Policy
This interim policy action expired on May 30, 2024 with the approval of the permanent policy SYS 1234, FURLOUGH.
Original Issuance Date: August 4, 2023
Expiration Date: August 7, 2024
1. Interim Policy Purpose
The University of Wisconsin (UW) System is facing increased fiscal challenges that require implementation of flexible strategies to address immediate financial concerns at individual campus level. As a result, UW System Administration is implementing this interim policy to address the immediate concerns for FY2024, with the intent of engaging in a policy review process to implement a permanent policy prior to or upon the expiration of this interim policy. The University of Wisconsin System Board of Regents, under the authority granted to it in Wis. Stat. s. 36, has authorized the UW System to implement a variety of workforce reduction and cost saving measures, beyond existing layoff policies, to address these financial challenges in a way that minimizes layoffs and maximizes the UW System’s ability to continue to perform its critical educational and outreach mission.
The furlough process is not a substitute for layoff, non-renewal, or termination processes
as outlined in the Wisconsin Administrative code, systemwide policies, and institutional policies.
2. Related Policies
This policy issued pursuant to the authority provided in Regent Policy Document 20-21, University Personnel Systems.
This policy references definitions contained in UW System Administrative Policy 1219, Continuous Service, related to continuous service and continuous employment.
This policy references the accrual of vacation and sick leave if an employee is on furloughed status. Provisions related to these can be found in UW System Administrative Policy 1210, Vacation, Paid Leave Banks, and Vacation Cash Payouts, and UW System Administrative Policy 1212, Sick Leave.
Other related policies include: UW System Administrative Policy 1225, General Terms and Definitions, UW System Administrative Policy 1232, Layoff for Reasons of Budget or Program, UW System Administrative Policy 1253, FLSA Designation, and UW System Administrative Policy 1277, Compensation.
3. Scope
This policy applies to the following UW System employees: Faculty, Academic Staff, University Staff, Limited Appointees, Employees-In-Training, Graduate Assistants (Teaching Assistants, Research Assistants and Program Assistants), and Temporary Employees.
Student hourly employees are not included in this policy. UW-Madison employees are not included in this policy.
4. Definitions
Furlough: Temporary unpaid forced leave during which an employee does not report for work and does not earn a wage. Employee retains their position during the furlough as well as benefits (benefit coverage is dependent on employee type and length of furlough). A furlough shall constitute a “leave of absence” as defined in Wis. Stat. sec. 40.02(40). A furlough is not a layoff, non-renewal, or termination.
Consecutive Day Furlough Assignment: A furlough assigned in full day increments for a continuous period of time with a defined start and end date.
Continuous Employment: Has the same meaning here as in UW System Administrative Policy 1219, Continuous Service.
Continuous Service: Has the same meaning here as in UW System Administrative Policy 1219, Continuous Service.
Intermittent Furlough Assignment: A furlough assigned in full-day or half-day increments that must not exceed one day every two weeks, coinciding with a biweekly pay period.
Operational area: An area of focus or function in a school, college, division, department, or office.
Temporary Workload Reduction (TWR) Furlough Assignment: A furlough assigned which reduces the FTE percentage of an employee’s appointment for a continuous period of time with a defined start and end date.
Workforce-wide Furlough: An intermittent furlough assignment that covers an entire institution or the entire UW System.
FTE: means Full Time Equivalent employee. Expressed as a percentage, a 100% FTE is an employee working a regular full-time position, a 50% FTE would be an employee working half time.
5. Interim Policy Statement
A. Furlough authority
I. Determination of necessity
- The UW System President shall have the authority to declare that a systemwide furlough is necessary due to financial circumstances impacting the entire UW System.
- The chancellor of each institution shall have the authority to determine that an institution-level furlough is necessary due to financial circumstances impacting their institution. In the case of the UW System Administration, the UW System President has the authority to determine that a furlough is necessary due to financial circumstances.
- Institution-level furlough plans must be reported by a Chancellor to the UW System President prior to any announcement or implementation.
