a way as to minimize disruption of operations. Where it makes sense, supervisors and employees are encouraged to schedule furlough time throughout the year and during non-instruction periods like spring break and the standard closure days at winter break. Of course, this will vary greatly dependent on the employee’s role, the department’s peak times, and the ongoing business need of the department.

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What will happen if I fail to take my required furlough days by the end of FY 2011?
We are confident that employees and supervisors will plan ahead in order to avoid a forced furlough at the end of your FY 2011 year.

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Will my unit receive credit for the salary savings associated with my furlough hours?
Yes.

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May I apply paid annual leave, paid sick leave or compensatory time towards the furlough?
No. A furlough is leave without pay.

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Can I request a furlough the day before or the day after an observed holiday or in conjunction with my vacation?
Yes, as long as the furlough is pre-approved by your department.

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Can I choose to report to work on furlough time?
No. To ensure that the university remains in compliance with laws and federal policies governing overtime, workplace injury, etc., employees are not permitted to work on their furlough days.

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How will my paycheck be affected?
Your pay will be reduced by the number of furlough hours you take during any given pay period.

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How will my benefits be affected?

• Furlough leave without pay will not affect your eligibility for state benefits such as health and dental insurance.
• Voluntary life insurance and voluntary short-term disability insurance benefits and premiums are calculated as a percentage of earnings and therefore, will be reduced slightly.
• Long Term disability benefits and premiums under the Arizona State Retirement System are calculated as a percentage of earnings and therefore, will be reduced slightly.
• Arizona State Retirement System and Optional Retirement Plan contributions will be reduced slightly.
• Unpaid furlough time will not impact the accumulation of paid annual leave, paid sick leave, and retirement service credits

 

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May I purchase the unpaid furlough days through the ASRS Service Purchase program?
No, service purchases do not apply to furloughs lasting less than one month.

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Does furlough taken change an employee’s anniversary date?
No; furlough time will not affect an employee’s anniversary date.

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May I donate part of my pay to support other employees in need?
While we appreciate the generosity of such offers, each employee will be required to take the time identified based on their salary.

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How will the furlough program affect an employee hired during the FY 2011?
New employees hired anytime during the FY 2011 fiscal year will be required to participate in the program on a pro-rated basis.

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If an employee uses approved Family Medical Leave in FY 2011, what is the impact on the employee’s required furlough?  Updated 4/21/10
There is no impact on an employee’s required furlough when the employee uses approved Family Medical Leave.  If an employee chooses, he/she may designate one or more leave days as unpaid furlough days to run concurrent with the Family Medical Leave.

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May I use furlough time in place of sick time? Updated 6/15/10
Yes, you may apply furlough hours instead of sick hours in any situation where sick hours would normally apply.  The time you indicate as furlough hours will be unpaid.

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If I am on leave without pay, am I subject to the furlough? Updated 5/4/10
Yes, if you are in paid status at any time during the fiscal year. Furlough days will be pro-rated based on the active time at work for the fiscal year.
 

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If I am on a full year sabbatical, am I subject to the furlough? Added 5/4/10
No. Employees on a full year sabbatical are not subject to furlough. Departments are expected to reserve the appropriate portion of the 40% salary savings in lieu of the furlough savings.
 

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If I work a flexible year in FY 2011 will I also have to take furlough hours?
Yes, the furlough will be in addition to the flexible year non-work period. For more information on the flexible work year, visit the Systems Control web site.

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How will the furlough be handled for employees who have more than one UA job?
If you are paid from more than one department, the furlough time should be split according to the salary provided by each department. This split should be discussed and coordinated with the chair or director in both units.

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Am I eligible for unemployment during my days off?
No, UA employees are not eligible for unemployment compensation during their days off.

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How will the furlough affect garnishments being deducted from my paycheck?
Garnishments that are based on percentages of pay will be reduced based on your earnings.

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How will the mandatory furlough affect child support payments taken out of my paycheck?
The University forwards a set amount in accordance with court orders, so this dollar amount will not be reduced.

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How does furlough time affect overtime compensation?
When a non-exempt employee physically works more than 40 hours in a work week, he or she is eligible for overtime compensation. Furlough time is not work time.

