Flexible Work Arrangements

Scope

This Flexible Work Arrangements Fiscal Policy (the “Policy”) applies to all permanent classified and non-classified employees in the State of Colorado (the “State”) as well as temporary employees, excluding Institutions of Higher Education, and the Judicial and Legislative branches. This Policy should be used in conjunction with the Flexible Work Arrangements Universal Policy. Universal policies issued by the State Personnel Director can be found on the Division of Human Resources Universal Policies public website.

General Purpose 

As an employer, the State recognizes the value of flexible work arrangements to an employee’s work-life balance and overall productivity. Additionally, flexible work arrangements assist the State in reducing leased office space, reducing emissions, and expanding office hour availability for customers. Flexible work arrangements are important for recruiting, retention, and achieving the State’s goal of being an employer of choice. This Policy provides fiscal guidance regarding flexible work arrangements.  An agency may have specific policies and procedures in place that employees should follow along with this Policy.

Definitions

• Appointing Authority – An individual who is the head of a division or office, is ultimately responsible for the business operations in their respective areas, and has been formally delegated by the Department Executive Director. Appointing Authorities are responsible for establishing work schedules and work locations. Appointing Authorities may delegate decisions related to flexible work arrangements to members of a management team.
• Flexible Work Arrangements – Includes alternate work schedules and work locations, including hoteling, mobile work, Remote Workplace, Hybrid Workplace and onsite work in a State office or facility. Flexible work arrangements are different from positions that have been designated as full-time remote workplaces as part of reducing the State’s physical footprint.  
• Hoteling - Employee does not have an assigned workspace at a State office or facility, but the employee can use a workspace in a State office or facility for a period of time.
• Local Tax Areas – Localities that have an Occupational Privilege Tax (OPT) due to working in that location. These localities include Denver, Aurora, Glendale, Greenwood Village, and Sheridan.
• Occupational Privilege Tax (OPT) – Local tax payable by the State and employees for employees working in one of the Local Tax Areas in the State.  The OPT threshold is based on earnings per month and varies in each of the Local Tax Areas.  See table below of the location to use for OPT for each Employee Workplace:

• Official State Business Purposes – Activities that support the interests of the State, not the personal interests of individual employees.
• Employee Workplace
  • Hybrid Workplace – Employee has an available workspace at a State Workplace.  The employee may regularly work a combination of days at a remote location and days in the office or the employee may work primarily remotely and come into the office based on business needs. The employee may have an assigned workspace or use options such as Hoteling to reserve their in-office workspace.
  • Remote Workplace – Employee does not have an available workspace at a State Workplace.  Employee regularly works in a remote workplace at their home or in some location that is not a State Workplace. The position is designated as remote as part of department space planning and flexible work agreement, due to the nature of the employee’s job duties or through the executive director’s directive. This category includes: 
    • In-state employees who work in a remote workplace. For out-of-state employees, Explanation of Superscripts used in the Tables (a).
    • Mobile Workers - Employees whose job responsibilities require the employee to be away from the state workplace or remote workplace for much or all of the workday due to customer or community interaction. 
  • State Workplace – Employee regularly works in a State office or facility and may have temporary or ad hoc flex place arrangements but not an established agreement. State Workplace includes locations where the State owns or leases a facility or office and includes workspace for employees to perform their job duties. An employee is considered to be working in a State Workplace if the employee works four days or more per week in a State Workplace.
• Testing Site – State-approved site for coronavirus testing.
• Workday – Regularly scheduled hours as defined by the employee’s Appointing Authority.

Implementation Requirements

• In accordance with the Universal Policy and Flexible Working Arrangements, each state agency shall establish a policy regarding eligibility for flexible work arrangements and shall also follow this Fiscal Policy.
• Every state agency shall identify each employee’s standard schedule using one of the following categories: 
  • Remote Workplace  
  • Hybrid Workplace
  • State Workplace  
• Each state agency shall be responsible for identifying, validating and updating each employee’s workplace and home address in Colorado Personnel and Payroll System (CPPS), the State’s payroll system, based on the assigned category defined in this Policy.  The assigned categories are used to determine the applicability of the Occupational Privilege Tax.
• Employees shall perform their job duties during their scheduled workday in the workplace as determined by the employee’s Appointing Authority.
• Each state agency should refer to the State’s Flexible Work Arrangements Universal Policy for additional information.

Implementation Timing

• Flexible Work Arrangements Fiscal Policy is effective September 7, 2021
• Transition plan for identifying employees’ workplace
  • Status quo – September 8, 2021 to December 31, 2021 – no changes in CPPS for employee classifications.  
  • Transition – January 1, 2022 to November 18, 2022
    • Agencies identify employees into one of the three categories.
    • Agencies can implement on January 1, 2022
    • Agencies shall complete the classification by November 18, 2022
    • No retroactive adjustments for local occupational privilege tax.  Prospective only beginning when agency completes the employee classifications in CPPS.

