Department Of Personnel Seal of Nevada  

 
 
 Implementation of Mandatory Furlough

--FURLOUGHS--

(SB 433 of the 2009 Legislative Session)

 

Frequently Asked Questions and Answers

*Last Updated: 8/31/09

 

 

 

 

 

 

General

 

  1. What is furlough?

A furlough is the placement of an employee on leave and no salary of any kind is paid for the leave hours. (That means an employee will not receive shift differential or any other adjustment to pay on the furlough hours.)

  

  1. Who is affected by the furlough?

The furlough applies to all branches of State government and includes the Nevada System of Higher Education, the Public Employees’ Retirement System and all other entities of State government other than professional and occupational licensing boards.

 

The furlough does not apply to employees of the Department of Cultural Affairs whose standard workweek was reduced from 40 hours to 32 hours effective July 1, 2009.

 

Additionally, an exception maybe granted for some positions within State government because of the need to provide appropriate services that are necessary for the protection of public health, safety and welfare.

 

  1. When will the furlough be in effect?

The furlough is in effect from July 1, 2009 and ending on June 30, 2011.

 

  1. Does this only impact general fund agencies? 

The furlough applies to all employees as described in question number 2 no matter the funding source for the position including grant and fee based programs.

 

  1. Can agency salary savings be used instead of furloughing employees?

No.  Senate Bill 433 requires each employee to be furloughed.

 

  1. How much unpaid furlough leave must I take?

A full-time classified employee is required to take 96 hours in each fiscal year unless their agency receives an exception from the Board of Examiners.  Employees must take 8 hours a month unless their agency receives an exception from the Department of Administration and the Department of Personnel.   If the employee is less than full-time, the employee must take a number of hours of unpaid furlough leave in portions equal to the average number of hours worked per working day multiplied by 12.  Classified employees that are normally exempt from receiving overtime may take unpaid furlough leave in less than 8 hour increments, but for the week of the furlough the normally exempt employee is paid on a hourly basis and must report partial day absences.

 

Unclassified and non-classified employees must take a day off each month. “A day” consists of the number of hours an employee works in a standard workday, but not more than 8 hours in a day.

 

Regulations will limit the number of furlough leave taken in one week.  Additionally, each agency may develop policies that specify the smallest unit of time in which furloughs may be taken, e.g., in not less than 2-hour increments.

 

  1. Can an employee take more than or less than 8 hours of unpaid furlough leave in a month?

Yes, but an exception must be approved in advance by the Department of Personnel and the Department of Administration. Such an exception may assist agencies with positions with seasonally higher work demands. Under no circumstances will an exception be granted for more than 8 hours of unpaid furlough leave in a pay week.

 

  1. Can more than 96 hours or 12 furlough days be used in a fiscal year?

No.  Furlough leave is specifically coded in NEATS as a special kind of leave without pay.  Any other leave without pay that an employee takes must be approved by the appointing authority and entered in NEATS using the appropriate code.

 

  1. Will an employee still be required to take 12 furlough days if the State’s budget improves?

There are certain triggers built into the law that if achieved would reduce the number of furlough days to 9 or 7 days in Fiscal Year 2011.

 

  1. Will there be a Statewide policy or will each agency be able to determine how to implement or accomplish the furlough?

Agencies will have some discretion on how to implement the furlough and address business needs, such as approving an employee’s furlough schedule.  Other aspects of the furlough that need to be administered the same for all employees to ensure equity will not be discretionary, such as the impact of furloughs on time taken due to a covered condition under the Family and Medical Leave Act.

 

Hours and Compensation

 

  1. Will there be a new payroll code to report furlough hours on an employee’s timesheet?

A new timesheet code, UFRLO, was established as of July 1, 2009. Employees use this code when recording furlough leave on their timesheet. For agencies using the NEATS Leave/Overtime pre-approval system, UFRLO is used to request furlough leave time.

 

  1. Can an employee work overtime in a week in which the employee takes furlough leave?

 

No. The intent of the legislation is to reduce budget liability due to salaries. If an employee takes furlough leave and subsequently needs to work additional hours in the same pay week, the employee should record this as a temporary change in the days or hours worked. 

