Furlough FAQ

Sections:

• 2010 Spring Furlough
• General Furlough Information
• Furlough Days and Hours
• My Paycheck and Benefits
• Furlough Savings Plan
• Furlough Exemptions
• Sponsored Funds

2010 Spring Furlough

May the remaining two spring semester furlough days be taken in half-day increments?

Yes, provided the employee’s supervisor approves those half-day requests.

Why isn’t there a savings plan option for the two remaining spring semester furlough days?

The Furlough Savings Plan was created because the four 2009 furlough days are to be taken all at once. The Plan was a way to help employees manage the financial impact of their furlough obligation. Given the flexibility employees have in scheduling the two remaining days, an Institute-wide savings plan option would not be practical.

Do I have to wait until 2010 to take my spring furlough days?

No. If you and your supervisor mutually agree upon your furlough days they may be taken in 2009. Your supervisor must notify the individual in your department authorized to enter vacation and sick time and report this decision to them.

How should temporary employees schedule furlough days?

The temporary employee should contact the person to whom they report in order to determine which days they will not need to report to work. The temporary employee will be advised by the person they report to as to which days they will not need to report to work.

Can I take my furlough days as eight hours in March and eight hours in April, but have four hours deducted from my January through April paychecks?

No, the Board of Regents requires that furlough time must be reported in the month in which it is taken. In addition, such a deduction of hours would have a direct impact on overtime calculations for non-exempt employees.

If I am a new employee hired after January 1, 2010, what is my furlough obligation?

If hired between January 1, 2010 and May 14, the furlough obligation will be 16 hours, unless previously defined exemptions apply to that position. Those exemptions are listed here.

If I have questions regarding the 2010 spring furlough, whom should I contact?

Please contact your HR Representative or e-mail the Office of Human Resources at hr.ask@ohr.gatech.edu.

General Information

What is a furlough?

A furlough is another term for unpaid leave as mandated by an employer. Typically this is due to a lack of work, a lack of funds, or other non-disciplinary reasons.

What happened?

The University System of Georgia’s Board of Regents voted on August 11, 2009, to require all USG institutions (Georgia Tech included) to furlough its employees for a total of six (6) days between now and June 30, 2010.

Why is Georgia Tech implementing a mandatory furlough program?

The severity of the downturn in state revenues has reached a level that requires as a last resort the use of furloughs to help bridge the gap between the current shortfall and permanent, smaller budgets. The alternative to furloughs would be pay cuts or new layoffs, which we are trying to avoid. Mandatory furloughs have been undertaken with great reluctance and with a full understanding of the financial hardship this will impose on many employees.

Why now?

The move is in response to the governor’s July announcement that all state agencies — including the University System of Georgia — furlough their employees before the end of the calendar year.

To whom do these furloughs apply?

With few exceptions, furloughs apply to all Institute employees and all Georgia Tech employees of affiliate organizations. This includes faculty, administrators, and staff.

What if I don’t agree with the decision to furlough employees? May I file a grievance or appeal?

No. The placement of an employee on mandatory furlough does not constitute grounds for a grievance or appeal.

May I use Georgia Tech Foundation funds to buy out furlough days for myself or my staff?

No. The Institute has determined that due to donor intent and other factors, including the limited availability of these funds and scarcity of resources, Foundation funds may not be used in this manner.

May I engage in consulting on my furlough days?

Yes. The Board of Regents has determined that furlough leave is leave without pay; therefore, the number of furlough days may be added to the number ordinarily permissible under Institute policy. All other rules and procedures regarding consulting will apply. See the Faculty Handbook, Section 38.5.9.

May I work another job on my furlough days?

Yes, consistent with Institute policies on conflict of interest (http://www.admin-fin.gatech.edu/human/discipline/050400.html).

Why are there differences between the Georgia Tech furlough plan and other USG institutions?

To maximize the savings to the state, Georgia Tech leadership proposed a modified plan intended to meet reduction goals and avoid some unintended financial consequences of a furlough. Tech’s robust sponsored research portfolio constitutes a considerable portion of annual revenue. This is funding that would be unavailable during a furlough and, in effect, an additional burden to the Institute. Allowing exemptions enables Tech to both meet its reduction requirement as well as provide the state with revenue it would otherwise have received in the form of income tax withholding.

Will employees that are hired between now and the end of the year be asked to take a furlough?

New hires will be notified during the recruitment process that they will be furloughed for four days in December and should consider the financial consequences before accepting employment.

