Frequently Asked Questions About HR-88
Summary
Payment-in-Twelfths and FTE Policy Changes
May 22, 2003
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1. Which appointment types are now included in HR-88?
Standing and Fixed Term I
2. Which classifications are included?
Executive, administrator, and staff are included in HR-88.
Academic fewer-than-twelve-month positions are not included in HR-88, however effective July 1, 2003 they will be paid in twelfths.
3. What alternatives are available?
Any combination of hours of work per week and/or months per year that equal 75% to 100% FTE, or six to eight month positions.
4. What are the provisions for six to eight month positions?
Six to eight month positions will be paid during the months worked, not over twelve months; insurances will be billed at the full cost during the months not worked.
Individuals appointed to eight month positions prior to June 30, 2003 will continue to be eligible for the then current policy provisions regarding salary payment, educational privileges, insurance continuation, etc.
5. How do we calculate the FTE?
An FTE calculator will be developed in GURU
Based either on months of service and/or hours per week (for exempt positions, use % effort of the workweek as expressed in HR-34)
For example:
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a ten-month position is equal to 83.3% FTE (10 months divided by 12 months)
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a twelve-month, 30-hour/week position is equal to 75% FTE (30 hours divided by 40 hours)
- a position scheduled for 40-hours/week for ten-months AND 20-hours/week for two months is equal to 91.7% FTE (20-hours/week is 50% of 40-hours/week; two months at 50% equals one month at 100%; one month at 100% plus ten months at 100% equals eleven months at 100%; 11 months divided by 12 months equals 91.7%).
6. How will employees accumulate and use vacation and sick leave?
Vacation and sick leave shall be accumulated and used during work periods only. All references to vacation and sick leave will be changed from days to hours for all staff employees. Vacation and sick leave monthly earnings will be based on the %FTE effort scheduled for each month.
Examples:
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Employee working 40 hours/week, nine months/year, September 1 through May 31, earns v&sl based on 100%FTE during each of the nine months worked and 0%FTE June through August.
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Employee working 40 hours/week, nine months/year, August 16 through May 15, earns v&sl based on 100%FTE for September through April, 50% FTE during August and May, and 0% FTE during June and July.
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Employee working 30 hours/week, twelve months/year earns v&sl based on 75%FTE (75% of accumulation listed in HR-34) during each of the twelve months.
- Employee working 40 hours/week for ten months, September through June, AND 20 hours/week for two months, July and August, earns v&sl based on 100% FTE September through June and 50% FTE during July and August.
7. When/how will the paid-for-eleven-days-in-the-month policy be used?
Given the variety of work schedules that are now available, the paid-for-eleven-days qualifier in HR-34 will be changed to read: " paid for at least half of scheduled work time for that month". Therefore, an employee will earn appropriate vacation accumulation in any calendar month in which the employee is paid for at least 51% of the scheduled work time, except that pay received for accumulated vacation at time of layoff, leave of absence, or termination of employment shall not be credited toward the 51%.
8. Is vacation accumulated if an employee who is scheduled to work fewer-than-twelve-months works during a month off?
All known work should be included in the FTE calculation. For example, if a position is scheduled to work August through May, but the employee is needed one day a week in June and July, then the June and July work time should be included in the FTE, changing it from 83.3% for the ten months of work to 86.7%. The employee would then earn vacation in June and July at a 20% FTE.
9. Will grant-in-aid be available all year?
Per current policy, grant-in-aid is available when the employee is in pay status.
10. How will LWOP and termination dates be calculated for fewer-than-twelve-month appointments?
Termination dates will be the actual date of separation.
For a LWOP commencing prior to the end of scheduled work, the actual date will be used - a determination will have to be made if the employee owes or is owed salary.
For a LWOP commencing after the end of scheduled work, July 1 will be used.
11. If a 30 to 39 hour/week wage position is converted to a 30 to 39 hour/week Standing or FTI position, should it be announced?
During the period July 1, 2003 through September 30, 2003, if a non-student wage payroll employee has worked in the same position for approximately two years, working 30 or more hours/week, and the department wants to create a FTI or Standing position, then that position does not have to be announced. However, this transition needs to be discussed with the Employment & Compensation division prior to any discussions with the wage payroll employee.
