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Furlough and Temporary Salary Reduction Policy, Lawrence Campus

Policy
Purpose: 

The policy establishes the general plan for furloughs and temporary salary reductions if they need to be implemented in times of budgetary constraints. Furloughs and temporary salary reductions are viewed as last resort options during times of budgetary constraints. Other options would be considered before implementing these measures.

Applies to: 

All employees, including student employees.

Campus: 
Lawrence
Policy Statement: 

Furloughs and temporary salary reductions may be imposed for a variety of reasons. As set forth in the University’s Furlough Authorization Policy, in times of budgetary constraints or reduction, including situations that do not yet constitute financial exigency, the University may take actions affecting the pay and/or the appointments of employees and may furlough faculty, staff, and/or student employees for a specified time period or may invite voluntary leaves without pay.

Implementation of any furlough or temporary salary reduction will be guided by the reason for the budgetary constraint or reduction. Some furloughs may be implemented to deal with reduced state funding to the University. Other furloughs may be implemented in response to cuts to specific research funding. This policy will set forth the general guidelines that will inform those decisions.

  1. Responding to State Budget Cuts

    Furloughs and temporary salary reductions will be based on a specific, required budgetary reduction amount and will 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 or temporary salary reductions.

    Any savings achieved from general use funds (e.g., funds 003 and 099) will be reclaimed centrally by the University while savings from other line-item appropriations will remain within the unit unless mandated otherwise (e.g., course fees, restricted fees income, and revenues from auxiliary enterprises on the Lawrence campus like Student Housing, Watkins Health Services and Parking and Transit).

    If voluntary leave without pay is taken by a faculty/staff member, that time and/or salary savings will be considered in satisfying any subsequent mandatory furlough or temporary salary reduction requirements.

    Furloughs and/or temporary salary reductions will be based on salary tiers. Faculty/staff making higher base annual salaries will be assigned a larger proportion of the financial impact than those making lower salaries. The calculation of required furlough days/hours and/or percent of temporary salary reduction associated with salary tiers will be described in an implementation plan for the specific furlough period. To the extent possible, the furlough and temporary salary reduction plan will be broadly disseminated prior to its implementation.

    To the extent possible during a furlough time period, faculty/staff will be allowed to choose the timing of furlough days/hours and/or temporary salary reductions. For example, faculty/staff may decide to not take furlough and/or temporary salary reductions during holiday seasons. No form of paid leave can be substituted for furlough days/hours or temporary salary reductions.

    Departmental supervisors/managers will work with faculty/staff to identify in advance what furlough days/hours or temporary salary reduction will be taken during the furlough period and to maintain effective operations and services. Departmental supervisors/managers will be required to plan staff furlough time in a manner that allows for essential services to be provided. Vice Provosts, Deans, Directors, and Chairpersons are responsible for assuring that the requisite furloughs or temporary reductions in salary are taken within and reported for units reporting to them.

    In accordance with the provisions of the Fair Labor Standards Act, non-exempt (hourly) faculty/staff may take furloughs in day or hourly increments, and they will record furlough days or hours when reporting hours worked. 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.

    Exempt faculty/staff may choose to take furlough days or a temporary salary reduction. If they elect to take furlough days, exempt faculty/staff members will be considered as non-exempt for the work week in which the furlough occurs. They are not allowed to work during the furlough days chosen or to work overtime hours during the week in which furlough days are taken. They will report furlough days taken through the same mechanism that they report leave taken. Exempt faculty/staff who choose to take a temporary reduction in salary will continue to be treated as exempt.

    Furloughs and temporary salary reductions will be implemented so as to minimize negative effects on benefits to the extent possible.

  2. Responding to Cuts in Research Funding

    Furloughs and temporary salary reductions may be imposed by principal investigators (PI’s) on sponsored projects in response to reductions in federal research grants or other sponsored research funding. PI’s may implement furloughs and temporary salary reductions only after consultation and approval from their supervising Dean or Director and Human Resources. In evaluating whether a furlough or temporary salary reduction should be implemented, PI’s should adhere to the considerations in this policy as well as all of the terms, conditions, and limitations of the grant or sponsored research agreement.

