State of California

M E M O R A N D U M

                                                Date:        February 18, 1994
                                                Reference Code:          94-12

To:        PERSONNEL MANAGEMENT LIAISONS

           THIS MEMORANDUM SHOULD BE DISTRIBUTED TO:

                Employee Relations Officers
                Personnel Officers
           
           
From:      Department of Personnel Administration
           Labor Relations Division
           1515 "S" Street, North Building, Room 400
           Sacramento, CA 95814


Subject:   Fair Labor Standards Act Exempt Employee Work Policy
           Dispute Reduction Process for CSEA Bargaining Units



The Department of Personnel Administration (DPA) recently issued a
Personnel Management Liaison Memorandum (94-08)-Restructure of the
State Work Week Group (WWG) System.  Included in this document was the
Fair Labor Standards Act (FLSA) Exempt Employee Work Policy, which was
recently negotiated as part of a settlement agreement between the
State and the California State Employees Association (CSEA).  This
agreement is attached. 

This policy applies to all WWG 4C and 4D7 employees in CSEA Bargaining
Units 1, 3, 11, 20 and 21, and is effective January 24, 1994.  One
component of this policy is a prohibition against charging absences of
less than a whole day to leave credits or dock.  Departments should
review the leave usage and docking of less than a whole day for WWG 4C
and 4D7 employees in these Bargaining Units and make the appropriate
adjustments retroactive to January 24, 1994. 

In addition, DPA and CSEA agreed to resolve disputes pertaining to
this policy through an expedited dispute resolution process in lieu of
the grievance and arbitration process.  This process shall be
administered as follows:

1.  Whenever a dispute arises regarding the interpretation or
    application of the FLSA Exempt Employee Work Policy, the Union
    shall initiate this dispute resolution process within 21 calendar
    days of the date of the event.  The department, in which the
    dispute arises, shall have 30 calendar days to meet with the Union
    and resolve the dispute and/or issue a written response.

2.  If the resolution and/or departmental response issued in paragraph
    one above is not acceptable to the Union, the Union shall elevate
    the dispute within 21 calendar days to a dispute resolution panel
    by sending a letter to DPA.

3.  Within 21 calendar days of the receipt of the letter, the panel
    shall begin the process of resolving the dispute. This panel shall
    consist of one Union representative, one DPA representative, and a
    mutually agreed upon third party.

4.  If the dispute is not resolved within 30 calendar days after the
    initial meeting of the panel, the neutral third party shall issue
    a decision and remedy.

If you have any questions regarding this matter, you may call
Dennis Fujii, DPA Labor Relations Officer, at (916) 324-0429, CALNET
454-0429.





Rick McWilliam
Chief of Labor Relations

Attachment