12. How will we transition FTI and nonexempt fewer-than-twelve-month positions at the end of FY 02/03 (and continue benefits coverage)?
No change in current process through June 30, 2003, except that all will be billed at the regular, employee rate for benefits. All FTI reappointments should be effective July 1, 2003. Transition instructions for July 1 will be available in early June.
13. Payment in Twelfths:
How is the salary calculated for the first year and succeeding years?
A calculation calculator will be available on GURU.
For the first year, the contracted salary is divided by the contracted months of service and then multiplied by the number of months that actually will be worked that year - the resulting number is then divided by the number of months remaining in the fiscal year.
For example, an employee is hired in November at a salary of $20,000 for a position that works from August through May. In order to determine the monthly salary, the $20,000 is divided by 10, which equals $2,000/month. In the first year, this employee will work only seven months, therefore the salary that will be paid is 7 times $2,000 or $14,000. That amount ($14,000) will be paid November through June, or 8 months, so the $14,000 is divided by 8. The end result is that in the first year the employee will receive $1,750 a month from November through June. Starting in July, the employee will receive $1,667 per month ($20,000 divided by 12 months) through the following June.
How will transfers/terminations be handled?
A handout shall be given to the employee at the time of hire explaining the possibility of prospective and retrospective salary payments and the impact when transferring/terminating. In the case of an employee transferring to a new department, if prospective salary has been paid, then the new department shall reimburse the old department.
Can International employees be included?
The answer depends on the work that is available and the valid employment visa status approved by the Bureau for Citizenship and Immigration Services.
Remember, per policy, a fewer-than-twelve-month FTI appointment can be paid in twelfths only if there is an expectancy of regular recurrence. So, if the known work is available for a year or less, then the appointment is not to be paid in twelfths. Generally, the length of time that employment is approved, pursuant to a valid visa, is predicated on the length of service requested by the employer on the DS 2019 and H-1B petitions.
If an individual's authorized employment status in accordance with the Visa expires prior to June 30, then such individual should not be paid in twelfths.
If an international employee is paid in twelfths and terminates employment for any reason prior to June 30, we are legally able to pay such employee any retrospective pay that may be due.
14. How is overtime calculated?
Based on the actual hourly rate, not the lower, 1/12th rate. The actual hourly rate is determined by multiplying 2080 hours (100% FTE annual hours) by the position FTE and then dividing the actual annual salary by the resulting number. For example, a nonexempt employee is paid $20,000 for a position that is scheduled for 40 hours/week, ten months/year. That salary is paid over twelve months at a monthly salary of $1,667. Since this is a ten-month position, the FTE is 83.3% (10 months divided by 12 months); 2080 hours times 83.3% equal 1733 hours. Dividing $20,000 by 1733 hours results in the actual hourly rate of $11.54.
15. Do all of the salaries (monthly, annual, annualized) need to be divisible by twelve?
Both the annual and the monthly salaries must be divisible by twelve. The annualized salary does not have to be divisible by twelve.
16. If a fewer-than-twelve-month exempt or nonexempt employee works during the months "off", how will we pay her/him?
Via either wage payroll or supplemental compensation.
17. When would the PIQ need to be reviewed?
As with any staff position, only when there is 30% or more change in job duties.
18. Are there any federal contract issues associated with a less-than-40 hour employee? Can the overhead rate be reduced?
The overhead rate is a percentage of the salary, as is the fringe rate. Therefore, if the salary is reduced, then the overhead and fringe amounts are reduced.
19. What do we do if work needs change, requiring that a position is scheduled for either more or fewer hours and the employee does not want to change his/her FTE?
If a supervisor wants to decrease or increase the FTE of a filled position, then the incumbent must concur with the change. If the incumbent does not concur with the change, then either the supervisor does not change the FTE or we follow the layoff procedure provided in HR-34.
20. Will this affect technical-service positions?
No, the contract with the Teamsters already provides for 30 hour/week positions.