Section II Human Resource Policies and Procedures
N. Financial Exigency Procedures - All Employees
- Financial Exigency
The Board recognizes that in order to discharge its responsibilities for the agencies, institutions, or school
under its governance, it may become necessary to curtail, modify, or eliminate some of the programs of the agencies,
institutions or school due to unfavorable economic conditions. The Board further recognizes that it must dedicate its
resources to the achievement of the purposes and goals of its agencies, institutions or school. As used here,
"financial exigency" means a demonstrably bona fide financial crisis that adversely affects an agency, institution
or school as a whole, or one (1) or more programs, or other distinct units. A financial exigency exists only upon
Board declaration, and the responsibility and authority to make such a declaration rests solely with the Board.
The realities of the legislative appropriation process, the state revenue collection process, the possibility of
budget hold-backs via executive order and the subsequent analysis needed before the Board declares a financial
exigency may allow little time for official notice of a declaration of a financial exigency and may require that
the decision to declare a financial exigency be based on estimated revenues, rather than on actual revenues. The
Board must take action by written resolution setting forth the basis for its decision to declare a financial exigency,
after notice and hearing, at a regular or special meeting of the Board.
This subsection N is designed to authorize responses to a declared financial exigency including: (1) the layoff of
nonclassified contract employees, tenured faculty, and non- tenured faculty, and classified employees during the term
of their contract of employment; (2) employment actions other than layoffs that are designed to reduce budgetary
expenditures; (3) the closure, relocation, or discontinuance of any programs, units, or activities; or (4) any
combination thereof.
- When a reduction in force occurs pursuant to, and for those employees subject to, the State Board
for Professional-Technical Education's administrative rules governing post-secondary reduction or
termination (IDAPA 55.01.02), which excludes community colleges.
- When a reduction in force occurs where the reductions are made via the nonrenewal process for
nonclassified contract staff and nontenured faculty.
- When a reduction in force occurs pursuant to Board policies (Section III. G.) for program consolidation,
relocation or discontinuance not resulting from financial exigency. Program closure, relocation, reduction,
or discontinuance pursuant to Section III.G shall not be implemented utilizing any policy or procedure in
this Section II. N.
- When a reduction in force affects State of Idaho classified employees using the procedures of the State
Division of Human Resources or classified employees of the University of Idaho using the policies of the
University of Idaho.
- When a reduction in force affects nonclassified at-will employees.
- Response by an Institution, School, or Agency to a Declared Financial Exigency
- After active consultation with employees, including faculty, professional staffs, and classified personnel,
the chief executive officer of each agency, institution or school must prepare a plan (the "Plan") in response
to the declaration of financial exigency. When developing this Plan, consideration must be given to the necessity
and manner of reducing the employment force, the appropriate units or subunits to be affected, and the criteria
for identifying the employees who are affected by the Plan. Once completed, the Plan must be approved by the Board.
Provided, however, that implementation of the Plan and notices required to be given in the Plan may begin prior
to Board approval, which approval shall then also include ratification of such actions.
- Each of the institutions shall seek advice from a committee, which may include representatives of the administration,
faculty, staff or students, on the state of the financial exigency and possible responses thereto.
- Notwithstanding any other Board policy, order or rule, or the policies of any institution, agency, or school, all
categories of employees may be laid off as a result of a Board declared financial exigency. The process used to layoff
employees must be done equitably (but not necessarily uniformly), in good faith, and in a systematic manner directly
related to the financial exigency.
- Employment Actions Other than Layoffs. In any situation where a layoff may be made under this subsection N, an
employment action other than a layoff (including but not limited to a salary reduction, a work hour reduction, a demotion,
and/or administrative leave without pay) may also be instituted. Such employment action need not be uniformly applied,
it need only meet the requirements of this topic 2 and topic 7 below. In determining how to implement employment actions
other than a layoff, the institution shall use the same policies that apply to a financial exigency layoff. However,
employees who are affected by employment actions other than layoff do not have layoff reinstatement rights.
