Work Force Reduction - Temporary

PURPOSE
Permits the University to reduce employees' work hours temporarily or to place employees in a non-working status temporarily. Such reductions are limited to no more than four consecutive months in a year, and certain employee benefits are protected during the period of reduction or non-working status.

DEFINITIONS
Long Term Disability-(LTD)
A benefit received by employees in a disability status who are covered by  the Virginia Sickness and Disability Program (VSDP). The benefit commences upon the expiration of a 180-calendar day waiting period and provides partial income replacement.

Long Term Disability Working-(LTD-Working)
A benefit received by employees in a disability status who are covered by the Virginia Sickness and Disability Program (VSDP). The benefit commences upon the expiration of a 180-calendar day waiting period, and allows employees to continue to work for  the University from short-term disability working status into LTD-working. An employee in LTD-working must work at least 20 hours or more per workweek in their own position.

Short Term Disability-(STD)
A benefit received by employees in a disability status who are covered by  the Virginia Sickness and Disability Program (VSDP). The benefit commences upon the expiration of a 7-calendar day waiting period, and provides replacement income for defined periods of time based on an employee's total months of state service.

Temporary Work Force Reduction - Non-working status
A temporary change in an employee's work schedule that places the employee in a non-working status. The employee's work hours are eliminated completely such that employees do not work for up to four consecutive months.

Temporary Work Force Reduction - Reduced Hours
A temporary change in an employee's work schedule that results in the employee working fewer than his or her regularly- scheduled work hours per pay period. The employee's salary is reduced commensurately over the specified period of the schedule reduction, which is not to exceed four consecutive months. A reduction in hours may be to any amount (e.g., 32 hours per week = 80% of 40 hours, 25 hours per week = 62.5% of 40 hours, 10 hours per week = 25%.) The  salaried status of an employee is protected although the employee may work less than 20 hours per week during a temporary work force reduction (TWFR).

VRS Retirement Contribution and Service Credit
Earned VRS service credit, including any prior service credit that is used in the calculation of a retirement benefit.  The University continues to make VRS contributions for employees in VSDP STD. Employees continue to accrue service during periods of short-term and long-term disability.

IMPLEMENTING TWFR
Identification of Employees for TWFR
The University has discretion, based on its business needs, to identify the employees to be affected by a TWFR. The decision must not be used to discriminate on the basis of race, color, religion, gender, age, national origin, disability, political affiliation or sexual orientation.

Duration of TWFR
The period during which an employee's work hours are reduced or eliminated may be continuous or intermittent but may not extend for longer than four consecutive months. Further, an employee is not subject to more than one such event in a 365-day period.

Prior to Implementing TWFR
Before implementing TWFR, the University must:

• determine whether the entire  University or only certain designated work unit(s) are to be affected,
• designate business functions to be suspended or reassigned, and
• designate work unit(s) to be affected as appropriate.

Notification Process
The University must provide a minimum of two weeks notice to employees before placing them in TWFR. The following information must be included in the notice to employees

• Extent of the TWFR (reduced hours or non-working status);
• Percentage of full-time (40 hours per week) for reduced hours schedules;
• Duration of the TWFR; and
• Status of employee's benefits during the TWFR including leave accrual rate for employees working reduced hours.

Conclusion of TWFR
When an employee is returned from TWFR, the employee must be returned to his or her original (pre-TWFR) position. If the University determines that staff reductions must be made on a permanent basis, the provisions  of the University’s Staff Layoff  Policy, must be applied.

TWFR FOR EMPLOYEES ON LEAVE WITH PAY AND VSDP
VSDP Short Term Disability (STD) Benefits
An employee on STD under the Virginia Sickness and Disability Program  may receive notice that his or her position will be subject to a TWFR. STD benefits will not be reduced because of the TWFR status except that the employee may not use annual leave, compensatory or overtime leave, to restore his or her salary to 100% income replacement. However, disability credits may be used during TWFR to restore his or her salary to 100% income replacement.

