State Agencies Bulletin No. 829

Subject
Location Pay, Location Pay Mid-Hudson and Inconvenience Pay for Seasonal Hourly Employees Represented by PEF
Date Issued
June 20, 2008

Purpose

To inform agencies of new Time Entry codes and procedures for the payment of Location Pay, Location Pay Mid-Hudson, Inconvenience Pay and Overtime Adjustments for seasonal hourly employees.

Affected Employees

Seasonal hourly employees who meet the eligibility criteria in PEF Bargaining Unit 05

Background

Chapter 114 of the Laws of 2008 implements the agreement between the State of New York and PEF and provides for Location Pay, Location Pay Mid-Hudson and Inconvenience Pay retroactive to April 1, 2007 for seasonal PEF-represented employees who meet the eligibility criteria stated below.

Effective Date(s)

Payments may be submitted beginning in Pay Period 7, paychecks dated 7/17/08 (Institution) and 7/23/08 (Administration)

Eligibility Criteria

Location Pay

Effective 4/1/07, seasonal employees in New York City, Nassau, Rockland, Suffolk and Westchester counties are eligible to receive Location Pay per the following criteria:

8 Hour Day Seasonal Employees
Seasonal employees who work 8 hour days and are paid 1,520 straight time hours during a fiscal year are entitled to a lump sum payment of $2,202.78 in the pay period following the period in which the employee reached 1,520 hours. In addition, employees who have qualified for the lump sum payment shall receive a second lump sum payment equal to the number of straight time hours paid over 1,520 at an hourly rate of $1.45 per hour. The second lump sum payment must be made in the pay period following the end of the fiscal year, or in the employee’s final paycheck if the employee separates from service prior to the end of the fiscal year.

7.5 Hour Day Seasonal Employees
Seasonal employees who work 7.5 hour days and are paid 1,425 straight time hours during a fiscal year are entitled to a lump sum payment of $2,203.34 in the pay period following the period in which the employee reached 1,425 hours. In addition, employees who have qualified for the lump sum payment shall receive a second lump sum payment equal to the number of straight time hours paid over 1,425 at an hourly rate of $1.55 per hour. The second lump sum payment must be made in the pay period following the end of the fiscal year, or in the employee’s final paycheck if the employee separates from service prior to the end of the fiscal year.

Location Pay Mid-Hudson

Effective 4/1/07, seasonal employees in Dutchess, Putnam or Orange counties are eligible to receive Location Pay Mid-Hudson per the following criteria:

8 Hour Day Seasonal Employees
Seasonal employees who work 8 hour days and are paid 1,520 straight time hours during a fiscal year are entitled to a lump sum payment of $947.72 in the pay period following the period in which the employee reached 1,520 hours. In addition, employees who have qualified for the lump sum payment shall receive a second lump sum payment equal to the number of straight time hours paid over 1,520 at an hourly rate of $.63 per hour. The second lump sum payment must be made in the pay period following the end of the fiscal year, or in the employee’s final paycheck if the employee separates from service prior to the end of the fiscal year.

7.5 Hour Day Seasonal Employees
Seasonal employees who work 7.5 hour days and are paid 1,425 straight time hours during a fiscal year are entitled to a lump sum payment of $948.05 in the pay period following the period in which the employee reached 1,425 hours. In addition, employees who have qualified for the lump sum payment shall receive a second lump sum payment equal to the number of straight time hours paid over 1,425 at an hourly rate of $.67 per hour. The second lump sum payment must be made in the pay period following the end of the fiscal year, or in the employee’s final paycheck if the employee separates from service prior to the end of the fiscal year.

Inconvenience Pay

Effective 4/1/07, seasonal employees who work a scheduled shift where four (4) or more hours of the shift fall between 6:00 p.m. and 6:00 a.m. are eligible to receive $.28 per hour for each hour of the shift.

Location Pay, Location Pay Mid-Hudson and Inconvenience Pay are pensionable and must be used in the calculation of overtime worked within the fiscal year in which the payments became effective, provided the employee remains in a seasonal position.

