This issuance provides information on how time spent in a non-pay status impacts employees’ payroll deductions, creditable service, and benefits/programs.

Placement into a non-pay status and/or the use of unpaid leave time reporting codes (TRCs) will affect employees’ payroll deductions, creditable service, and benefits. Employees do not receive compensation for hours while on unpaid leave, or while in a non-pay status.

Impact of Non-pay Statuses

The District government payroll system is designed by default, to allow certain elected employee benefits under the District of Columbia Employee Health Benefits program (DCEHB) to continue even when an employee goes unpaid during a bi-weekly payroll period. To prevent the employee from being dropped from certain elected coverages, the system will by default:

• Continue any District government employee elected health, life, vision, and dental benefits on a bi-weekly basis for up to a maximum of 365 days or until separation, irrespective of the cause or type of non-pay status; and
• Have the employee incur a debt for premiums owed for benefits coverage while in a non-pay status. Once an employee resumes a pay status or uses paid TRC codes, the District government will recapture the debt by deducting an amount of $50 per pay period for each individual benefit, in addition to premium costs. The employee may also elect to pay any debts owed as one lump sum when they return to a pay status.
  • Alternatively, to avoid incurring a debt, or to limit debts that may incur, the employee may elect to terminate benefits by filing a DC Form 1199 prior to entering a non-pay status, or while in a non-pay status.

An employee’s creditable service and leave accrual rates may be negatively affected depending on the type of non-pay status and/or use of unpaid leave TRCs.

An employee who wishes to continue non-Federal Employee Health Benefits (FEHB) or non-DCEHB benefits coverage will need to arrange with the provider to pay for those benefits directly if they are not doing so already.

If an employee who is entering, or is currently in a non-pay status is covered under the Federal Employee Health Benefit program, the employing agency should reach out to DCHR for assistance and guidance for allowing the employee to elect to continue their FEHB benefits in accordance with rules set forth by the United States Office of Personnel Management.

Types of Non-pay Statuses

Leave without pay (LWOP) refers to an approved absence in a non-pay status, either at the discretion of an agency head, or as required by law in some circumstances such as military duty or FMLA. As specified in the “Impacts” section below, the approved absence may impact: (a) the employees’ creditable service, and (b) the employees’ eligibility and financial responsibilities for benefits/programs.

Absence without leave (AWOL) refers to an unauthorized absence in a non-pay status. If in extraordinary circumstances an employee is AWOL for a period that extends beyond 30 days:

1. The employee’s creditable service for the purpose of leave accrual will be negatively impacted;
2. The employee may be subject to discipline in accordance with Chapter 16 of the District Personnel Manual; and
3. The employee’s eligibility and financial responsibilities for benefits/programs may be negatively affected.

Involuntary non-pay statuses, such as suspensions that extend beyond 30 days will negatively impact the employee’s length of creditable service, and may impact the employees’ eligibility and financial responsibilities for benefits/programs.

 Most Common Unpaid Time Reporting Codes (not-exhaustive)

Authorized Leave Without Pay

Generally, agencies have the discretion whether to grant leave without pay. Many times, agencies grant leave without pay when an employee exhausts all their paid leave options. In that case, the employee should complete a DCSF-1199 form as soon as possible to seek formal approval of leave and to determine if they will continue or terminate benefits coverage.

Unauthorized Non-pay Statuses

There may be extraordinary circumstances when an employee is absent for a full-pay period or more without explanation or authorization. Typically the agency should use the AWOL (Absent Without Official Leave) TRC code to record the absence, communicate with the employee to understand the circumstances and find a resolution. Agencies should also communicate the default payroll system’s continuation of certain benefits and the accrued debt, and the option to terminate benefits. Finally, agencies should also discipline the employee as necessary in accordance with Chapter 16.

Required Instances of Approved Leave Without Pay

Beyond discretionary use of approved leave without pay, there are instances when agencies must provide leave without pay. The following examples highlight some instances where agencies must provide LWOP:

1. When an employee is entitled to protected leave under the Family Medical Leave Act (FMLA).

Example: Debbie is out on FMLA, and she has exhausted close to all of her paid leave. However, she still requires another 30 days of leave according to her medical provider. While speaking with her FMLA Coordinator, Debbie notes that she’s not expected to return for at least another 30 days according to her medical provider. The FMLA Coordinator reviews her FMLA approval and notes it covers her beyond those 30 days. In this instance, Debbie must be placed on LWOP to cover the remaining portion of her leave. The FMLA Coordinator should also inform Debbie that she needs to complete a DCSF 1199 Leave of Absence Request and Benefits form.

