Update on Administrative Furlough

1. Update on Administrative Furlough Labor Management Partnership Meeting 14 February 2013

2. Notification — Potential Administrative Furlough • Congressional notification of administrative furlough • Up to 176 hours for remainder of FY13 • ~16 hours/pay period • Administrative vs. shutdown furlough Office of the Director

3. Employees Subject to Administrative Furlough • All employees subject to furlough – minimal exceptions • Civilians deployed in combat zone • Safety of life or property – only to extent needed to prevent unacceptable risk or catastrophic gaps in the safety and protection of life or property • Note: all medical service civilian employees are subject to furlough except those that provide 24-hour inpatient care or emergency service, and personnel providing ancillary services directly supporting the 24-hour inpatient care and emergency services • Employees funded 100% with non-appropriated funds • Employees exempt by law (employees appointed by the President with the advice and consent of the Senate - PAS) • Foreign nationals only if furlough exceptions are required by SOFA Note: only rare exceptions; require approval by SECNAV and OSD (P&R) Office of the Director

4. Notification & Schedule • Notification process • Congress — ~14/15 February • Unions — ~14/15 February • I & I bargaining — 50% of civilian workforce represented by ~500 bargaining units (30 days) • Proposal letter on furlough given to employees • At least 30 days’ notice – ~15 March • Signed by proposing official (person who otherwise would sign an adverse action) • Hand-delivered or certified mail • Furlough decision letter given to employees • Presented on effective date of furlough – late April • Signed by deciding official (person authorized to grant relief) • Hand-delivered or certified mail Scheduling of furlough days is subject to local bargaining requirements Office of the Director

5. General Furlough Planning • Limited to up to 176 hours – ≤22 days through end of FY • ~16 hours/pay period • BSO Commanders determine hours/time dependent upon mission requirements • BSO Commanders may delegate the coordination and scheduling of furloughs to carry out mission requirements • Note: scheduling of furlough days is subject to local bargaining requirements • Commands & USMC prohibited from using contract funding or premium pay (comp or overtime) to offset furloughs • Commands may not transfer inherently governmental work to contractors • Furloughed employees prohibited from working from home or on-site on furlough days — employees may not volunteer • Furloughed employees may not substitute paid leave or other time off for furlough time Office of the Director

6. Furlough Information - Employees • Pay – ~20% reduction in base & locality pay through end of FY • Benefits & TSP – varies and depends on plan • Employer contributions reduced if tied to % of base pay • Furlough – treated like LWOP for leave accrual and benefit purposes • After each segment of 80 furlough hours, annual and sick leave not earned in that pay period; repeated for every 80 hours furloughed • Impact on high 3 — generally no effect • WGIs – depends on length of furlough and employee waiting period • Holidays – if a furlough includes both the last workday before the holiday and the first workday after the holiday, employees will not receive holiday pay • Outside employment – must adhere to federal ethics requirements • Severance pay — no • Unemployment compensation — depends on state requirements Office of the Director

7. Recap of Key Dates • ~Feb 14/15 • Congressional notification • Union notification, Labor Management Partnership Mtg. • FAQs, master brief issued to Command DCHRs • Sec Garcia issues guidance on exceptions • Feb 27 • Requests for rare exceptions due ASN (M&RA) via OCHR • Mar 1 • SECNAV reviews exception requests • Sequester deadline • Mar 18-22 • Employees officially notified of proposal to furlough • Mar 25-29 • Employee reply period • Mar 27 • Continuing Resolution expires • Late April • Potential furlough of employees begins Office of the Director

8. Taking care of people • Civilian workforce incredibly talented and dedicated • Civilian impact from fiscal uncertainty and potential furlough • Fiscal hardship for employees dedicated to public service • Committed to keeping employees informed • FAQs • Fact sheets • Briefings Office of the Director

9. Questions Forward all questions to DONhrFAQ@navy.mil https://www.portal.navy.mil/donhr/OCHRHQ/Pages/Furlough.aspx https://www.portal.navy.mil/donhr/OCHRHQ/Pages/FiscalandBudgetUncertainty2013.aspx

10. Furlough Information for HR Community • Mechanics • Employees pre-determined by DoD as excepted (civilians in combat zone) do not receive a letter • Employees excepted before 15 March do not receive a letter • Employees not excepted by 15 March receive a proposal letter to be furloughed • If employees are excepted at a later time, they will receive a decision letter of no furlough • Employees not excepted will receive a furlough decision letter with details about their furlough • Employees default to furlough status — BSO Commanders will identify specific exceptions on spreadsheets — due to be submitted to ASN (M&RA) for consideration and approval by SECNAV – 27 February • Send list and exception justification to OCHR Director Doug Lundberg (douglas.lundberg@navy.mil) with cc to Director of Staffing & Recruitment Mary Rotchford (mary.rotchford@navy.mil) • Furlough code for timekeeping — KE Note: only rare exceptions; require approval by SECNAV and OSD (P&R) Office of the Director

11. Notional Timeline - Furlough Office of the Director