- Program Closure, Relocation and Discontinuance. When the Plan for responding to a declared financial exigency includes
the closure, relocation or discontinuance of a program, such program closure, relocation or discontinuance shall be subject
only to the requirements of this subsection N and not to any other Board policy, including specifically, but not limited to,
section III.G, and its related guidelines. However, arrangements should be made for enrolled
students to complete affected programs in a timely manner and with minimum interruptions.
- A financial exigency layoff, employment actions other than a layoff, and program closure, relocation or discontinuance
resulting from financial exigency may occur in the following manner and may be the same or may differ from one (1) agency,
institution or school to another:
(1) By entire entity or across an entire agency, institution or school; or
(2) By subunit within an agency, institution, or school, such as, but not limited to, a college, school,
academic department, administrative department, division, office, bureau, discipline, or specialty within
a discipline, and such actions may also differ between subunits of the same agency, institution, school; or
(3) by any combination of the aforementioned.
- Classified Employees
When a financial exigency results in a layoff that affects classified employees, the following shall apply:
- State of Idaho Classified Employees
A layoff affecting employees subject to the Idaho classified personnel system will be made pursuant to
the Rules of the Division of Human Resources.
- University of Idaho Classified Employees
A layoff affecting University of Idaho classified employees will be made pursuant to the policies of the
University of Idaho. Provided, however, that University of Idaho classified employees do not have a right
of appeal to the Idaho Personnel Commission nor to the Board.
- At-Will Employees.
This section II.N does not apply to the termination of at-will employees at the institutions, agencies, or school.
Such employees have no layoff rights and no right to notice, a hearing or reinstatement following termination of
employment.
- Layoff Criteria - All nonclassified contract employees, non-tenured faculty and tenured faculty.
- In developing the Plan, the chief executive officer must utilize as the first criterion the
preservation of the overall quality and effectiveness of the programs of the agency, institution
or school. Consequently, those employees who are deemed to be of key importance will be retained
in preference to other employees, whatever their status, at the discretion of the chief executive
officer. Programs, for purposes of a financial exigency layoff, include, but are not limited to,
academic, non-instructional, maintenance, administrative, and other support areas. Other criteria
that must be considered include, but are not limited to, tenure, rank, time in rank, length of service,
field of specialization, maintenance of necessary programs or services, maintenance of affirmative
action programs, and quality of service and work.
- Notice of Financial Exigency Layoffs
(1) Form of Notice. The Board recognizes that any layoff may be a severe economic
and personal loss to an employee. Therefore, and within the time frame provided in this policy,
the chief executive officer must give notice in writing to employees who are affected by a
financial exigency layoff, which notice must include the effective date of the layoff; a statement
of the basis for the Board's declaration of a financial exigency; a statement of the basis, the
procedures, and the criteria used to layoff an employee; any opportunity for reconsideration or
appeal, including access to appropriate documentation, and the issues that may and may not be
considered; and the reinstatement rights of the employee.
(2) Time. Each agency, institution or school should make every reasonable effort to give as much
notice as is practical, in light of the financial exigency, to each employee in advance of the
effective date of the layoff. The Board requires each agency, institution or school under its
governance to the following minimum time for written notice of layoff:
- Nonclassified Contract Employees And Nontenured Faculty - Not less than sixty (60)
calendar days before the effective date of the layoff. Provided, however, that if under the
express terms of the employee's contract the employment may be terminated on less notice,
then the shorter notice provided in the contract shall apply.
- Tenured Faculty - To tenured faculty members occupying faculty positions, a notice of
layoff with the effective date of layoff being at the end of the first full semester (Fall
or Spring) after the financial exigency is declared.
- Hearing Procedures
(1) All employees of the institutions, agencies or school who receive a notice of a financial
exigency layoff have the right to appear before the Board at the meeting of the Board where the Board will
take action on the Plan. Such appearance shall be governed by the Board's policies, procedures and guidelines
regarding testimony before the Board. In addition, categories of employees shall have hearing rights as set
forth below in this subtopic c.
