City employees told to forgo paychecks for one week

City employees will go as much as three weeks without a paycheck in the month of August if Columbus Council approves plans proposed by city officials.

The gap in the normal cycle — weekly for some and bi-weekly for others — is included in Mayor Teresa Tomlinson’s recommended fiscal year 2018 budget as part of the electronic conversion to a new payroll system. City officials say the conversion is an effort to move all CCG employees to a common bi-weekly pay period, and the lag-time won’t affect the annual amounts employees are paid.

“In addition to getting employees all on a common pay period, the city is upgrading its budgeting financial system and it’s payroll and human resources system and moving to a cloud-based solution,” said City Human Resources Director Reather Hollowell, who notified city employees of the changes in an April 28 memo. “That’s really the initial impetus for this. We need to do it for a system conversion reason.”

Hollowell said all full-time employees will receive a pay bonus on Aug. 11 to help supplement their income during that period. The bonus will be equal to 1/4 of their weekly salary or 20 hours. The first bi-weekly paycheck after the conversion will be issued on Aug. 18. Current federal and state taxes would apply.

In her memo to employees, she wrote: “For employees who are paid every week, your pay period will be converted to a bi-weekly pay period with one week in arrears. For employees who are paid biweekly, you will continue to be paid bi-weekly with one week in arrears. For increased accuracy in your paychecks and to improve reporting of finances, all employees will be paid bi-weekly with a seven (7) day lag time or one week in arrears.

“The one-time bonus paycheck is being given to you in order to avoid any cash flow hardship during the transition,” she explained. “The bonus paycheck is in addition to your annual salary and will be subject to required federal and state taxes, but not other payroll deductions.”

On Tuesday, City Finance Director Angelica Alexander explained the changes at a council budget review committee meeting. She said one of the goals is to create a one-week lag so people get paid based on hours that they actually work and not assumptions

City officials have received many calls from employees concerned about the upcoming pay lapse, officials said.

One city employee contacted the Ledger-Enquirer about the issue, but didn’t want to be identified for fear of losing her job.

“I’ve spoken with multiple employees who are living paycheck to paycheck as it is, and they have no idea how they will even afford the gas to get to work during the time period with the gap in pay,” she said. “The vast majority of employees make such meager salaries as it is. Many employees rely on food stamps. Yet these employees are asked to go without half their normal paycheck.

“Employee morale is low,” she continued. “We’re expected to work in a building without sprinklers, with asbestos and bats. It feels like we’re taking risks with our lives just by coming to work. I think most of us feel pretty beaten down and like nothing we do will change anything.”

At Tuesday’s meeting, some councilors also expressed concern. Councilor Bruce Huff asked how people would explain to their landlords a delay in rent, and asked the mayor and city manager to write a letter to realtors and utility companies informing them of the deferred wages. Tomlinson agreed to write the letter.

In an interview with the Ledger-Enquirer, Hollowell said she understands employees’ concerns, but she believes the new system will help the city handle payroll more efficiently, which will benefit employees in the long-run.

“I’ve received numerous, numerous calls and emails about this, attempting to explain the best I can what is happening, why we’re doing it,” she said. “I certainly appreciate the impact and want to be as sensitive as I can to employees.

“ ... It’s not just any one group of employees,” she said. “We’re all impacted by it, and we all have to make the sacrifice. And I absolutely appreciate the challenge, and, thus, I think with the city providing the 20-hour bonus, or the fourth of a week pay, will help to bridge that gap.”

Employees also have expressed concern about payroll deductions for supplemental health insurance and other benefits, she said. But there’s no need to worry.

“They’re not going to have to double up on payment in August,” she said. “... They’re going to get a regular paycheck on Aug. 18, no more deductions than would normally come out of their paychecks will come out.”

This story was originally published May 23, 2017 at 2:05 PM with the headline "City employees told to forgo paychecks for one week."