Why does the entire campus need to be furloughed at once?

The intent is to minimize the impact on campus operations.

Can I donate furlough days to other employees or take extra furlough days to help my institution?

No. Under this program, all employees will take only the furlough time required of them. However, the spirit of the offer is appreciated.

How much will this save Georgia Tech?

Each furlough day for those employees supported from state or other general operating funds is approximately $1.08 million; the savings for six (6) furlough days is nearly $6.5 million.

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Furlough Days and Hours

How many days do I have to take off as furlough days?

Georgia Tech employees will be required to take six (6) days of leave without pay during fiscal year 2010 under this mandatory furlough program. The president is authorized to order additional furlough days if necessary to meet institutional budget reduction requirements.

When will the furloughs occur?

The Board of Regents has given authority to the president of each institution to set the schedule for furloughs. At Georgia Tech, the plan is to enact a furlough from December 21 through 24 in order to minimize the impact on student services and activities. This will allow teaching schedules to continue uninterrupted and allow faculty to plan furlough days around instructional activities. Options for scheduling the remaining two (2) days in spring 2010 are currently under review.

How many hours are in a furlough day?

For a full-time employee, a furlough day equals eight (8) hours. Furloughs for part-time employees will be prorated based on the percentage of time they have been hired to work.

Can I choose to work during furlough leave?

No, furlough time is non-work time. No employee may work or otherwise provide services to the Institute during any period in which the employee is furloughed.

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My Paycheck and Benefits

How will this affect my paycheck?

Non-exempt (hourly) employees under the Fair Labor Standards Act (FLSA) will continue to be paid for days worked and will not be paid for the days for which they take furlough leave without pay. Exempt employees under the FLSA will not be paid for the days for which they take furlough leave without pay.

However, Georgia Tech Human Resources has developed a “Furlough Savings Plan” that will enable employees to spread the financial impact of the furlough over several months.

How will my taxes be affected by my furlough days?

Taxes will be adjusted proportionally to your reduction in income.

If an employee uses approved Family Medical Leave in FY 2010, what is the impact on the employee's required furlough?

Furloughs must be taken in addition to any FMLA taken. You will take furlough days on a pro-rated basis for the part of FY 2010 outside your approved FMLA period.

How does this affect my health insurance?

Furloughs do not affect health care benefits. Employees will receive the same benefits as is normally available to them.

If I am on leave without pay, am I subject to the furlough?

No, not while you are in an unpaid status. You will take furlough days on a pro-rated basis for the part of FY2010 that you are in a paid status.

Will furlough leave affect paid holidays?

No. All employees are expected to observe all paid holidays.

How does this affect other benefits, such as my retirement contributions?

1. For employees covered by the Employees Retirement System of Georgia, a furlough does not affect either the employer or employee contributions.
2. For employees covered by the Optional Retirement System (ORP), the furlough will not affect the employee or employer contribution. The Institute will offer employees covered by ORP the opportunity to reduce the employee's contribution to the amount based on actual earnings adjusted by the furlough.
3. For employees covered by the Teachers Retirement System of Georgia, furlough leave without pay will not affect the employer or the employee contributions.

See official memorandum concerning Furloughs and TRS Earnable Compensation.

Can I take vacation leave (or sick leave) on furlough days? How do furloughs impact leave accrual?

No, an individual may not use available leave to avoid taking leave without pay. However, furloughs do not impact an individual’s leave accrual.

Will the furlough days affect my average monthly salary for my two highest consecutive years for my TRS retirement?

No, furloughs are considered a temporary downward adjustment in an employee’s salary and not a permanent salary reduction. Georgia law states that contributions are remitted based on a member’s full rate of regular compensation for this full normal working time. Therefore, contributions will continue to be reported based on the TRS member’s full regular salary prior to the implementation of the furlough.

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Furlough Savings Plan

How will the ‘Furlough Savings Plan’ work?

The Institute will automatically deduct one (1) day’s pay per month for employees paid monthly or a half-day per pay period for employees paid biweekly during the months of September through December as a savings plan to offset the financial impact of December’s four (4) day furlough period.

For monthly employees, one day of pay per month will be deducted from employees’ paychecks, post-tax, beginning in September, in order to ease the burden of the four-day reduction in pay in December. Those funds will be returned to you in December. Alternately, you may opt out of this program, and your pay in December will be reduced by four days.

