Mileage Policy Changes in Hennepin County

UPDATE 7/1/2008: Mileage Reimbursement Rate Increases: The mileage reimb. rate has increased by 8 cents to 58.5 cents per mile effective July 1 - Dec. 31, 2008. Parking rates remain the same.

UPDATE 4/24/2008: Mileage Grievance Settlement

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UPDATE 3/24/2008: It has been a long and circuitous road on this mileage grievance issue. Thanks go to Barb Harrison for being our member signatory on the official grievance form. More thanks go to Matt Nelson for carrying all of the information you have provided to his meetings with the Employer on this issue. And many thanks go to those of you who took the time to send us information when we asked for it. You helped us build the case to show the Employer that this issue did not affect just three or four employees as they originally contended. Instead, we have been able to show them that there are many folks who have been adversely affected by the change in the mileage policy. 

The Mileage and Parking Reimbursement Policy has been modified to account for those employees that are designated as having home offices that qualify as "Principal Places of Business".

You can read a Copy the Updated Mileage Policy Here for additional information.

The new mileage policy will be added to the online Admin. Manual hopefully within a couple of days.

On the Office of Budget and Finance's website is the form that will need to be completed / approved for employees to be reimbursed, under the "Home Office as Principal Place of Business" provision of the new policy (under "Principal Place of Business Designation Form"). All members who believe they are eligible should forward this form to their supervisor for completion and processing. 

You can view a Copy of the Principal Place of Business Designation Form Here

The new Principal Place of Business Form has been added to the Office of Budget and Finance (OBF) website for your access and use.

Follow the instructions for completing the form for reimbursement under the updated policy. Not everyone will qualify to have their office at home listed as a home office so please read the instructions carefully and complete the form as the information relates to you.  

Retroactive compensation will be processed for those employees who qualify under the new rule and can provide a record of their mileage eligibility and actual compensation for the period involved (5/1/2007 – present). 

Employees whose Principal Place of business is determined to be their home are eligible to receive mileage and parking to / from staff meetings. 

Thank you for your patience during this process. I know that it has been hard to do your job knowing that you were incurring a cost on behalf of the Employer that you were not being recompensed for. Hopefully, for the majority of you, this revision will help to get the compensation you deserve.

Jean Diederich, President, AFSCME Local 34

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UPDATE 2/14/2008: OBF (Office of Budget and finance) has not yet finalized their policy change and process, but when they do, eligible employees will be reimbursed retroactively for this mileage.  Christine Yates, Labor Relations Representative, Hennepin County

UPDATE 12/13/2007: The mileage reimbursement policy is still being evaluated by Labor Relations and management within the various Departments. Apparently, in order for the county to determine proper application of the policy to differing groups, they first need to determine consistency across jurisdictions. As this issue has now been pending for over seven months, we would hope they are able to finish their work before the end of the year, and respond to the union's grievance.

UPDATE 10/29/2007: AFSCME Local 34 continues to meet with the employer in an effort to resolve this grievance in a positive manner. The county is currently looking at all employees of the local that might be 100% telecommuters in an effort to draft agreeable language. The option of taking this issue to arbitration for settlement remains.

UPDATE 10/13/2007: Tentative date set for mileage grievance arbitration hearing - 12/3/2007.

UPDATE 9/25/2007: Jeffrey Jacobs has been chosen as the arbitrator for the mileage grievance. We are attempting to agree on dates for the initial hearing. We are hopping he is available before the end of October. We will continue to attempt a settlement with the county prior to formal arbitration if possible.

UPDATE 9/22/2007 - Arbitration Schedule Moving Forward: The county still has not responded to the grievance. A list of arbitrators has been chosen. We will proceed to arbitration in October/November depending upon the arbitrators schedule. At that time, we anticipate the arbitrator will rule on the arbitrability of the grievance filed. Assuming he/she finds in the affirmative, we will then move to the arbitration hearing itself.