2. When a disabled veteran needs medical treatment.

Example: George received an honorable discharge under disability from the US Marine Corps. He notified his supervisor that he needs to be on extended leave for necessary medical treatment. The amount of leave without pay is unknown but is likely to extend beyond a month. Under District personnel rules, George must be placed on LWOP for the duration of the necessary medical treatment. George and his agency must also ensure that he completes a DCSF 1199 Leave of Absence Request and Benefits form.

3. When a reservist and member of the National Guard is activated to perform military duties.

Example: Linda’s reservist unit was activated for a minimum six-month period. Her report for duty order leaves little time to schedule a sit-down meeting with her supervisor. As time is of the essence, her supervisor, Frank, already acknowledged receipt of her order through email. Frank sends her a DCSF 1199 Leave of Absence Request and Benefits form. Linda should complete the form prior to her departure.

An agency head may approve leave without pay up to a maximum of 52 calendar weeks. If additional leave is necessary beyond 52 weeks, DCHR or an independent personnel authority may extend leave without pay in unusual circumstances or when doing so is in the interest of the District government and it is known in advance that the employee will be absent for more than one year. However, health benefit coverage continues no more than 365 days within LWOP.

Once the agency has approved leave without pay (LWOP) for more than 30 days, the following actions must take place:

1. When an FMLA Coordinator, ADA Coordinator or immediate supervisor is aware of the use of LWOP, they should notify their agency HR Advisor immediately to complete a DCSF 1199.
2. Employee must complete the DCSF 1199 and determine if they will terminate benefits, or continue benefits and accrue a debt that will be paid upon their return to work.
3. The HR Advisor must initiate a PAR action in PeopleSoft and attach 1199 to the action.
4. If and when the employee returns to work, the HR Advisor must process the return to work PAR in PeopleSoft and email DCHR’s Benefits and Retirement Administration (BRA) at [email protected] of the impending return to work.
5. DCHR issues a balance notice of any debts incurred to the HR Advisor.
6. The HR Advisor provides the notice to the employee (see Balance Notice section below).

Employees enrolled in health benefits coverage who will be on extended LWOP must complete a DCSF 1199 Leave of Absence Request and Health Benefits form with their agency HR advisor. This notice:

1. Confirms the timeframe of an employee’s leave;
2. States an employee’s payment obligations for continuing health coverage;
3. Explains the agency’s obligations;
4. Conveys the employee’s notification requirements for return or resignation; and
5. Identifies the employee’s options to either continue or terminate coverage.

Additionally, when an employee’s immediate supervisor is aware of the use of extended LWOP, they should notify the agency HR advisor immediately, and ensure completion of the DCSF 1199.

Continuing Coverage

If an enrolled employee chooses to continue coverage during a period of extended LWOP, they must select the option on the DCSF 1199 and incur the debt. Individuals who choose to continue coverage during an extended LWOP period, or who incur a debt, must understand that the debt will accumulate during their absence. Once an employee resumes a pay status, the debt will be recaptured by the District in $50/pay period amounts in addition to premium costs. Alternatively, the employee may elect to pay the debt as one lump sum when they return to a pay status. 

Terminating Coverage

If an enrolled employee chooses to terminate coverage, they must select the option on the DCSF 1199. Coverage will continue for 31 days beyond the end of the pay period from which an employee terminates coverage.

Electing to terminate coverage will not affect the employee’s eligibility for coverage, and they may reenroll when they return. However, employees who wish to continue their health benefits coverage into retirement must restart their accrual of five years of continuous health benefit coverage enrollment to be eligible.

DCSF 1199 Record Retention

As previously discussed, the DCSF 1199 confirms the employee’s intention to continue or terminate health benefits coverage and describes the District’s responsibilities for continuation. Therefore, once the DCSF 1199 is completed, the HR Advisor must:

1. Provide a copy to the employee;
2. Retain a copy for the agency;
3. Submit a copy to DCHR’s Benefits and Retirement Administration at [email protected]; and

Submit a copy to OCFO’s Office of Pay and Retirement Service at [email protected].

Employees who choose to incur debt or have incurred debt for health benefits coverage will receive a Health Benefits Balance Notice from their HR Advisor. This balance notice includes:

1. The effective date of the DCSF 1199;
2. The total balance due from the employee as identified by OPRS; and
3. An explanation of the repayment process.

Disbursement of the Balance Notice must occur when the employee:

1. Returns to active work duty;
2. Pay becomes sufficient; or
3. Separation occurs.

After the notice is presented to the employee, the agency should retain a copy, and submit a copy to DCHR BRA at [email protected].

This issuance applies to those District government agencies subordinate to the Mayor’s personnel authority. Other personnel authorities or independent agencies may adopt any or all these procedures to provide guidance to employees under their respective agencies.

1. D.C. Official Code §§ 1-621.01 et seq
2. D.C. Official Code § 1-604.04