 

For example: a full-time employee normally works Monday through Friday. On Monday, he takes off 8 hours as furlough leave.   In that same pay week, the employee is notified in advance that he will need to work 6 hours on Saturday. Two hours of furlough leave would be recorded on Monday and 6 hours of straight time would be recorded on Saturday.  The timesheet comments would reflect the change in the hours worked.

 

Additionally, an employee may not work overtime in the same pay period as unpaid furlough leave without the Department of Administration and Department of Personnel’s pre-approval.

 

  1. Can an employee use Paid Added Regular Time (PADRT) in the same week as the furlough?

Not unless an exception is approved in advance by the Department of Personnel and the Department of Administration. Additionally, Paid Added Regular Time (PADRT) may be requested only for a part-time employee, whose total hours in a pay week may not exceed 40 hours, including regular time, furlough hours and Paid Added Regular Time.

 

  1. *Can an employee receive call back pay in the same pay period as a furlough leave?

Not unless an exception is approved in advance by the Department of Personnel and the Department of Administration. If the call back occurs in the same pay week as furlough leave, the call back time (2 hrs.) can be recorded without reversing any unpaid furlough leave time; any additional hours worked beyond the 2 hours call back pay must be offset against the unpaid furlough leave time, e.g., unpaid furlough leave reversed out. The employee is not eligible for time and one-half on these additional hours until the employee is otherwise eligible for overtime in accordance with NAC 284.242 and 284.245.

 

Example 1: An employee is called back on his furlough day to work in accordance with NAC 284.214 and the employee works 1 hour.   Call back pay requires payment for the first 2 hours at time and one-half.  So 2 hours are coded as call back pay and there is no reduction in the furlough leave time.

 

Example 2: An employee furloughed on Monday 8 hours. He worked 8 hours on the following 4 days equaling 32 hours of work time. On Saturday, he is called back to work (without prior notification) for 6 hours. The employee would record 2 hours of call back pay and 4 hours of straight time on Saturday. Monday’s furlough leave would be adjusted to reflect 4 hours of furlough leave. No other work hours would be recorded on Monday.

 

  1. Can an employee be placed on standby when he/she is on furlough leave?

Yes, but the agency must receive pre-approval by the Department of Personnel and the Department of Administration. If the employee is called back into work from standby in the same pay week in which he/she took unpaid furlough leave, the employee must reduce his unpaid furlough leave time by the same amount of time as the additional hours worked.

 

Example: An employee furloughed on Monday 8 hours. He worked 8 hours on the following 4 days equaling 32 hours of work time. On Saturday he was on standby for 3 hours when he was notified that he must return to work. The employee worked 4 hours on Saturday before returning to standby status for 1 additional hour. The employee would record 4 hours of standby by pay and 4 hours of straight time on Saturday. Monday’s furlough leave would be adjusted to reflect 4 hours of furlough leave. No other work hours would be recorded on Monday.  

 

  1. Does it change the exempt status of salaried employees?

Yes, temporarily.  During the week that any furlough leave is taken, employee’s that are normally exempt from receiving overtime become hourly employees and subject to the Fair Labor Standards Act.  Additionally, partial day absences for leave (annual, sick, family sick, etc.) must be recorded on the employee’s timesheet if taken during the week in which furlough leave is recorded.

 

  1. Can a normally exempt employee still work more than 32 hours in the week they take the furlough leave?

No. The intent of the legislation is to reduce budget liability due to salaries.

 

  1. Since exempt employees are paid on an hourly basis during the week of the furlough, should these employees sign a variable workweek agreement to only allow overtime after 40 hours in a workweek?

A normally exempt employee may sign a variable workweek agreement (TS-78) if they wish to work more than 8 hours in one day but not accrue an overtime liability in the week furlough leave is taken. 

 

  1. Can an employee volunteer to take more than 96 hours or 12 furlough days?

No.

 

  1. Can an employee volunteer to take more than 96 hours or 12 furlough days thereby allowing someone else not to take furlough leave?

No.

 

  1. What is the impact of taking more than 8 hours of furlough at one time?

Employees taking all 12 furlough days or even just a week at once could potentially not have enough money to meet any voluntary deductions they have coming out of their paycheck. Additionally, employees are limited to taking no more than 8 hours of unpaid furlough leave in a pay week even if the employee would have otherwise been required to be in a leave without pay status.

