Additional Information and Frequently Asked Questions on Mandatory Furlough

Following up on yesterday’s E-blast announcing MEA’s Tentative Agreement on a new three-year labor contract, we received general questions from a significant number of members about the mandatory furlough provision of the contract.  As a result, we thought it would be helpful to send detailed “FAQ” information to all members.

If you have questions or need more information about anything in the proposed new contract, don’t hesitate to reach out to us at info@sdmea.org or 619-264-6632.

And now here are the mandatory furlough frequently asked questions and answers:

 Q: In a nutshell, what does mandatory furlough mean for this new contract?

A: It means that you are giving up 40 hours of pay spread over 26 pay periods in each of the first two years of the agreement and getting 40 hours of time off from work to be scheduled when you request it just as you would your annual leave.  Since the contract also has a 2% salary increase in the first year that exceeds the cost of the furlough, your net take home pay won’t really change on July 1.

Q: How much mandatory furlough do I need to take during this new contract?

A: Employees must take 40 hours of mandatory furlough in each of the first two years of the new three-year contract: 40 hours during the first year (July 1, 2026 through June 30, 2027), and 40 hours again during the second year (July 1, 2027 through June 30, 2028).  In the third year of the contract and beyond (beginning July 1, 2028), no further mandatory furlough is required under this agreement.

Q: How is the 40 hours of mandatory furlough paid for each year?

A: The cost of furlough will be deducted in each of the first two years of the contract on a prorated basis across 26 pay periods.  So no matter when you schedule (see below) your time off totaling 40 hours of mandatory furlough, you will be “paying for” those 40 hours in  equal increments from every paycheck during each year.

Q: How much will this mandatory furlough actually cost me in each paycheck during  the first two years?

A: Forty hours of mandatory furlough equates to 1.92% of your regular 2,080 hours worked in a year (40 hours a week times 52 weeks).  This means that the 40 hours of furlough will be paid for by subtracting 1.92% from your regular pay during the first two years of the contract.  But this contract also provides for a 2% salary increase on July 1, 2026, so you will not “feel” the mandatory furlough pay reduction of 1.92% in your net take home pay during the first year.

Q: If the mandatory furlough and the pay increase are essentially a “wash” in the first year, why are we doing both – why not just take a zero?

A: The City is unwilling to provide a net pay increase for any employee in the first year of the contract because of the very significant budget deficit and impending service and position cuts facing the City in next year’s budget.  Given that the choice is “zero” (no salary increase and no mandatory furlough) or “net zero” (a pay increase offset by mandatory furlough), your negotiating team chose the ”net zero” approach because 1) at least employees get 40 hours of time off from work in exchange for the “net zero” and 2) when the mandatory furlough goes away, the pay increase stays…for the rest of this contract and the rest of your career.

Q: In the second year of the contract, when we get an additional 3.5% pay increase, do we also have to take more than 40 hours of mandatory furlough to offset that increase?

A: No, only the same 40 hours of mandatory furlough repeats in year two but does not increase to “pay for” the 3.5% raise.  This means you will “feel” the positive benefit in your take home pay of every bit of the 3.5% increase beginning on July 1, 2027.

Q: In the third year of the contract, when we get an additional 4% pay increase (2% on July 1, 2028 and another 2% on January 1, 2029), the mandatory furlough also goes away right?

A: Yes.  Mandatory furlough ends after the first two years.  This means that you will enjoy another real boost in take home pay on July 1, 2028 – the 2% from year one (which will no longer be offset by mandatory furlough), plus the 3.5% from year two, plus another 2% increase on July 1, 2028.  By January 1, 2029, when the final 2% salary increase kicks in, your base pay will have increased by 9.5% compared to today (actually 9.83% based on the compounding effect of these cumulative increases).

Q: If I am a half-time or three-quarter time employee, do I also have to take 40 hours of mandatory furlough?

A: A prorated adjustment to the required furlough hours will apply to employees working half-time (20 furlough hours) or three-quarter time (30 furlough hours).  Employees hired after the beginning of the fiscal year will also have their furlough hours prorated.

Q: How do these 40 hours of mandatory furlough get scheduled?

A: Mandatory furlough hours are scheduled in the same manner as annual leave.  The City will ensure that each employee is provided the opportunity to take their 40 hours of mandatory furlough by June 30 of each applicable fiscal year, consistent with operational needs.

Q: Do I have to take all 40 hours in one chunk or can I split up the time?

A: Just like annual leave, you can request to schedule mandatory furlough hours in whatever increments and on whatever days you choose.  Employees are responsible for coordinating with their departments to schedule furlough hours in a manner that meets operational needs and is mutually acceptable.

Q: Can I still take advantage of the City’s voluntary furlough program?

A: Yes; however all required mandatory furlough hours must be exhausted prior to use of any voluntary furlough hours.

Q: Will mandatory furlough affect my pensionable pay calculation for retirement purposes?

A: No.  Mandatory furlough operates as a “paycheck deduction” but does not actually reduce your total annual salary for pension purposes.  So the retirement system’s calculation of your “high one year” or “average of high three years” when applying the formula that determines your monthly pension benefit is not affected at all by the mandatory furlough.  Your “pensionable pay” will include the full 2% salary increase in the first year, the full 3.5% increase in the second year, and the full 4% increase in the third year.

Q: Do employees who have to take the 40-hour mandatory furlough still get 24 hours of paid discretionary leave in each year of this contract?

A: Yes.  There is no change to this DL benefit for those employees participating in the mandatory furlough.

Q: Why are a small percentage of MEA-represented employees exempt from mandatory furlough?

A: Certain MEA-represented employees are in job classifications that are constantly staffed for operational or public safety reasons. This means that requiring these employees to take mandatory furlough can actually cost the City more money because the City would need to backfill those positions using overtime, which would defeat the cost savings objective of a mandatory furlough.  While these employees are exempt from participating in the mandatory furlough, they will give up their 24 hours of paid discretionary leave in each of the first two years of the contract.  In this way, every employee is being impacted – those who do (and pay for) 40 hours of mandatory furlough get the 40 hours off and keep their 24 hours of discretionary leave, and those who don’t do (or pay for) the mandatory furlough give up these 24 hours of discretionary leave in each of the first two years of the contract.  The “participation” ends for both groups after the first two years of the contract.  By the third year, all employees will feel the benefit of these cumulative pay increases and all will enjoy the continued availability of 24 hours of discretionary leave.