MINUTES
HUMAN RESOURCE OFFICERS' MEETING
Wednesday, March 25, 2015
2:00 p.m. to 4:00 p.m.
Betty Easley Conference Center, 4075 Esplanade Way, Room 152
Welcome – Sharon Larson
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HRM Director Sharon Larson greeted everyone and welcomed Karen Peek to HRM as the
new Workforce Design and Compensation Manager. Additionally, she congratulated the
new Human Resource Officer (HRO) appointments of: Margo Rogers to the Department of
Business and Professional Regulation (DBPR), Drew Meehan to the Department of
Environmental Protection (DEP), Brett Shively to the Department of Corrections (DC) and
Heather Best to the Department of Management Services (DMS).
Sharon introduced DMS Secretary Chad Poppell to the HRO’s. Governor Rick Scott
appointed Chad Poppell to serve as the Secretary for the Florida Department of
Management Services in December 2014. Prior to his appointment, Secretary Poppell
served as the Chief of Staff at the Department of Economic Opportunity (DEO). Poppell has
served as the Director of Employee Services at JEA (a municipally owned electric, water
and sewer provider serving the Jacksonville metropolitan area), and in other leadership
roles for the City of Jacksonville, including being appointed by the Mayor as Chief of Human
Resources in 2008. Secretary Poppell, a fourth-generation native of Perry, Fla., received his
bachelor’s and master’s degrees from Valdosta State University.
He shared his ideas for working with the agencies to maximize resources including
leveraging the People First system, under the new contract to take effect in 2016, to share
qualified applicants between the agencies for hard to recruit positions.
Retroactive Posting of Payroll Deductions Initiative and Other Topics – Suzetta Furlong,
Division of State Group Insurance (DSGI)
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Dependent Eligibility Verification Services:
o The Governor’s budget recommendation and the Senate’s proposed budget allocates $1
million for DSGI to conduct an audit of dependent eligibility. The House budget did not.
The purpose of an audit is to remove ineligible dependents from the state group plans. It
is conservatively estimated that seven percent of covered dependents are not eligible,
costing the health program an estimated $40 million annually.
o Vendors with whom DSGI has spoken indicate they have multiple ways to assist
employees with locating documentation, submitting documentation and finding other
health insurance for ineligible dependents.
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Legislation Update:
Several bills impact insurance law. Three bills are specifically directed to DSGI:
o HB 7097 – Purpose is to promote employee choice, with changes implemented over the
next few years. The proposed bill:
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 Establishes metal tiers (bronze, silver, gold, platinum) for the health plans. Employees
would choose the coverage level based on their individual needs, with options for
employee savings depending on which level they buy.
 DSGI would be allowed to procure additional products.
 Establishes a transparency pilot project and surgical services with employees allowed
to share in any cost savings.
 Requires Health Maintenance Organizations (HMO) and Preferred Provider
Organizations (PPO) plan premium alternatives for the employee and employer
contributions.
Proposed Committee Bill 15-05 [now HB 5009] from Appropriations:
 Employees hired on or after July 1, 2015, would only be allowed to enroll in a high
deductible health investor health plan (HIHP) and they would not be eligible for state
contribution into the health savings account (HSA).
SB 7026 – No impact to employees, strictly HMO contractual issues.
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Open Enrollment (OE) Dates for 2015:
o October 19 through November 6
o Correction period: November 9 through November 20
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DSGI Help Box:
Please do not share the DSGI help box email address with employees or copy them when
sending emails to the help box. Employees should be directed to the service center for their
questions.
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Rescission of Coverage:
The Affordable Care Act (ACA) prohibits rescission of coverage. Even if claims were not
paid, members could always submit a claim for reimbursement. A couple of issues are
causing rescissions:
o Retroactive terminations of employment. When employment is not terminated timely,
benefits continue if the employee submits payment (and they will get underpayment
letters). Retroactively terminating employment then terminates the benefits retroactively,
which is not allowed. Please be sure all terminations are processed timely.
o Ineligible/administrative errors. We have had situations with Other Personal Services
(OPS) employees who were determined as eligible for benefits. The agency then said
there was a timesheet error (e.g.) and the employee should not have been eligible. We
can only cancel going forward.