UPDATE 8/23/2007 - letter from Bill Peters, Labor Relations to AFSCME Local 34 Business Agent, Matt Nelson.

August 21, 2007 

Mr. Matt Nelson

Business Agent

AFSCME Council 5

300 Hardman Avenue

South St. Paul, MN 

RE:       Mileage Reimbursement 

Dear Mr. Nelson: 

You have raised issues regarding Hennepin’s administration of our parking reimbursement policy as it relates to employees who telecommute. Labor Relations staff along with other county staff is reviewing your concern(s), our policies and Internal Revenue Service information. This is a complicated issue.  Therefore, the Employer requests additional time to thoroughly research this matter.  I believe we will be sufficiently prepared to respond to your concerns no later than September 7. 

I know you are interested in moving this matter to closure.  If you wish to proceed with your complaint by requesting a list of arbitrators from the State of Minnesota, Bureau of Mediation Services (BMS), please feel free to do so.  However, please understand that should this matter be eventually placed before an arbitrator, Hennepin reserves its right to argue arbitrability. 

If you have questions, please feel free to contact me at (612) 348-6511. 

Sincerely, 

William P. Peters

Labor Relations Director

Hennepin County

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UPDATE 8/1/2007: AFSCME Local had filed a grievance in opposition to the county’s change in the mileage reimbursement policy effective 5/2007. Labor relations initially asked for an extension of time to respond to the grievance. AFSCME agreed to the extension in an effort to resolve this matter positively. However, on 7/24/2007, Christine Yates from Labor Relations responded to our grievance with a denial letter. 

AFSCME Business Representative, Matt Nelson, responded to Labor Relations in a letter dated 7/27/2007 indicating “the union is not satisfied with the denial in the mileage grievance so we are appealing this grievance to arbitration”. We also requested an expedited move to arbitration so as not to delay this decision any further. Labor Relations has now requested a two-week delay in an effort to settle the grievance prior to arbitration. We will keep you posted!

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UPDATE 7/9/2007: Matt Nelson, Barbara Harrison and I met with Labor Relations for our mileage grievance. We had a good discussion about the issue as we explained the adverse effect this policy has had on our folks who work out of their homes – have no desk anywhere in a county building – and drive to see their clients. I sent an e-mail asking the telecommuters impacted to send me their mileage totals since May 1, 2007 along with the miles they have been able to claim. Here are the totals from the responses so far: total # of miles driven = 11,951 minus the total # miles claimed = 3925 and this equals the total # unreimbursed miles = 8026 times rate of $.485 which equals $3892.61 lost reimbursement for our members. This is just for the period May 1, 2007 – June 18, 2007 and is for the 17 members who have responded to date. If you are a “100%” telecommuter with your County provided desk, chair, phone/computer equipment and supplies at your home - and have not responded to the request for information - please do so as soon as possible, so that we can have as complete a picture as possible of how this policy has impacted our members.  Jean Diederich, President, Local 34

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UPDATE 6/18/2007: To Local 34 Members: Matt Nelson, Barb Harrison and I met with Chris Yates and Bill Peters from Labor Relations this morning regarding our Local 34 class action grievance on the mileage policy.  We had an open and honest discussion of the policy and it's impact on our members. The matter is not resolved as Management is still waiting for more information regarding the IRS regulations.

One of the pieces of information that we agreed was needed was the number of folks who have been adversely affected by the current policy.

So, to that end, if you are one of the folks who have had not been able to claim mileage or as much mileage as prior to the 5/1/07 policy effective date, please send me an e-mail detailing the following:

1) total number of miles you have driven for work since 5/1/07 along with number of client visits
2) total number of miles you have actually claimed for mileage since 5/1/07
3) name of your supervisor and program manager
4) your job class/title

Also, if you are not doing so, please keep track of the total number of miles you are driving - even if you have not submitted them for reimbursement under the new policy. Our goal is to make everyone who has been adversely affected "whole" - in other words, get those miles reimbursed as they would have been under the policy prior to 5/1/07.