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If a non-exempt employee is called back to the University for an emergency on a furlough day, does the Call-Back policy of time and a half for time worked still stand even if the employee has not worked 40 hours due to furlough time taken?
If a non-exempt employee is required to report to work from furlough status (physically, remote access, by phone, etc.) the Call-Back Policy (Classified Staff Policy 319) guarantees the employee two hours of pay at time and one half pay. This guaranteed premium pay is always separate from any other hours worked or not worked in the work week.

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May I file a grievance regarding the mandatory furlough?
The president’s decision to impose furloughs is not subject to the University’s grievance processes for classified staff, professionals or faculty. If an employee believes that the furlough program is being administered in an unlawfully discriminatory manner, he/she may file a complaint with the University’s Office of Institutional Equity, in accordance with procedures available at http://equity.arizona.edu/non-discrimination_anti-harassment .

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Is furlough time applied to supplemental compensation during breaks or the summer?
No. Your furlough time will be calculated on your regular salary or contract.

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Can I work outside of the university doing consulting or other work during furlough time?
Yes, provided the work does not pose a conflict of interest and is disclosed according to the regular parameters for outside employment.

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FAQs Related to Grant Support (Added 4/19/10)

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Is it legal to require employees paid on sponsored awards to take furloughs? What about federal awards?
Yes, it is legal for the University to require employees on sponsored awards, even federal awards, to take furloughs. Institutions are expected to have organizational policies with regard to the payment of salary and wages for employees and to consistently apply those policies regardless of the source of funds. Payroll and effort records should reflect the percentage of time actually devoted to any grant or contract. OMB Circular A-21, section J.10.b(2)(d), which governs use of federal funds, states: “Practices vary among institutions and within institutions as to the activity constituting a full workload. Therefore, the payroll distribution system may reflect categories of activities expressed as a percentage distribution of total activities.”

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Do I need to notify my sponsor about the furlough participation?
There is no need to notify the sponsor about the furlough participation because sponsors expect institutions to follow their own policies. Sponsors need to be contacted only when the deliverable commitment or the original scope of work will be affected.

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What will happen to the amount saved on my grants from taking furlough?
As long as the sponsor terms and conditions allow re-budgeting authority, salary savings on sponsored awards can be re-budgeted to further support the funded project. The majority of the sponsors allow funds to be re-budgeted as long as the original scope of work does not change. Contact your SPS fund accountant at 626-6000 if you are uncertain about the specific terms and conditions of your award.

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What salary amount should I show on my grant proposals, since I will receive up to 1.5% less in FY11?
We expect that most proposals submitted from now through the end of FY10 will be for projects starting in the latter half of FY11 or in FY12. Therefore the salary reduction due to furlough will have a minimal impact on the salary amount in the budget. For consistent treatment, we should use the institutional base salary, which is not decreased by a furlough, in grant proposals. For NIH grants, use the institutional base salary or the NIH cap salary, whichever is smaller.

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How will furlough affect my effort reporting?
Effort reporting will not be affected by furlough. Effort reporting is based on a percentage of the University compensated effort. Furlough simply reduces the hours included as the total compensated effort and therefore, in the general case, will not affect the percentage distribution on activities. For example, an employee who normally works 2088 hours in a year and is required to take 3 days of furlough will now work 2064 hours. The reduced hours still represent 100% of the compensated effort. If the employee works 50% on sponsored projects and 50% on other University activities, the effort distribution stays as 50/50 regardless of the total hours worked.

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How will furlough affect my cost sharing commitment to my grants?
If you are meeting a cost share commitment through contributions of your time, furlough will have a small impact. While your effort percentage will not change because of furlough, your cost sharing dollar commitment for a given percent effort will be reduced slightly. In order to meet the specific dollar level of cost sharing promised in the proposal, you may need to increase your level of effort by a small amount. In most cases, this will not require advance agreement with the sponsoring agency; it can simply be reported in the end-of-year progress report.

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What do I do if furlough creates a disruption of my research or creates a safety issue?
We do not expect furlough to create any major disruptions for the vast majority of sponsored projects. The University allows each unit to manage furlough in a flexible manner. Furlough can be taken any time during the entire fiscal year of 2011. In addition, employees are allowed to take as little as one hour at a time. The disruptions created by furlough should not be greater than those created by the vacation and sick time taken by employees on sponsored awards. If furlough creates a safety issue in certain research areas, the office of the Vice President for Research should be contacted for guidance.

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The parameters of the FY 2011 Furlough Program are subject to approval by the Arizona Board of Regents.

 

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