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Medicare and Active Employees:
Federal law says that retirees eligible for Medicare who return to active employment are no
longer eligible to have Medicare as primary coverage. They don’t have to enroll in employer
group coverage, but they cannot remain enrolled in a Medicare tier (i.e., the only way they
can be covered through our program is as an active employee). We have about 60
employees enrolled in a Medicare tier who are active employees. We will change them to
active coverage May 1. We will mail letters to them so they know their options. If they
choose not to continue active coverage, they will not be allowed to re-enroll when they
terminate employment because they must have continuous coverage through the state
group program.
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Internal Revenue Service (IRS) Reporting:
Currently, you must report that you have met the individual responsibility for minimum
essential coverage on your tax return. The state group health plan meets this requirement.
In 2016, the IRS requires employers to report every employee and whether they had
minimum essential coverage for each separate month in the 2015 plan year. Reporting must
also be done for each of their dependents. It is presumed that the IRS will use this reporting
to audit tax returns. The tax forms require either a valid Social Security Number (SSN) or a
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valid tax identification number for employees and each of their covered dependents. We will
be starting a cleanup effort in the next month or so. At this time, more than 2000 dependents
have bad SSNs that we are aware of. We will send additional information.
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Leave Without Pay (LWOP) and Employee/Employer Contributions:
Just in from our tax attorney – employees on ANY type of LWOP receive the state
contribution for health insurance while they are on leave for the duration of their stability
period because coverage must be 1) offered and 2) affordable. Suspension is included. In
the past, we have offered coverage, but because the employee had to pay the full premium,
it was not affordable.
o Because of the IRS reporting requirements for 2015, we must go back to January 1 and
make an offer of affordable coverage to employees on LWOP. We will send letters to
employees. They will have the opportunity to retro enroll in coverage, and agencies will
have to pay the state contribution. We are just now starting the research, so we’re not
sure how big this project will be or the timeframe.
o This impacts the qualifying status change (QSC) events. For example, now that the
contribution is the same, employees no longer have a QSC event of significant cost
increase to cancel coverage. The Family and Medical Leave Act (FMLA) law and gaining
eligibility for other group coverage will be the QSC events to reduce or cancel coverage.
We have revised the QSC Event Matrix. Please see the link below.
http://mybenefits.myflorida.com/content/download/106209/600370/QSC_Matrix_Revisions_Ef
fective_03-01-2015.pdf.
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Measurement Matrix:
One important change from guidance previously given:
o Non-variable hour employees (any employee, including OPS, when hired, is expected to
work 30 hours or more) do NOT get a new hire measurement period. This means they
have coverage until they are measured in their second OE period. For example, Sam is
hired in March and is expected to work 30 hours a week. He enrolls in May. He has
coverage for the rest of 2015 and all of 2016. He is measured in 2016 OE for 2017
coverage.
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Retroactive Posting Payments to Underpaid Months:
Payroll files post employee insurance premiums to the next coverage month and do not look
back to see if any previous months were underpaid. Enrollees, therefore, show as eligible
for insurance coverage for the coverage month even though they are underpaid in one or
more previous coverage months. Currently, more than 12,000 employees have
underpayments, and employer and employee combined underpayments total more than $7
million.
o This summer, we will start a new system process that takes the payroll deduction for the
next coverage month and moves it back to the underpaid month. The employee will be
underpaid for the current month, coverage will be suspended, and employee will not go
on the vendor eligibility file. The employee will stay in a suspended state until he pays
the underpayment. These changes would ensure that the state’s trust funds are
appropriately funded and employees do not have access to insurance benefits to which
they are not entitled.
o The first week of May, People First will mail a one-time “cleanup” letter about 60 days
before system programming is deployed, requesting payment for total underpayments,
explaining process, suspension, and appeal rights. The goal is to resolve
underpayments so that current coverage will not be suspended.
o HR offices must clean up and resolve existing underpayments. Currently, many do an
excellent job of monitoring and rectifying on a monthly basis.
 Use underpayment report to identify underpayments for both employee and employer.
