Systemwide Furlough and Pay Reduction Program

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Introduction

The continuing impacts of the COVID-19 pandemic are expected to significantly affect the University's fiscal year 2021 budget. As the University addresses its financial situation, the goal is to minimize job loss and negative effects on employees.

The decision to develop the Systemwide Furlough or Pay Reduction Program is based on feedback from many University employees and shared governance groups. The program, in comparison to other salary-saving measures, saves costs for the University while ensuring income throughout the fiscal year for employees, along with flexibility in scheduling time off.

The program is structured according to these principles:

  • Retain current employees to the extent possible.
  • Consider the financial impact of decisions on our employees, with approaches weighting financial burden toward those at higher income levels.
  • Recognize CARES Act requirements on retaining employees to the extent possible.
  • Prioritize fiscal responsibility.
  • Address the University's financial challenges through a variety of mechanisms, including immediate, nonrecurring savings and organizational improvements with longer-term impacts.

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About the Program

As of June 22, 2020, the University of Minnesota implemented the Furlough or Pay Reduction Program, which are cost-saving measures for all employees earning $60,000 or more. Whether employees receive a furlough or a pay reduction depends on their employee group:

  • Labor-Represented and Civil Service employees, who are paid hourly, will be required to take a number of unpaid furlough hours during the fiscal year.
  • Faculty and P&A employees, who are paid a salary, will receive pay reductions. They will also receive a bank of paid time off, corresponding to their pay reduction, which they have the option of taking.

For Faculty employees covered by the University Education Association collective bargaining agreement (eligible UM Duluth and UM Crookston faculty), contract negotiations are continuing. Please consult with your UEA representatives if you have questions.

In each case, the furloughs or pay reductions will be based on the employee's institutional base salary (see below), weighted toward those at higher income levels.

The program period will be implemented in two periods:

  • Period 1: June 22, 2020, through December 20, 2020
  • Period 2: December 21, 2020, through June 20, 2021

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Who Is Excluded?

Some University employees are excluded from the plan:

  • Employees with an institutional base salary of less than $60,000
  • New employees with a hire date of June 8, 2020, to December 20, 2020, are excluded for period 1. New employees with a hire date of December 21, 2020, or later are excluded from both program periods.
  • Professionals-in-training (including predoctoral and postdoctoral associates and residents)
  • Graduate assistants
  • Undergraduate student workers
  • H-1B and E-3 visa holders
  • Academic temp casuals and temp/casuals
  • Employees in phased retirement
  • Employees on military leave while on active duty
  • Employees on academic disability leave as of June 21, 2020 (excluded only for the duration of their disability leave)

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Earnings Table for Furlough Hours or Pay Reductions

The following table shows furlough hours or pay reduction percentages for employees in the corresponding earnings tier based on institutional base salary.

Earnings Tier
(Institutional Base Salary
on June 7, 2020)

Hours of Furlough
Civil Service and Labor Represented

% of Pay Reduction
Faculty and P&A

Total
(Periods 1 and 2)

Period 1
(6/22/20 to 12/20/20)

Period 2
(12/21/20 to 6/20/21)

