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43. PROPOSAL FOR REVISION TO COUNTY POLICY HR2403, “REDUCTIONS IN FORCE,” TO ADD FURLOUGH LANGUAGE FOR BOTH CLASSIFIED AND UNCLASSIFIED EMPLOYEES Approve the proposed amendment to County Administrative policy HR2403, “Reductions in Force,” to add a new section permitting the furlough of classified, unclassified and contract employees, with rules and requirements applicable to such furloughs. In order to avoid inconsistent language between and among the Maricopa County Employee Merit System Resolution and Rules, the Maricopa County Employee Leave Plan, and Maricopa County policy HR2403, “Reductions in Force and Furloughs,” this proposed amendment excludes any language conferring limited appeal rights to employees affected by a furlough pending further consideration of this issue by the Maricopa County Employee Merit Commission. Amend HR2403 to include the following language applying to and permitting the furlough of classified, unclassified and contract employees: 1. Change title of Policy to “Reductions in Force and Furloughs.” 2. Amend Section I., “Purpose,” by revising paragraph A to specify that this policy, which previously only addressed reductions in force, also establishes the rules and required procedures for the furlough of classified, unclassified and contract employees of Maricopa County. 3. Amend Section I, “Purpose,” by revising paragraph B to require that departments notify the Director, Workforce Management & Development, as soon as a decision has been made to furlough department employees. 4. Amend Section I., “Purpose,” by revising paragraph D to clarify that, without the express approval of the County Manager, the RIF provisions of this policy apply only to classified employees. 5. Amend Section II. by adding new paragraph E., which defines a “Furlough” as “mandatory unpaid leave imposed on classified employees by a department facing a severe financial crisis. A furlough may be imposed as an alternative to, or in conjunction with, a Reduction in Force. Furloughs shall not be treated as suspensions or involuntary demotions for purposes of Rule 10 (“Appeals”) of the Employee Merit System Rules.” Renumber the remaining definitions in Section II. 6. Amend Section III. by adding a new paragraph F., which requires that a department seeking to undertake a furlough in addition to a Reduction in Force shall incorporate the business justification for the furlough in the RIF Justification Memorandum. 7. Add new Section VII, “Furloughs,” which provides as follows: “VII. FURLOUGHS. A. Furloughs are another means of accomplishing a budget reduction initiative brought on by a budget deficit or shortfall. A furlough is mandatory unpaid leave of one or more days, and is not a reduction in the compensation or hourly rate of pay of an employee. The provisions of this Section VII apply to classified, unclassified and contract employees. B. Furloughs should be used as a secondary measure to accomplish a budget reduction when a reduction in force would so significantly impact a department’s work force that the department would no longer be able to effectively perform its mandated or primary functions. 1. To the extent possible, furloughs and reductions in force contemplated as part of a budget reduction initiative should be addressed in a department’s budget proposal submitted to the Office of Management and Budget (OMB) for the forthcoming fiscal year. All tentative department budgets will be submitted to the Board for approval. Every department contemplating a furlough or reduction in force of its employees must comply with any related OMB budget policies, but must at a minimum provide a written explanation why furloughs are necessary, either in addition to, or instead of reductions in force, and must identify all market range titles in the department that will be subject to the proposed furlough requirements. In applicable situations, a department shall include its written furlough justification with its RIF justification memorandum. C. The following rules apply to the furloughs of County employees: 1. An employee on furloughed status shall accrue leave and, where appropriate, is still eligible for holiday pay if a furlough is taken before or after a holiday, or for other paid time off. 2. Employees subject to a furlough will not at a later time be compensated for their unpaid furlough days. 3. The furlough of any County employee who is exempt from the wage and hour requirements of the Fair Labor Standards Act (FLSA) shall be managed in a manner that is consistent with the provisions of the FLSA and with the provisions of any other state or federal laws that may apply. Departments should require FLSA exempt employees to take furlough days over the least number of work weeks as possible. 4. Employees are not to perform any work for the County whatsoever while they are on furlough status.” Backup provided with this agenda item shows all current, proposed changes (in red font) in the context of the current policy, as well as proposed changes deferred (in blue font) pending a future decision of the Merit Commission. (C-31-09-014-6-00)

