San Diego State University Research Foundation
Furlough Implementation Policy for SDSU Faculty/Staff
- Background
At the direction of the California State University (CSU) Chancellor, San Diego State University (SDSU) has implemented a furlough program with a majority of employee unions. The purpose of this policy is to describe how the furlough program will apply to furloughed university employees who also work on sponsored agreements and other programs managed by SDSU Research Foundation (SDSURF).
- Key Assumptions
This policy must be read and implemented in conjunction with San Diego State University employment policy. Nothing in this policy is meant to contravene university policy or union agreements.
A “furlough day” has been described in the furlough agreements as a day taken as an unpaid day off on which an employee is normally scheduled to work, or is on pay status.
The furlough agreements signed with the employee unions have stated that the furlough is applicable only to employees funded in whole or in part through California state general funds (university appointment). Furloughs are not applicable to employees paid on non-university funds including grants, contracts, SDSURF self-support activities or board allocations. For those employees on university appointments, whose salaries are wholly or partially reimbursed from the aforementioned revenues for work of a different nature from their university appointment, the total number of furlough days will be reduced (prorated) by the percentage of the reimbursed effort.
Example: For the fall semester, an Academic Year (AY) faculty member is subject to nine furlough days within a semester. If that faculty member is reimbursing the university for 33% of his/her effort to reflect effort spent on sponsored programs and the remaining 67% is being paid by his/her normal university appointment, then the faculty member is subject to only six furlough days for the fall semester. (9 furlough days x 67% salary from state funds = 6.0 days)
A furlough day taken by a university employee is applicable to that employee’s “normal” university appointment responsibilities ONLY. It does not apply to, nor may it be used to reduce, any responsibilities from an employee’s assignment or commitment to any sponsored agreement(s) or other activity for which the employee has an employment agreement with SDSURF.
The furlough agreements have also stated that the employee’s base rate of pay will remain the same in terms of salary programs, benefits, and retirement. The base rate will not be reduced as a result of the furlough. Instead, the employee is required to reduce his/her percentage effort by the number of furlough days applicable under their respective furlough agreement. This reduction in days worked will result in a corresponding reduction in salary paid to the university employee.
The university base rate of pay for the employee is unchanged for purposes of reimbursement to the university or for additional employment purposes through SDSURF.
Example: Prior to furlough, an AY faculty member had the following university appointment: 100% FTE with a monthly salary amount of $7,000. This employee will take nine furlough days for the semester which equates to approximately a 10% reduction. The faculty member’s effective university appointment is the equivalent of a 90% FTE at the $7,000 base rate resulting in a monthly salary of $6,300.
- Sponsored Agreement Compensation Methods
The basic assumptions described above under Section 2 will impact the following compensation methods used to charge sponsored agreements by SDSURF:
- Additional Employment (Overload):
Additional Employment is a method by which a university employee (usually a faculty member) may receive direct salary payment from SDSURF for work performed on a project administered by SDSURF. The hiring of university staff or faculty by SDSURF is restricted and controlled by the university’s Additional Employment Policy which limits additional employment to no more than 25% additional FTE for a full-time employee.
Since a furlough day is not considered a “work day” for the employee’s normal university appointment, the furlough day becomes available to the employee to work through SDSURF under an additional employment appointment (overload), if appropriate and justifiable for the program on which he/she is employed.
For an employee to receive additional compensation for work performed on an employee’s furlough day, the work performed must be (a) of a substantially different nature from his/her normal university appointment and (b) funded from non-state general fund sources.
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Note: Documentation for the request of additional employment during a furlough day must be requested via a Special Pay form and the supplemental “Additional Employment – Furlough” certification form. The SDSU assignment sheet (time report) showing the actual furlough days taken will be required as part of the documentation package. Additional Employment would still be subject to a 25% limitation above a full-time position. At no time may an employee exceed 100% FTE on any one project, or greater than 100% FTE cumulative on federal and federal pass-through funds. Additional sponsor regulations and/or budget restrictions may further restrict the ability to increase compensation on sponsored programs or require prior sponsor approval.
