BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2294 (Gomez) - The California State University: employees: leaves of absence without loss of compensation ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 15, 2016 |Policy Vote: ED. 7 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Jillian Kissee | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: This bill requires the California State University (CSU) to grant an employee a leave of absence without loss of compensation to serve as an elected officer of any CSU campus public employee organization. Fiscal Impact: Though this bill requires the employment organization to reimburse the CSU salary and benefits, including the CSU retirement fund contribution, this bill could result in one-time costs to recruit, hire, or train replacement employees to fill in while the employee is on a leave of AB 2294 (Gomez) Page 1 of ? absence. In some cases the replacement employee could be compensated less than the employee on leave in which case any upfront recruiting and training costs could be recovered and ongoing savings could be achieved. However, to the extent the CSU is unable to fill the temporary vacancy with an employee at a lower compensation the CSU may incur some ongoing costs to pay the employee's compensation while on leave, in addition to the one-time costs. According to the CSU's website there are 47,000 faculty and staff employed at the university. CSU indicates that the California Faculty Association is currently using two or three of the 16 leaves available they have in their collective bargaining agreements. To the extent this bill encourages additional use of leaves and five employees go on a leave of absence in a year resulting in costs of $10,000 per employee to recruit a replacement, statewide costs could be about $50,000. However, the effect of this bill on the number of employees taking a leave of absence in the future is unknown. (General Fund) Background: Existing law requires the governing board of a school district and the governing board of a community college district to grant any employee, upon a request that provides a notice of at least 30 days, a leave of absence without loss of compensation for the purpose of enabling the employee to serve as an elected officer of any local school district public employee organization or any statewide or national public employee organization with which the local organization is affiliated. Provides that following the district's payment of the employee for the leave of absence, the district shall be reimbursed by the employee organization of which the employee is an elected officer for all compensation paid the employee on account of the leave. (Education Code § 44987 and 87768.5) While each of the CSU's 13 bargaining groups have agreements that provide some level of leave for academic employees to work on behalf of their union, the amounts may vary and are not specified in statute. According to the author, this bill is necessary to ensure that CSU employees have the right to take leave time to participate in leadership roles with their union affiliates. AB 2294 (Gomez) Page 2 of ? Proposed Law: This bill requires the CSU to grant an employee, upon request, a leave of absence without loss of compensation so that he or she may serve as an elected officer of any CSU campus public employee organization, or statewide or national public employee organization with which the university campus organization is affiliated. In addition, this bill: Requires the employee to provide the request at least 30 days before the start of the academic term, when possible. Provides that the leave includes, but is not limited to, absence for an employee to attend meetings of the organization on which the employee serves as an officer. Compensation during the leave must include: o Retirement fund contributions required of the university as employer, including the amount necessary to pay any unfunded liability cost for the retirement plan. o Full service credit to be earned, up to 12 years, by the employee during the leave of absence and the employee must pay member contributions. Provides that any employee who serves as a full-time officer of a public employee organization is prohibited from being eligible for disability benefits under the Public Employees' Retirement System while on the leave of absence. Provides that following the university's payment of the leave of absence for the employee, it must be reimbursed by the employee organization of which the employee is an elected officer for all compensation the employee for the leave. AB 2294 (Gomez) Page 3 of ? Reimbursement by the employee organization is required to be made within 10 days after its receipt of the certification of payment of compensation to the employee. Provides that the leave of absence without loss of compensation is in addition to the released time without loss of compensation to the representatives of an exclusive representative, as specified. -- END --