Furloughs, Voluntary Outs, and RIFs in Human Capital Management
Furloughs are the involuntary leave without pay of classified or unclassified employees to reduce costs or cope with temporary work declines. Appointing Authorities can implement furloughs for up to 184 hours in a 12-month period, with specified procedures and reasons for non-uniform treatment. Furloughs require a developed equitable plan and have limited appeal rights in Oklahoma.
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Furloughs, Voluntary Outs, and RIFs Classification and Compensation Human Capital Management Division Office of Management & Enterprise Services
Furlough Title 74 O.S. 840-2.20C; 840-2.27C; OAC 260:-25-15-48 Definition The placement of a classified or unclassified employee on involuntary leave without pay when it is necessary to reduce expenditures or due to a temporary decline or cessation of work activities
Furlough An Appointing Authority may place classified and unclassified employees on involuntary leave without pay (furlough) for up to a total of 184 hours (23 8 hour days) in any 12 month period. Before beginning a furlough, an Appointing Authority shall announce in writing the reasons that require it. The Appointing Authority shall post this announcement throughout the agency and send it to the Governor and OMES. This announcement is not part of the furlough plan required in (c) of OAC 260:25-15-48, and it is not subject to the approval of the Administrator.
Furlough Required Plan Before beginning a furlough, the Appointing Authority must develop an equitable and systematic plan for the furlough and submit the plan to HCM for approval. Employees must be notified of the intent to furlough at least 30 days in advance. After approval of the plan by HCM, the Appointing Authority must post the plan throughout the agency a minimum of 2 working days before the furlough effective date The plan must apply uniformly* to employees regardless of classified or unclassified status. To the extent possible , the Appointing Authority must furlough all full-time employees the same number of hours and prorate the number of hours for part-time employees *It is possible for an Appointing Authority to find that non-uniform treatment is necessary. See next slide.
Furlough Reasons for non-uniform treatment Uniform treatment would cause undue hardship of lower paid employees and is not required to meet reduced revenue levels Uniform treatment would endanger public health, safety, or property, or continued operation of critical agency functions Furlough is due to a decline or loss of funding that supports specific positions, jobs, or organizational units. Types of non-uniform treatment Exclude specified employees from the furlough Place specified employees on a lesser number of hours without pay than other employees Make the furlough of specified employees subject to early cancellation or periodic call-back
Furlough Appeal Rights Furlough is not appealable under provisions of the Oklahoma Personnel Act
Furlough Continuation of Benefits: While on furlough, employees who would otherwise accrue leave shall continue to accrue annual and sick leave as though the furlough had not occurred. The furlough should be scheduled so it does not interrupt the agency's payment of the employees' insurance premiums.
Furlough Furloughs and the Federal Fair Labor Standards Act Non-Exempt Employees: FLSA requires that all non-exempt employees receive the Federal minimum wage for all hours worked FLSA does not preclude an employer from lowering an employee s hourly rate (above the minimum wage) or from reducing the number of hours the employee is scheduled to work
Voluntary Out Benefits Title 74 O.S. 840-2.28 through 840-2.28B; OAC 260:25-13-11 Who is Eligible? permanent classified employees and regular unclassified employees with one year or more of continuous state service.
Voluntary Out Benefits Required Actions Submit a plan for voluntary out benefits to your budget liaison at OMES. It must contain the following: Details on why a RIF is imminent The benefits to be offered and their cost How agency intends to execute the offer
Voluntary Out Benefits Authorized Benefits Mandatory Benefits: Payment equal to health insurance premium (employee only) for 18 months (not the complete benefit allowance) Longevity payment the employee would be paid at their next anniversary date (not prorated)
Voluntary Out Benefits Authorized Benefits Optional Benefits: Up to 1 week of pay for each year of service Maximum lump sum payment of $5,000 Payment of accumulated sick leave up to one-half of the employee s hourly rate Payment of insurance premium for up to 18 months, as provided by the Public Health Service Act, 42 USC Section 300 bb-1, et. seq. Employee may direct payment of all or a portion of severance benefits to receive education vouchers NOTE: Part-time employees eligible to receive voluntary out benefits shall receive benefits on a prorated basis.