If the employee is released to work full-time/full-duty within the time period of the announced TWFR, the employee will be placed on the TWFR schedule (either reduced hours or non-working status) after being released to return to work.

An employee receiving STD benefits is covered by the limitation to four consecutive months of TWFR within a 365-day period. Also, time when the employee was on TWFR status, either reduced hours or non-working status, counts toward the 180-day period for LTD eligibility.

If an employee moves from STD into LTD not working status after receiving notification of TWFR or beginning TWFR, his or her TWFR status is ended. The employee then is on LTD status only and the position is considered vacant.

VSDP Long-Term Working Disability Benefits
An employee on LTD-Working status under the Virginia Sickness and Disability Program may receive notice that his or her position will be subject to a TWFR. LTD-working benefits will not be reduced because of TWFR status except that the employee may not use annual, compensatory or overtime leave to restore his/or her salary to 100% income replacement. However, the employee may use disability credits to restore income to 100% income replacement. The agency will be responsible for payment for disability credits if used.

While in TWFR employees will receive disability benefits from the Third Party Administrator at 60% of pre-disability salary. The employee will continue to be considered in LTD-working status and will receive the employer-paid portion of health care and life insurance premiums. Employees will not be eligible for the health insurance credit.

Workers' Compensation
Employees placed on TWFR non-work status who are receiving Workers' Compensation benefits will continue to receive these benefits while authorized. Employees not under VSDP who normally would receive an agency supplement will not receive the agency supplement during non-working TWFR. Annual, compensatory or overtime leave, and family and personal leave may not be used to supplement salary to receive 100% income replacement for non-VSDP or VSDP employees receiving benefits. However, Disability Credits may be used to restore VSDP employees' salary to 100% income replacement.

Employees placed on TWFR reduced hours who are receiving Workers' Compensation benefits or who have been returned to modified duty through Workers' Compensation may be eligible to receive the Workers' Compensation Benefit. However, the agency supplement (non-VSDP) or VSDP benefit, as applicable, will be reduced proportionately to reflect only hours scheduled to be worked. NOTE: Each case must be evaluated individually to determine whether employees will be entitled to receive these benefits.  The University must contact the Workers' Compensation Office at least two weeks prior to placing on TWFR an employee who is receiving Workers' Compensation benefits to ensure that benefits are coordinated accurately.

Filing VSDP Claims During TWFR
Reduced Hours -The disability benefit for employees who file VSDP claims while in TWFR reduced hours will be calculated on the employee's reduced salary while in TWFR. Once the employee returns from TWFR, the disability benefit will increase to the employee's pre-TWFR, pre-disability salary if he/she remains disabled.

Non-Working Status - Employees who become disabled or ill while on TWFR non-working status will not be able to access the benefit until they return from TWFR. At that time employees will have to serve a 7-calendar day waiting period before accessing the benefits. The 180-calendar day period will not start until the first day of the 7-calendar day waiting period.

Leaves of Absence With Pay
Employees who are on Family and Medical Leave and other Leaves of Absence With Pay, including absences for illness or disability, are considered active employees and shall be treated as if they were in their positions. If their positions are identified for TWFR they will be notified and provided appropriate benefits.

Use of Previously Approved Leave During TWFR
The agency must retract approval for leave scheduled during a TWFR. Thus, the part of leave no longer scheduled as work time may not be charged to paid leave.

For example, a full-time employee has asked to use annual leave for Monday through Friday of the second week of July. After the request is approved, a TWFR involving that employee's position is imposed. Under TWFR, the employee's schedule has been reduced and she does not work on Wednesdays. Therefore, the employee cannot use leave to cover Wednesday of the week that had been approved for annual leave. If the TWFR had eliminated all work hours for July and August, the entire week would have to be taken without pay.

IMPACT OF TWFR ON BENEFITS
During a TWFR an employee's benefits are affected as follows:

Annual Leave
Reduced Hours - Employees will accrue annual leave on a prorated basis, according to the percentage of full-time hours they are scheduled to work during a pay period.

