Original Issuance Date: July 27, 2020
Expiration Date: June 30, 2021
1. Interim Policy Purpose
Many employees who have been furloughed pursuant to System Administrative Policy 1200- Interim 04, Furlough, have experienced a significant delay in receiving unemployment compensation benefits. To help these employees pay their living expenses while awaiting their unemployment compensation, the UW System is empowering local institutions to temporarily expand the use of our existing Salary Advance policy to cover those employees serving qualifying consecutive day furloughs.
2. Related System Administrative Policies:
This policy temporarily amends portions of SYS 230, Salary Advances for Academic Year Faculty, section 6.G.
Other related policies include: System Administrative Policy 1200- Interim 04, Furlough.
This policy applies to the following UW System employees: Faculty, Academic Staff, University Staff, Limited Appointees, Employees-In-Training, Graduate Assistants (Teaching Assistants, Research Assistants and Program Assistants), and Temporary Employees.
Student hourly employees are not included in this policy. UW-Madison employees are not included in this policy.
Furlough: Temporary unpaid forced leave during which an employee does not report for work and does not earn a wage. Employee retains their position during the furlough as well as benefits (benefit coverage is dependent on employee type and length of furlough). A furlough shall constitute a “leave of absence” as defined in Wis. Stat. s. 40.02(40). A furlough is not a layoff, non-renewal, or termination.
Qualifying Consecutive Day Furlough Assignment: A furlough assigned in full-day increments for a continuous period of time of at least 30 days, with a defined start and end date.
5. Interim Policy Language
- For the duration of this interim policy, UW System Administrative Policy 230, Salary Advances for Academic Year Faculty, section 6.G is amended as follows:
Institutions may offer new academic year faculty employees a salary advance to cover living expenses during the first month of employment. Advances of up to 35% of one month’s gross pay may be granted. Generally, a salary advance is granted when the employee’s start date is more than 28 days from the employee’s pay date. A repayment agreement must be signed by the employee prior to the advance being made. (Appendix A – Salary Advance Request and Payroll Deduction Form can be downloaded.) Salary advances are to be repaid in full via payroll deduction from the employee’s first regular payroll payment.
Institutions may offer employees who have been placed on a qualifying consecutive day furlough assignment under System Administrative Policy 1200- Interim 04, Furlough a salary advance to cover living expenses during the term of the furlough. Advances of up to one month’s gross pay may be granted to employees paid on a monthly basis, and up to two normal payroll period’s gross pay for employees who are paid biweekly. Under no circumstances may the amount of the advance exceed $9,999.00. A repayment agreement must be signed by the employee prior to the advance being made. (Appendix B- Salary Advance Request and Payroll Deduction Form for Furloughed Employees.) Salary advances are to be repaid in full via payroll reduction from the employee’s regular payroll payment in accordance with the employee’s agreed repayment schedule. If an employee leaves the institution before the advance is repaid, the institution is authorized to take the full amount from the last payroll check or collect from the employee.
- Employee submits the required Salary Advance Request and Payroll Deduction Form through appropriate institution channels.
- Information is provided by the institution to the UW Shared Services.
- In coding the expenditure, the institution may use any chart field string it chooses, but must use ACCOUNT 6160 (“Salary Advances”). Salary advances for furloughed employees are limited to non-GPR chart field strings.
- UW Shared Services enters a payroll deduction for “Salary Advance Repayments” in accordance with the signed Salary Advance Request and Payroll Deduction Form.
- The Payroll Calculation will result in a one-time payroll deduction and produce an Inter-Unit Journal (IUJ).
- The Institution’s Business Office will reconcile all Salary Advances issued against repayments to ensure compliance with UW policies.
6. Supplemental Documents
Appendix A – Salary Advance Request and Payroll Deduction Form