Voluntary Out Benefits Time Frames If the employee waives their right to age discrimination they have 45 days to consider voluntary out benefits package and 7 days to revoke their decision. (See 29 CFR 1625.22(e)(1)(ii)) If an employee does not waive their right to age discrimination the agency determines the time frame and they are allowed 7 days to recant their decision.
Reduction in Force Title 74 O.S. 840-2.27A through 840-2.27I; OAC 260:25-13-1 through 260:25-13-73 Definition Reduction-in-force means abolition of positions in an agency or part of an agency and the corresponding non-disciplinary removal of affected classified employees from such positions through separation from employment or through displacement to other positions.
Reduction in Force Freeze of Personnel Actions At least 14 days before RIF plan is posted Includes all actions except: separations unrelated to the reduction-in-force, leave, disciplinary actions, other transactions specifically required by law, transactions specifically due to the reduction-in-force, and transactions the Appointing Authority certifies will not limit displacement opportunities for affected employees
Reduction in Force Reviews and Approvals Cabinet Secretary must approve prior to posting of notice Copies of implementation plan to be sent prior to posting to Office of Management & Enterprise Services (approves fiscal components) Human Capital Management information only Oklahoma Public Employees Association information only
Reduction in Force Posting of RIF Notice At least 60 days prior to RIF separations In each office affected by the reduction in force Minimum of 5 days Copy must be provided to the HCM Administrator
Reduction in Force Posting of RIF Plan Must be posted at least within 5 business days of posting of RIF Notice Must be posted in each office affected by the reduction in force Information copies must be provide to HCM, Merit Protection Commission, and OPEA
Reduction in Force Contents of RIF Plan Statement of conditions necessitating RIF Estimated time schedule for the RIF Description of the displacement process Listing of affected positions and employees, including: All occupied and vacant positions to be abolished, to include job information and retention points All positions and employees subject to displacement Other occupied and vacant positions and employees in affected job families All retained funded vacant positions anywhere in the agency The schedule and procedure to be followed if an eligible employee chooses to accept a displacement offer Method for breaking ties in retention points
Reduction in Force RIF Implementation Plan Estimated Schedule for the RIF Determine projected date for separations Back off at least 60 days for issuance of RIF notice Factor in time frames for freezing personnel actions (prior to RIF plan posting) and obtaining approvals from Cabinet Secretary and OMES Build sufficient time into the schedule so that all necessary sequential actions can be completed within necessary time frames
Reduction in Force RIF Implementation Plan Affected Positions, Classes and Employees Positions to be abolished are determined by the Appointing Authority, consistent with the reason for the reduction in force, and will initially determine the affected positions, employees and classes included in the RIF. However, since these employees may be eligible to displace other employees, there may be other employees who could be affected. Displacement Refers to the process of an employee accepting a job offer to another position to avoid separation as a result of a reduction in force. May involve a transfer or voluntary demotion to another position, which is either vacant and funded, or to a position occupied by an employee who has the lowest number of retention points.
Reduction in Force RIF Implementation Plan Displacement Opportunities Displacement opportunities are offered to employees in the order below. To be considered an available option, the position must be vacant, held by a non-permanent employee, or held by the employee with the lowest retention points. Transfer to a position in the employee s current job family and level Lateral transfer to a position in other previously held job family in the reverse order in which they were held by the employee on a permanent basis Voluntary demotion to a retained position in the next available lower level of the same job family Voluntary demotion to a position in other previously held job family in the reverse order in which they were held by the employee on a permanent basis
Reduction in Force RIF Implementation Plan Displacement Opportunities Employees must have received overall rating of meets standards on most recent performance evaluation If affected employee who is otherwise eligible for a displacement opportunity has not held the position within the last five years, agency may determine employee does not have recent relevant experience and deny displacement opportunity
Reduction in Force RIF Implementation Plan Displacement Limits Areas within an agency in which displacement may not occur. May include job families, units, and geographic areas within an agency Reasonable, articulated criteria for limitation must be documented in writing If limits imposed, action must be taken to avoid/minimize adverse impact on women/minorities
Reduction in Force RIF Implementation Plan Limitation on Displacement Opportunities May protect from displacement action up to 20% of projected post-reduction-in-force employees in affected positions within displacement limits Agency must explain why employees are being protected
Reduction in Force RIF Implementation Plan Retention Points Must be calculated for each permanent employee who will be affected by the RIF. Points are based on all current and prior service creditable for the Longevity Pay Plan. (we have a formula to help you with this) One point is given for each full month of full-time service (pro-rated for part-time status or less than a full month). Affected employees are ranked by retention points and removal is in inverse order of ranking. Tie scores will be broken by giving veterans preference over non-veterans with equal points, then by years of service with the agency. Continued ties shall be broken by a method established by the agency. End date for calculation: approximate date RIF implementation plan is posted
Reduction in Force Written Notice to Employee Must be made within 5 calendar days of posting of implementation plan Must offer an opportunity to notify a specified agency official in writing of possible errors in retention points and to request a meeting with supervisors or agency officials Must include effective date of separation and instructions for exercising displacement opportunity, if available; and Must provide notice of appeal rights in accordance with 260:25-13-10.
