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Legislative News

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Excluded Employee Compensation Plan for 2020-2021


The Department of Human Resources (CalHR) has released the outline of the excluded employee pay plan for the 2020-2021 fiscal year. We are pleased that the outline contains most of the items ACSS has advocated for in light of the Administration’s mandated state employee compensation decreases due to the large state budget deficits related to the ongoing pandemic.

The exempt and excluded pay plan effective July 1, 2020 includes:

  • Two day-per month Personal Leave Program (PLP) reducing compensation by 9.23% and providing 16 hours of leave credit per month. The PLP credit will not need to be used in the month it is accrued, but taken before other paid leave (except sick leave).
  • Suspending employee payments to pre-fund retiree health care. The deduction is shown on your pay warrant as “OPEB/CERBT”. The deductions for employees related to units 12 and 13 will continue, but be offset by a pay differential.
  • General Salary Increases are suspended.
  • Special Salary Adjustments and Pay Differentials will be extended to exempt and excluded employees where appropriate.
  • All employees related to the nine SEIU Local 1000 bargaining units (1, 3, 4, 11, 14, 15, 17, 20, and 21) will receive a $260 per month taxable cash benefit to offset health care costs.
  • The Vacation/Annual Leave Cap is increased by the amount of the PLP accrued for excluded employees related to bargaining units 2, 9, 10 and 19.

CalHR is working on pay letters to implement the details of the leave program and special salary and pay differential adjustments. CalHR expects to issue a series of pay letters “in the coming weeks” and has informed ACSS they are working with the State Controller’s Office to try to implement the majority of the salary adjustments in the July pay period.

As the pay letters are developed, ACSS will continue advocacy with CalHR to ensure excluded employees receive all appropriate special salary adjustments and pay differentials and will keep you informed regarding the expected timing of the pay adjustments.


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Excluded Employee Compensation Update – Personal Leave Program


The employee compensation reductions called for by the Governor and reflected in the state budget are coming into focus. The Legislature encouraged rank-and-file groups to agree to reductions through collective bargaining. Without those agreements, the Legislature would authorize employee compensation reductions. Two groups have reached agreement, including SEIU Local 1000 representing nine of the State’s 21 bargaining units and the California Correctional Peace Officers Association (CCPOA), representing Bargaining Unit 6.

The Local 1000 agreement gives a road map to other bargaining units and sets the expectations for likely excluded employee compensation adjustments – a two-day per month “Personal Leave Program” offset in part by suspending the employee contribution to pre-fund retiree health care. This framework is consistent with the approach ACSS has advocated for in light of the excluded employee compensation reductions required by the recent COVID-19 related budget deficits being addressed by the revised state budget.

SEIU Local 1000 Agreement

The tentative agreement or “Side Letter” to modify the Local 1000 labor contract includes the following for rank-and-file employees:

  • Two day-per month Personal Leave Program (PLP) reducing compensation by 9.23% and providing 16 hours of leave credit per month for two years
  • Suspending employee payments to pre-fund retiree health care for two years; employees will not pay this contribution which would otherwise increase to 3.5% effective July 1, 2020
  • All employees will receive $260 per month to offset health care costs
  • Defers the 2.5% July 1, 2020 general salary increase for two years (the 2% increase scheduled for July 1, 2021 is not impacted)
  • Special Salary Adjustments (generally 5%) for 176 classifications of employees will still be paid effective July 1, 2020
  • If federal money is received and/or state budget revenue allows, the cuts and deferrals could end early

Under the PLP, employees work their full schedules. The reductions do not change salary ranges and do not impact benefits or retirement calculations. PLP credits do not count toward the vacation/annual leave cap and need to be used before other paid leave, except sick leave.

With the $260 per month and suspension of the retiree health contribution, the PLP reductions of 9.23% will be significantly mitigated for most employees. Some employees receiving special salary adjustments will still see small increases in their paychecks despite the PLP reductions.