    Furloughs and temporary salary reductions should be based on a specific, required budgetary reduction amount and applied in order to achieve those temporary savings during a specified time period. Any furlough imposed must achieve savings under the terms of the grant affected by funding reduction. 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 or temporary salary reductions.

    If voluntary leave without pay is taken by a faculty/staff member, that time and/or salary savings should be considered in satisfying any subsequent mandatory furlough or temporary salary reduction requirements.

    PI’s are encouraged to consider whether furloughs and/or temporary salary reductions should be based on salary tiers, such that faculty/staff making higher base annual salaries would be assigned a larger proportion of the financial impact than those making lower salaries.

    To the extent possible without disrupting the research, faculty/staff should be allowed to choose the timing of furlough days/hours and/or temporary salary reductions. For example, faculty/staff may decide to not take furlough and/or temporary salary reductions during holiday seasons. No form of paid leave can be substituted for furlough days/hours or temporary salary reductions.

    PI’s should work with human resources and affected faculty/staff to identify in advance what furlough days/hours or temporary salary reduction can be taken during the furlough period and to maintain the research grant affected by the funding reduction. PI’s are responsible for assuring that the requisite furloughs or temporary reductions in salary are taken by the employees reporting to them on the project. Vice Provosts, Deans, Directors, and Chairpersons should remain in close communication with PI’s to ensure compliance with University policies and prevent disruption of the sponsored project.

    In accordance with the provisions of the Fair Labor Standards Act, non-exempt (hourly) faculty/staff may take furloughs in day or hourly increments, and they will record furlough days or hours when reporting hours worked. 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.

    Exempt faculty/staff may choose to take furlough days or a temporary salary reduction. If they elect to take furlough days, exempt faculty/staff members will be considered as non-exempt for the work week in which the furlough occurs. They are not allowed to work during the furlough days chosen or to work overtime hours during the week in which furlough days are taken. They will report furlough days taken through the same mechanism that they report leave taken. Exempt faculty/staff who choose to take a temporary reduction in salary will continue to be treated as exempt.

    Furloughs and temporary salary reductions should be implemented so as to minimize negative effects on benefits to the extent possible.

Exclusions or Special Circumstances: 

Neither graduate teaching assistants nor employees with a visa type H-1B may be furloughed.

Contact: 

(For faculty & academic staff)
Office of the Provost
250 Strong Hall
1450 Jayhawk Blvd.
Lawrence, KS 66045
785-865-4904
provost@ku.edu

(For unclassified professional & university support staff)
Department of Human Resources
103 Carruth-O’Leary Hall
1246 W. Campus Road
Lawrence, KS 66045
785-864-4946
hrdept@ku.edu

Approved by: 
Executive Vice Chancellor & Provost
Approved on: 
Tuesday, December 1, 2009
Effective on: 
Wednesday, December 2, 2009
Review Cycle: 
Annual (As Needed)
Definitions: 

Furlough: leave without pay

Temporary reduction in hourly rates of pay: a reduction in the hourly rate of pay of non-exempt employees. A reduction in hourly rate of pay may affect benefits and compensation.

Temporary reduction in salary: a decrease in compensation of exempt employees. A reduction in salary may affect benefits, compensation, and exempt status.

Keywords: 
Furlough, salary reduction, budget cuts, budget constraints, mandatory leave without pay
Review, Approval & Change History: 

12/10/2014: Policy formatting cleanup (e.g., bolding, spacing).

10/27/2014: Updated unit title for reference to Watkins Health Services in second paragraph of A. Responding to State Budget Cuts.

03/09/2013: Revised and updated.

12/02/2009: Policy effective as of December 2, 2009.

12/01/2009: Policy approved December 1, 2009.

Financial Categories: 
Payroll
Personnel: Faculty/Academic Staff Categories: 
Workplace Rules & Guidelines
Personnel: Staff Categories: 
Workplace Rules & Guidelines

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