 

  1. What is reported as an employee’s pay for requests on garnishments?

The hourly rate of the employee without regard to the impact of the furlough will be reported.

 

  1. What impact will furloughs have if an employee currently has creditor garnishments or student loans being taken out of his pay?

Creditor garnishments and student loans are calculated as a percentage of disposable income.  A reduction in pay will reduce the amount of the disposable income therefore lowering the deduction.  This will lengthen the repayment of the debt.

 

  1. What impact will furloughs have if an employee currently has child support or spousal support being taken out of his pay?

A furlough would not relieve the State from its obligation to deduct any fixed amounts ordered by a court.  The employee is responsible for any amount that is owed and not available for deduction from the employee’s paycheck.

 

  1. What is reported as an employee’s pay for requests on child support?

The actual earned wages of the employee will be reported.

 

  1. If an employee’s lender requests wage verification, will the value of the furlough leave reduce the reported annual salary?

The hourly rate (employee/employer compensation schedule) of the employee without regard to the impact of the furlough will be reported.

 

  1. If an employee has payroll deductions for the United Way or CHAPS, can the employee stop those deductions?

Yes.  Cancellations of voluntary deductions can be sent through the employee’s pay clerk to Central Payroll or directly to Central Payroll.

 

  1. If an employee has payroll deductions for employee association or union dues, can the employee stop the deduction at anytime?

No.  In accordance with NAC 281.260, employee association or union dues can only be cancelled in the 2-week period preceding the anniversary date of the enrollment. 

 

  1. If an employee’s salary has been frozen due to NAC 284.290, will the employee be required to take furlough leave?

Yes.

 

  1. Can an employee take a pay cut of 4.6% instead of taking the furlough leave?

No.

 

Leave and Attendance

 

  1. Will employees accrue furlough leave?

No.  A full-time classified employee is required to take 96 hours in each fiscal year unless their agency receives an exception from the Board of Examiners. Employees must take 8 hours a month unless their agency receives an exception from the Department of Administration and the Department of Personnel.   If the employee is less than full-time, the employee must take a number of hours of unpaid furlough leave in portions equal to the average number of hours worked per working day multiplied by 12.  Classified employees that are normally exempt from receiving overtime may take furlough leave in less than 8 hour increments, but for the week of the furlough the normally exempt employee is paid on a hourly basis and must report partial day absences.

 

Unclassified and non-classified employees must take a day off each month. “A day” consists of the number of hours an employee works in a standard workday, but not more than 8 hours in a day.

 

Regulations will limit the number of furlough leave hours taken in one week.  Additionally, each agency may develop policies that specify the smallest unit of time in which furloughs may be taken, e.g., in not less than 2-hour increments.

 

  1. How does an employee request to take required furlough leave?

Furlough leave must be approved in advance using the department’s leave request procedures or for departments on the NEATS leave and overtime pre-approval system in the same manner as any other leave. 

 

  1. Can an appointing authority require an employee to take furlough leave on a specific date?

Yes.  Management must ensure appropriate staffing levels and ensure that furloughs are taken as efficiently as possible.

 

  1. Can an employee take their furlough leave anytime the employee wants?

No.  Furlough leave must be scheduled and approved in the same manner as other leave.

 

  1. Can a department require employees take the furlough leave in no less than a specified number of hours, e.g., not less than four hours?

Yes.  Management must ensure appropriate staffing levels and ensure that furloughs are taken as efficiently as possible.

 

  1. Will an employee’s annual and sick leave accrual rates be affected by the furlough?

No.

 

  1. Will an employee be eligible to receive a payoff on excess annual leave at the end of the calendar year if the employee wasn’t able to use the leave due to the furlough?

NRS 284.350 limits employees from carrying more than 240.00 hours of annual leave from one calendar year to the next.  Employees should make every effort to reduce their excess annual leave and use the appropriate amount of furlough leave to prevent a possible forfeiture of annual leave hours.  An employee may request payment for excess annual leave in accordance with the procedures set forth in NRS 284.350.