What This Means for Excluded Employees

The Administration has made clear it intends to tie excluded employees to their related bargaining units in achieving salary savings. It is expected that other bargaining units will reach agreements for two-days of PLP, offset in part by suspending the employee contribution to pre-fund retiree health care.

CCPOA representing Bargaining Unit 6 (correctional officers) agreed to a one-day PLP and to different compensation reductions including holiday pay reductions and suspension of night and weekend shift differentials. It is not likely that other units will be able to find enough cost savings to meet the required reductions to avoid a second day of PLP.

ACSS has pushed for any compensation cuts for excluded employees to be offset in part by suspending the pre-funding of retiree health care. ACSS has also made clear to CalHR that the $260 per month health care affordability payment and the special salary adjustments must also be provided to all related excluded employees to avoid salary compaction issues.

With the SEIU Local 1000 Side Letter tentative agreement, we have reached out to CalHR to reiterate these requests and to also ensure that a fair package is in place for excluded employees not directly related to a bargaining unit. Should any rank-and-file unit not reach agreement and instead allow salary reductions to be imposed, ACSS will work to ensure that the reductions for related excluded employees are equitable.

As bills approving agreements reached by rank-and-file organizations are presented to the Legislature for approval, ACSS will continue its aggressive advocacy in protecting the employment interests of excluded employees. ACSS will also keep you informed with the latest information regarding your salaries and benefits.


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CDPH Releases Guidance Requiring Californians to Wear Face Coverings

Posted: 6/18/2020 Tags: COVID-19 legislation policy representation Tags Views: 671

The California Department of Public Health today released an updated guidance that requires Californians to wear a face covering in high-risk settings. A growing body of scientific research has shown that people with no or few symptoms of COVID-19 can still spread the disease and that the use of face coverings, combined with physical distancing and frequent hand washing, will reduce the spread of COVID-19.

Governor Gavin Newsom said, “We are seeing too many people with faces uncovered – putting at risk the real progress we have made in fighting the disease. Science shows that face coverings and masks work. They are critical to keeping those who are around you safe, keeping businesses open and restarting our economy.”

Today's guidance mandates the use of cloth face coverings by the general public statewide when outside the home, with limited exceptions. The guidance outlines scenarios in which wearing a face covering is required and also outlines those who are exempt from wearing a face covering.

More information about the state's COVID-19 guidance is on the California Department of Public Health's Guidance web page.

More information about reopening California and what individuals can do to prevent the spread of COVID-19, visit Coronavirus (COVID-19) in California.


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Excluded Employee Compensation Questions Remain Even as the Legislature Prepares to Pass a State Budget

Posted: 6/11/2020 Tags: bargaining legislation policy representation salary Tags Views: 2856

The State Budget continues to evolve as the Legislature and Governor continue negotiations, which include the details of possible pay raises along with reductions in state employee compensation.

With a legislative rule that bills must be in print for 72 hours, the Legislature on June 10, 2020 released the latest version of the State Budget in Senate Bill 808. The Legislature is expected to pass this version of the State Budget with votes on the June 15 constitutional deadline. What it means for excluded employee compensation is far from clear, and additional legislative action impacting state employee compensation outside the main State Budget bill remains likley.

Senate Bill 808 includes funding for the previously planned July 1, 2020 excluded employee salary increases and funding for raises included in bargaining unit labor contracts. While this is potentially good news, the possibility remains that the Governor could use his budget authority to remove this funding from the State Budget and not provide those July 1, 2020 pay raises to excluded employees.

With Senate Bill 808, the Legislature also expects that employee compensation will be reduced by approximately ten percent, to be achieved through collective bargaining and reductions for excluded employees. If those compensation decreases and savings are not in place by July 1, 2020, the Legislature “expects to pursue alternative legislative options” to authorize those reductions, presumably through a personal leave program or furloughs for excluded employees.

