Ariz. Admin. Code § R2-5A-C601 - Furlough

A. Definition. A furlough is the involuntary placement of an employee on leave of absence without pay for budgetary reasons.

B. Types of furloughs. A furlough may be authorized by legislative action. In addition, the Director may approve:

1. A reduction of funding furlough that allows an agency head to place employees on furlough for any combination of consecutive or non-consecutive days. There is no maximum number of days an employee may be placed on furlough, but consecutive furlough days shall not exceed five consecutive days or more than one-half the employee's regularly scheduled hours in a pay period, whichever is less; and

2. A suspension of funding furlough that allows an agency head to place employees on furlough indefinitely until funding is restored.

C. General.

1. The total number of days an employee is placed on furlough may vary based on the amount of the reduction or length of suspension of funding.

2. A furlough day equals eight hours for full-time employees and is pro-rated for part-time employees. Furlough hours for part-time employees are calculated by multiplying the number of hours the employee is scheduled to work in a week by 0.2. If the calculation results in a fraction, the furlough hours shall be rounded to the nearest whole hour, as follows:

a. 0.5 or above is rounded up, and

b. Less than 0.5 is rounded down.

3. A furlough is unpaid.

4. Unless a work emergency occurs under subsection (D)(5)(d), while on furlough, an employee shall not conduct state work or volunteer to conduct state work, either with or without compensation.

5. Paid leave shall not be substituted for furlough days.

6. All state employees within the scope of the furlough shall be subject to the furlough in the same manner. Exceptions may be granted when an agency head determines certain employees within the scope of the furlough have unique knowledge or skills or are considered mission critical and need to be excluded from the furlough.

7. Unless the employee is in a physician or attorney position, an employee who is in a position that has been determined to be exempt from the provisions of the Fair Labor Standards Act (FLSA) will lose the exemption for any work week in which the employee is furloughed for less than the full work week.

8. A furlough shall not adversely affect an employee's service anniversary date or create a break in service.

9. Upon conclusion of the furlough period, an agency head shall return an employee to the employee's status and position held prior to the furlough, unless a personnel action taken in accordance with State Personnel System rules authorizes a change to the employee's record.

10. An employee's failure or inability to return to work upon conclusion of the furlough period may, in accordance with applicable State Personnel System rules:

a. Result in the employee being placed on leave,

b. Be considered a resignation,

c. Result in separation without prejudice, or

d. Be cause for dismissal of a covered employee.

D. Reduction of funding furlough.

1. An agency head shall submit to the Director a furlough plan for approval if the agency head determines a furlough is necessary due to a reduction of funding. An agency head is not required to implement or exhaust other cost-savings measures prior to initiating a furlough plan.

2. The agency head shall submit the furlough plan for approval at least 30 business days prior to the proposed implementation date of the furlough. If circumstances beyond the agency head's control do not permit at least 30 business days' notice, the agency head shall submit the furlough plan as soon as the agency head is aware of the necessity for the furlough and provide a written explanation of why the 30 business day requirement was not met.

3. An agency head shall include all of the following in the furlough plan:

a. The proposed scope of the furlough plan, which shall be either agency-wide or limited to:

i. Agency operations in one or more geographic areas,

ii. One or more organizational units of the agency,

iii. One or more funding sources,

iv. One or more job classes,

v. One or more class series, or

vi. Any combination of the above.

b. If the furlough will not be conducted on an agency-wide basis, each affected:

i. Geographic location,

ii. Organizational unit,

iii. Funding source,

iv. Job class, and

v. Class series.

c. For each affected geographical location, organizational unit, funding source, job class, and class series specified in the furlough plan, the total number of employees scheduled for furlough;

d. If requesting any exceptions within the scope of the furlough under subsection (C)(6), the total number of employees within the scope of the furlough, the number of employees for whom an exception is requested, and the reason for the request;

e. The number of days and date ranges for the furlough;

f. The anticipated cost savings due to the furlough;

g. The agency's procedures for scheduling furloughs; and

h. The procedures for notifying employees of the furlough.

4. The Director shall review and provide written notification of approval, modification, or denial of an agency's furlough plan within 20 business days of receipt.

5. Upon approval of the Director to conduct a reduction of funding furlough, an agency head:

a. May place an employee on furlough for any combination of consecutive or non-consecutive days, subject to the limits in subsection (B)(1);

b. Shall determine the scheduling of furloughs that provide for the continuation of any agency operations required by law;

c. May cancel or rescind any approved paid or unpaid leave in progress or scheduled for an employee who is designated for furlough and shall notify the affected employee in writing of the cancellation of the approved leave for the duration of the furlough. If the previously approved leave was scheduled to extend beyond the furlough, the employee may return to paid leave status, if available, following the furlough period. If the agency head cancels an employee's paid leave and:

i. The employee is on leave pursuant to the provisions of the federal Family and Medical Leave Act (FMLA) during a scheduled furlough day, the furlough day shall not count against the employee's FMLA entitlement and the employee's leave balance shall not be charged for the furlough day; or

ii. The employee is on military leave during a scheduled furlough day, the furlough day shall not count against the employee's military leave and the employee's leave balance shall not be charged for the furlough day; and

d. Shall prohibit an employee from working during the period of the furlough, unless a work emergency arises. In the event of a work emergency, an agency head may revoke the furlough for an employee in an individual case. An employee whose furlough is revoked due to an emergency shall be paid for time required to work and shall be required to take the furlough on another day, unless otherwise exempted.