$59,999.99 or less 0.00 0.00 0.00 0.000%
$60,000–$64,999.99 15.50 7.75 7.75 0.750%
$65,000–$69,999.99 31.25 15.50 15.75 1.500%
$70,000–$74,999.99 35.00 17.50 17.50 1.685%
$75,000–$79,999.99 39.00 19.50 19.50 1.870%
$80,000–$84,999.99 42.75 21.25 21.50 2.055%
$85,000–$89,999.99 46.50 23.25 23.25 2.240%
$90,000–$94,999.99 50.50 25.25 25.25 2.425%
$95,000–$99,999.99 54.25 27.00 27.25 2.610%
$100,000–$104,999.99 58.25 29.00 29.25 2.795%
$105,000–$109,999.99 62.00 31.00 31.00 2.980%
$110,000–$114,999.99 65.75 32.75 33.00 3.165%
$115,000–$119,999.99 69.75 34.75 35.00 3.350%
$120,000–$124,999.99 73.50 36.75 36.75 3.535%
$125,000–$129,999.99 77.50 38.75 38.75 3.720%
$130,000–$134,999.99 81.25 40.50 40.75 3.905%
$135,000–$139,999.99 85.00 42.50 42.50 4.090%
$140,000–$144,999.99 89.00 44.50 44.50 4.275%
$145,000–$149,999.99 92.75 46.25 46.50 4.460%
$150,000–$154,999.99 96.50 48.25 48.25 4.645%
$155,000–$159,999.99 100.50 50.25 50.25 4.830%
$160,000–$164,999.99 104.25 52.00 52.25 5.015%
$165,000–$169,999.99 108.25 54.00 54.25 5.200%
$170,000–$174,999.99 112.00 56.00 56.00 5.385%
$175,000–$179,999.99 115.75 57.75 58.00 5.570%
$180,000–$184,999.99 119.75 59.75 60.00 5.755%
$185,000–$189,999.99 123.50 61.75 61.75 5.940%
$190,000–$194,999.99 127.50 63.75 63.75 6.125%
$195,000–$199,999.99 131.25 65.50 65.75 6.310%
$200,000–$204,999.99 135.00 67.50 67.50 6.495%
$205,000–$209,999.99 139.00 69.50 69.50 6.680%
$210,000–$214,999.99 142.75 71.25 71.50 6.865%
$215,000–$219,999.99 146.75 73.25 73.50 7.050%
$220,000–$224,999.99 150.50 75.25 75.25 7.235%
$225,000–$229,999.99 154.25 77.00 77.25 7.420%
$230,000–$234,999.99 158.25 79.00 79.25 7.605%
$235,000–$239,999.99 162.00 81.00 81.00 7.790%
$240,000–$244,999.99 166.00 83.00 83.00 7.975%
$245,000–$249,999.99 169.75 84.75 85.00 8.160%
$250,000–$254,999.99 173.50 86.75 86.75 8.345%
$255,000–$259,999.99 177.50 88.75 88.75 8.530%
$260,000–$264,999.99 181.25 90.50 90.75 8.715%
$265,000–$269,999.99 185.00 92.50 92.50 8.900%
$270,000–$274,999.99 189.00 94.50 94.50 9.085%
$275,000–$279,999.99 192.75 96.25 96.50 9.270%
$280,000–$284,999.99 196.75 98.25 98.50 9.455%
$285,000–$289,999.99 200.50 100.25 100.25 9.640%
$290,000–$294,999.99 204.25 102.00 102.25 9.825%
$295,000 or more 208.00 104.00 104.00 10.000%

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Institutional Base Salary

The amount of furlough hours or pay reduction assigned to each employee is based on the employee's institutional base salary (IBS) as of June 7, 2020. The IBS is the sum of an employee's base salary, administrative augmentations, increments, and Regents Professorships pay amounts from all appointments.

IBS does not include items such as overtime pay, shift differentials, or augments that are paid through additional pay. Separate Faculty summer appointments are not included.

To find your institutional base salary, follow the instructions in this help guide and enter June 7, 2020 as for the date.

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Program Time Periods

Pay reduction or furlough hours will be implemented in two periods, as shown in the earnings grid. Furloughed employees must take the number of hours shown on the grid in each of the two periods:

  • Period 1: June 22, 2020, through December 20, 2020
  • Period 2: December 21, 2020, through June 20, 2021

Before period 2 begins, the University will assess the budget to determine if adjustments to period 2 numbers should be made.

Employees who see a decrease in their institutional base salary (IBS) that moves their salary to a lower pay tier will have their assigned furlough hours or pay reduction percentage lowered accordingly.

Adjustments will not be made for employees who see an increase in their IBS during period 1 or period 2.

More Information

For more information about the program, click the appropriate box for your employee group.

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