For example, the Savings Plan for an employee in TRS with an annual salary of $55,000 ($211.54 per day) would be:

	Current Monthly Pay - Aug	Saving Plan less 1 Day’s Pay - Sept	Saving Plan less 1 Day’s Pay - Oct	Saving Plan less 1 Day’s Pay - Nov	Dec. Pay w/4 Furlough Days
Salary	$4,583.33	$4,583.33	$4,583.33	$4,583.33	$4,583.33
Furlough Days/$	-	-	-	-	4 days =($846.16)
Pre Tax/Taxes/After Tax Deduction's	($1220.42)	($1220.42)	($1220.42)	($1220.42)	($977.99)
TRS	($240.62)	($240.62)	($240.62)	($240.62)	($240.62)
Furlough Savings Plan	-	($211.54)	($211.54)	($211.54)
Furlough Savings Plan Payout					3 days = $634.62
Net Pay	$3,122.29	$2910.75	$2910.75	$2910.75	$3153.18
Net Effect		($211.54)	($211.54)	($211.54)	$30.98

And an example, of a Savings Plan for an employee in ORP with an annual salary of $100,000 ($384.62 per day) would be:

	Current Monthly Pay - Aug	Saving Plan less 1 Day’s Pay - Sept	Saving Plan less 1 Day’s Pay - Oct	Saving Plan less 1 Day’s Pay - Nov	Dec. Pay w/4 Furlough Days
Salary	$8,333.33	$8,333.33	$8,333.33	$8,333.33	$8,333.33
Furlough Days/$	-	-	-	-	4 days =($1,538.48)
Pre Tax/Taxes/After Tax Deduction's	($2,371.66)	($2,371.66)	($2,371.66)	($2,371.66)	($1,825.04)
ORP	($416.67)	($416.67)	($416.67)	($416.67)	($416.67)
Furlough Savings Plan	-	($384.62)	($384.62)	($384.62)
Furlough Savings Plan Payout	-	-	-	-	3 days = $1,153.86
Net Pay	$5,545.00	$5,160.38	$5,160.38	$5,160.38	$5,707.00
Net Effect		($384.62)	($384.62)	($384.62)	$162.00

For employees paid bi-weekly, ½ day gross pay will be deducted from the following pay periods:

• Sept 18
• Oct 2, 16 & 30
• Nov 13 & 25
• Dec 11

Biweekly employees will have their Furlough Savings Plan funds returned in their January 8, 2010 pay check.

For example, a biweekly employee earning $1, 269.60 every two weeks would contribute to the Savings Plan seven times:

	Current 80 Hour Pay	Pay with one Savings Plan Deduction	Jan Pay with 4 Dec. Furlough Days Deducted and 7 Savings Plan Credits
Salary	$1,269.60	$1,269.60	$1,269.60
Furlough Days/$	-	-	4/($507.84)
Pre Tax/Taxes/After Tax Deduction's	($362.94)	($362.94)	($247.57)
TRS	($66.65)	($66.65)	($66.65)
Furlough Savings Plan	-	($63.48)
Furlough Savings Plan Payout	-		$443.36
Net Pay	$840.01	$776.53	$891.90

If I don’t want to participate in the 'Furlough Savings Plan', how can I opt out of the plan?

Employees who choose to opt out of the savings plan may do so through TechWorks Employee Self Service at techworks.gatech.edu, under Payroll & Compensation. Employees who opt out will have four (4) days' pay deducted from their December pay.

Can I opt out of the Furlough Savings Plan at any time during September through December?

Yes, employees can opt out of the Furlough Savings Plan at any time. However, once an employee opts out of the savings plan, the decision cannot be reversed.

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Furlough Exemptions

What are the exceptions?

The following groups will be exempted from furloughs:

1. Employees critical to campus health and safety
2. Graduate research assistants and graduate teaching assistants
3. All employees whose annual salary is less than $23,660. In addition, furlough days will be assigned on a sliding scale to prevent any full-time employee from earning less than $23,660.
4. All employees of the Georgia Tech Research Institute
5. Any employees whose salary is a combination of state and sponsored funds. In these cases, furlough days will be prorated based upon the percentage of state funding. (Under this policy, Georgia Tech Foundation funds are not considered sponsored funds.)
6. The status of non-resident aliens with an H-1B visa could be jeopardized. Because a furlough action qualifies as a reduction in pay, applicable laws require the employer to re-file a visa petition.  Re-application is both costly, time consuming and disruptive to teaching and research activities.

