3356-3-11.2. Budget-deficit options applicable to excluded employees

(A) Policy statement. The university is committed to maintaining a balanced budget and operating efficiently within the confines of such budget. The board of trustees is empowered to do all things necessary for the creation, proper maintenance, and successful continuous operation of the university.

(B) Purpose. To provide general guidelines for the use of employee cost-sharing measures to be implemented throughout the year in order to achieve spending reductions necessitated by budget deficits. Employee cost-sharing measures include, but are not limited to, furloughs, layoffs, pay reductions, and employee transfers or unit reorganizations that achieve spending reductions. This list does not operate to exclude other cost-saving measures. An operating budget deficit is caused by a loss of state funding, a decline in institutional enrollment, or other actions that affect the operating budget.

(C) Scope. This policy applies to all excluded employees, including professional and administrative staff, classified, academic department chairpersons and multiple-year contract employees, regardless of FTE or funding.

(D) Definitions.

(1) A "furlough" is unpaid leave of absence from work for a specified number of ours within a period of time. Employees shall not work when taking furlough leave. Unless otherwise notified by the office of human resources, employees shall not use accrued paid leave during periods of furlough.

(2) "Layoff" is the temporary or permanent deletion of a position from the organizational structure of the university.

(3) "Pay reduction" is the reduction in an employee's salary. A pay reduction may be temporary or permanent and may or may not come with a reduction in responsibilities.

(4) "Employee transfer" is the movement of an employee from one position to the same position. A transfer may also include other employee cost-sharing measures.

(5) "Unit reorganization" is the reassignment of duties among various positions within a work unit, i.e., combining job duties in an attempt to reduce staffing size while continuing to maintain efficiency without posting positions pursuant to rule 3356-7-42, 3356-9-01 and 3356-9-02 of the Administrative Code. (Corresponding university policies 3356-7-42, 3356-9-01 and 3356-9-02 can be found on the university policies website.) A unit reorganization may also include other employee cost-sharing measures.

The cost savings measures may be accompanied by suspending leave accruals, suspending university health insurance premium share (offering COBRA coverage only) and other cost savings incidentals.

(E) Procedures.

(1) If the vice president for finance and business operations determines that it may be necessary to implement any of the employee cost-sharing measures identified in this policy, he or she shall meet with the president to discuss the details of the budget. As necessary, the vice president for finance and business operations shall make a report to the appropriate campus constituencies, which shall include the board of trustees and may include (but is not required due to exigency of circumstances) the president's executive management team and the academic senate.

(2) If after such consultation, the president has reason to believe that action is required to address an operating budget deficit, the president may immediately institute cost-saving measures.

(a) This policy supersedes all policies to the contrary.

(b) Healthcare, dental, and life insurance may be affected by furlough leave, layoff, or other employment reduction options. Employees will be notified of changes.

(c) Employee healthcare contribution payments may be altered or waived by the university president after consultation with the vice president for finance and business operations.

(d) Employees will be given at least seven calendar days' notice prior to the start of a required furlough leave or layoff.

(e) Retirement contributions will be affected by employment reductions options because contributions are calculated based upon actual earnings. Also, in accordance with retirement system rules and university policy, an employee's continuous service credit and review or evaluation date may be affected.

(f) The implementation of employee cost-sharing measures or any other application of this policy may not be appealed under any other university policy or internal grievance process.

Replaces: 3356-3- 11.2

Effective: 6/22/2020
Promulgated Under: 111.15
Statutory Authority: 3356
Rule Amplifies: 3356
Prior Effective Dates: 06/01/2012, 08/10/2016