 

  1. How will furlough leave affect the 1,250 hours worked eligibility requirement for FMLA?

Furlough leave will be considered time worked for the purposes of calculating eligibility for FMLA.

 

  1. How will furloughs impact an employee who is on Family and Medical Leave Act (FMLA) leave for a qualifying event? (Will it count against the employee’s entitlement?)

Furlough leave will not count against the employee’s entitlement for FMLA.

 

  1. Will the event coding be different for an employee that is on FMLA and is required to take furlough leave?

If unpaid furlough leave is taken during the time an employee is on FMLA, the timesheet is coded as furlough leave, UFRLO, and the time will not count against the employee’s FMLA entitlement. An employee is limited to one furlough day per month unless the Department of Personnel and the Department of Administration pre-approve an exception. Under no circumstances will an exception be granted for more than 8 hours of unpaid furlough leave in a pay week.

 

  1. May an employee substitute eight furlough leave hours for a paid holiday?

No.  Holiday pay is provided in statute and salary cannot be provided on a furlough leave day.

 

  1. May an employee request a furlough day before or after a paid State holiday or in conjunction with paid leave?

Yes as long as the furlough leave is requested and approved in advance.

 

  1. May an employee substitute paid leave (annual, sick, or compensatory time) for furlough leave?

No.  Furlough leave must be unpaid time off.

 

  1. May an employee work when scheduled off due to the furlough?

No work of any kind may be performed during the time to be considered furlough.  This prohibition includes working at home, monitoring emails and telephone messages, and responding to inquiries from work.   (See FAQ number 11.)

 

  1. May employees use furlough leave on a scheduled day off due to a compressed workweek schedule?  For example: the employee normally works a 10-hour shift?

No.  Furlough leave must replace 8 hours of work otherwise there is no salary savings.

 

  1. Will employees on 10-hour shifts be required to use furlough leave in 10-hour increments?

Employees are limited to taking no more than 8 hours of furlough leave in a pay week. 

 

  1. Should employees who normally work four 10-hour days stay on that schedule the week they take furlough leave or should the employee’s schedule be adjusted to eight hours each day?

Employees are limited to taking no more than 8 hours of furlough leave in a pay week.  The employee must make up the difference of his shift by using annual leave, accrued comp-time, or by adjusting his schedule with the pre-approval of his supervisor.   Ultimately management must ensure appropriate staffing levels and ensure that furloughs are taken as efficiently as possible.  Each agency will develop policies to ensure that furloughs are taken in a manner that supports the continued operation of the agency.

 

This answer may change at a later date based on additional information being sought from the Department of Labor. 

 

  1. Can an employee who would have qualified for paid military leave, pursuant to NRS 281.145, elect to use furlough leave instead?

The employee may elect to use furlough leave instead of receiving paid military leave.

 

  1. Should an employee’s State pay be adjusted to reflect the impact of the furlough when determining eligibility for Military Differential Pay pursuant to NAC 284.588?

Yes. Use the ML-4 located on the Department of Personnel’s website to determine if the employee is eligible for the differential pay.

 

  1. Should an employee on Military Leave Without Pay (UMLWP) participate in the furlough?

Yes. Eight hours of UFRLO each month should be recorded on such an employee’s timesheet. This will ensure the employee receives the appropriate annual leave and sick leave accruals that other furloughed employees receive.

 

  1. What is the impact on an employee who is using catastrophic leave?

Similar to other employees, an employee on catastrophic leave must take the furlough leave.

 

  1. What is the impact on an employee who has been placed on extended administrative leave?

Each employee is subject to the furlough.  The employee may take the furlough leave either during the time they would have be on administrative leave or after they return.   

 

  1. If an employee has been selected for jury duty, can he substitute the use of civic leave with a furlough leave day?

Yes.

 

Impact of Certain Employment Actions/Status

 

  1. How will employees receiving a promotion be impacted by the furlough?

Each employee is subject to the furlough.  The furlough is not based upon the position the employee is in unless the movement changes the employee’s overtime eligibility status or increases or reduces the employee’s hours, e.g., part-time to full-time.

 

  1. How will employees transferring from one position to another be impacted by the furlough?

Each employee is subject to the furlough.  The furlough is not based upon the position the employee is in unless the movement changes the employee’s overtime eligibility status or increases or reduces the employee’s hours, e.g., part-time to full-time.

