Note: The following questions and answers apply to general government non-represented employees only. General government and higher education represented employees should contact their HR office or designated union representative. HR professionals who have questions related to represented employees or union representatives should contact their agency labor relations representative within the Labor Relations Office. Higher education non-represented employees should contact their HR office for information regarding the impact of ESSB 5860.
PART A - HR and Payroll Questions Salary Reduction:
1. Do we need to notify all of our employees individually of the salary reduction?
This is an individual agency decision; however, at a minimum we recommend you send a message to all employees receiving the reduction and include a copy of the notification in their personnel files. This may assist both the employee and HR in the future. OSHRD provided a sample communication to the HR Directors.
2. How do we address the salary reduction in appointment letters?
OSHRD worked with the Labor and Personnel section of the AGO and provided sample letters for non-represented employees to the HR Directors.
3. How do we address the 3 percent salary reduction when an employee’s salary is being reduced for disciplinary reasons?
OSHRD worked with the Labor and Personnel section of the AGO and provided sample letters for non-represented employees to the HR Directors.
4. When will the reduced compensation table be displayed on the employees’ Basic Pay record (Infotype 0008)?
The reduced salary for each employee affected will be displayed on the Basic Pay Infotype 0008 on July 1, 2011.
5. How will directly valuated employees’ salary (WMS, Exempt or employees not paid on a salary schedule) be updated?
On June 9, 2011 the Office of the State HR Dorector (OSHRD) provided agencies a report that identifies directly valuated employees (WMS, Exempt, or employees not paid on a salary schedule) who make a full-time equivalent salary of $2500 per month or more. Similar to how general wage increases have been handled in the past, OSHRD ran an automated process to reduce the salaries of qualifying directly valuated employees by 3 percent.
6. Will HRMS adjust the overtime and leave cash out rate automatically for employees who have the salary reduction?
Yes, HRMS will apply a 3 percent restoration factor to the affected wage types based upon the employee’s collective bargaining agreement or civil service rules.
7. In what order will actions happen in the system (for example, if a periodic increment increase occurs on same effective date as salary reduction)?
Indirectly valuated employees (employees paid based on salary range and step according to the compensation plan) do not have a new Basic Pay record (Infotype 0008) created for the salary reduction. The adjusted salary is reflected based on the changes to the compensation plan effective July 1, 2011. However, a new Basic Pay record (Infotype 0008) is created for any employees receiving a periodic increment to reflect the new level (step). This will occur the first night of payroll (end of Payroll Day1) for the July 25, 2011 payroll. The salary displayed on Infotype 0008 is reflected for the new level (step) based on the salary grid.
8. Will the WMS bands and exempt bands be reduced?
No, the WMS and Exempt bands will not be reduced. Only the salaries reflected on the Basic Pay Infotype 0008 for WMS or Exempt employees will be reduced by 3 percent.
9. How should we post salaries on job postings?
This is an individual agency decision. OSHRD has provided some recommended language for agencies to consider:
For jobs posted between now and June 30:
Important Note: From July 1, 2011, through June 29, 2013, a 3% temporary salary reduction is in effect for most state positions.
For jobs posted on or after July 1 - It is recommended that the salary reflect the July 1, 2011 3% temporary salary reduction and includes the following:
Important Note: From July 1, 2011, through June 29, 2013, a 3% temporary salary reduction is in effect for most state positions. The salary listed above includes this reduction.
Or if the salary shown is the salary before the July 1, 2011 reduction OR if the salary is not shown (e.g., ‘Depends on Qualifications,’ ‘Negotiable,’ or the agency elects not to show the salary):
Important Note: From July 1, 2011, through June 29, 2013, a 3% temporary salary reduction is in effect for most state positions.
10. How will salaries be calculated if an employee moves from a non-reduced position to a reduced position or vice versa?
Currently, several variables determine salary calculations for employees moving from non-represented to represented positions. That won’t change with the salary reductions. It simply means plotting the salary on the appropriate grid for the final salary outcome.
Per WAC 357-28-035, employers address salary setting for new employees in their Salary Determination Policy. If employers chose to follow the existing rule and not deviate from it, WAC 357-28-110 states employees must receive a minimum increase of two steps upon promotion. However, employers may also grant higher increases based on rule criteria. Note: agencies should review their salary determination policies and any impacts during the period of salary reductions.
