Controller’s Office Proposes Policy Change to Compressed Workweek May 3, 2010

 Houston, TX – The City Controller’s Office released a proposed change to the Compressed Workweek benefit that could save the City approximately $650,000 per year. This benefit provides exempt employees the opportunity to utilize a compressed work schedule of 80 hours per pay period to be performed in nine days over two weeks, or four ten-hour work days per week.

This option then allows the employee to take the remaining time in a pay period as a “Compressed Day Off” (CDO). Currently, if the scheduled CDO falls on a City paid holiday, the employee gets compensated for both the holiday and the CDO, in essence, paying the employee for 88 hours instead of 80. In calendar year 2009, the City paid these additional funds to approximately 1,100 employees totaling a little over $612,000.

The proposed change would allow the employee to substitute an alternative CDO within the same pay period as the holiday, while being compensated for the scheduled 80 hours, thus eliminating the additional cash payment.

“Our Audit team did a terrific job of quickly identifying a cost-savings measure that can be immediately implemented,” said Controller Ronald Green. “By working with the Administration, I am confident we will continue to close the budget gap for this fiscal year.”

The Audit Division and the Operations and Technical Services Division of the Office of the City Controller, along with members of the City’s Payroll function contributed to the analysis.

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