State of California

  M E M O R A N D U M

  REFERENCE CODE:
  2001-050

  DATE:
  October 25, 2001

  TO:
  Personnel Officers
  Employee Relations Officers
  Chief Administrative Officers

  FROM:
  Department of Personnel Administration
  Classification and Compensation Division

  SUBJECT:
  Measures To Mitigate Staffing Reductions

  CONTACT:
  Classification and Compensation Analyst
  (916) 324-9381
  FAX: (916) 327-1886


  In an effort to address the national and State economic 
  slowdown, the Governor requested all State agencies and 
  departments to prepare for an across-the-board 15 percent 
  reduction in expenditures.  It is anticipated that staffing 
  cuts along with attrition will be critical tools in 
  achieving these fiscal reductions.  
  
  This Personnel Management Liaison (PML) memorandum 
  addresses readily available methods that departments may 
  use to accelerate attrition thereby mitigating the impact 
  of a layoff.  Each method has been used successfully in the 
  past.  However, individual departmental conditions will 
  dictate its usefulness in the current climate. 
  
  Available options include:
  
  DEPARTMENTAL RESTRICTION OF APPOINTMENTS (DROA)
  
  This process requires hiring supervisors and managers 
  with positions outside the area of layoff to make 
  appointments of surplus employees from within their 
  own departments.  The mechanics of the DROA may vary 
  from requiring that priority consideration be given to 
  surplus employees to actually requiring specific 
  surplus employees be appointed. 
  
  REDUCTION OF INTERMITTENT AND NON-PERMANENT WORK FORCE
  
  Departments may cut intermittent hours or terminate temporary 
  appointments such as limited-term appointments.  These measures 
  may generate considerable savings if a department has a large 
  temporary work force.  Some bargaining unit agreements include 
  language regarding the intermittent work force.  Departments 
  should refer to the appropriate agreement prior to using this 
  alternative.
  
  REDUCED WORK TIME
  
  Government Code 19996.19 provides for voluntary reduced work 
  time.  A voluntary reduced work time means employment of less 
  than 40 hours per workweek.  Reduced work-time benefits both the 
  employer and employees, by increasing flexibility.  It offers 
  management more flexibility in meeting work requirements and 
  filling shortages in various occupations.  It provides needed 
  alternatives for employees who require or prefer shorter hours; 
  thus, increasing jobs available to reduce unemployment while 
  retaining skills of individuals who have training and experience.
  
  JOB SHARING
  
  Provides for a shorter workweek and reduced pay as an alternative 
  to layoff, keeping workers connected to their jobs and enabling 
  employers to retain workers in which they have an investment.
  
  PARTIAL SERVICE RETIREMENT
  
  Allows an employee the opportunity to reduce his/her work time 
  and ease into retirement.  Partial retired employees are 
  considered "active" with a reduced time base.  Employees are 
  given an opportunity to cut back their work hours without 
  seriously reducing their income.  In addition, employees who 
  participate in the program are guaranteed full health, dental, 
  and vision care benefits.  Seniority for retirement and other 
  leave benefits are pro rated based on the employee's "active" 
  time base.
  
  SUPPLEMENTAL TIME OFF
  
  Full-time civil service employees may request supplemental time 
  off during a term not to exceed 12 consecutive monthly pay 
  periods in exchange for a commensurate reduction in pay.
  
  VOLUNTARY PERSONAL LEAVE
  
  This program allows an employee to voluntarily participate in the 
  Personal Leave Program.  The program allows full-time Bargaining 
  Unit 19, 21, and excluded employees the opportunity to continue 
  working their assigned work schedule and receive a pay reduction 
  equal to one or two days (8.0 hours for each day) for each 
  monthly pay period.  Employees subject to the Personal Leave 
  Program shall be credited with eight (8) hours of personal leave 
  for each day of dock on the first day of the following monthly 
  pay period for each month in the program.  
  
  LEAVE OF ABSENCE
  
  Government Code Section 19991.1 provides for an unpaid leave of 
  absence.  The appointing power may grant a leave of absence 
  without pay, to any employee under his or her jurisdiction for a 
  period not exceeding one year.  An extension to an unpaid leave 
  of absence may be granted by the appointing power with the 
  approval of the Department of Personnel Administration (DPA).
  
  STATE RESTRICTION OF APPOINTMENTS (SROA)
  
  In addition to the above measures, DPA is authorized to 
  temporarily restrict the methods of appointment that are 
  available to appointing powers, by means of the SROA Program.  
  DPA will re-establish and staff the statewide SROA unit to assist 
  departments.  Details on the SROA Program will be covered in a 
  separate PML.
  
  DPA strongly encourages departments to examine each alternative 
  listed, assess the feasibility of its use, and take action as soon as 
  possible.  Early implementation of these measures will alleviate the 
  overall impact of a layoff.  Please direct questions specific to this 
  memo to the DPA Classification and Compensation Division analyst.
  
  
  
  
  Michael T. Navarro, Chief
  Classification and Compensation Division