- In determining that financial circumstances require the use of furloughs, the UW System President or chancellor shall consider the following:
- The current or projected budget deficit
- The availability and feasibility of other cost saving measures
- The disruptive effect of furloughs to the core mission of the institution as compared to other available cost saving measures
II. Selection of employees
- The UW System President or chancellor may select any or all employees to be assigned to a furlough, subject to the limitations in section 5.B.I.
- The UW System President or chancellor may select any or all operational areas to be assigned to a furlough, subject to the limitations in section 5.B.I. When an operational area is selected, the operational area should be clearly defined in the furlough notice.
III. Furlough Implementation
- The minimum duration of a furlough assigned under this policy is one-half (1/2) working day.
- Furlough days may be assigned consecutively, intermittently or as a TWR.
- The maximum length of a consecutive day or TWR furlough assignment is three (3) months beyond the month of the employee’s last paid workday (including any day of paid leave).
- A TWR furlough assignment must specify the percentage FTE reduction and the new expected total weekly work hours during the term of the TWR furlough assignment.
- Intermittent furlough day assignments may not be assigned to exceed one (1) day every two (2) weeks, coinciding with a biweekly pay period.
- Employees may be required to track hours worked to assure compliance with this policy and applicable laws.
- An intermittent furlough assignment may be for specific dates, or employees may be given the option to select their own furlough assignment dates, subject to the approval of their immediate supervisor.
- If employees are given the option to select their own furlough assignment dates, the earliest and latest dates that may be selected should be specified in the furlough assignment.
- In no event shall an employee be permitted to select furlough assignment dates that result in a conflict with federal and state minimum wage laws.
- A TWR furlough assignment may either specify a new fixed work schedule or a flexible work schedule to run the duration of the TWR furlough assignment, unless otherwise agreed to in writing by the supervisor and employee.
- If a fixed work schedule is specified, the new fixed work schedule shall run the duration of the TWR assignment.
- If a flexible work schedule is specified, an employee’s work schedule may vary from week to week, subject to the total weekly work hours defined in section 5.A.III.d., and:
- The employee shall be notified of their upcoming work schedule at least one week in advance of the hours scheduled, or
- The employee may select their own work schedule.
- Both fixed and flexible work schedules are subject to the limitation that the employee’s new work schedule must demonstrably reflect a reduction in workload commensurate with the reduction in FTE percentage.
- A furlough assignment may be extended.
- A consecutive day or TWR furlough assignment may be extended, subject to the notice requirements in section 5.B.II, so long as the total length of a consecutive day or TWR furlough assignment remains below the 3-month maximum in section 5.A.III.c.
- No notice is required to extend the duration of an intermittent furlough assignment.
- A furlough assignment may be shortened.
- If a consecutive day or a TWR furlough assignment is reduced, an employee must be provided with at least seven (7) calendar days’ written notice of the requirement to return to active status. This notice requirement may be shortened or waived with the consent of both the employer and the employee.
- No notice is required to shorten the duration of an intermittent furlough assignment.
- There is no limit on the number of furlough assignments (intermittent, TWR or consecutive day) an employee may receive during the term of this policy.
- Employees may not utilize any paid leave benefit on a day the employee is assigned to an intermittent or consecutive day furlough.
B. Limitations on furlough assignment authority
I. Prohibited criteria for selection of employees
- Employees must not be selected for furlough assignment based upon any classification protected under the Wisconsin Fair Employment Act, or any UW System or institutional non-discrimination policy.
- Employees must not be selected for furlough assignment based on current or past involvement in a labor union, or support or lack of support for any labor union.
- Employees must not be selected for furlough assignment based upon any speech that would be protected under system or institutional academic freedom policies.
- A furlough assignment is not intended, and must not be used, as a disciplinary measure nor as a substitute for a performance improvement plan in the case of an underperforming employee.
II. Notice requirements
- Employees subject to a furlough assignment shall receive written notice no less than seven (7) calendar days prior to the first date of the furlough assignment.
- A furlough assignment notice should include:
- The name of the employee and the employee number.
- The name of the operational area, if operational areas were used to determine furlough assignments.