Vote: approved

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45. PROPOSAL FOR APPROVAL OF CHANGES TO MARICOPA COUNTY EMPLOYEE LEAVE PLAN TO ESTABLISH RULES FOR THE FURLOUGH OF COUNTY EMPLOYEES Approve the following changes to the Maricopa County Employee Leave Plan (“Leave Plan”) to add provisions for the furlough of County employees. These changes are proposed in tandem with the following other items on this same Board agenda: (1) C-31-09-014-6-00 proposing changes to HR2403 (Reductions in Force), that will add a section addressing the furlough of classified and unclassified employees; and (2) C-31-09-015-6-00 proposing changes to the Maricopa County Employee Merit System Resolution and Rules 1, 8 and 10, which were previously approved by the Merit Commission during its formal meeting on May 6, 2009, except for proposed changes that would have conferred limited appeal rights to employees affected by a furlough requirement. With respect to the changes addressing the limited appeal rights of furloughed employees, the Merit Commission deferred approval pending further consideration. Approval is recommended for the following proposed changes to the Leave Plan: 1. Approve change to Section III. “Definition,” to add new paragraph K. defining a furlough as “mandatory unpaid leave imposed on classified, unclassified, initial probationary, contract and temporary employees as the result of a budget deficit or shortfall”; establishing that a furlough may be imposed as an alternative to, or in conjunction with, a Reduction in Force (see HR2403); stating that furloughs are not suspensions or involuntary demotions under Section 16 (“Employee Appeals”) of the Merit System Resolution; and renumbering all subsequent definitions. 2. Approve change to Section IV., “Maricopa County Employee Leave Plan,” identifying two types of unpaid leave, including the new, “Furlough Day Off.” 3. Approve change to Section VIII., by changing the heading to “OTHER PAID LEAVES OF ABSENCE.” 4. Approve addition of new Section IX, entitled “UNPAID LEAVES OF ABSENCE,” and of new paragraph IX.B, which addresses procedures, requirements and rules for the imposition of mandatory unpaid leave (Furlough Day Off or FDO) for County employees. “B. Furlough Day Off (FDO). A furlough (coded by payroll as “furlough day off” or “FDO”) is mandatory unpaid leave of one or more days imposed by departments to accomplish a budget reduction initiative brought on by a budget deficit or shortfall. A furlough is not a reduction in the compensation or hourly rate of pay of an employee. 1. Every department contemplating the imposition of furlough days off must comply with the provisions of HR2403, “Reductions in Force and Furloughs,” and with any related OMB budget policies. At a minimum, departments must provide a written explanation why furloughs are necessary, must quantify the anticipated savings that will be realized, and must identify all market range titles in the department that will be subject to the proposed furlough requirements. 2. The following rules apply to the furloughs of County employees: a. An employee on furloughed status shall accrue leave and remain eligible for holiday pay even if a furlough day off is taken on the day before or the day after a holiday, and will remain eligible for other paid time off, as appropriate. b. Employees subject to a furlough will not at a later time be compensated for their unpaid furlough days off. c. Furlough time shall be taken in full work day increments except that residual mandatory furlough time of less than a full work day may be taken at one time. d. The furlough of any employee who is exempt from the wage and hour requirements of the Fair Labor Standards Act (FLSA) shall be managed in a manner that is consistent with the provisions of the FLSA and with the provisions of any other state or federal laws that may apply. FLSA-exempt employees and their departments shall ensure that furlough days off for FLSA-exempt employees occur over as few work weeks as possible. e. Employees are not to perform any work for the County whatsoever while they are on furlough status.” 6. Renumber former paragraph VIII.H., “SPECIAL APPOINTMENT,” to Section X. 7. Renumber subsequent Section IX, “REINSTATEMENT,” to XI. Backup provided with this agenda item shows proposed changes within the text of the current Leave Plan. The Merit Commission’s ultimate action on the deferred limited appeal provisions in the Merit Rules may require the submission of additional proposed changes to the Board. (C-31-09-016-6-00)

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23. PROPOSAL FOR REVISION TO COUNTY POLICY HR2403, “VOLUNTARY REDUCTIONS IN FORCE AND FURLOUGHS” Approve the proposed amendment to County Administrative policy HR2403, “Voluntary Reductions in Force and Furloughs,” to add definition: Voluntary Reduction in Force (VRIF), add new section, III.E. County Manager Approval for VRIF Proposal, and delete section C.1.c. Other housekeeping changes to include Workforce Management and Development name change to Human Resources. (C-31-09-014-6-01)