What is the rationale for these exemptions?

The following bullets correspond to the groups in the previous question.

1. The safety and security of campus is a priority, and a furlough has the potential to compromise critical campus operations.
2. The responsibilities of these individuals are critical to Tech’s instructional and research operations. Research assistants and teaching assistants are normally offered free tuition and supplemental financial support as a component of their recruitment to a graduate program. The Institute believed that it had an obligation to honor these commitments because, on average, these stipends are very modest.
3. This is in compliance with the U.S. Department of Labor’s Fair Labor Standards Act.
4. Exempting GTRI saves Georgia Tech money. The salaries for virtually all of GTRI's 1,200 employees are paid for with sponsored monies. Because this revenue is factored into budget planning, a furlough of these individuals would shift the cost burden for fringe benefits onto the Institute.
5. As with GTRI employees, the philosophy behind exemptions is to save state funds while avoiding the unintended consequences of a furlough. Adjusting the furlough for those whose salary is partially paid through sponsored dollars will maximize the financial return to the state and ensure that Georgia Tech does not incur additional costs.
6. The status of non-resident aliens with an H-1B visa could be jeopardized. Because a furlough action qualifies as a reduction in pay, applicable laws require the employer to re-file a visa petition for any individual employed under an H-1B visa when the salary is reduced below contract. Re-application is both costly, time consuming and disruptive to teaching and research activities.

How will the sliding scale for full-time employees who, after any day of furlough, fall at or below an annual salary of $23,660 work?

Gross Earnings	Furlough Days	Furlough Amount	Net Amount
$23,751.35	1	$91.35	$23,660.00
$23,843.41	2	$183.41	$23,660.00
$23,936.19	3	$276.19	$23,660.00
$24,029.69	4	$369.69	$23,660.00
$24,123.92	5	$463.92	$23,660.00
$24,218.90	6	$558.90	$23,660.00

How do I apply for an exemption from the furlough or to be furloughed on days other than December 21st — 24th?

Employees must obtain the approval of the unit head and assistance from their unit HR representative who is responsible for on-line entry for an exception. The business-related exception must then be requested through the AVP, Human Resources and approved by the Office of the President.

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Sponsored Funds

I work on a sponsored project. How many furlough days do I have?

Faculty and staff who are fully or partially supported directly by externally sponsored research grants or contracts are excluded from furlough, with the number of days prorated based upon the level of external support. In other words, the furlough is based on the portion of your salary that is paid from state funds and not recovered as a direct charge to a sponsored program.

Effort distribution based on your certified Annual Statement of Reasonableness for June 30, 2009 will be used to determine the number of furlough days you have. You will be informed of the number of days you will have.

Can I reallocate effort if I have a project I did not have last fiscal year or if I receive new funding?

Effort allocation should be based on the percent of time over the project year that you will engage in research activities that are allocable to the sponsored project paying your salary. Prospective changes in allocation of effort will be permitted subject to the requirements of A-21 and with documentation and approval.

Individuals who have new projects or changes in effort charged to sponsored programs large enough to move them from one group to another should provide documentation to Grants & Contracts Accounting by October 1, 2009. Any changes in effort allocation will be reviewed to determine (1) if the individual’s salary is included in the original sponsor-approved budget, (2) ensure that the change is not greater than a 5% deviation from the approved budget amount for this budget line, and (3) that the funds are still available in the project.

To request a change in allocation, individuals should complete the attached information: Salaray Planning and Distribution (SPD)Request for Sponsored Furlough Exemption (PDF 608Kb)

How will furloughs affect my time and effort allocation under Georgia Tech's Plan Confirmation System?

In order to maintain the continuity of research programs and meet sponsor commitments, the Institute has determined that furloughs will be prorated based on the amount of effort committed to sponsored programs. You will be expected to work on your sponsored programs on days you are exempt from furlough.  Your overall effort allocation for the year should not change.

What if my salary is paid by the State but committed as cost-sharing for a sponsored program?

If the sponsor requires or Georgia Tech has agreed to a specific dollar match in funding, additional funding will have to be found to meet that commitment.

If I am paid in whole or in part from sponsored programs, what am I expected to do on the days designated as furlough days?

Those who work on sponsored programs are expected to maintain their ongoing research programs during the furlough period.  The designated furlough period occurs when classes are not in session and other Institute activities are curtailed.  If you are not working on those days, you must take vacation.

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