logo

Date: January 10, 2017

Bulletin Number: CU-575

line
Subject Minimum Wage Increase for Hourly Employees in Classified Staff White Collar and Blue Collar

Purpose To inform agencies of OSC’s automatic processing of the December 2016 minimum wage increases for hourly employees and provide instructions for payments not processed automatically.

Affected
Employees

Employees in hourly positions who meet the eligibility criteria.
Background

Pursuant to a memorandum dated 08/04/16 from Carmelo Batista, Jr. authorizing implementation of an increase to minimum wage in December for years 2016, 2017 and 2018 for Classified Staff White Collar and Blue Collar represented by District Council 37, IBT Local 237, SEIU Local 300, IATSE Local 306.

Effective Date(s) The minimum wage increase for hourly employees will be processed using the following effective date and check date:

Pay Cycle/Pay Period Type

Effective Date

Check Date

Institution  Current 23

01/05/2017

02/16/2017


Eligibility Criteria Employees with a Pay Basis Code of HRY on or after the payment effective date and an hourly rate less than $12.00.

OSC Actions OSC will process the December 2016 minimum wage increase as follows:
  • If the employee meets the eligibility criteria and has a Payroll Status of Active, Leave with Pay or Leave of Absence on 01/05/2017, OSC will automatically insert a row on the employee’s Job Data page effective 01/05/2017 and Action/Reason code of Pay Rate Change/CRT (Chg Rate) and will increase the employee’s hourly rate to $12.00.
  • If the employee meets the eligibility criteria but has a Payroll Status of Terminated, Deceased or Retired on the payment effective date and returns to Active, Leave with Pay or Leave of Absence status in an eligible position prior to payment processing in Institution Pay Period 23 but after the appropriate effective date, OSC will automatically insert a row on the employee’s Job Data page using the effective date of the Rehire or Return from Leave action and the Action/Reason code of Pay Rate Change/CRT (Chg Rate) and will increase the employee’s hourly rate to $12.00.
  • If the employee is newly hired or transfers into an eligible position prior to payment processing in Institution Pay Period 23 but after the appropriate effective date, OSC will automatically insert a row on the employee’s Job Data page using the effective date of the Hire, Position Change or Transfer action and the Action/Reason code or Pay Rate Change/CRT (Chg Rate) and will increase the employee’s hourly rate to $12.00.
  • OSC will automatically insert a row on the employee’s Job Data page using the Action/Reason code of Pay Rate Change/CRT (Chg Rate) for all subsequent rows provided the employee remains in an eligible position.
Agency Actions – Beginning Institution Pay Period 23C For eligible employees whose hourly rate in effect on or after the payment effective date is less than $12.00 and the rate was not automatically increased, CUNY should submit a Pay Change on the Job Action Requests page using the Reason code CRT (Chg Rate) using the appropriate effective date.

Agencies must update all subsequent effective dated rows provided the employee remains in an eligible position.

Agency Actions- Retroactive Processing Reporting Retroactive Adjustments

Time Entry earnings codes that are submitted with an amount, such as Adjustment (ADJ), Addl Job (AJB) or other override codes, will not be adjusted automatically.  The agency must calculate and submit retroactive adjustments for all miscellaneous earnings that will not be adjusted automatically using Earnings Code AJR.  Adjustments for nonresident aliens should be made using the Earnings Codes XAR, YAR, or ZAR

AJR (XAR, YAR, or ZAR) may be paid in a single lump sum amount or broken down into raise periods (i.e. 5/1/YY – 4/30/YY).  Detailed General Comments or a detailed worksheet must be available to OSC upon request.  AJR (XAR, YAR, or ZAR) must be entered on the Time Entry page as follows:

Earn Code:

AJR (Adjust Raise)

Earns Begin Date:

Enter first date to be adjusted

Earns End Date:

Enter last date to be adjusted

Amount:

Enter the total adjustment amount (may be negative if recovering an overpayment)

Comments:

Enter an explanation of the adjustment

For earnings that will be automatically adjusted by the system, such as RGS, RGH or OTE, agencies must adjust the system-calculated retroactive adjustment whenever:

  • the earnings were previously reported in Time Entry as a single entry; and
  • the dates reported overlap the effective date of an increase.

