Furlough Program FAQs

Updated September 8, 2020

Like all institutions of higher education, The University of Texas at Austin has been forced to make shifts in the ways we teach and work that have come with increased costs. Coupled with declines in current and future revenues and uncertainty about many facets of our operations, these forces have significantly altered UT’s immediate financial outlook. In addition to previous measures announced on April 14^th and May 19^th to address the pressure on the university's finances, the university has implemented voluntary and involuntary furlough programs. These programs are offered to offset revenue losses while continuing to provide participating employees with certain benefits. Your supervisor or local human resources representative will communicate directly with you if your department has been approved to participate in these programs. Only employees whose departments have been approved to participate may apply for the voluntary furlough program.

Emergency leave is no longer an option for employees after May 31 because they have no work available either physically on campus or through remote work options. These employees should be considered for the voluntary furlough program, which would allow them to retain access to certain benefits.

What is a benefits-eligible furlough?

A furlough is a temporary period of time in which an employee works a reduced number of regular workdays and enters a designated schedule of unpaid time off. During the temporary, furlough period, the benefits-eligible staff member:

During the temporary, furlough period, the benefits-eligible staff member:

• Works a reduced work schedule of either 32 hours/week, 24 hours/week, or is scheduled for 5 days during the month. During the unscheduled time, the employee should not perform work and does not receive pay.
• Remains a university employee.
• Is eligible to file for unemployment insurance compensation.
• Continues to receive the university contribution toward their health insurance.
• Retains accrued vacation and sick time.
• Returns to their position after a minimum 30-day furlough period or on a later date mutually agreed upon between the unit and employee.

What is a non-benefits eligible furlough?

A non-benefits eligible furlough is a temporary, unpaid leave of absence. During the temporary, furlough period, the non-benefits eligible staff member:

• Remains a university employee.
• Is eligible to file for unemployment insurance compensation.
• Returns to their position after a minimum 30-day furlough period or on a later date mutually agreed upon between the unit and employee.

How do units participate in the university’s furlough programs?

Units interested in offering a voluntary or involuntary furlough program for their employees must approve their furlough plan(s) in advance with their Dean or Vice-president, as applicable, and submit their plan(s) to Human Resources (HR). The plan(s) will include the categories of employees eligible to participate based on business need. In the case of voluntary furlough, units may need to deny an employee’s request to participate if the request would impede the unit’s ability to provide their essential services or critical operations. Units interested in offering furlough programs should contact HR Strategic Workforce Solutions to learn more and apply.

Can an employee change their mind after their voluntary furlough option is approved?

Yes. An employee has three (3) calendar days to notify their supervisor in writing of their intent to withdraw their request to participate in the voluntary furlough program.

Are certain categories of employees currently excluded from the furlough program?

Yes. At this time, faculty, TAs, AIs, GRAs, school teachers & aids and undergraduate student employment positions are not eligible to participate in the university’s furlough programs.

How does a furlough differ from a layoff?

A furlough is a temporary period of unpaid time off for a benefits-eligible employee or a temporary unpaid leave of absence for a non-benefits eligible employee. While on furlough, participating staff remain an employee of UT Austin. Benefits-eligible furloughed employees retain their leave and health insurance benefits. In contrast, a layoff is a termination of employment.

Are furlough participants subject to the hiring justification process?

No. Furloughed employees remain employed with UT Austin and they do not need to be rehired into their position at the conclusion of their furlough period.

Are there job protections associated with the furlough program?

The unit will hold a position for the participating employee to return to at the conclusion of the furlough period, including any mutually agreed upon extensions for voluntary furloughs. If business circumstances change to such an extent that a reduction-in-staff or reorganization activity is warranted, impacted employees would be notified and the relevant policy provisions would apply for voluntary furlough and no less than two weeks’ notice would be given for involuntary furloughs.

Are furloughed employees subject to being recalled back to active status?

Yes. As the university prepares to reopen more on-campus services, additional staffing resources may be required to meet the business needs of the academic, research or administrative mission of the university. Units would provide two weeks’ notice to employees being recalled back to their full work schedule to allow for a smooth transition.

Can furloughed employees use accrued leave to offset the unpaid time off during the furlough period?

No. Employees may not use vacation leave, compensatory time, sick leave, or other paid leave on a furlough day to offset the unpaid time off.

Are unpaid furlough days required to be taken in full-day increments?

Yes. Unpaid furlough days must be taken in full-day increments.

What is the status of employment benefits during the temporary furlough period?

During the period of furlough, benefits-eligible employees will maintain their leave and health insurance benefits.

Will furloughed employees continue to earn vacation and sick leave during the period of furlough?

Yes. Benefits-eligible employees will continue to earn vacation and sick leave during the period of furlough. Standard rules for state compensatory time expiration and vacation roll-over limits apply.

Can an employee return from furlough and then use the new Expanded Family and Medical Leave (EFMLA) upon their return to full work hours, if K-12 schools and daycare centers remain closed?

Yes. EFML is available through December 31, 2020 as long as schools and daycare centers are closed for concerns related to COVID-19.