Expenses

• IRS Home Office Deduction – An employee working in a remote workplace is not eligible to deduct home office expenses.  See IRS Publication 587 Business Use of Your Home.
• Home Office Expenses - Items for the home office may be reimbursed or provided by the State as described below.

Employee Reimbursement

The State may reimburse approved out-of-pocket expenses for Official State Business Purposes to employees in Remote, Hybrid or State workplaces, as described in the table “Employee Reimbursement Categories.”  An employee must follow the approval and reimbursement process in 1CCR 101-1, State of Colorado Fiscal Rules, Chapter 5, Travel (CCR 101-1, State of Colorado Fiscal Rules, Chapter 5, Travel (Fiscal Rule 5-1)) and all appropriate agency authorization requirements for purchasing items for an employee's use. In no case shall the State reimburse the employee for personal expenses. Refer to the Explanation of Superscripts used in the Tables below for an explanation of the superscripts in this table.

State Agency Purchases for Employees 

The State shall provide an employee with the tools necessary to perform their duties, as described in the table “State Agency Purchases for Employees.” For most office workers, this would include one computer, one keyboard, and one mouse, and one or two monitors if required for the position.  Agencies may provide additional tools for office workers depending on the individual employee needs and job requirements. For all employees working in a Hybrid Workplace, the State shall not provide the employee with duplicates of these items for both remote and state workplaces. For employees who are working in a remote workplace, a state agency may provide additional items depending on the need and availability, and provided the employee returns these items to the State when the employee is no longer working in a remote workplace. Refer to Explanation of Superscripts used in the Tables for an explanation of the superscripts.

Employee Payroll Deductions

A state agency shall deduct local tax depending on the employee’s primary work and home locations, parking at employee’s option, and RTD or public transportation at the employee’s option, as described in the table “Employee Payroll Deductions.” Refer to Explanation of Superscripts used in the Tables for an explanation of the superscripts.

Employee Wages and Salaries

Payment of employee wages and salaries depends on the employee’s job duties, Fair Labor Standards Act (FLSA) classification as exempt (not overtime eligible) or non-exempt (overtime eligible), and the employee’s workplace as determined by the employee’s Appointing Authority. Refer to Explanation of Superscripts used in the Tables for an explanation of the superscripts.

For additional information, please refer to the Division of Human Resources’ Technical Guidance on Wages, Hours Worked, and Overtime, Flexible Work Arrangements Universal Policy, or the Fair Labor Standards Act (Note: Access to DHR Technical Guidance is restricted to Human Resources Professionals).

Other Considerations

• Agencies shall determine the consequences for violations of this Policy.
• If an employee separates and is working in a Hybrid or Remote Workplace, the state agency shall request that the employee come into the State Workplace and return any State property that the employee used. If the state agency determines that coming into the state workplace is not feasible, the state agency shall require the employee to make alternate arrangements for the return of the State property before the employee’s separation. If the employee refuses, the state agency may pursue any applicable legal remedies to recover the equipment or value of the equipment not returned.
• If an employee loses or damages the State-owned property, that employee is responsible for paying for its replacement at its current cost unless sufficient evidence is provided that the State-owned property was stolen, damaged, or lost outside that employee’s control. An employee is not responsible for unintentional damages incurred during the normal course of work for the State of Colorado.  The Department’s Executive Director may make exceptions.

Explanation of Superscripts used in Tables Above

• (a) Working remotely outside of Colorado: Authority lies with the agency’s Appointing Authority under 4 CCR 801-1, State Personnel Board Rules and Director’s Administrative Procedures (Personnel Rule 1-9) to determine work location. However, work from outside of the State of Colorado should only be on a temporary, not permanent, basis. The Colorado Constitution requires that state employees reside in Colorado. An employee must, at a minimum, meet (1) and (2) below. An Appointing Authority and Department HR Director should only grant a request if (1) and (2) are met, and only after taking into account, the remaining considerations listed.  

  • (1) The employee maintains their permanent residence in Colorado, as defined by IRS guidelines and Colorado Department of Revenue guidelines for principal home residence; and  
  • (2) The employee confirms, in writing, the temporary nature of their request and the state business purpose to work remotely outside of Colorado.

  Flexplace guidance applies to the employee and supervisor having a documented flexible work agreement in place that aligns with the agency’s policy, as well as to employees working in state in positions designated as remote. This information does not apply to positions that are permanently allowed to be out of state, or have met the Colorado Constitutional definition of within 30 miles of the Colorado border. Additionally, unlike work from anywhere in Colorado, there are multiple additional considerations to allowing an employee to work out of state. The decision will need to be coordinated within the agency with leadership, payroll and HR before an Appointing Authority approves remote work from outside of Colorado. The considerations include the other state’s employment laws, taxation, timekeeping, workers’ compensation, unemployment, any travel reimbursement, official state business purpose, and job duties. 
  