Example: Prior to the furlough program, an AY faculty member’s appointment was a 100%, full-time university appointment and 25% overload appointment at SDSURF working on a sponsored program. Due to the furlough, the faculty member will take nine furlough days for the semester. Based on the assumptions described above, the faculty member’s net university appointment is approximately 90%; the sponsored grant appointment is 25%, for a total appointment of 115%. If appropriate, the faculty member may use the nine furlough days to increase his/her effort, to an additional 100% effort on the sponsored program on the days he/she is furloughed from SDSU. The faculty’s net appointments for the semester would be 90% university, 35% sponsored grant, for a total of 125% FTE.
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- Reimbursed Time:
Reimbursed Time is the mechanism by which SDSURF reimburses the university for a portion of an employee's regular position, up to 100% FTE, for work that is outside the employee's regular work assignment and compensated from a different source. The sponsored program purchases a percentage of an individual’s time. His/her university assignment is reduced accordingly.
As noted in the key assumptions section, an employee’s furlough days are applicable to the employee’s university appointment responsibilities only. The number of furlough days to which an employee is subject will be reduced (prorated) by the percent of effort the employee has been released from his/her university appointment to work on sponsored programs.
As also noted in the Key Assumptions Section 2, the employee’s base rate of pay will not be reduced. Therefore, there is no impact on the current reimbursed-time mechanism.
Based on these assumptions, SDSURF will continue to reimburse the university for the appropriate percentage of effort at the base rate of pay, and corresponding proportional share of fringe benefits.
It should be noted that if a university employee on reimbursed-time is scheduled for a furlough day, that employee must ensure that the furlough only impacts the activities for which they are compensated through the university. It is the employee’s responsibility to ensure he/she is working the appointed amount of effort on the sponsored program for which the university is being reimbursed. Any additional work performed through SDSURF on furlough days must be in addition to the activities already compensated through the reimbursed time mechanism, and would be subject to the additional employment policies described above.
Example: An academic year faculty member has been released 50% from his/her full-time, 100% university appointment to work on a sponsored program for the semester. 50% of this employee’s base salary (plus fringe) will be charged to the sponsored program via the reimbursed-time mechanism with SDSURF. Per the furlough agreement, the furlough days are not applicable to employees whose salaries are compensated by non-general fund sources. This employee’s furlough days would be prorated to 4.5 days (9 furlough days/semester x 50%).
Note: Individuals whose salaries are reimbursed to the university through the reimbursed time mechanism are not SDSURF employees. Therefore, any work on SDSURF-managed projects performed on a furlough day would follow the “additional employment” process referenced above.
- Released/Assigned Time (Cost Sharing):
Assigned time is used to reduce teaching/instructional course load for research, scholarship, and creative activity without any corresponding reimbursement to the university. Assigned time for faculty is at times offered as cost sharing or to fulfill a matching funds requirement for a sponsored agreement.
Assigned time that has been offered as cost sharing on a sponsored agreement represents a contractual obligation to provide the specified percentage FTE level of effort to the sponsored agreement.
Sponsored program cost sharing commitments by faculty members paid from university funds are exempt from furloughs and are included in the proration adjustment of the number of furlough days. The normal process of documenting assigned time commitments will continue to apply.
- Additional Employment (Overload):
- Certification of Effort:
All faculty effort for activities performed on non-university funds and the corresponding instructional activities at the university are reconciled and certified on an employee effort report. (Staff effort is documented on time sheets, if compensated directly by SDSURF or via an effort report, if reimbursed to the university.) Faculty effort is certified at the end of each academic time period (including winter break, spring break and summer).
Verification of furloughed days will be documented on the SDSU Attendance Summary sheet with secondary validation from the employee’s supervisor.
Both documents must be accurate, consistent, and reflective of actual work performed for each institution. Any deviations between payments received and actual effort worked must be noted on the effort report and expenses adjusted as appropriate.
August 14, 2009