Agency Actions

The following procedures must be used for the retroactive 2007 and any future payments.

Location Pay

8 Hour Day Seasonal Employees

The agency must enter the following information in the Time Entry page, using Time Entry code LCA (Seasonal Location Pay 8 Hours) for the first Location Lump Sum payment for those employees who work 8 hours per day and are credited with 1,520 hours:

Earnings Begin Date: First day of the pay period the employee becomes eligible
Earnings End Date: Same as Earnings Begin Date
Earn Code: LCA
Unit: 1 ($2,202.78)

The agency must enter the following information in the Time Entry page, using Time Entry code LCB (Seasonal Location Pay Over 1520, 8 Hours), for the second Location Lump Sum payment for those employees who work 8 hours per day and are credited with over 1,520 hours:

Earnings Begin Date: Last day of the last pay period the employee is on the payroll or the last day of the final pay period of the fiscal year
Earnings End Date: Same as Earnings Begin Date
Earn Code: LCB
Hours: The number of hours worked in excess of 1,520 hours per fiscal year for employees who work 8 hours per day. Each hour entered will pay $1.45 per hour.

7.5 Hour Day Seasonal Employees

The agency must enter the following information in the Time Entry page, using Time Entry code LCC (Seasonal Location Pay 7.5 Hours) for the first Location Lump Sum payment for those employees who work 7.5 hours per day and are credited with 1,425 hours:

Earnings Begin Date: First day of the pay period the employee becomes eligible
Earnings End Date: Same as Earnings Begin Date
Earn Code: LCC
Unit: 1 ($2,203.34)

The agency must enter the following information in the Time Entry page, using Time Entry code LCD (Seasonal Location Pay Over 1425, 7.5 Hours) for the second Location Lump Sum payment for those employees who work 7.5 hours per day and are credited with over 1,425 hours:

Earnings Begin Date: Last day of the last pay period the employee is on the payroll or the last day of the final pay period of the fiscal year
Earnings End Date: Same as Earnings Begin Date
Earn Code: LCD
Hours: The number of hours worked in excess of 1,425 hours per fiscal year for employees who work 7.5 hours per day. Each hour entered will pay $1.55 per hour.
Location Pay Mid-Hudson

8 Hour Day Seasonal Employees

The agency must enter the following information in the Time Entry page, using Time Entry code LCE (Seasonal Location Pay Mid Hudson 8 Hours) for the first Location Mid-Hudson Lump Sum payment for those employees who work 8 hours per day and are credited with 1,520 hours:

Earnings Begin Date: First day of the pay period the employee becomes eligible
Earnings End Date: Same as Earnings Begin Date
Earn Code: LCE
Units: 1 ($947.72)

The agency must enter the following information in the Time Entry page, using Time Entry code LCF (Seasonal Location Pay Mid Hudson Over 1520, 8 Hours) for the second Location Mid-Hudson Lump Sum payment for those employees who work 8 hours per day and are credited with over 1,520 hours:

Earnings Begin Date: Last day of the last pay period the employee is on the payroll or the last day of the final pay period of the fiscal year
Earnings End Date: Same as Earnings Begin Date
Earn Code: LCF
Hours: The number of hours worked in excess of 1,520 hours per fiscal year for employees who work 8 hours per day. Each hour entered will pay $.63 per hour.

7.5 Hour Day Seasonal Employees

The agency must enter the following information in the Time Entry page using Time Entry code LCG (Seasonal Location Pay Mid Hudson 7.5 Hours) for the first Location Mid-Hudson Lump Sum payment for those employees who work 7.5 hours per day and are credited with 1,425 hours:

Earnings Begin Date: First day of the pay period the employee becomes eligible
Earnings End Date: Same as Earnings Begin Date
Earn Code: LCG
Units: 1 ($948.05)