 

  1. How are employees that are in Seasonal, Intermittent, Temporary, or Emergency positions impacted by the furlough?

Each employee is subject to the furlough no matter the type of appointment.

 

  1. How much furlough leave does a part-time employee have to take?

Unless an exception is approved, a classified employee that is less than full-time, the employee must take a number of hours of unpaid furlough leave in portions equal to the average number of hours worked per working day multiplied by 12.

 

If the employee is other than classified, e.g., unclassified or non-classified, an employee who works less than full time with a fixed schedule shall take as furlough leave the portion of an 8-hour day that his scheduled workweek or biweekly schedule bears to a full-time workweek or biweekly schedule. 

 

  1. What if an employee terminates before using the required furlough leave?

Employees are required to take 8 hours a month unless an exception is pre-approved by the Board of Examiners. If the employee leaves State service prior taking the proportional amount of furlough leave, the position must be left vacant a sufficient period of time to reduce the salary liability.  Each agency should consult with the Budget Division prior to filling a vacancy to ensure the appropriate amount of salary savings has been achieved.

 

  1. Will an employee’s pay progression date be impacted by the furlough?

No.

 

  1. Will the furlough impact an employee's eligibility for longevity pay?

No, although Senate Bill 403 temporarily suspends the payment of longevity for the same period of time as the furlough is in effect.  The furlough does not affect the employee’s continuous service date so once SB 403 expires, longevity will resume.

 

  1. Will the furlough extend an employee’s probationary period?

No.

 

  1. Will the furlough impact an employee’s seniority for the order of layoff?

No.  Furlough leave is treated as if the employee were in paid status.

 

  1. How will employees serving in an acting capacity be impacted by furloughs?

Each employee is subject to the furlough no matter the type of appointment.

 

  1. Will new hires be affected by the furlough?

Each employee is subject to the furlough no matter when the employee is hired during the 2-year period unless an exception is pre-approved by the Board of Examiners.  The employee will only be responsible for the proportional amount of time remaining in the fiscal year starting with the first full month of employment.  For example:  A full-time classified employee begins work on 12/15/10.As a result, the employee would be required to take 48 hours of furlough leave between January 2011 and June 30, 2011.

 

  1. If an employee leaves State service and has taken more furlough leave than would have been required by taking 8 hours/month, will the employee be reimbursed for the excess hours?

No.  Full-time classified employees must take 8 hours a month unless their agency receives an exception from the Department of Administration and the Department of Personnel.  If the employee has taken more time off than would have been proportionally required, the employee will not be reimbursed as the employee did not perform work during those hours so they are not compensable.

 

  1. Will employees be required to take a furlough day if their last day of employment is before the last day of the month?

An appointing authority may require an employee that is leaving State service prior to the end of the month to fulfill their furlough requirement. If it is not in the best interest of the State for the employee to furlough, e.g., due to staffing issues or other business necessity, the department will still be responsible for ensuring the appropriate salary savings is achieved prior to filling the position.

 

  1. Can an employee’s classification be changed as a result of being furloughed?

No.

 

  1. Can an employee’s shift be changed as a result of being furloughed?

Ultimately management must ensure appropriate staffing levels and ensure that furloughs are taken as efficiently as possible.  This may result in employee’s shifts changing, at least temporarily, in order to ensure appropriate coverage.  Each agency will develop policies to ensure that furloughs are taken in a manner that supports the continued operation of the agency.

 

Health Benefits/PEBP

 

  1. Will the furlough (reduction in hours) be considered a qualifying life event in which an employee can stop or change their health insurance and life insurance plans?

The furlough leave will not have an impact on employee health coverage. Therefore, changes to employee’s health coverage would not be allowed based solely on the furlough leave event.

 

  1. Can employees stop or change their health care or dependent care flexible spending accounts as a result of the furlough?

This question has two answers as follows:

Flexible Spending Account for Health Care:  Employees would not be allowed to modify health coverage based on the mandatory furlough. Under SB433, the furlough leave is to be considered a work day (or portion of a work day) for all purposes except salary. Therefore, it will not impact employee eligibility under PEBP.