- The total length of the furlough assignment.
- The earliest start date of the furlough assignment.
- The latest end date of the furlough assignment.
- Whether the furlough assignment is for assigned (and identified) days, or if the employee has the option to select their own dates.
- If the employee has the option to select their own dates, the process by which the employee’s selections are approved.
- If the furlough assignment is a TWR, then the notice must also include the following:
- The percentage FTE reduction and the new expected weekly work hours.
- If the TWR is a fixed-schedule reduction, the new fixed work schedule.
- If the TWR is a flexible schedule reduction, the process by which the employee’s schedule will be provided or approved, subject to the requirements of section 5.A.III.h.2.
- When an institution elects to use any type of furlough, a copy of the institution’s furlough plan must be sent to the UW Service Center, Director of Service Operations.
III. Limitation on faculty furlough assignments
- Faculty may only receive an intermittent furlough assignment as part of a workforce-wide furlough.
- Faculty may not be assigned a consecutive day or TWR furlough assignment.
C. Right to return to active status
Employees assigned to a furlough have a right to return to active status in their existing appointment.
D. Employment status of furloughed employees
I. Continuation of benefits
- To the extent allowed by law, employees subject to a furlough assignment continue to receive their regular employment benefits, subject to their normal employee contributions.
- Employees may use accrued sick leave to pay for the employee portion of health insurance benefits while on a furlough assignment.
- A furlough assignment shall not be considered a break in service for purposes of the calculation of Continuous Employment or Continuous Service, as per UW System Administrative Policy 1219, Continuous Service.
- Notwithstanding UW System Administrative Policy 1210, Vacation, Paid Leave Banks, and Vacation Cash Payouts, and UW System Administrative Policy 1212, Sick Leave, employees will continue to accrue vacation and sick leave at same rate as they would have in full paid status during a furlough assignment.
- Employees subject to a TWR furlough assignment which maintains at least 50% FTE retain full benefit eligibility.
- All employee types, regardless of FTE percentage, retain access to health insurance for at least the month in which their furlough begins and three months thereafter, subject to normal employee contribution.
- Employees assigned to a TWR that reduces their workload below 50% and lasts longer than four (4) months may be subject to a change in benefit eligibility and/or employer contributions.
- Notwithstanding UW System Administrative Policy 1211, Personal Holiday and Legal Holiday Administration, an employee on an intermittent furlough will receive holiday pay even when the employee takes one intermittent furlough day prior to and one intermittent furlough day following a legal holiday.
II. Access to university property and resources
- Employees subject to a furlough assignment retain their university identification cards, e-mail accounts and all other rights and privileges of a university system employee, except for wages and that:
- Employees currently assigned to a furlough shall not perform any university business while serving the furlough assignment; in the case of a TWR furlough, employees shall not perform any university business except during scheduled work hours.
- Employees currently assigned to a furlough may not operate university vehicles while serving the furlough assignment.
E. Furlough Preference Notice
I. Procedure
- Any employee may notify their immediate supervisor in writing of a preference for a particular furlough assignment, in the event the decision is made to place the employee on a furlough assignment. The decision to grant or deny an employee request relative to a furlough assignment is made by the chancellor (or designee) or the UW System President (or designee) in the case of UW System Administration.
- An employee furlough preference notice should include:
- The name of the employee and the employee number
- The employee’s operational area and job title
- The requested duration of the furlough assignment, as well as the start and end dates
- Whether the furlough assignment days will be served consecutively or intermittently.
- If the furlough assignment days will be served intermittently, the proposed dates of each furlough day.
- If the furlough assignment is a TWR, the percentage workload reduction and the proposed work schedule.
- A brief description of the employee’s plan to ensure that work missed while assigned to furlough is adequately covered within the institution.
F. Appeal process
I. Right to appeal
- The right to appeal a furlough assignment is limited to the substance and process described in this policy. Assignment to a workforce-wide furlough may not be appealed.
- A furlough assignment is not stayed during the appeal.