The agency must enter the following information in the Time Entry page using Time Entry code LCH (Seasonal Location Pay Mid Hudson Over 1425, 7.5 Hours) for the second Location Mid-Hudson Lump Sum payment for those employees who work 7.5 hours per day and are credited with over 1,425 hours:

Earnings Begin Date: Last day of the last pay period the employee is on the payroll or the last day of the final pay period of the fiscal year
Earnings End Date: Same as Earnings Begin Date
Earn Code: LCH
Hours: The number of hours worked in excess of 1,425 hours per fiscal year for employees who work 7.5 hours per day. Each hour entered will pay $.67 per hour.
Inconvenience Pay

The agency must enter the following information in the Time Entry page for reporting Inconvenience Pay using Time Entry code IPS (Inconvenience Pay Seasonal Hourly):

Earnings Begin Date: First date Inconvenience Pay was earned
Earnings End Date: Last date Inconvenience Pay was earned
Earn Code: IPS
Hours # of hours worked. Each hour entered will pay $.28 per hour.
Reporting Overtime Adjustment Due to Location, Location Mid-Hudson and Inconvenience Payments

The Time Entry earnings for Location, Location Mid-Hudson and Inconvenience Pay will not automatically adjust overtime payments. Therefore, the agency may report the appropriate overtime adjustment amount using the code ASA (Seasonal Hourly OT Adjustment) and the appropriate Earnings Begin and End Dates. An explanation of the overtime adjustment must be included in the Time Entry comments or on the General Comments page.

The following chart provides the rates for calculating the overtime adjustments:

Earnings Code Description Earnings Code (ASA) OT Rate per Hour
LCA Seasonal Location Pay 8 Hours/Day $2.17
LCB Seasonal Location Pay 8 Hours/Day > 1,520 $2.17
LCC Seasonal Location Pay 7.5 Hours/Day $2.32
LCD Seasonal Location Pay 7.5 Hours/Day > 1,425 $2.32
LCE Seasonal Location Mid-Hudson 8 Hours/Day $0.94
LCF Seasonal Location Mid-Hudson 8 Hours/Day > 1,520 $0.94
LCG Seasonal Location Mid-Hudson 7.5 Hours/Day $1.00
LCH Seasonal Location Mid-Hudson 7.5 Hours/Day > 1,425 $1.00
IPS Inconvenience Pay Seasonal HRY $0.42

Deduction Information

All general deductions for employees whose status is Terminated, Retired or Deceased will be automatically cancelled by OSC with the exception of the following:

Code Narrative
410 Health Care Spending Account
420 NY Dependent Care Contribution
425 Repay State Loans/Debt
426 Higher Ed Repay State Loan
428 Dependent Care
433 Total Unemployment Ins Owed
500 Medicare Deficiency
501 Social Security Deficiency
502 NYS SS/Medicare Deficiency
GARNSH Garnishments
HIATRG Regular After Tax Health
HIATSP Special After Tax Health Adj
HIBTRG Regular Before Tax Health
HIBTSP Special Before Tax Health Adj

Undeliverable Checks

Inactive employees may be eligible for a payment as a result of the adjustments. If the agency has made an effort to deliver the check to the employee but the check has been returned and is undeliverable, the agency should forward the check to the NYS Department of Tax and Finance, Division of Treasury, per instructions in Payroll Bulletin No. 456.

Checks issued to eligible employees who are now deceased should be returned with a completed Next of Kin Affidavit (Form AC 934-P) and a Report of Check Exchange (Form AC 1476-P).

For recipients of a previously deceased employee's payroll checks where a Next of Kin Affidavit and Report of Check Exchange forms have been submitted, OSC will accept a photocopy of these forms to process the exchange of the check.

Payroll Register and Employee Paycheck/Advice

The Earnings Codes LCA, LCB, LCC, LCD, LCE, LCF, LCG, LCH, IPS and ASA will appear on the payroll register. The Earnings Code descriptions will appear on the employee’s paycheck stub or direct deposit advice.

Questions

Questions regarding this bulletin may be directed to the Payroll Audit mailbox.