Vote Smart's Synopsis:

Vote to pass a bill that authorizes the University of North Carolina System to cut salaries and layoff employees in response to financial strain caused by the COVID-19 pandemic.

Highlights:

• Defines "salary reduction" as a temporary reduction in the annual compensation of an employee of the University of North Carolina that is ordered by the President of The University of North Carolina, or by a chancellor when delegated, and is not in connection with a reassignment, demotion, or other disciplinary action of an employee (Sec. 1.a).

• Establishes the President of The University of North Carolina has the authority to implement a temporary salary reduction for employees, or delegate that authority to a chancellor of a constituent institution, to offset budget reductions or other reductions in revenue at a constituent institution (Sec. 1.a).

• Specifies in implementing a salary reduction authorized by this law, the following will apply (Sec. 1.b):

• A salary reduction shall not result in an annual salary for any employee of less than $65,000;

• In no event will a salary reduction be greater than 10% of an employee's annual base salary within any 12 months;

• Paid leave cannot be used to offset all or any portion of a salary reduction that includes a corresponding reduction to an employee's regularly scheduled hours; and

• A temporary reduction in an employee's salary may, at the discretion of the chancellor of a constituent institution, be accompanied by the granting of "flexible leave" to affected employees in an amount equivalent to the forfeited salary consistent with the requirements of this law.

• Requires the President to report quarterly to the Department of the State Treasurer, the Director of the Office of State Human Resources, the Director of the Budget, and the Fiscal Research Division of the General Assembly on any reduction in salary that occurred in the prior quarter with at least the following (Sec. 1.c):

• The specifics of the reduction in salary and the dates of the reduction in salary;

• The positions affected, including the applicable reduction in salary; and

• Information on the offset of the budget reduction or reduction in revenue accomplished with the salary reduction.

• Specifies the President will have the authority to approve a reduction in force for positions subject to the North Carolina Human Resources Act according to the reduction in force policies of the Office of State Human Resources without further approval by any other State agency. The President and any chancellor of a constituent institution who approves a reduction in force according to this section will comply with the following (Sec. 3):

• Submit an annual informational report to the Office of State Human Resources on all approved reductions in force, reorganizations, and severance payments for employees who are subject to the North Carolina Human Resources Act; and

• If State funds are used for payment of severance in connection with a reduction in force, the payment of the severance is subject to any required pre-approval by the Office of State Budget and Management.

• Authorizes the Board of Governors of The University of North Carolina to allocate non-State funds to pay the employee portion of the monthly premiums for participation in the State Health Plan for Teachers and State Employees that would have been paid if (Sec. 4):

• The participating employee is currently on an emergency temporary furlough; and 

• The emergency temporary furlough places the employee below half-time employment for a calendar month.

Full Bill Text