II. Request for review & investigation
- If an employee believes that a right granted under this policy has been violated or a procedure under this policy has not been followed, the employee may file a written request for review within three (3) business days of receiving their notice of a furlough assignment with the University of Wisconsin System Office of Human Resources.
- Upon receipt of a request, the UW System Human Resources will initiate an investigation within five (5) business days. This investigation will solicit such information from the employee and the institution as is necessary to determine if the institution followed the appropriate procedures under this section and to determine if the criteria used to select the employee violated the prohibitions of section 5.B.I.
- If multiple similar requests are received from the same institution, the requests may be combined into a single investigation.
III. Initial determination
- After collecting necessary and appropriate evidence, UW System Human Resources will issue an initial determination as to the compliance of the institution with this policy.
- If the institution is determined to be in non-compliance, a letter will be sent to both the employee and the institution specifying what steps must be taken to bring the institution into compliance with the policy.
- If the institution is determined to be in compliance with the policy, a letter affirming this fact, along with a supporting rationale, will be sent to the employee and the institution.
IV. Appeal to the UW System President
- If the employee or the institution is dissatisfied with the determination made by UW System Human Resources, the aggrieved party may appeal the determination to the UW System President. This appeal must be made within three (3) business days of the initial determination. Any appeal filed must include the original complaint, the determination of UW System Human Resources, and the reason the complainant believes the initial determination was in error.
- The UW System President may elect to hear the appeal, at his or her sole discretion. If the UW System President does not notify the parties of an intent to hear the appeal within five (5) business days of receiving the appeal, the determination of UW System Human Resources shall be considered final.
6. Supplemental Documents
FAQs
SYS 1200-Interim 11 Frequently Asked Questions
Published: August 31, 2023General
- What is a furlough?
Answer: A furlough is a temporary forced/required unpaid leave of absence from UW System employment.
- What is a “leave of absence“?
Answer: “Leave of absence” is defined for purposes of Wisconsin public employment benefits as “any period during which an employee has ceased to render services for a participating employer and receive earnings and there has been no formal termination of the employer-employee relationship . . .” Wis. Stat. section 40.02(40). Other examples of a leave of absence include extended illness leave, extended parental leave, military leave, and layoff (up to three years).
- What is a “consecutive day furlough“?
Answer: A consecutive day furlough involves an individual or group of individuals who are placed on an unpaid leave of absence for a specified time period on a full or partial basis with a defined start and end date.
- What is an “intermittent furlough“?
Answer: An intermittent furlough is assigned in full-day or half-day increments that must not exceed one day every two weeks, coinciding with a bi-weekly pay period.
- What is a workforce-wide furlough?
Answer: A workforce-wide furlough is an intermittent furlough that encompasses an entire or substantial portion of the workforce for an institution or the entire UW System. It is taken in single day increments not to exceed one day taken in every bi-weekly pay period usually spread out over months or years. A workforce-wide furlough is effectively a salary reduction with no effect on most employee benefits.
- How does a furlough differ from a layoff?
Answer: A furlough is expected to be of shorter duration than a layoff. There is generally a shorter notice provided and fewer opportunities for an employee to contest or appeal a furlough than a layoff. While on furlough, an employee remains an employee of the institution. A layoff is a termination of employment with reappointment rights.
- Is an employee on a consecutive day furlough, or temporary work reduction (TWR) furlough, subject to an institution’s intermittent day furlough plan?
Answer: Individual institutions will determine the impact on an employee’s obligation under intermittent furlough if they are on/have observed a full or partial consecutive day furlough.
- What criteria are used for determining which employees will be placed on a furlough?
Answer: Many factors are considered including, but not limited to the financial and operational needs of the organization, employee skill sets, and the ability to perform assigned duties remotely.
- What are the prohibited criteria for placement of an employee on a furlough?
Answer: The interim policy provides the following:
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- Employees must not be selected for furlough based upon any classification protected under the Wisconsin Fair Employment Act, or any institutional non-discrimination policy.
- Employees must not be selected for furlough based on current or past involvement in a labor union, or support or lack of support for any labor union.