11. What impact does the temporary salary reduction have on employees working under an H1B visa?
Unlike the “benching” aspects of the temporary layoffs, employers are not prohibited from reducing an employee’s wages, even where they have filed a Labor Condition Application (LCA). However, a new LCA must be filed prior to the decrease in wages becoming effective and it must be approved by the U.S. Department of Labor. Employers must calculate the 3% reduction of the H1B beneficiary’s current wage to determine if it will take the salary below what was certified by the LCA as the prevailing or actual wage. It is imperative that any employer with an H1B, H1B1, or E-3 employee calculate the wage and determine if a new LCA and amended H1B petition is necessary. If a new LCA and H1B petition is necessary, please contact the Labor and Personnel Division of the Attorney General’s Office immediately so they can process the appropriate paperwork.
PART B - HR and Payroll Questions Temporary Salary Reduction (TSR) Leave:
12. Do we need to update our agency’s leave policy to address TSR leave?
There is no requirement for agencies to update their leave policy to address TSR leave. However, we recommend agencies review their leave policy and procedures to determine if updates are necessary.
13. What happens to unused TSR leave that expires on June 30, 2013?
TSR leave that expires is exhausted just like excess vacation leave is exhausted on the employee’s anniversary date. However, employees may carry forward up to 16 hours of TSR leave that must be used before September 1, 2013. The process for extending the TSR leave in HRMS will be communicated at a later date.
14. How are employees identified as eligible for earning TSR leave?
OSHRD will create a new TSR Leave date type for IT0041 and process an initial load of the new date type for employees affected by the 3 percent salary reduction. Agencies will be responsible for establishing eligibility by entering the date type on IT0041 after the initial load.
OSHRD will create a new TSR leave quota and accrual process which will only apply to the employees with the new date type.
15. If an employee has a TSR leave balance and moves to a different job with a different state agency will the employee’s TSR leave balance transfer to the new agency?
If an employee has a TSR leave balance and accepts an appointment with a different state agency (without a break in service) the employee’s TSR leave balance will transfer to the new agency.
16. If an employee has a TSR leave balance and separates from state service will the employee be cashed out for the TSR leave?
No, TSR leave cannot be cashed out.
17. Will retirement and Social Security tax amounts – both employer and employee amounts – be taken on the reduced amount or on the amount before the reduction?
Retirement and Social Security tax – both employee and employer amounts - will be taken on the gross subject to retirement or gross subject to Social Security calculated at the time of the payroll process. Therefore, if the salary is reduced, the gross subject to retirement or Social Security will also be reduced, causing the actual tax taken to be reduced.
For additional information regarding retirement see Question #6, Part A – HR and Payroll Questions Salary Reduction.
18. Will OSHRD add a new absence type in the Human Resource Management System specifically for Temporary Salary Reduction (TSR) leave that will reduce the TSR leave balance?
Yes, it was necessary to add two absence types and associated wage types since sick leave or leave taken in lieu of sick leave is not to be included in the hours and salary reported for unemployment insurance purposes. The absence type 9400 Temporary Salary Reduction Lv is reportable to Employment Security but absence type 9401 is not.
Absence type 9400 Temp Salary Reduction Lv; Wage Type 1353 Temp Salary Reduction Absence Lv
Absence type 9401 Temp Sal. Red. Lieu of Sick; Wage Type 1354 Temp Sal. Red. Lieu of Sick
19. Will TSR or the TSR leave cause any system limitations? For example, with the current personal leave day, if an employee moves from a position where they have a personal leave day to one where they do not have a personal leave day, it causes a “system error” and won’t allow us to key in leave.
The “system error” with the personal leave day is caused because the personal leave day is only allowed for specific bargaining units. The TSR Leave will be allowed for most employees so the system error should not be an issue.
20. Can TSR leave be donated as shared leave?
TSR leave cannot be donated as shared leave or to a shared leave pool.
21. If employees use TSR leave, does that time count against their FMLA entitlement? (posted 8/11/2011)
For nonrepresented employees - Effective July 1, 2011 TSR leave will NOT count against the employee’s twelve weeks of FMLA entitlement. When the permanent rule changes go into effect on October 24, 2011, you will count TSR leave towards the employee’s twelve weeks of FMLA entitlement, but not before then.
22. Is there a TSR FMLA absence type we can use? (posted 8/11/2011)
Currently there is not a TSR/FMLA absence type. We are in the process of developing a new TSR/FMLA absence type. The new code should be available by October 2011.