State of California M E M O R A N D U M REFERENCE CODE: 99-058 DATE: November 16, 1999 TO: Employee Relations Officers Personnel Officers Accounting Officers Travel and Relocations Liaisons FROM: Department of Personnel Administration Labor Relations Division SUBJECT: Unfair Labor Practice Travel Reimbursements CONTACT: Wayne Heine, Labor Relations Officer (916) 324-0476 FAX: (916) 322-0765 OFFICE VISION: DPA(WayneHeine) INTERNET: WayneHeine@DPA.CA.GOV On December 9, 1998, the California State Employees Association (CSEA) filed an Unfair Labor Practice (ULP) charge alleging that the State violated the Dills Act because it failed to comply with the existing Memorandum of Understanding (MOU), for Bargaining Units 1,3,4,11,14,15,17,20 and 21. Specifically, the Union charged that the State increased the travel reimbursement rates for excluded employees and failed to pass this increase on to the Bargaining Units cited above, even though each Bargaining Unit MOU's contained language that required such changes be provided to the rank and file. Previous to CSEA's filing an ULP, the California Union of Safety Employees (CAUSE) filed a similar charge with Public Employee Relations Board (PERB). On October 22, 1998, PERB issued its final decision in favor of CAUSE requiring the State to make whole, by the close of business December 30, 1998, any Unit 7 employee who incurred a financial loss. As part of the make whole remedy, PERB ordered that a per annum 7 percent interest rate be included in the calculation of each employee's reimbursement. DPA has now entered into a settlement agreement that resolves, for all CSEA Units, this dispute. This settlement agreement does not burden the department to produce records, nor does it require the department to calculate interest. Therefore, based on the attached settlement agreement, the State may reimburse applicable travel expenses for employees in Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20 and 21 for the period from January 1, 1996 to April 1, 1999 as follows: a. As of January 1, 1996, an increase of one ($1.00) dollar of non-commercial lodging and long-term lodging; b. As of July 1, 1997, reimbursement rates for meals as follows: Breakfast $ 6.00 Lunch 10.00 Dinner 18.00 Incidentals 6.00 c. As of July 1, 1997, reimbursement for personal vehicle mileage at .31 cents per mile. Unit employees who traveled on behalf of the State between January 1, 1996 and April 1, 1999, and who believe that they may be entitled to an increase in their travel reimbursement rates, as described above, should follow the procedures outlined below: a. If the total reimbursable amount for all travel on behalf of the State during the relevant period of time does not exceed fifty dollars ($50), an employee should process the "Travel Expense Claim" form consistent with department policy. If supporting documentation is accessible, the employee should attach such documentation to the claim form. b. If the total reimbursable amount for all travel on behalf of the State during the relevant period of time is in excess of fifty dollars ($50), employees should prepare a "Travel Expense Claim" form and attach any supporting written documentation of the trip(s) in question including, but not limited to, copies of old "Travel Expense Claim" forms for the same period of time, receipts, calendars, memoranda, notes and e-mail messages. Employees can also ask individual departments for copies of any pertinent records that the department has retained and can reasonably access. The "Travel Expense Claim" forms should be processed consistent with Departmental policy and procedures. c. All employee requests for reimbursement of travel claims should be submitted no later than February 1, 2000. d. Employees are not entitled to any interest and/or penalties on any monies paid by the state pursuant to the terms of this Settlement Agreement. e. In order to ensure the accuracy of travel claims, each employee submitting a "Travel Expense Claim" form, pursuant to the terms of this Settlement Agreement should carefully read the instructions and admonitions contained on the form. It is understood that random audits may occur within each department to ensure accuracy in accounting for travel expenses. f. The parties agree that a denial of a claim is subject to the grievance process, which is in effect at the time of the denial. Instructions For Claim Processing a. If the total amount the employee claims is $50 or less and supporting documentation is not provided, the entire payment is taxable and reportable income. Process accordingly. b. If the total amount of the claim is in excess of $50, documentation must be submitted along with the claim form. If a claim is $50 or less the employee may choose to submit documentation. Documentation must include the previous claim(s) and must reflect the actual travel reimbursements that have already been paid. For documented claims the following apply: 1. Each $1 claimed for additional noncommercial or long-term lodging is non-receipted lodging, and is taxable/reportable income in the year in which it is paid. Claim period is retroactive to January 1, 1996. 2. The difference claimed on meals (an additional $.50 on breakfast and an additional $1.00 on dinner) for trips of less than 24 hours, when there is no overnight stay, is taxable/reportable income for the year in which it is paid. Claim period is retroactive to July 1, 1997. The rate claimed is based on actual expense. 3. The difference claimed for meals and incidentals on trips of more than 24 hours ($.50 on breakfast, $.50 on lunch, $1.00 on dinner and $1.00 on incidentals) is not taxable or reportable. The rate claimed is based on actual expense. 4. Additional mileage may be claimed for the amount between the rate the employee previously claimed and the current rate of $.31 per mile. Claim period is retroactive to July 1, 1997. If the employee previously claimed a rate in excess of $.24 per mile, the taxed and reported amount of excess mileage reimbursement is now not taxable and reportable. The amounts reported and taxed must be reversed for each tax year in accordance with the State Controller's Office instructions. The employee will be reimbursed the difference between the amount per mile they were already reimbursed and $.31. Questions regarding processing the claims should be addressed to Terrie Jordan at (916) 324-9377. Should you have any questions or require additional information regarding the settlement agreement, please contact Wayne Heine at (916) 324-0476. Wayne Heine Assistant Chief of Labor Relations