(2) Non Tenured Faculty and Nonclassified Contract Employees' Hearing Rights
- In most instances, a layoff of non-tenured faculty and nonclassified employees serving under a
contract of employment for a fixed term may be accomplished by nonrenewal of the contract of employment
rather than by layoff during the term of employment. Nonrenewal after a Board declared financial
exigency does not require a hearing nor is the nonrenewal appealable at the agency, institution, or school,
nor is it appealable to the Board.
- If a non-tenured faculty member occupying a permanent faculty position or a nonclassified employee
serving under a contract of employment for a fixed term is laid off during the term of employment due
to a financial exigency, the faculty member or employee is entitled to the pre-layoff hearing procedures
set forth in paragraph (4) below.
(3) Tenured Faculty Hearing Rights. All Tenured faculty members occupying permanent faculty positions who
are laid off due to a financial exigency are entitled to the pre-layoff hearing procedures set forth in
paragraph (4) below.
(4) Financial Exigency Layoff Hearing Procedures
- The financial exigency layoff hearing procedures at the institutions, agencies,
or school must ensure a prompt and expeditious hearing that is fair and unbiased,
but the hearing shall be informal. The application of evidentiary rules, questioning
of witnesses (including cross-examination), rules concerning burden of proof, the
participation of legal counsel, and similar and related attributes of more formal
adjudication shall not be required. The final written recommendation of the hearing
body or officer must be conveyed to the chief executive officer of the institution,
agency, or school who shall make a final decision. An employee may ask the chief
executive officer to reconsider the decision. Such a request must be filed in writing
with the chief executive officer within fifteen (15) days of the notice of the final
decision of the institution, agency or school. The decision of the chief executive
officer in response to the reconsideration request is final except as modified by the
Board pursuant to an appeal under Section II.M. Use of these hearing procedures does
not delay the effective date of the layoff.
- Grounds to Contest. The employee may contest the layoff on the following grounds:
- Whether the agency, institution or school followed the appropriate policies
and procedures and the terms of the Plan,
- Whether the layoff was made for constitutionally impermissible reasons, or
- Whether any other improper criteria were applied.
- Limitations Upon Review. The hearing body or officer will not review the Board's
decision to declare a financial exigency or the funding distribution among and within the
institutions, agencies or school. The decision of the Board to declare a financial exigency
is at the Board's sole discretion and may not be contested by any employee in any type of
hearing or appeal procedure.
- Employees may request that the Board hear an appeal of the final decision of the chief
executive officer as provided in Board policy section II.M.2.b. Such a request does not delay
the effective date of the layoff.
- Reinstatements Rights
- Tenured Faculty
In cases of a financial exigency layoff of tenured faculty members occupying permanent faculty positions,
the position concerned may not be filled by replacement within a period of three (3) years from the effective
date of the layoff unless the tenured faculty member has been offered a return to employment in that position
and has not accepted the offer within thirty (30) calendar days after the offer is extended.
(1) Refusal Of Reinstatement Offer. If an offer of reinstatement is not accepted, the tenured
faculty member's name may be deleted from the reinstatement list, and, if so deleted, the Board has no further
obligation to the faculty member.
(2) Benefits During Layoff. A tenured faculty member who is laid off may continue to contribute toward and receive
the benefits of any applicable state or University of Idaho insurance program if the laws, rules, regulations,
policies, and procedures governing the administration of such insurance program so permit.
(3) Leave Credit. A tenured member of the faculty who has been laid off and who accepts reemployment at the institution
will resume tenure and the rank held at the time of layoff, be credited with any sick leave accrued as of the date of
layoff, be paid a salary commensurate with the rank and length of previous service, and be credited with any annual leave
(if applicable) which the employee has accrued as of the date of layoff and for which the employee has not received payment.
- Non Tenured Faculty and Nonclassified Contract Employees
In cases of a financial exigency layoff of nontenured faculty members occupying permanent faculty positions, and nonclassified contract
employees occupying permanent positions, the position concerned may not be filled by replacement within a period of one (1) year from
the effective date of the layoff unless the employee has been offered a return to employment in that position and the employee has not
accepted the offer within thirty (30) calendar days after the offer is extended.