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 If employee was on LWOP, did not cancel coverage and did not pay the full premium,
call the service center to cancel coverage for the LWOP period. This is a significant
percentage of the money owed to the trust funds.
 Work through Org Management to return employees from LWOP if not returned
properly.
 Notify employees with underpayments to pay immediately (better than them receiving
a letter and/or having coverage suspended). They must remit payments to the lockbox.
 Remit employer underpayments as soon as possible.
Timeline:
 March through April: HR offices clean up underpayments.
 Week of May 4: NGA mails one-time cleanup letter.
 May through June: Employees send checks to lockbox for underpayment.
 July 4: NGA deploys payroll posting process programming change to correspond with
deductions from first biweekly payroll in July for August coverage.
Additional information forthcoming.
People First Team Updates – David DiSalvo and Jimmy Cox
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People First Annual Customer Satisfaction Survey:
David thanked the agency Human Resource Officers for encouraging their employees to
complete the People First annual customer satisfaction survey. The survey was emailed to
25,000 randomly selected employees and retirees with email addresses. The survey ran
from March 9, 2015 through March 20, 2015. We received nearly 2,600 responses that
responded with a 79% overall satisfaction rate. This is a 0.1% increase over the 2014
annual survey overall satisfaction rate. Ideas and suggestions from the annual surveys are
used to feed the People First team’s Potential Work Item list for possible future system
enhancements and are shared with the service provide (NGA) to facilitate system and
service center improvements.
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People First Service Center “Warm Transfer” Phone Calls:
For the past few years, we have requested that each agency provide a “warm transfer”
agency telephone number for the People First representatives to provide callers that actually
need to speak with the agency rather than People First. Lydia sent an email to agency
human resource offices with the list of telephone numbers that were previously
provided. Lydia has asked that each agency review their number and confirm if the number
that is provided is still the current number that your agency would like People First to
continue using. Please respond to Lydia by close of business March 30, 2015, if you
determine a different number is needed.
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Agency Reorganizations:
David asked agencies to notify the People First team as soon as possible if they become
aware of an agency reorganization. Our team will continue to assist agencies through the
system mass load process and it important to schedule the mass load with the vendor with
as much notification as possible.
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Data Warehouse Impromptu Training:
The People First data warehouse team continues to hold People First data warehouse
Impromptu training for state agencies. We are trying to hold two sessions per year; in fact, a
two-day training session is occurring this week (March 25 and March 26, 2015). For the past
two sessions, however, we’ve had participants cancel at the last minute, which doesn’t allow
our team enough time to fill the newly vacated spots. David reminded the agencies that it is
important to only sign up staff who are truly committed to attend.
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People First Recruiting Contact Changes:
Agencies were encouraged to review GC 258 that describes the changes to the staffing
processes. This communication includes two key changes:
o The staffing process is moving to the Tallahassee Service Center and agencies should
no longer call the contacts they have historically worked with, but should reach out to the
staffing toll-free number 877-562-7287.
o The recruiting fax number is changing to 888-403-2110 and the old number will no
longer be available.
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SOLARIS:
Agencies were reminded to review the details in the email communication sent out from
Cheri Van Gundy on March 12, 2015 regarding the SOLARIS initiative and to ensure that
their facilities staff are currently working to add all state owned buildings and to set the
People First flag for all state owned buildings that have employees in them. All buildings
must be added and the People First flag marked no later than May 1.
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Agency Performance Expectations:
Agencies were reminded that we are quickly approaching the start of the performance
expectations setting for the 2015-2016 evaluation period and were reminded to start
determining if they will have agency wide expectations (expectations that apply to all
employees in the agency) and, if so, to work on finalizing those agency wide expectations
now. Agency wide expectations are due May 1, 2015. Steve Eaton will be sending out
submittal instructions by April 1, 2015.
HRM Policy Team:
Collective Bargaining – Jim Parry
Jim Parry provided a status report on collective bargaining:
 Items at impasse were presented and discussed by DMS and the unions at a hearing with
the Joint Select Committee on Collective Bargaining on February 16, 2015.
 The Committee provides its recommendations to legislative leadership as to how the
impasse items should be resolved (their recommendations are not in writing).
