Memorandum of Understanding Concerning the Payroll Calendar for Full-time, Non-52 Week CTU Bargaining Unit Employees

This Memorandum of Understanding (“MOU”) is entered into this 14th day of August 2024, between the Chicago Board of Education (“Board”) and the Chicago Teachers Union (“CTU” or “Union”) (collectively, the “Parties”).

WHEREAS, the Board and the Union are parties to a collective bargaining agreement effective July 1, 2019 to June 30, 2024 (“CBA”);

WHEREAS, the CPS Academic Calendar includes 8 unpaid non-work days for full-time non-52-week bargaining unit employees;

WHEREAS, this results in full-time, non-52-week bargaining unit employees receiving paychecks with varying gross amounts for pay periods that include unpaid days during the week of Thanksgiving and the second week of Winter Break; and

WHEREAS, the Parties desire to adopt a payroll calendar that will smooth the distribution of full time, non-52-week bargaining unit employees’ annual salaries by eliminating the 8 unpaid non-work days during the Work Year (“Work Year”) of an employee’s respective pay group (e.g., 208-day employee pay under Article 19 of the CBA being distributed across 216 days).

NOW, THEREFORE, the Parties agree as follows:

  1. “Work Year” Defined. For the purposes of this MOU only, an employee’s “Work Year” is defined as the first day an employee’s pay group reports for an academic year through the last day an employee’s pay group reports for that same academic year. The number of pay periods in a Work Year may vary based on the start and end dates of the academic year.

  2. Gross Salary Distribution. The annual salaries of all full-time, non-52-week bargaining members will be distributed smoothly across each member’s Work Year, including the following 8 non-work smoothing days:

    1. Monday, Tuesday, and Wednesday of the week of Thanksgiving; and

    2. The Monday through Friday of the second week of Winter Break.

  3. Annual Salaries. This MOU shall have no impact upon bargaining unit employees’ gross annual salary amounts, only on the schedule on which they are distributed.

  4. Daily and Hourly Rates. The hourly and daily rates for full-time, non-52 week bargaining unit employees for purposes of their regular standard hours (which include benefit time and days listed in Article 19 and 43 of the CBA) will be calculated according to each employee’s annual salary to be distributed smoothly over their Work Year as outlined herein. Rates for the following will be determined in accordance with past practice (e.g. for 208 day employees, pay will be calculated as annual salary/208 days/employee’s standard hours) and Article 36-2 of the CBA:

    1. overtime to non-exempt employees,

    2. payment for missed preparation periods under Article 27-5,

    3. payment for summer school, and

    4. payment for before and after school programs.

  5. Deferred Pay. The change to the payroll calendar under this MOU is not a deferred pay plan. To be paid on the days listed in 2(a) or (b), an individual covered by this MOU must be an employee of CPS on the day(s) identified under 2(a) or (b), subject to the vacation day accrual provisions under Article 43 of the CBA.

  6. Fair Labor Standards Act (FSLA) Nonexempt Bargaining Unit Employees. Some PSRP bargaining unit employees, by virtue of their rate of pay and job duties, are nonexempt employees under the Fair Labor Standards Act. Such FLSA nonexempt bargaining unit employees shall also receive their paychecks in accordance with the terms of this MOU, but shall additionally receive any overtime pay earned on top of their regular salary for that pay period if they work an excess of 40 hours.

  7. Illinois Wage Payment Collection Act (IWCA). Consistent with applicable law, including the IWCA, and the parties’ collective bargaining agreement(s), this MOU is considered a waiver of the employees’ rights under the IWCA, (a) to pay non-exempt employees for all wages earned during a semi-monthly or bi-weekly pay period within 13 days after the end of the pay period and to pay wages earned during a weekly pay period within 7 days after the end of the pay period; and (b) to pay exempt employees all wages earned within 21 days after the end of the period for which they are earned. Nothing herein shall constitute a waiver of any other provision of applicable law.

  8. Effective Date and Applicability. The annual salaries of all full-time, non-52 week bargaining unit members will be distributed according to the terms of this Agreement, effective at the start of each employee group’s Work Year, beginning with the 2024-2025 school year. There will be no option to opt-in or opt-out. These changes will not impact bargaining unit employees in 52-week or part-time bargaining unit positions. This MOU does not impact or change how vacation days for members accrue or are paid pursuant to Article 43 of the CBA. The terms herein shall be effective unless and until the parties’ achieve agreement on different terms. Stipend pay and pay rates set by the CBA (e.g. instructional and non-instructional rate) are not impacted by this MOU.

  9. Grandfathered Sick Day Payouts. For purposes of payouts under Article 37-4 of the CBA of unused sick days earned prior to July 1, 2012, an employee’s daily rate shall be calculated per past practice prior to the execution of this MOU (e.g., using the 208-day work year for 208 day employees under Article 19 of the CBA).

  10. Pensions. The changes to salary distribution under this MOU shall have no adverse impact on any bargaining unit employee’s pension service credit. CPS will report the salary paid to each bargaining unit employee earned each pay period.

  11. CBA Proposals. This MOU shall not impact any outstanding CTU proposal under consideration in the negotiations for the successor CTU agreement.

BOARD OF EDUCATION OF THE CITY OF CHICAGO
Miguel Perretta Chief Labor Relations Officer

CHICAGO TEACHERS UNION LOCAL 1, AFT-IFT, AFL-CIO
Thad Goodchild, Attorney for CTU

Dated: August 14, 2024