- Employees must not be selected for furlough based upon any speech that would be protected under system or institutional academic freedom policies.
- A furlough assignment is not intended, and must not be used, as a disciplinary measure nor as a substitute for a performance improvement plan in the case of an underperforming employee.
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- Are employees covered by collective bargaining agreements, such as crafts employees, subject to furloughs?
Answer: Yes. Furloughs are not a subject of bargaining under Wisconsin law for public employees.
- May an employee request a furlough?
Answer: No. However, UW System policies permit employees to request and receive a voluntary leave of absence with institutional approval which may be substituted for a required furlough. However, an employee may not cause a right to overtime by creating a voluntary leave of absence and other benefit rights may be affected. An employee choosing a voluntary leave of absence may be ineligible for unemployment insurance.
- Are any employees exempt from furloughs?
Answer: Foreign workers on H-1B or E-3 work authorization may not be furloughed (although foreign nationals here on other status (e.g. J-1, TN, O-1) may be furloughed). Chancellors may exempt other employees from furlough based upon funding and business needs.
- Why are H-1B and E-3 employee not subject to furloughs?
Answer: The federal government requires that an employer agree to pay a foreign national on H-1B or E-3 visa status on a full-time basis even at times when there is no work to do.
- If an institution is unable to pay a foreign national employee and there is no work, what should it do?
Answer: To assure compliance with federal immigration rules, the institution should contact its immigration experts to determine the appropriate steps.
Consecutive day furloughs
- What is a “consecutive day furlough“?
Answer: A consecutive day furlough involves an individual or group of individuals who are placed on an unpaid leave of absence for a specified time period on a full or partial basis with a defined start and end date.
- What employee categories are subject to a consecutive day furlough?
Answer: Any employee, except for a faculty member, may be placed on a consecutive day furlough.
- May a consecutive day furlough be extended?
Answer: Yes, with seven-days’ written notice, a consecutive day furlough may be extended. However, an employee’s benefits may be affected by an extension of a full-time consecutive day furlough beyond three months after the month in which the employee is first furloughed.
- May an institution recall a furloughed employee on consecutive day furlough prior to the end date for a recall?
Answer: Yes, with seven days’ written notice. The notice period may be shortened or waived by mutual consent of the institution and the employee.
- Can an employee be disciplined for refusing/being unable to return to work if recalled early?
Answer: The employee and employer should work to come to a mutually agreeable date for the employee to return from furlough, if recalled early.
- Must an institution enter a new recruitment and rehire an employee upon their return from a consecutive day furlough to return them to active work status?
Answer: No. A return from a furlough does not require use of rehire processes. As defined in question 1, “a furlough is an unpaid forced leave of absence from UW… where the employee remains an employee of the institution.” See the section on employee benefits for further information.
- Is an employee on a consecutive day furlough (full or partial basis) subject to an institution’s intermittent day furlough plan?
Answer: Individual institutions will determine the impact on an employee’s obligation under intermittent furlough if they are on/have observed a full or partial consecutive day furlough.
Temporary Workload Reduction furloughs
- What is a temporary work reduction (“TWR”) furlough?
Answer: A TWR furlough is a temporary reduction in an employee’s regularly scheduled hours per week.
- If an employee on a TWR furlough earns enough to cover their benefit deductions, may they still use accrued sick leave to pay the employee's portion of the health insurance premium?
Answer: Yes. Employees on a TWR furlough has the same benefits as employees on a consecutive day furlough except that a TWR furlough is not considered a “qualifying event” that will allow for employees to change benefit elections.
Workforce-wide intermittent furloughs
- What is a workforce-wide intermittent furlough?
Answer: A workforce-wide furlough is an intermittent furlough that encompasses an entire or substantial portion of the workforce for an institution or the entire UW System. It is taken in half- or whole day increments not to exceed one day taken in any bi-weekly pay period usually spread out over months or years. A workforce-wide furlough is effectively a salary reduction with no effect on most employee benefits.
- What employee categories are subject to a workforce-wide intermittent furlough?
Answer: Any employee, including faculty members, may be placed on a workforce-wide intermittent furlough.
