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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: September 2, 2010 <br />Agenda <br />Item No. -} <br />SUBJECT: Second Reading: Implementation of a One -Week Payroll Deferral — <br />Amendment to Orange County Personnel Ordinance Article III, Section 1.0, The <br />Work Week and Resolution Authorizing the Use and Advancement of Sick, <br />Personal and Petty Leave During Payroll Deferral <br />DEPARTMENT: Human Resources PUBLIC HEARING: (YIN) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />1. Revised Pay Schedule Michael McGinnis, Human Resources <br />2. Orange County Personnel Ordinance Director, 245 -2552 <br />Amendment to Article III, Section 1.0 Clarence Grier, Financial Services <br />3. Resolution Authorizing the Use and Director, 245 -2453 <br />Advancement of Sick, Personal and Annette Moore, Staff Attorney, 245 -2317 <br />Petty Leave During Payroll Deferral <br />4. 8/12/10 County Manager's Memo to <br />County Employees <br />PURPOSE: To approve on second reading an amendment to the Orange County Personnel <br />Ordinance Article ill, Section 1.0, "The Work Week" to change the standard work week and a <br />resolution authorizing the County Manager to allow employees to use up to 40 hours of sick <br />leave and personal and petty leave accrued through June 30, 2011 to supplement their pay <br />during the payroll deferral and advancing employees sick, personal and petty leave during the <br />payroll deferral. <br />BACKGROUND: In January 1989, the County adopted the standard work week as being <br />"...from 12:01 am Monday until 12:00 midnight on Sunday, a time span of seven (7) consecutive <br />24 hour periods". Based on this standard the County developed a practice whereby employees <br />are paid bi- weekly and receive their paychecks on the second Friday of each pay period. <br />Permanent employees are paid on Friday prior to the end of the second workweek, which ends <br />on Sunday. The vast majority of County employees have chosen to have their pay deposited <br />directly into their bank accounts and receive a pay stub rather than receive an actual paycheck. <br />The Financial Services Department releases direct deposit information for payroll to the <br />County's bank on the Tuesday prior to each payday, so the payroll process must be completed <br />on Tuesday prior to the end of the second workweek in each pay period, five days before the <br />end of the pay period. <br />As a result, paychecks are based on the employee's anticipated schedule, not on the actual <br />hours worked. Any adjustments for scheduled hours not worked cannot be resolved until the <br />following pay period and can result in overpayment of wages to the employee, which must be <br />deducted from the employee's next paycheck. Further, payment of overtime earned must be <br />deferred by a minimum of one pay period. When employees separate, they are paid for their <br />