Reduction in Force Severance Benefits Must be offered to the following employees affected by a RIF: Permanent classified employees Affected employees on probationary status after reinstatement from permanent classified status without a break in service Regular unclassified employees with at least one year continuous service who are separated as a result of conditions causing the agency to implement a reduction in force. May be offered to regular unclassified employees with at least one year continuous service who are separated for budgetary reasons
Reduction in Force Severance Benefits Mandatory: Payment equal to health insurance premium (employee only) for 18 months Longevity payment employee that would be paid at next anniversary date Outplacement assistance and employment counseling by OESC prior to and after RIF
Reduction in Force Severance Benefits Optional: Up to 1 week of pay for each year of service Payment of accumulated sick leave up to one-half of the employee s hourly rate Employee may direct payment of all or a portion of severance benefits to receive education vouchers
Reduction in Force Severance Benefits A Separation Agreement must be executed by all employees who receive severance benefits. Must contain following elements: Agreement that receipt of benefits is in lieu of continued employment Release of all claims, liabilities , demands and causes of action against State of Oklahoma (except unemployment insurance) Agreement that receipt of severance benefits is in exchange for rights to continued employment with any agency and future employment with agency from which separated for a period of one year from date of agreement
Reduction in Force Appeal Rights Employees may appeal to Merit Protection Commission based on procedural errors
Reduction in Force Required Actions Checklist Freezing of personnel actions in affected job classes Approval of RIF notice by Cabinet Secretary Posting of RIF notice Approval of RIF plan by OMES (fiscal components) Posting of RIF implementation plan Submission of implementation plan to Human Capital Management, Merit Protection Commission and Oklahoma Public Employees Association Individual written notification of employee status, including displacement offers Offer of severance benefits Employee election to accept/decline displacement offer Separation of probationary employees Outplacement assistance and employee counseling Separation of employees
Furloughs/Voluntary Outs/RIFs Statute & Rule Links Furloughs Title 74 O.S. 840-2.20C http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=467637 Title 74 O.S. 840-2.27C http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=440524 OAC 260:25-15-48 https://www.ok.gov/opm/documents/MeritRulesTitle260.pdf Voluntary Outs Title 74 O.S. 840-2.28 through 840-2.28B http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=102358 http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=460982 http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=460984 OAC 260:25-13-11 https://www.ok.gov/opm/documents/MeritRulesTitle260.pdf RIF s Title 74 O.S. 840-2.27A through 840-2.27I http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=102350 http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=438473 http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=440524 http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=438474 http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=436764 http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=102355 http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=102356 http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=104143 OAC 260:25-13-1 through 260:25-13-73 https://www.ok.gov/opm/documents/MeritRulesTitle260.pdf
Furloughs/Voluntary Outs/RIFs Questions? HCM Class/Comp Jake Smith |521-6327 | Jacob.Smith@omes.ok.gov Deanna Ferron | 522-2490 | Deanna.Ferron@omes.ok.gov LaCree Austin | 521-6337 | LaCree.Austin@omes.ok.gov OMES/HCM Deputy General Counsel Matt Stewart |522-0663 | Matt.Stewart@omes.ok.gov
