HomeMy WebLinkAboutStaff Report 2305-153722.Approval of Office of City Auditor Remote and Flexible Work Study Report; CEQA Status
– Not a Project
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Auditor
Meeting Date: June 19, 2023
Report #:2305-1537
TITLE
Approval of Office of City Auditor Remote and Flexible Work Study Report; CEQA Status – Not a
Project
RECOMMENDATION
The Policy and Services Committee, City Auditor, and Staff recommend that the City Council
approve the Remote and Flexible Work Study Report.
BACKGROUND
Baker Tilly, in its capacity serving as the Office of the City Auditor (OCA), performed a citywide
risk assessment that assessed a wide range of risk areas, including strategic, financial,
operational, compliance, technological, and reputation risks. The purpose of the assessment was
to identify and prioritize risks to develop the annual audit plan.
During the FY2022 risk assessment (ID#13914)1, the OCA identified recruitment and retention
challenges and need for a study of remote positions which affect recruitment and retention as
many people prefer remote positions.
Baker Tilly presented the attached report during the Policy & Service Committee meeting on
April 26, 2023, where the report was approved as follows:
MOTION: Council Member Veenker moved, seconded by Chair Tanaka to recommend the
City Council:
A. Accept the Office of the City Auditor Remote and Flexible Work Study Audit Report, and;
B. Request that the City Manager’s Office include in the staff report to Council an analysis of
pre-Covid full onsite performance evaluations compared to current Hybrid/Remote work.
MOTION PASSED: 3-0
1 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council-
agendas-minutes/2022/20220404/20220404pccsmamendedlinked1.pdf
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The Committee asked the City Attorney to provide follow-up information regarding the operation
of State worker’s compensation law in the remote work context. The City Attorney’s response
can be found at Attachment B.
DISCUSSION
The objectives of the review were to:
1) Evaluate the alignment of remote and flexible work policy and procedure to best
practices.
2) Identify position eligibility criteria for remote and flexible work schedules.
Through conversations with the Human Resources management staff, analysis of current
applicable remote work policies, and market research, Baker Tilly created a framework for the
implementation of a remote and flexible work study program. This framework includes the use
of a criteria tool and two potential options for the implementation of the framework. The tool
can be used to objectively evaluate City positions for remote and flexible work eligibility.
The report provides market trend research to inform future implementation for this
recommended framework and optional surveys to distribute to City employees for assistance in
the determination of remote and flexible work eligibility.
The Policy & Services Committee motion included request for staff to provide a comparison of
pre-Covid full onsite performance evaluations compared to current Hybrid/Remote Work.
HR staff reported that currently this data is collected in an electronic format only for
Management and Professional employees. The following information compares pre-Covid full
onsite performance rating results in comparison to most current performance ratings since
eligible employees have been working a Hybrid/Remote work schedule. The performance
ratings for pre-Covid FY19, in comparison to FY22 did not indicate performance rating decline
or productivity decrease. In FY19 there were 177 managers and professionals who were
evaluated: 117 exceeded expectations; 53 met expectations and 7 needed improvement. In FY
22, there were 176 managers and professionals who were evaluated: 118 exceed expectations;
57 met expectations and only 1 employee in this group was rated as needing improvement.
Overall, there were similar results in the performance ratings pre-Covid in FY19 in comparison
to FY22 and improved ratings for employees who had been rated as “needing improvement” in
FY19. As stated to the Policy & Services Committee, since there are between 80% - 90% of
employees working on-site between Monday through Friday, it appears there is no impact to
performance and productivity by allowing employees the option to work a hybrid schedule.
FISCAL/RESOURCE IMPACT
The corrective action plans and the timeline for implementation are identified within the
attached report.
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STAKEHOLDER ENGAGEMENT
The Office of the City Auditor worked primarily with Human Resources Department and
engaged with additional stakeholders, including the City Manager’s Office and the City
Attorney’s Office, as necessary.
ENVIRONMENTAL REVIEW
This activity is not a project under California Environmental Quality Act (CEQA) as defined in
CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or
reasonably foreseeable indirect physical change in the environment.