 Negotiations have continued during the weeks since the impasse hearing. At present, the
state is at impasse with all the bargaining agents over wages. However, most issues have
been resolved and only one of the bargaining units has a significant number of articles at
impasse as follows:
 Florida Nurses Association (FNA) – Four articles at impasse including Wages.
o FNA, like several other bargaining agents, has issues with respect to agency treatment
of employees who have previously achieved permanent status in a Career Service
position and then are placed in a probationary status when promoted. They
acknowledge that section 110.217(3), Florida Statutes (F.S.,) provides the agency with
the authority to dismiss such employees without cause under the conditions described in
the statute but continue to be frustrated with the lack of job protection for these
employees, especially those who have long service with the agency in their previous
permanent position.
 FNA, again like several other bargaining agents, is proposing that reprimands may not
be used in considering future discipline after a fixed period of years. DMS does not
agree with this approach.
o American Federation of State, County, and Municipal Employees (AFSCME) – only
Wages article is at impasse.
o Florida State Fire Services Association (FSFSA) – 4 articles at impasse including
Wages.
 FSFSA is proposing that retiree health insurance premiums be indexed to a retiree’s
pension benefit and that the premium not exceed 40% of the benefit.
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 The union is also proposing a promotional step pay plan.
Police Benevolent Association (PBA) – Two articles at impasse including Wages.
 PBA proposes that individual agencies be authorized to negotiate provisions governing
special compensatory leave with the union.
Selected Exempt Service (SES) units (attorneys, physicians, non-professional
supervisory) – Four articles at impasse including Wages.
 Union proposes that SES employees attain permanent status after six months.
 Union proposes that health insurance premiums remain at their current levels
(Governor is proposing that SES health insurance premiums be the same as those for
Career Service employees).
Teamsters – 15 articles at impasse.
 A number of these articles will likely be resolved as there are not substantive issues
involved.
 Some of their proposals are to return to previous contract provisions which were
revised through negotiations during the past few years to provide greater management
flexibility.
 Proposals include provisions addressing the condition of vehicles used by employees,
safety equipment, and staffing levels.
 There have been ongoing discussions regarding the required use of clear plastic
lunchboxes which the union claims are susceptible to breakage.
Jim stressed that the final outcome of negotiations will not occur until the Legislature resolves
the items at impasse and the changes agreed to by the parties are submitted to the bargaining
unit members for a ratification vote. This process will probably not be completed for all the units
until late summer. When completed, DMS will provide the agencies with a summary of changes
in each of the collective bargaining agreements.
It was also stated that negotiations will being sooner this year as the 2016 legislative session
begins in January instead of March.
2015 Legislative Session – Libby Farmer
Libby highlighted legislative bills of interest for the 2015 legislative session. Please see the
handout attached with these minutes for a complete list.
U.S. Department of Justice: Title VII Regulations – Libby Farmer
Attorney General Eric Holder released a memo on December 15, 2014, announcing the Justice
Department is now interpreting federal law to explicitly prohibit workplace discrimination against
transgender people. This is a reversal of their position in which they previously stated in 2006
that Title VII did not cover discrimination based on transgender status. To support the change in
their position the Justice Department cited the following cases: Price Waterhouse v. Hopkins,
490 U. S. 228 (1989) and Macy v. Holder, Appeal No. 0120120821.
This new position means that the Justice Department will be able to bring legal claims on behalf
of people who say they've been discriminated against by state and local public employers based
on sex identity.
Federal White-Collar Overtime Exemption Regulations – Sharon Larson
On March 13, 2014, President Obama signed a Presidential Memorandum directing the
Department of Labor (DOL) to update the regulations defining which white collar workers are
eligible to receive pay for hours worked over 40 in a workweek. The last time a review was
completed was in 2004 and it took the DOL 18 months after the proposed changes were
released to establish the current $455 per week ($23,660 annually) benchmark for the whiteDivision of Human Resource Management
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collar overtime exemption. It is anticipated that the new proposed regulations will be released
soon. Although the changes may not take effect for some time, the State Personnel System
(SPS) can always benefit from certain periodic reviews to ensure compliance with wage laws.
