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Temporary Employee Process Frequently Asked Questions The following FAQ’s answer questions about changes to the total allowable hours a temporary employee may work in an anniversary year. Temporary employees become eligible for the University’s defined contribution and defined benefit plans if they work 1000 hours or more within a year from the anniversary of their initial date of hire. UHRM is committed to helping supervisors and managers track and monitor temporary employee’s hours worked, the department (UHRM) will play an active role in providing managers with an hours worked summary for each employee at approximately 500 and 800 hours worked. In cases where an employee is eligible to work fewer than1000 hours, the Temporary Pool Administrator will provide an hours worked summary mid-assignment and within 100 hours of the maximum allowable hours the temporary employee can work. NOTE: Bargaining unit agreements govern assignment length in some cases. Consult the local agreements that cover employees in your work group. What is changing and why should I be concerned?
Temporary employees cannot work for the University for more than 1000 hours within one year of their anniversary date. When 1000 hours are exceeded, the temporary employee will become eligible for the University’s defined contribution and defined benefit plans. Allowing the employee to participate in the plans will impact the department’s budget since the full fringe benefit rate will be applied. Currently the fringe rate for non-benefits eligible employees that do not work greater than 1,000 hours in a twelve month period is 8.6% for FY08-09. If a non-benefits eligible employee works 1,000 hours or more in a twelve month period the full fringe non-Federal rate of 22.3% in effect for FY08-09 will be charged to the unit.
Why has this change occurred?
Beginning with the 2009 plan year and each year thereafter, the University’s 401(a) and 403(b) retirement plans will be audited annually by an independent accounting firm. Among other things, the auditors will ensure that employees are enrolled in the plans at the appropriate time. Although employees may be excluded from other benefit programs if they are classified as "benefits-ineligible," they must be enrolled in the retirement plans if they complete 1,000 hours of service during the 12-consecutive month period beginning on their hire date (and each anniversary thereafter). Accordingly, it is imperative that we monitor the hours worked by our benefits-ineligible staff to be certain they do not exceed the 1,000 hour threshold. What does this mean when I hire a new temporary employee? UHRM is committed to tracking the number of hours a temporary employee works throughout the duration of their employment at the University. In an effort to make the tracking process easy, hiring managers must submit the Temporary Employment Form (both when hiring a temporary employee directly or through the Temporary Pool) to the Temporary Pool Administrator prior to the temporary employee’s start date. The Temporary Pool Administrator will track the number of hours temporary employees work and will provide supervisors/ managers with two notifications that will inform the manager/ supervisor of the hours a temporary employee has worked. Keep in mind that a temporary employee may have worked for another department/ division of the University prior to his/ her assignment with the current department. The hours worked on the previous assignment will be subtracted from the total allowable hours. What hours are included in the 1,000 hour limit?
All hours reported on a timecard are included, for example, hours worked and other paid absences (OAP). Does the 1,000 hour limitation apply only to temporary employees that are paid biweekly?
No, it applies to temporary employees that are paid either biweekly or monthly. For temporary, biweekly paid employees the hours will be tracked based upon hours worked and reported on a biweekly timecard. For temporary, monthly paid employees the hours will be tracked based upon scheduled hours worked as indicated on the temporary employee’s paperwork that was submitted to UHRM. What are my options, if I cannot hire my temporary employee permanently?
The current temporary employee MUST stop working until their next anniversary date. However, another temporary employee may be hired to fulfill your need. What happens if my temporary employee exceeds 1000 hours?
If a temporary employee works more than 1000 hours during his/her first 12 months at the University, he/she will be automatically enrolled in the appropriate retirement plan(s) after completing 12 months of service. If the employee works more than 1000 hours during any subsequent 12-month period following the employee’s anniversary date (but does not during the employee’s initial 12 months of employment), he/she will be enrolled in the appropriate retirement plan(s) at the end of that 12-month period. Once enrolled, payroll deductions will be taken from the employee’s paycheck for the appropriate defined contribution plan (ERIP-DC or CRP). How does this impact the temporary employee?
When the temporary employee meets the eligibility requirements for Retirement Income Plan for Employees (ERIP), the temporary employee will have deductions taken from their paycheck for ERIP and Long Term Disability (LTD). The temporary employee will not be permitted to un-enroll in either plan as long as they are employed by the University. How do I hire a temporary employee? Complete and submit a Temporary Employment Form, found on the UHRM website, when requesting a temporary employee from the Temporary Pool or when directly hiring a temporary employee. May a regular employee return to the University as a temporary employee?
Yes. A previous benefits eligible employee may return as a temporary employee but will be eligible for the University’s defined contribution and defined benefit plans at the full fringe benefit rate. How will I know when my temporary employee reaches the maximum hours? UHRM will send two email notifications; one at approximately 500 hours worked and a second notification at approximately 800 hours worked. The email will inform managers/supervisors of the number of hours worked.
Upon receiving the final notification of hours worked, supervisors/ managers must make a decision: either terminate the temporary employee’s assignment at the end of the maximum allowable hours worked and hire a new temporary employee; or, with departmental/divisional approval, post the position on UChicago Jobs to begin the recruitment process to hire a permanent employee. What options do you have for maximizing the number of weeks a temporary employee may work?
There are a number of scheduling options and combinations. To maximize the length of a time a temporary employee is on assignment, consider the number of hours you need an employee to work on a weekly basis. Think about peak periods and increase the hourly schedule to accommodate the work demand. During non-busy periods, reduce the weekly hours schedule. Doing so will enable supervisors and managers to fully maximize the 1000 hours limit on temporary assignments.
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