- May an institution exclude employees from a workforce-wide intermittent furlough?
Answer: Yes, an institution may exclude employees from a workforce-wide intermittent furlough for business needs.
- How may an institution assign workforce-wide intermittent furlough days?
Answer: An institution may assign workforce-wide intermittent furlough days on either fixed or employee choice days, or a mixture of both. For example, an institution might assign, in a twelve-month period, 4 fixed furlough days (such as the day after Thanksgiving) and 4 choice days. For a workforce-wide intermittent furlough assignment, no more than one furlough day may be assigned (whether fixed or by choice) in a two-week period.
- How does a workforce-wide intermittent furlough apply to salaried employees?
Answer: Exempt (salaried) employees subject to a workforce-wide intermittent furlough become non-exempt (hourly) employees during that week. As such, these exempt employees may be required to report all hours worked during that furlough week. Exempt employees may only work up to 32 hours in a furlough week and may not be authorized to work overtime.
- Are academic year contracts prorated for a workforce-wide intermittent furlough?
Answer: It depends on how the furlough is designed. Institutions can provide for a furlough with fewer days for nine-month employees. See additional questions related to faculty.
- Do intermittent furlough assignments need to ensure that the days are not consecutive between pay periods (e.g. the last Friday of one pay period and the first Monday of the next)?
Answer: If the furlough days fall in a different bi-weekly pay period, then no. Consecutive days that fall within the same bi-weekly pay period are not allowed.
Leave usage during furlough
- May a furloughed employee use vacation, paid leave bank or other personal leave to receive pay while they are furloughed?
Answer: No, the UW System interim furlough policy prohibits the use of vacation or other personal leave during a furlough.
- May an employee select to use an intermittent furlough day in place of a sick leave or vacation day?
Answer: Yes. An employee may choose to use a furlough day instead of claiming sick leave or use a furlough day to extend a vacation or holiday, so long as the supervisor approves and so long as only one furlough day is used in a two-week period.
- May an employee use accrued sick leave during a furlough?
Answer: No. An employee may not use accrued sick leave to receive wages during the furlough.
- Does an employee continue to accrue vacation, personal holiday, and sick leave while furloughed?
Answer: Yes. The interim furlough policy provides that an employee will accrue vacation, personal holiday, and sick leave while furloughed.
- Will an employee be paid for a holiday that occurs while furloughed?
Answer: For intermittent furloughs, an employee would receive holiday pay and may not designate a furlough day for a holiday. For consecutive day furloughs, an employee would not receive holiday pay for any fixed holidays that occur during the furlough. Employees on TWR furlough would receive pro-rated holiday pay.
- If a person is on paid medical leave (incl. FMLA) are they required to take a furlough?
Answer: Yes, if a person is on paid leave they are still subject to intermittent furlough assignments. If a person is on unpaid FMLA leave, they may still be placed on a furlough assignment; the days they serve on the furlough assignment are not counted towards their 12 week FMLA limit.
- Will an employee on a consecutive day furlough earn a floating/Saturday holiday (example, July 4th)?
Answer: Yes.
Employee benefits during furlough[1]
Retirement programs
- How does the time spent in furlough affect an employee’s creditable service for Wisconsin Retirement System (WRS) purposes?
Answer: Depending on the number of days in furlough, appointment percentage (FTE status) and if the employee is Faculty, Academic Staff, Limited Appointee, or University Staff, the employee may receive a partial year of creditable service. A “partial year” would be a percentage of the year that is equivalent to the hours spent in paid status.
- Will an employee receive the employer contribution to the Wisconsin Retirement System (WRS) on furlough days?
Answer: No. The employee will not receive the employer contribution to the WRS on furlough days.
- Will an employee be able to make contributions to the WRS, UW 403(b) Supplemental Retirement Program (SRP), or the Wisconsin Deferred Compensation (WDC) 457 Program while on a consecutive day furlough?
Answer: No. Generally, an employee must be in paid status to make contributions to these programs as contributions to these accounts are made through payroll deduction.