Please share this with all your co-workers who are under the same constraints and ask that they also forward this information to me.

Thanks much,
Jean Diederich, AFSCME Local 34 President
MC 880
Phone: 612-348-0266

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UPDATE 5/29/2007: Representatives from AFSCME Local 34 are currently attempting to set up a meeting with Labor Relations regarding the mileage policy grievance filed recently. It is hoped that an initial meeting will take place soon.

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UPDATE 5/8/2007: Subject: Recent Changes to County Policies on Mileage for Telecommuters and for Meals - Based on the most recent e-mail sent out on April 26, 2007 reiterating the County's mileage policy, it does not appear that there will be relief for our members when it goes into place effective May 1, 2007.

Based on that e-mail, Local 34 has filed a grievance on a class action basis asking that our affected members be made whole as we feel the policy violates past practice as well and is a unilateral change of a term and condition of employment.  The specific article in our contract is Article 39. We have also asked to Meet & Negotiate on this issue.  Both requests cover all Departments where we represent folks.

This process does take time so we will not see results immediately. We will continue to keep you informed of any updates as they occur.

Thank you to everyone who has taken time to contact me, as well as other officers of the Local, to express your concerns and to share how this change in the policy will impact your individual situation.  All of that information will be included in the meetings with the Employer.

Please feel free to share this information with your coworkers. Jean Diederich, AFSCME Local 34

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UPDATE 4/26/2007: This communication is being sent to all HSPHD staff. It is primarily for use by those staff, and their supervisors, who are telecommuters and/or those who travel outside the metro area on behalf of the department.

Recently, you received a communication on updates to the county's Administrative Manual on changes to the county's policy for reimbursement of meals, mileage for 100% telecommuters, and per diem reimbursements when traveling.

We have received numerous questions about the changes to the meals and mileage policies.  Attached are fact sheets to help explain how the policies will be implemented in HSPHD.

Please note, as stated in the Administrative Manual, these changes were necessary to comply with IRS requirements and cannot be waived.

If you still have questions after reading the attached and reviewing the Administrative Manual, please email HSPH.Fin.Payables.

CLICK HERE to read the policy.

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UPDATE: (4/19/2007)

Travel Expense and Mileage Policy Changes Proposed - A Message from AFSCME Local 34 President, Jean Diederich (4/19/2007): Officers of Local 34 received a huge volume of phone calls and e-mails regarding the 4/17/07 HSPHD Communications notice regarding the county policy changes to travel expense and mileage reimbursement . We discussed this for over an hour at our Executive Board meeting last night with the upshot that we would ask that the changes be held off until we have had an opportunity to meet with the Employer to review the changes.

Below is the response I received from Curt Haats, Office of Budget and Finance. I asked for his okay to share this with you and it was given. What this means is that those of you who submit your mileage reimbursements for your County work can do so as you have been doing. The Local will continue to stay on top of this issue. Jean

Synopsis of Message sent to Curt Haats from AFSCME Local 34 (4/19/2007): At this time , Local 34 is asking that the implementation of the mileage reimbursement policy be placed on hold until such time as the Union has had an opportunity to sit down with the Employer to discuss this change. We feel very strongly that the adverse impact this policy will have on our members who have mileage reimbursement due to the nature of the work they do for the Employer warrants a complete and thorough review.

Response from Curt Haats to AFSCME Local 34 (4/19/2007): Thanks Jean. As a change in county policy, HSPHD does not have the ability to officially not implement this. However, I will forward your concerns to the Office and Budget and Finance and have directed Finance staff processing these reimbursements to operate on a "business as usual" mode until directed by County Administration.

Also, as we discussed, please be aware, that the policy change, as we discussed, really isn't a change in policy but an implementation of Internal Revenue Services requirements. There is substantial risk to the county and its employees of not implementing these rules. Curtis L. Haats, Chief Financial Officer, Hennepin County Human Services and Public Health