Due to the economic impact of COVID-19, the City forecasted a deficit in the current fiscal year. In order to meet budgetary demands as a result of revenue loss and unanticipated COVID-19 related expenses, staff requests approval to implement a Temporary Voluntary Time-Off Program for the At-Will (Exempt) Executive Employees as another option to reduce costs. The Temporary Voluntary Time-Off Program is meant to meet the following:
· Reduce salary and benefit costs to address fiscal challenges
· Achieve salary reductions for a specified period, through unpaid time off
· Minimize the need for furloughs, employee concessions, or layoffs
Although the Executive Team voluntary reduced their total compensation of 10% through reducing management leave, deferred compensation and/or base salary, the Temporary Voluntary Time-Off (Furlough) Program is another resource for executives to contribute to total salary savings.
The intent of the Program is to designate a specific period of time when Executive Employees may volunteer to participate in order to generate total salary savings. This program would exclude employees who are subject to mandatory staffing of 24/7 operations requirements.
Under the Program, an Executive Employee may request any variation time on a regularly scheduled basis, which shall be subject to the City Administrator’s approval.
An Executive Employee approved to work a reduced schedule will receive the same level of health benefits (medical, dental, vision) and accrued benefits during the temporary voluntary time-off period.
Other variable components, such as CalPERS retirement contribution, premium pay and other benefits calculated from an employee’s salary, will be reduced by the decrease in work hours, as impact on retirement and other benefits will be determined by the application of actual work hours and rates of pay.
This is a voluntary program for the At-Will (Exempt) employees in an ongoing effort to accomplish fiscal reductions and salary savings. The City Administrator has the right to discontinue the program at any time.