Example: A full-time employee whose work hours are reduced during a TWFR to 40% (16 hours per week) per pay period will earn annual leave at 40% of his or her normal accrual rate.

Non-Working Status - Employees in TWFR non-working status will not accrue annual leave.

Traditional Sick Leave
Reduced Hours - employees will accrue traditional sick leave on a prorated basis, according to the percentage of full-time hours they are scheduled to work during a pay period. See example above.

Non-Working Status -employees in TWFR non-working status will not accrue traditional sick leave.

VSDP Sick and Family and Personal Leave -STD and LTD-Working
Reduced Hours - Employees in TWFR status who are working reduced hours on January 10 will receive the allotment of VSDP leave on January 10 for current part-time employees based on their months of state service. When they return to a full-time work schedule, their allotment will be increased to the appropriate full-time amount. (Used leave will not be replaced.)

Non-Working Status - Employees in TWFR non-working status on January 10 will not receive the VSDP leave credits until they return from TWFR.

Disability Credits
Non-Working or Reduced Hours - Employees receiving STD or LTD-working disability benefits may use disability credits during periods of TWFR to restore salary to 100% income replacement. Disability credits must be used in increments of 8 hours.

Compensatory Leave and Overtime Leave
Compensatory Leave - Balances are retained. Leave may be used to cover absences from scheduled work time for employees working reduced hours. At  the University’s discretion, employees in non-working status may have balances held until they return from TWFR.  The University may revise the leave expiration date for the period of time employees are on TWFR.

Overtime Leave - Balances are retained. Leave may be used to cover absences from scheduled work time for employees working reduced hours.

Holidays
An employee working reduced hours under TWFR will be entitled to receive holiday pay or compensatory time for a holiday only to the extent of the number of hours that he or she is scheduled to work that day.

Example: If an employee whose work hours are reduced is not scheduled to work on Mondays, he or she is ineligible for holiday pay for any holidays that fall on Monday.

An employee on TWFR non-working status does not receive pay or compensatory time for any holidays that occur during the TWFR period.

Leave Service Credit
Reduced Hours and Non-Working Status - Employees whose hours are reduced or who are placed in a non-working status will receive full service credit during the period of TWFR for the purpose of determining their years of service as they affect the following: Annual leave accrual rate; Eligibility to receive payment for accrued traditional sick leave upon leaving state service; and VSDP months of service.

Retirement - Non VSDP
If an employee on TWFR earns any pay during a month,  the Universitywill make its retirement contribution based on the amount earned, and the employee will receive service credit towards retirement for the entire month.

If an employee on TWFR has no earnings during a month, the University will not make a retirement contribution and the employee will not receive retirement service credit for that month.

Retirement - VSDP
An employee on TWFR, whether in reduced hours or non-working status, who is receiving VSDP STD benefits will continue to receive the full retirement contribution and service credit. Employees receiving LTD-working benefits will receive service credit only.

Healthcare Insurance
The University will continue to pay its portion of the health insurance premiums for employees on TWFR, whether reduced hours or non-working status.  The University should inform employees of alternatives for paying the employee share of their premiums if payroll deduction is no longer suitable.

Life Insurance
The University will continue to pay the life insurance premiums for employees on TWFR, whether reduced hours or non-working status, based on employees' full-time (pre-TWFR) compensation.

If an employee should die during a TWFR, his or her beneficiaries would be entitled to benefits based on the employee's full-time (pre-TWFR) compensation.

Optional Life Insurance
Employees who want to continue optional life insurance will need to coordinate monthly payment arrangements with  the University.

Impact on Probationary Period
Reduced Hours - Reduced hours under TWFR do not affect the duration of an employee's probationary period.

Non-Working Status - An employee's probationary period is extended by the amount of time the employee is in a non-working status under TWFR if the non-working status included a period of more than 14 consecutive days.

AUTHORITY
 
The Board of Visitors of the University of Virginia.