Reviewing position descriptions to ensure that duties are accurately reflected is essential. In
order for employees to fall within one of the white-collar exemptions, they must perform
executive, administrative, or professional duties (additional responsibility specifications are
outlined in further detail by the DOL) and make more than the established weekly threshold for
overtime. The anticipated proposed threshold is being speculated to be between $40,000 and
$50,000 annually. An additional 12,000 SPS employees would become eligible for overtime at a
$42,000 annual salary threshold ($ 808/week) and almost 20,000 SPS employees at a $50,000
annual salary threshold ($962/week). The DOL anticipates releasing the proposed new rules
this Spring. There will be a period of 30 to 90 days for public comments and testimony. To
secure final approval from the federal Office of Management and Budget could take another 90
to 120 days, barring any legal challenges to the proposed regulations.
Spousal Leave Benefits – Matt Gregory
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The new federal FMLA regulations, which become effective on March 27, 2015, now define
spouse to include the person with whom the employee has entered into a legally recognized
marriage in any state, regardless of whether the employee’s state of residence recognizes
the marriage. Previously, if an employee entered into a marriage that was recognized by
another state, but not by the employee’s state of residence, the employer did not have to
provide FMLA benefits to the employee if the employee’s spouse has a qualifying FMLA
condition.
As a result of the federal court ruling declaring Florida’s law prohibiting same-sex marriages
unconstitutional, HRM conducted a review of all of its administrative rules and policy
guidance documents that have been issued to determine which, if any, needed to be
updated based on this federal ruling.
In the vast majority of policy documents, the generic term spouse is used and there is no
need to update these policy documents. However, agencies should be aware that the term
“spouse” now includes any legally recognized spouse, which includes an employee’s same
sex spouse. Agencies should review their policies, procedures, and training documents to
ensure compliance with this court ruling.
As a result of its review, HRM revised the policy guidance document entitled, “Definitions of
Family Members for Use of Leave Under the Family Supportive Work Program, Family and
Medical Leave Act, and Accrued Family Sick Leave.” The document no longer cites section
741.212, F.S., as the definition of spouse for state leave benefit purposes since that law has
since been ruled unconstitutional by a federal court. It now cites the definition of spouse
which is included in new federal Family and Medical Leave Act (FMLA) regulations that
become effective March 27, 2015. The changes to the document align the definition of
spouse for purposes of FMLA, Family Support Work Program (FSWP) and Family Sick
Leave. [HRM issued the revised document on March 27, 2015, the day the regulation was
effective.]
Guide to Employee Transition – Karen Peek
Due to changes at DEO, the Workforce Design and Compensation team has implemented a
review and made essential edits to the Guide to Employee Transition. Agencies need to be
aware, since many may be experiencing lay-offs this year, that the link to the Regional
Workforce Boards has changed as well as how DEO now refers to some of its programs:
 The new web address is: http://careersourceflorida.com/regional-team/.
 The One-Stop Service Centers are now called Career Centers.
 Unemployment Compensation is re-termed Reemployment Assistance.
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Agencies were urged to review their agency letters regarding lay-offs and make any updates
necessary.
Classification and Compensation Guide – Karen Peek
Last fall agencies received the draft Classification and Compensation Guide for their input.
Agencies who responded with comments and suggestions were thanked. Many hours were
worked by the Workforce Design and Compensation team to ensure it is a comprehensive
document with specific information which will assist agencies in processing their requests for
reclassifications and reorganizations. The comments surrounding the section “DMS
AUTHORITY/RESPONSIBILITES” and the inclusion in that section of the necessity for certain
reclassification actions, including those from SES to SES and Senior Management Service
(SMS) to SMS, to be sent to DMS for review and approval were reviewed during the meeting.
That section was carefully reviewed and edited to provide additional explanation for the
circumstances under which DMS will expect those actions to be sent to the department. The
draft guide will be disseminated to the HRO’s for a final review.
SOC Revision – Karen Peek
The broadband and classification changes that were necessary as a result of modifications to
the federal Standard Occupational Classifications (SOC) are substantially complete with only a
few positions remaining to be updated. The HRO’s were thanked for their assistance and
efforts to update positions affected by the implementation of the changes.
Next Meeting: Wednesday, April 15, 2015
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