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SUBJECT:
Furlough of Exempt Employees |
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| 2.0 |
EFFECTIVE DATE: December 6,
2002 |
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| 3.0 |
DISTRIBUTION: Agency Human Resource
Managers |
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| 4.0 |
FROM: Bobbi Mariani, Director DATE:
December 6, 2002 |
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| 5.0 |
PURPOSE: To address FLSA status
issues and SHARP procedures with regard to any
furlough of exempt employees. |
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| 6.0 | PROCEDURE: |
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| 6.1 |
The Fair Labor Standards Act (FLSA) does
not normally allow for the furlough of exempt employees
without losing their exempt status, but has made a special
exception for public sector entities. Specifically, 20 CFR
541.5d (b) provides that:
Deductions from the pay of an employee
in a public agency for absences due to a budget-required
furlough shall not disqualify the employee from being paid
"on a salary basis" except in the
workweek in which the furlough occurs and for which the
employee’s pay is accordingly reduced.
For state employees, this provision means that exempt employees
must be treated in all aspects like a non-exempt employee during the
workweek in which the furlough occurs but will not lose their exempt
status permanently.
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| 6.2 |
In essence, during the week of the furlough, the
exempt employee must be temporarily switched to non-exempt status
and is governed by all FLSA rules and regulations pertaining to
non-exempt employees. For example, the employee must fill out a time
document for the week, must use leave in quarter hour increments and
is eligible for overtime compensation should the employee exceed the
overtime threshold. This also means that the employee could be
furloughed for any number of hours, not just in half or full-day
increments since they are treated as non-exempt employees during
that week. |
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| 6.3 |
At the option of the appointing authority, the
temporary switch to non-exempt status for furloughed exempt
employees could be for the entire pay period in order to lessen
technical and administrative complications. In that case, the
employee would be treated as non-exempt for both weeks of the
bi-weekly pay period. Appointing authorities should indicate which
option they will follow in their furlough plan. |
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| 6.4 |
For exempt employees working nonstandard workweeks,
the appointing authority has the option of changing the employee’s
workweek back to the standard workweek for the week in which the
furlough is to occur. Otherwise, the employee will be furloughed for
the amount of hours regularly scheduled to work on the day the
furlough is to occur. Appointing authorities should indicate which
option they will follow in their furlough plan. |
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| 6.5 |
At the conclusion of the week, or pay period if the
appointing authority chooses that option, in which the furlough
occurs, the exempt employee must be switched back to exempt status.
Even if the agency is planning on regular or periodic furloughs the
status of exempt employees who were temporarily switched to
non-exempt due to furloughs must be switched back to exempt at the
end of the workweek or pay period. |
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| 6.6 |
If an exempt employee is subject to a furlough and is
temporarily switched to non-exempt status, the SHARP
furlough procedures are located at the following web address: http://da.state.ks.us/sharp/documents/ |
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| 7.0 |
REFERENCES: K.A.R. 1-14-11. |
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| 8.0 |
CONTACT
PERSON:
Ken Otte at ken.otte@da.ks.gov or (785)296-4383. |