E. Suspension of funding furlough - agency head request.

1. An agency head shall submit to the Director for approval a furlough plan if the agency head determines a furlough is required due to a suspension of funding to pay employees.

2. The agency head shall submit the furlough plan for approval at least 15 business days prior to the proposed implementation date of the furlough. If circumstances beyond the agency head's control do not permit at least 15 business days' notice, the agency head shall submit the furlough plan as soon as the agency head is aware of the necessity for the furlough and provide a written explanation of why the 15 business day requirement was not met.

3. An agency head shall include all of the following in the furlough plan:

a. The proposed scope of the furlough plan, which shall be either agency-wide or limited to:

i. Agency operations in one or more geographic areas,

ii. One or more organizational units of the agency,

iii. One or more funding sources,

iv. One or more job classes,

v. One or more class series, or

vi. Any combination of the above.

b. If the furlough will not be conducted on an agency-wide basis, each affected:

i. Geographic location,

ii. Organizational unit,

iii. Funding source,

iv. Job class, and

v. Class series.

c. For each affected geographical location, organizational unit, funding source, job class, and class series specified in the furlough plan, the total number of employees scheduled for furlough;

d. If requesting any exceptions within the scope of the furlough under subsection (C)(6), the total number of employees within the scope of the furlough, the number of employees for whom an exception is requested, and the reason for the request;

e. The procedures for notifying employees of the furlough; and

f. The procedures for notifying employees of restoration of funding and when to return to work.

4. The Director shall review and provide written notification of approval, modification, or denial of an agency's furlough plan within 10 business days of receipt.

5. Upon approval of the Director to conduct a suspension of funding furlough, an agency head:

a. Shall freeze all personnel actions except for those actions that would accomplish, or assist in accomplishing the purpose of the furlough;

b. May place employees on furlough indefinitely until the reason for the furlough is abated;

c. Shall notify affected employees of the furlough and that while on furlough, an employee:

i. Shall not report to work or work from any location until notified to return to work; and

ii. Will not receive pay for any unused and unforfeited annual leave, should the employee resign or be terminated, until funding is restored;

d. May cancel or rescind any approved paid or unpaid leave in progress or scheduled for an employee who is designated for furlough and shall notify the affected employee in writing of the cancellation of the approved leave for the duration of the furlough. If the previously approved leave was scheduled to extend beyond the furlough, the employee may return to paid leave status, if available, following the furlough period; and

e. Shall notify employees upon restoration of funding and when to return to work.

F. Suspension of funding furlough - failure to pass state budget. If the state fails to pass a budget and funds are not appropriated for the following fiscal year, the Director may authorize an agency head to implement a suspension of funding furlough. Upon such notification by the Director, an agency head:

1. Shall freeze all personnel actions except for those actions that would accomplish, or assist in accomplishing the purpose of the furlough;

2. Unless an exception has been authorized as provided in subsection (F)(4), shall place all employees on furlough indefinitely until the reason for the furlough is abated;

3. Shall require all employees to be subject to the furlough in the same manner;

4. May establish exceptions when only a portion of the employees in a particular class are necessary to perform mission critical services;

5. Shall notify affected employees of the furlough and that while on furlough, an employee:

a. Shall not report to work or work from any location until notified to return to work; and

b. Will not receive pay for any unused and unforfeited annual leave, should the employee resign or be terminated, until funding is restored;

6. Shall cancel or rescind any approved paid or unpaid leave in progress or scheduled for an employee who is designated for furlough and shall notify the affected employee in writing of the cancellation of the approved leave for the duration of the furlough. If the previously approved leave was scheduled to extend beyond the furlough, the employee may return to paid leave status, if available, following the furlough period; and

7. Shall notify employees upon restoration of funding and when to return to work.

G. Employee request for review.

1. An employee may submit a request for review of the employee's placement on furlough. The employee shall make the request for review in writing to the agency head no later than three business days after the employee's receipt of a furlough notice. The employee shall limit the request for review to the determination resulting in the employee's furlough and include a proposed resolution.

2. The agency head shall provide a written response to the employee with a final decision within:

a. Five business days after receipt of the request if a reduction of funding furlough, or

b. Fifteen business days after the employee returns to work if a suspension of funding furlough.

3. A request for review shall not delay implementation of the furlough.

Notes

Ariz. Admin. Code § R2-5A-C601

Section made by exempt rulemaking at 18 A.A.R. 2782, effective September 29, 2012 (Supp. 12-4).