(1) If an offer of reinstatement is not accepted, the employee's name may be deleted from the reinstatement list, and if so
deleted, the Board has no further obligation to the employee.
(2) A nontenured faculty member or a nonclassified contract employee who is laid off may continue to contribute toward and receive the
benefits of any applicable state or University of Idaho insurance program if the laws, rules, regulations, policies, and procedures
governing the administration of such insurance program so permit.
(3) A nontenured member of the faculty who has been laid off and who accepts reemployment at the institution will resume the rank held
at the time of layoff, be credited with any sick leave accrued as of the date of layoff, be paid a salary commensurate with the rank
and length of previous service, and will be credited with any annual leave (if applicable) which the employee had accrued as of the
date of layoff and for which the employee has not received payment.
(4) A nonclassified contract employee who has been laid off and who accepts reemployment at the institution will be credited with any
sick leave the employee had accrued as of the date of layoff, paid a salary commensurate with the length of previous service, and
credited with any annual leave which the employee had accrued as of the date of layoff and for which the employee has not received payment.
- Employment Actions Other than a Layoff. The implementation of personnel actions other than a layoff shall follow the requirements of this topic 7.
- If the Plan for addressing the financial exigency includes employment actions other than, or in addition to, a layoff, the employees affected by such
actions shall be entitled solely to such procedures as are set forth in this topic and those that may be set forth in the Plan, if any. Such procedures
must include at least thirty (30) days written notice prior to the effective date of the action and an informal opportunity for the employee to be heard.
The notice must include the effective date of the employment action; a statement of the basis for the Board's action to declare a financial exigency; a
statement of the basis for the employment action and a description of the process for the opportunity to be heard. Such process must be prompt, expeditious
and fair, but shall be informal. The application of evidentiary rules, questioning of witnesses (including cross-examination), rules concerning burden of
proof, the participation of legal counsel, and similar and related attributes of more formal adjudication shall not be required. The employee may contest
the action based on whether the agency, institution or school followed the appropriate policies and procedures and the terms of the Plan; whether the action
was made for constitutionally impermissible reasons; or whether any other improper criteria were applied. The hearing will not review the Board's decision
to declare a financial exigency or the funding distribution among and within the institutions, agencies, or school. The decision of the Board to declare a
financial exigency is at the Board's sole discretion, and may not be contested by any employee in any type of hearing or appeal procedure. The written
recommendation of the hearing officer or body must be conveyed to the chief executive officer who shall make a final decision. There is no right of appeal
to the Board.
- There are no reinstatement rights with respect to employment actions other than a layoff. Remedies, if any, to which employees are entitled shall be set
forth in the Plan.
- Financial Exigency Program Closure, Relocation or Discontinuance.
- Faculty or staff being laid off as a result of a program closure,
relocation or discontinuance pursuant to a financial exigency Plan
shall be entitled to the same procedural rights as any other layoff
pursuant to a financial exigency. Provided, however, the reinstatement
rights only exist if the program is reinstated by the institution,
not merely if the position is filled.
- Students enrolled in a program that is closed, relocated or discontinued
pursuant to a financial exigency Plan should be given notice of the closure
as soon as is practical. Notwithstanding any other provision of Board policy,
institutional policy, or institutional catalog statements to the contrary,
arrangements should be made for enrolled students to complete affected programs
in a timely manner and with minimum interruptions. When there is a similar
program within the institutions governed by the Board, an affected student will
be provided with information on transferring to that program, although admission
to any such program is contingent upon the availability of a position and the
student's meeting any applicable admission requirements. If there is no similar
program available within the institutions governed by the Board or the student
is not able to gain admission to a similar program, the institution will make
reasonable efforts to place the student in a related or comparable program within
the institution. If none is available, the institution will make reasonable efforts
to assist the student in locating to another program at the institution or elsewhere
for which he or she is qualified.
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