In these cases, the system will adjust all earnings based on the salary rate in effect on the Earnings End Date, and an AJR (or nonresident alien code equivalent) must be entered to adjust the earnings correctly.

Increases for employees who have had check reversals or exchanges, may not be processed correctly by the system.  Therefore, the agencies should review the retroactive adjustment calculated by the system for these employees and submit the necessary adjustment in a subsequent pay period.

If an overpayment of earnings is identified after the 02/16/2017 paycheck is confirmed, the employee must be notified of the overpayment and the adjustment that will be reported in a subsequent pay period.

Deduction Information All general deductions for employees whose Payroll Status is Terminated, Retired or Deceased will be automatically cancelled by OSC with the exception of the following:

Code

Description

406

Strike/Discip Fine

409

CUNY Disciplinary Fine

425

Repay State Loans/Debt

426

Higher Ed Repay State Loan

445

HC Flexible Spending

580

CUNY Medicare Deficiency Flat Rate

581

CUNY Social Security Deficiency Flat Rate

582

CUNY SS/Medicare Deficiency

603

TIAA Before Tax Arrears

604

TIAA After Tax Arrears

GARNSH

Garnishments



Tax Information These monies are taxable income and are subject to all employment taxes and income taxes.  The monies will be included in the employee’s taxable gross and will be reported on the employee’s Form W-2.

Payroll Register and Employee’s Paycheck/Advice All retroactive adjustments will be displayed on the Payroll Register using the appropriate Earnings Code and the amount paid and will be displayed on the employee’s paycheck stub or direct deposit advice using the appropriate Earnings Description and the amount paid unless the number of earnings codes exceeds 13.  Agencies should utilize Locked Query #49 to identify a complete list of regular earnings and retroactive adjustments if there are more than 13 earnings codes.

Deduction Information All general deductions for employees whose Payroll Status is Terminated, Retired or Deceased will be automatically cancelled by OSC with the exception of the following:

Code

Description

249

PSC Dues Grads Assistants

274

PSC Dues

290

PSC Agency Shop Fee

406

Strike/Discip Fine

409

CUNY Disciplinary Fine

425

Repay State Loans/Debt

426

Higher Ed Repay State Loan

445

HC Flexible Spending

467

Adjunct Dues PSC

468

Adjunct A/S PSC

470

PSC A/S Grad Assistants

580

CUNY Medicare Deficiency Flat Rate

581

CUNY Social Security Deficiency Flat Rate

582

CUNY SS/Medicare Deficiency

603

TIAA Before Tax Arrears

604

TIAA After Tax Arrears

GARNSH

Garnishments


Tax Information These monies are taxable income and are subject to all employment taxes and income taxes.  The monies will be included in the employee’s taxable gross and will be reported on the employee’s Form W-2.

Payroll Register and Employee’s Paycheck/Advice All retroactive adjustments will be displayed on the Payroll Register using the appropriate Earnings Code and the amount paid and will be displayed on the employee’s paycheck stub or direct deposit advice using the appropriate Earnings Description and the amount paid unless the number of earnings codes exceeds 13.  Agencies should utilize Locked Query #49 to identify a complete list of regular earnings and retroactive adjustments if there are more than 13 earnings codes.

Undeliverable Checks If the agency has made an effort to deliver the check to the employee but the check has been returned and is undeliverable, the agency should forward the check to the NYS Department of Taxation and Finance, Division of Treasury, per instructions in Payroll Bulletin No. 908.

Checks issued to eligible employees who are now deceased should be returned with a completed Next of Kin Affidavit (Form AC 934-P) and a Report of Check Exchange (Form AC 1476-P).  If a Next of Kin Affidavit has been previously submitted for a deceased employee’s payroll check, OSC will accept a photocopy of this form along with a new Report of Check Exchange.

Questions Questions regarding this bulletin may be directed to the Payroll Earnings mailbox.

Questions regarding Deductions may be directed to the Payroll Deduction mailbox.

Questions regarding Taxes may be directed to the Tax and Compliance mailbox.