Can an employee be on furlough and then use the new Emergency Paid Sick Leave (EPSL) for COVID-19 qualifying reasons?

Yes. EPSL is available if an employee has a COVID-19 qualifying event during a day they are scheduled to work during their furlough period. The employee cannot use EPSL to offset the unpaid time off during the furlough period.

Will furloughed employees receive holiday pay?

It depends. To receive holiday pay, a benefits-eligible employee must work or be in a paid status on the last scheduled working day before a holiday, and the first scheduled working day after a holiday. The only exception to this rule is for holidays that occur on the first or last day of the month. If a holiday occurs on the first day of the month, then a benefits-eligible employee must be in a paid status on the first working day following the holiday to receive holiday pay. If a holiday falls on the last day of the month, then a benefits-eligible employee must be in a paid status on the last working day before the holiday to receive holiday pay. A great example of this exception is the winter break. To receive the December holidays, a benefits-eligible employee must be in a paid status on the last working day of December.  To receive the January holidays, that same employee must be in a paid status on the first working day of January.

Holidays for most benefits-eligible employees are automatically loaded onto their timesheets. If an employee is on furlough the day last working day before, and/or the first working day after a holiday, and should not receive holiday pay, then the employee or their department must take action to ensure that they are not overpaid. The employee or their department must remove the holiday hours from the employee's timesheets, and replace them with unpaid time off.

Will furloughed employees receive longevity pay?

It depends. In order to receive longevity pay, a full-time benefits-eligible employee must be in a paid status on the first day of the month. If the employee is unpaid on the first day of the month, they will not receive longevity for the month.

How does a furlough affect TRS service credits?

Employees remain enrolled in TRS. No hours and earnings will be reported on furloughed days. A benefits-eligible employee will still receive a full year of creditable service as long as they have worked in a benefits-eligible position for at least 20 hours per week for four and a half months in the fiscal year.

Are furloughed employees eligible for unemployment insurance benefits?

The university does not determine unemployment insurance eligibility. The university will not contest a claim for state unemployment insurance benefits as long as the employee did not decline an offer to be redeployed to another position.

Eligibility for and the amount of unemployment insurance benefit is determined by the State of Texas. Information on unemployment insurance criteria and eligibility can be found on the Texas Workforce Commission (TWC) website at https://www.twc.texas.gov/jobseekers/unemployment-benefits-services.  

For additional information regarding Unemployment and COVID-19, please refer to the state website at https://www.twc.texas.gov/news/covid-19-resources-job-seekers or the federal website at https://www.dol.gov/coronavirus/unemployment-insurance.

Can furloughed employees apply for unemployment insurance benefits?

Yes. Anyone can apply for unemployment insurance benefits. For more information on applying for unemployment and eligibility, please visit https://www.twc.texas.gov/news/covid-19-resources-job-seekers.

Can part-time furloughed employees apply for unemployment insurance benefits?

Yes. Anyone can apply for unemployment benefits. For more information on applying for unemployment and eligibility, please visit https://www.twc.texas.gov/news/covid-19-resources-job-seekers.

Have unemployment insurance benefits expanded in response to the COVID-19 pandemic?

Yes. As a result of the Coronavirus Aid, Relief, and Economic Security Act, known as the CARES Act, impacted workers may receive additional unemployment benefits. The CARES Act extended the period of time an individual may receive unemployment insurance benefits through December 26, 2020. In addition, it created a temporary Federal Pandemic Unemployment Compensation (FPUC) fund. FPUC is a temporary emergency increase of $600 per week, in addition to the standard unemployment insurance weekly benefit.

The additional FPUC weekly supplement ends July 25, 2020.

On August 21, 2020, Texas was approved to participate in the Lost Wage Assistance (LWA) program. The Lost Wage Assistance (LWA) program provides supplemental payments to eligible unemployment benefits claimants who have been unemployed, partially unemployed, or unable or unavailable to work due to disruptions caused by COVID-19. Eligible Texas claimants receive a $300 LWA payment at the same time as their unemployment benefits payment.

Are unemployment payments and payments from the federal CARES Act programs subject to income taxes?

Yes. Individuals receiving benefits may have federal income taxes withheld from their unemployment insurance benefit payments. Tax withholding is completely voluntary; withholding taxes is not required. If an individual asks the TWC to withhold taxes, they will withhold 10 percent of the gross amount of each payment before sending it to the requestor.

What is the university’s role in the application process for unemployment insurance benefits?

Unemployment insurance claims are processed by the TWC. The university’s role is to answer the TWC’s request for information in a timely and factual manner.

Where can questions about unemployment insurance benefits be directed?

Unemployment benefits are administered by the TWC. Answers to many questions can be found on their web site at https://www.twc.texas.gov/news/covid-19-resources-job-seekers.

The TWC site is also available in Spanish at https://www.twc.texas.gov/news/recursos-para-solicitantes-de-empleo-covid-19.

The TWC can also be reached directly at 800-939-6631 from 7 a.m. to 7 p.m., Central Standard Time, every day.