Also of concern, if additional federal funding is not obtained by September 1, 2020, trigger language may authorize additional employee compensation reductions beginning October 1, 2020. The details and intent of this language are uncertain.

With this framework, a lot will depend on collective bargaining and agreements to reduce compensation and the Governor’s action regarding the possible July 1, 2020 general salary increases and special salary adjustments.

ACSS’ legislative advocates and legal team are continuing to advocate for the interests of excluded employees. As “budget trailer bills” and bills approving any agreements reached by rank-and-file organizations are presented to the legislature for approval and funding, ACSS will continue its aggressive advocacy for excluded employees. While we await more clarity from the adoption of the final State Budget and any impacts from collective bargaining, ACSS will also continue advocacy with CalHR over salaries and the details of any temporary reductions to excluded employee compensation.


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ACSS Seeks to Mitigate Impact of Employee Compensation Reduction Proposals

Posted: 5/22/2020 Tags: benefits COVID-19 legislation policy representation salary Tags Views: 3494

As the state budget moves forward in the next few weeks, it is very likely that excluded employee compensation reductions and a delay of anticipated salary increases will be part of the budget solutions.

While ACSS cannot collectively bargain over these proposed reductions, the Administration’s planned salary reductions cannot be achieved without legislative approval. ACSS is therefore taking active steps to mitigate the impact of reductions through the legislative process and with CalHR. Mitigating the reductions includes:

  • Avoid Straight Cuts in Pay 
    If salary has to be reduced, it should be through a temporary furlough or personal leave program that provides leave in exchange for the salary reduction and does not change salary ranges, nor negatively impact retirement calculations.

  • Flexibility in a Furlough Program 
    If excluded employees are furloughed, there must be flexibility for supervisors and managers to continue meeting the workload with reduced staff. ACSS is requesting that CalHR implement the program in a way that allows maximum flexibility for excluded employees by not requiring the leave be used in the same month it is accrued.

  • Suspend Employee Contributions to Pre-fund Retiree Health Care 
    Each month excluded employees have a deduction labeled “CERBT” which stands for California Employers’ Retiree Benefit Trust. This deduction is to pay the employee share of pre-funding retiree health care. Most ACSS members are scheduled to pay between 3.5 to 4.5 percent of salary per month. Suspending the payment for at least the duration of the salary reductions will mitigate the reduction in take home salary with no impact on eligibility for health care benefits in retirement.

  • Health Care Affordability Payment 
    SEIU Local 1000 negotiated a $260 per month payment for employees enrolled in a health plan. ACSS asked that this payment be provided to all excluded employees. The current proposal is to allow the $260 per month payment to go forward July 1, 2020 for both SEIU rank-and-file employees and related excluded employees.

    For some ACSS members, suspending the retiree health care deduction and providing the $260 per month would almost completely offset the salary reduction of a two-day furlough. For others, getting one or both would partially offset the temporary salary reduction.

  • Federal Trigger Language 
    The Administration is proposing that the salary reduction authority would end if federal money is received. While this is positive, the details have not been developed. ACSS will push for language to directly address the impact of federal funding on excluded employees.

  • Salary Adjustments 
    Most ACSS members were scheduled for general salary increases and thousands anticipated special salary adjustments (SSA) July 1, 2020. The Administration is proposing no increases. While the treatment of delaying these raises will certainly be impacted by rank-and-file bargaining, it needs to be acknowledged that SSAs were planned to address recruitment and retention issues. Delaying these increases, and exacerbating recruitment and retention problems by cutting pay, will almost certainly lead to more attrition through retirement. The SSAs need to be paid as soon as possible to address likely retention issues.

ACSS is aware that other groups have proposed retirement incentives as a cost saving measure and that nothing in the Administration’s current proposals address incentives for those excluded employees providing front line COVID-19 response. If there is room to advocate on these issues, ACSS will do so through the state budget deliberative process and with CalHR.

We will keep you apprised as these significant budget decisions and proposed reductions move forward.


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