Systemwide Furlough and Pay Reduction Program

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Furlough and Pay Reduction Program Will End June 30

Beginning with the new fiscal year that starts July 1, the University will be ending the Furlough and Pay Reduction Program, which has been in effect for employees earning $60,000 or more since July 2020 to help manage the extraordinary financial impacts of the pandemic.

Labor-Represented and Civil Service Employees
Labor-Represented and Civil Service employees will not be required to take furloughs in the new fiscal year. However, if you have not already taken all the furlough hours assigned to you last December for Period 2, you will need to schedule any remaining hours by June 7 and take those hours by June 20. If you do not schedule your furlough hours by June 7, your department will schedule them for you.

Faculty and P&A Employees Have Until December 30 to Use PRP Hours
Pay reductions for salaried Faculty and P&A employees will end with the last pay date in the current fiscal year, which is June 30. Beginning with the first paycheck of the new fiscal year on July 14, you will see a slight adjustment in your biweekly amount of gross pay compared to FY21. In addition, the deadline for taking your optional bank of pay reduction time off has been extended to December 30 (the following day is a University holiday). After that date, any remaining hours will no longer be available.

Scheduling Remaining Furlough Hours or Pay Reduction Time Off
You can submit requests for remaining furlough or pay reduction hours as you do for any other absence using your usual time-tracking system (such as MyU or Kronos). For detailed instructions, see this Absence Requests web page.

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.

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

Faculty Covered by UEA

For Faculty employees covered by the University Education Association collective bargaining agreement (eligible UM Duluth and UM Crookston faculty), the collective bargaining agreement between the University of Minnesota and the UEA was due for negotiations in 2020. The University presented the UEA negotiating team a Last, Best, and Final Offer, which was not ratified by UEA members. The University is implementing its Last, Best, and Final Offer on December 14, 2020. Since UEA members received their full pay during Period 1 of the Pay Reduction Program, they will have the combined total for both periods taken from their pay during Period 2.

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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 but participate in Period 2. 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 who participate in the Retirement Incentive Option and retire by January 15, 2021 (excluded from Period 2)
  • 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)
  • Employees on academic disability leave as of December 20, 2020, who were hired on or after June 8, 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), according to the ranges listed in the chart above. 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.

You can find your individual IBS using this tool.

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Program Time Periods

Pay reduction or furlough hours are being 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

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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