  International remote work shall not be allowed unless the position’s duties require international travel to conduct official State business. The arrangement must be approved by a Department Head, HR Director, the State’s Chief Information Security Officer, and the State Personnel Director. If approved, all international remote work for the purposes of conducting official State business must comply with the Acceptable Use Policy.  From Universal Policy. International includes US territories. 

• (b) See State Controller “Mileage Reimbursement” Policy and State Controller Technical Guidance, “Taxability of State Travel, Transportation, and Commuting.”  
• (c) Mileage to comply with Governor’s directive regarding testing for coronavirus for State employees.  
  • (1 )Agencies shall reimburse employees in a remote workplace for mileage to and from the testing site and the remote workplace.
  • (2) Agencies shall not reimburse employees in Hybrid Workplace for mileage if the testing site is less than an employee’s normal commute.  If the mileage is greater than the employee’s normal commute, agencies shall reimburse an employee in a Hybrid Workplace to the extent that the number of miles between an employee’s home to a testing site exceeds the employee’s normal commuting miles from the employee’s home to the State Workplace.  
  • (3) Agencies shall not reimburse employees in a state workplace for mileage if the testing site is within 15 miles of the State Workplace.  If mileage is greater than 15 miles, then agencies shall reimburse an employee in a state workplace for total miles traveled to and from the testing site and the State Workplace.  Most employees will be within 15 miles of a test site.
  • (4) An agency may reimburse employees for transportation expenses to and from the testing site and the remote workplace if the employee does not have a vehicle or if an alternative method of transportation is the most economical.  
• (d) Agencies may provide hot spots or reimburse for internet access in limited situations for mobile workers where these workers need internet access to complete their job duties while traveling and when required to perform their job duties and with pre-approval from the department controller.  
• (e) For agencies under OIT’s authority, OIT purchases this equipment. See OIT Policy “Acquisition of Information Technology Goods and/or Services,” Items Requiring OIT’s Prior Approval. Agencies outside OIT’s Authority, should consult their agency’s policy regarding IT purchases. 
• (f) Agencies under OIT’s authority may purchase these items without OIT approval. See OIT Policy “Acquisition of Information Technology Goods and/or Services,” Items Not Requiring OIT’s Prior Approval. Agencies outside OIT’s Authority, should consult their agency’s policy regarding IT purchases. All of these purchases must be exclusively for State business purposes.
• (g) See State Controller Policy, “Cell Phones.”
• (h) Agencies may reimburse or purchase toner cartridges in limited situations for mobile workers to print inspection reports or other information for customers or the public as part of the services performed by that agency with pre-approval from the department controller.   For employees assigned to Hybrid Workplace, the table addresses agency purchases for the employee’s home.
• (i) If employee has ADA compliance or ergonomic needs, employee should notify employee’s HR department for an evaluation to determine if these items are eligible for purchase. Contact Colorado Correctional Industries(CCi) Surplus Property for items available for purchase.  For employees assigned to Hybrid Workplace, the table addresses agency purchases for the employee’s remote location.
• (j) Agencies shall determine how to provide supplies to their employees. Purchases are subject to agency budget availability.
• (k) Agencies shall enter the local tax code in CPPS. The local tax code is based on the following:
  • (1) Use the table in §9 of this Policy to determine whether the Occupational Privilege Tax (OPT) applies and should be a deduction.
  • (2) Use the table in §3 of this Policy for the local OPT to use.  If an employee works in a Hybrid Workplace, and both the State Workplace and Remote Workplace have an OPT, then the employee will pay only one OPT and this will be the tax for the employee’s Primary Work Location.
  • (3) Out-of-State Remote Work – OPT and Tax Tables
    • An employee shall obtain prior approval for out-of-state remote work.
    • If an employee’s out-of-state remote work is expected to last for 8 weeks or less in a calendar year, then it is temporary and a State Agency shall not update the OPT and tax tables .
    • If an employee’s out-of-state remote work is expected to last for more than 8 weeks, then is is considered permanent and a State Agency shall update the OPT and tax tables for the remote location.
    • If an employee’s assignment is longer than 8 weeks and the employee returns to Colorado, a State Agency shall updated the OPT and tax tables for Colorado.
• (l) If an agency provides employees with a commuter benefit or parking, an employee may elect to pay for parking, RTD or public transportation even though the employee is working at a remote workplace. If an employee declines parking, then the employee will no longer hold their assigned State parking space. If an employee declines RTD or public transportation, then the employee will not receive an RTD bus pass. Employees should follow the policy of the managing parking division regarding sharing of a parking space.
• (m) Agencies should consult their HR Office for guidance on the specific situation.  Meeting at the State Workplace with an employee team or manager is not a conference.

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