Flexible Spending Account for Dependent Care: Employees enrolled in the Dependent Care FSA would be allowed to reduce their Dependent Care election. The Qualifying Event would be that the employee’s need for Dependent Care during the furlough leave is no longer required. 

 

  1. Will a part-time employee lose their health coverage as a result of the furlough leave now reducing their hours below 80 hrs in a month?

Under SB433, the furlough leave is to be considered a work day (or portion of a work day) for all purposes except salary. If an employee has a reduction in hours (below 80), as a result of the furlough, the employee’s health coverage would continue as usual.

 

  1.  How can I find out more information about my health benefits?

The Public Employees’ Benefits Program can be contacted by calling (775) 684-7000 or (800) 326-5496 and their website is located at: http://pebp.state.nv.us/. 

 

Retirement

  1. Will the furlough impact an employee’s retirement contribution and payable benefits?

No, furlough leave will not change the required contributions to the Retirement System and will not impact the employee’s retirement benefits.  Employees will receive service credit for the unpaid furlough time in the same manner as worked time.  Salary information will be reported to the Retirement System for unpaid furlough time in the same manner as salary is reported for worked time so that an employee’s average compensation for retirement benefit purposes will not be impacted.

 

  1. The furlough bill requires all retirement contributions be made to the Retirement System by the employer based on the compensation that would have been paid absent the unpaid furlough leave.

The furlough bill allows the employer to collect the employee’s share of the retirement contribution under the employee/employer retirement plan from the employee for the unpaid furlough time. The employee’s share of the retirement contribution will be collected in the same manner as all other employee retirement contributions, as an after-tax deduction from the employee’s salary.

 

  1. Are the retirement benefits accrued on a furlough day taxable?

Retirement benefits accrued on furlough days will be the same as all other retirement benefits accrued by the employee.

 

Other

 

  1. Does an employee have grievance rights regarding the furlough?  

The requirement to take furlough leave cannot be grieved but how and when an employee is approved to take the furlough leave can be grieved.  In order to avoid grievances, each agency will develop a written policy regarding how that agency will implement the furlough and communicate that policy to all agency employees.

 

  1. What happens if an employee does not take the required furlough leave?

By statute each employee must take furlough leave.  It is up to managers and supervisors to ensure that their employees are in compliance.  If an employee refuses to take the furlough leave, the employee can be required to take a specific time off and be disciplined for failure to follow direction.

 

  1. Who is responsible for ensuring that furloughs are taken as required?

Employees must monitor their time to ensure that they have taken the appropriate amount of furlough leave.  Employees who record their time in NEATS are able to view the number of hours taken. Additionally, agency management is responsible for ensuring that their employees are taking the appropriate amount of time and monitoring the budgetary savings.  Reports are currently available in the Data Warehouse to management with the appropriate security access.

 

  1. What type of reports will be available for agency management?

Furlough analysis reports are currently available in the Data Warehouse to track individual furlough hours and the corresponding salary savings.

 

  1. What is the impact of Workers’ Compensation benefits related to the furlough?

The employee must take the required number of furlough leave hours when absent for an extended period of time due to a work-related injury.  The benefit amount received for the furlough leave hours is payable to the employee.

 

  1. Can an agency pick one day a month to close offices for the purpose of the furlough?

No.  In most cases, hours of operation are governed by NRS 281.110.

 

  1. Will an employee be eligible for unemployment benefits due to the furlough?

Eligibility for unemployment compensation is determined by the Department of Employment, Training, and Rehabilitation.

 

  1. Will the furlough hours be reflected as a running total in NEATS?

Yes. Employees who record their time in NEATS are able to review total unpaid furlough leave time taken. This information is displayed as a total by fiscal year. Additionally on an employee's NEATS Home Page under the Personnel Tasks listing, an employee may view the specific days in which unpaid furlough leave was taken by clicking on the "View My Furlough Information" link. 

 

  1. Will the furlough have any impact on the amount that can be contributed to a deferred compensation account?

No, but if an employee needs to reduce the amounts of their automatic contribution to a deferred compensation account, the employee should contact their agency’s pay clerk or Central Payroll.

 

 

 

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