- May an employee take a loan or other payout from their UW 403(b) Supplemental Retirement Program (SRP) during a furlough?
Answer: The employee should contact their 403(b) provider to determine whether and how a loan or payout may be obtained.
- May an employee take a loan or other payout from the Wisconsin Retirement System (WRS)?
Answer: The WRS does not allow hardship distributions or loans. The only WRS distribution options are detailed in Wis. Stat. sec. 40, which functions as the WRS plan document. Distributions are limited to benefits such as separation benefits for those under minimum retirement age, and retirement benefits for those who have reached minimum retirement age and are vested.
Qualifying event for benefit changes
- Is a consecutive day furlough a qualifying life event permitting an employee to make benefit selection changes?
Answer: Both the placement on a consecutive day furlough and the return to paid status may constitute a qualifying life event for employment benefit purposes. Employees who choose to lapse some or all benefits during a consecutive day furlough may re-enroll upon their return to paid status. For more detailed information on benefits, see the UW System Human Resource Employee Benefits website, furlough page.
Health insurance
- Is an employee eligible to retain State Group Health Insurance while furloughed?
Answer: Yes.
- Will the UW System pay the employer’s share of the health insurance premium during an employee’s furlough?
Answer: Under state law, the UW System is required to pay the employer’s share of health insurance premiums for a furloughed employee for the month in which the furlough starts and for three months thereafter. See Wis. Stat. sec. 40.05(4)(a)3a. If a continuous day furlough is extended, without interruption beyond this date, the employee may maintain health insurance coverage by paying the full cost of the premium.
Employees whose furlough FTE percentage is at least 50% will maintain the same health insurance benefit as a full-time employee regardless of the time spent in furlough. If an employee on a TWR furlough with a less than 50% FTE, and the TWR furlough extends more than three months beyond the month in which the furlough began, then the employee can maintain insurance coverage by paying half of the full cost of the premium.
The full cost of the premium varies by the plan selected. The list of plan premiums is available on the Wisconsin Department of Employee Trust Funds Health Plan Total Premium Rates for Employees web page.
- What are the options for a furloughed employee to pay the employee share of State Group Health Insurance?
Answer: An employee may pay the employee share of health insurance premiums through payroll deduction from the last paycheck (if time permits), direct bill, or use of accrued sick leave, based on cash value of the employee’s sick time, calculated using the employee’s current hourly rate for the employee’s benefit primary job.
For supplement insurance, life insurance, and income continuation insurance, employees may pay through payroll deduction from their last paycheck (if time permits) or direct bill.
Flexible Spending or Health Savings Accounts
- May a furloughed employee contribute to or use monies in health flexible spending (FSA) accounts?
Answer: A consecutive day furloughed employee may not contribute to an FSA through payroll deduction while in unpaid status but may spend from existing accounts for qualifying purchases. When an employee returns to paid status, their pre-tax contribution will be recalculated to increase the deduction per paycheck amount for the remainder of the calendar year.
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- Health Care FSA: If an employee meets their health care FSA annual goal amount with their pre-tax contributions (before and after their furlough) they may submit eligible expenses for reimbursement while they were on furlough. If they do not meet their annual goal amount, expenses incurred while they were on furlough are not eligible for reimbursement.
- Dependent Day Care FSA: Regardless of whether the employee meets their annual goal amount with their pre-tax contributions (before and after their furlough), they may continue to incur expenses until December 31st for reimbursement.
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If an employee on a consecutive day furlough elects to lapse their participation in the health care FSA, they will be unable to claim reimbursement for any claims incurred during the period when the FSA is lapsed but will be able to modify the annual election, once the employee returns to work.
For an employee on an intermittent furlough, there is no impact to their FSA. Their pre-tax contributions will continue to be made from their paychecks. In addition, they may continue to incur and submit eligible expenses for reimbursement.
For additional information on use of FSA during furlough and on Dependent Care FSA, see the UW System Human Resource Employee Benefits website, furlough web page.
- May a furloughed employee contribute to or use monies in health savings account (HSA)?
Answer: A furloughed employee may not contribute to an HSA through pay roll deduction while in unpaid status but may spend from existing accounts for qualifying purchases. Employees who maintain their enrollment in the HDHP Health Insurance Plan will continue to receive the employer contribution to the HSA.
Dental, vision, life, AD&D and accident insurance plans
- May a furloughed employee continue to participate in State Group Health Insurance plan where there is no employer contribution?
Answer: Yes, but the furloughed employee will be responsible to pay the premium through direct billing or having deductions taken in advance of their furlough (if time permits). Because being placed on a consecutive day furlough may be a qualifying event for insurance plans, an employee may lapse their coverage and re-enroll in such plans upon returning to pay status.
Income continuation and disability insurance
- May an employee access income continuation or disability insurance during a furlough?
Answer: Yes, if qualified for such insurance because of illness or disability and up to date on premium payments, an employee may be eligible for income continuation benefits even if the employee is in furloughed status.
Parking and transportation benefits
- Will an employee be charged for parking during a furlough?
Answer: Parking programs vary among institutions. Institutions are encouraged to develop or modify plans that equitably treat employees serving consecutive day furloughs.
- Will a furloughed employee be permitted to purchase reduced fare or employer-paid transportation benefits such as a bus pass?
Answer: Yes.
Unemployment Insurance
- Are furloughed UW employees able to apply for Unemployment Insurance/Compensation?
Answer: Generally, individuals who experience a wage reduction equivalent to 8 hours in a 40-hour work week and who have earned less than $500 in that week from all employers are eligible to apply for unemployment compensation. More information can be found at https://dwd.wisconsin.gov/ui/
- What is the UW System role in an unemployment compensation application?
Answer: Unemployment insurance/compensation claims are processed by the Wisconsin Department of Workforce Development (DWD). The UW System’s role is to answer the DWD’s request for information in a timely and factual manner.
- How do you file an unemployment application?
Answer: Applications are filed directly with the state at https://dwd.wisconsin.gov/ui/
Special issues for faculty and instructional staff
- Will the academic year be shortened to accomplish required furlough days?
Answer: No. Faculty and instructional staff will take required furloughs on non-instructional days or half-days.
- How will furloughs be handled for those employees who teach five-days per week?
Answer: Such individuals will account for furloughs in half-day increments during a time when they are not providing instruction.
- May faculty or instructional staff work during a furlough?
Answer: Faculty and instructional staff may not perform instruction or university service during a furlough day or half-day. They may work on their own scholarship but should not come on to campus.
- If faculty or academic staff engage in work of any kind during a furlough, will their Fair Labor Standards Act (FLSA) exempt status be changed to non-exempt and will they be entitled to compensation including overtime pay?
Answer: No. Employees in this group are excluded from the provisions and coverage of the FLSA.
- How will intermittent furloughs be administered for faculty who are on sabbatical?
Answer: Institutions may choose how to handle faculty sabbaticals. Faculty on sabbatical may be subject to a percentage furlough deducted from their monthly wages as was done during the State of Wisconsin 2009-2011 furloughs.
- Will faculty or other employees paid in whole or in part by gift or grant funds be subject to furloughs?
Answer: Institutions may choose how to handle gift and grant funded positions in keeping with any donor constraints. Most funding agencies and donors expect institutions to have policies in place regarding the payment of salary and wages for employees which are consistently applied regardless of the source of funds and that reflect no more than the percentage of time devoted to the project. In addition, most funding agencies and donors provide the Institution the flexibility to adjust budgets to use the money saved from furloughs in other ways as part of the project. Furloughs, then, should not be a problem with gift or grant funding.
- Faculty and instructional staff may have split appointments with one position being on a 9-month basis and another on a 12-month basis. How will these be handled?
Answer: Institutions may choose how to handle split appointments so that the resulting furloughs are fairly administered.
- Are overload or similar payments subject to furlough?
Answer: No. Only the first 100% of an appointment should be subject to a furlough.
[1] For more detailed information on benefits, see the UW System Human Resource Employee Benefits website, furlough web page.