ATTACHMENTS
Attachment A: OCA-Remote and Flexible Work Study
Attachment B: Response to PS Worker’s Comp Waiver Questions 05.31.23
APPROVED BY:
Adriane D. McCoy, City Auditor
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City of Palo Alto
Office of the City Auditor
FY21/22 Remote and Flexible
Work Study
March 14, 2023
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Executive Summary
Purpose of the Audit
The purpose of this audit was to:
1) Evaluate the alignment of remote and flexible work policy and procedure to best practices
2) Identify position eligibility criteria for remote and flexible work schedules
Report Highlights
Category/Theme Page # Recommendation
Remote Work Policy Pg. 6
The City should revise the current policy to strengthen its teleworking risk
mitigation and further clarify the remote work arrangement between its
employees and departments. The City should also implement a periodic review
of its telework policy in annual intervals to ensure content is current and still
meeting department needs.
Remote Work
Procedures Pg. 7
The City should revise the current agreement form to include a more robust list
of employee obligations to improve the clarity of responsibilities for remote
workers and their departments. The City should also ensure that the agreement
form reflects the content of the current teleworking policy.
Position Eligibility Pg. 7
We recommend the development of a standardized criteria for position remote
and flex work eligibility. All positions should be evaluated for full remote, partial
remote/flex schedule, and ineligible remote work. Once position eligibility is
determined, the City should follow existing policy to review individual employee
eligibility for all eligible positions.
Opportunities
Remote Work
Best Practices
Pg. 8
We provide context to consider for future implementation of a remote and
flexible work policy to remain current and competitive in the hiring market and
considerations for executing a position eligibility assessment. Summarized by:
- Early Covid-19 Pandemic Workforce Response
- Sustaining Remote Workforce Responses
- Future Workforce Challenges
Position Eligibility
Framework Pg. 9-11
We recommend a six-step framework for position eligibility implementation:
- Creation of a framework
- Creation of a communication plan
- Selection of pilot departments
- Pilot department evaluation with two approaches
- Modification of the implementation plan
- Implementation of position evaluation
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Table of Contents
Executive Summary ........................................................................................................................................................... 2
Purpose of the Audit ..................................................................................................................................................... 2
Report Highlights ........................................................................................................................................................... 2
Objective........................................................................................................................................................................... 4
Background ..................................................................................................................................................................... 4
Scope................................................................................................................................................................................. 4
Methodology .................................................................................................................................................................... 4
Compliance Statement.................................................................................................................................................. 4
Organizational Strengths ............................................................................................................................................. 5
Category/Theme ............................................................................................................................................................. 6
Analysis on the Future of Remote Work ...................................................................................................................... 8
Appendices ........................................................................................................................................................................ 12
Appendix A: Sample Policy Modifications ............................................................................................................ 12
DEFINITIONS ..................................................................................................................................................................... 15
POLICY ................................................................................................................................................................................ 15
PROCEDURE ..................................................................................................................................................................... 16
ELIGIBILITY ........................................................................................................................................................................ 17
CONDITIONS ..................................................................................................................................................................... 17
Information Security and Protection ................................................................................................................................ 19
Ad Hoc Arrangements ....................................................................................................................................................... 19
Exceptions ........................................................................................................................................................................... 19
Appendix B: Hybrid Work Agreement Form ......................................................................................................... 20
Appendix C: Position Eligibility Criteria ................................................................................................................ 23
Appendix D: Management Response ..................................................................................................................... 24
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Introduction
1 Government auditing standards require an external peer review at least once every three (3) years. The last peer review of the Palo
Alto Office of the City Auditor was conducted in 2017. The Palo Alto City Council approved a contract from October 2020 through
Objective
The purpose of this audit was to:
1) Evaluate the alignment of remote and flexible work policy and procedure to best
practices.
2) Identify position eligibility criteria for remote and flexible work schedules.
Background
The City of Palo Alto’s Human Resources Department states they "strive to recruit, develop,
and retain a diverse, well-qualified and professional workforce that reflects the high
standards of the community we serve. The department’s key responsibilities are:
Employment Recruitment & Selection, Employee Benefit Administration, Employee Training
& Development, Employee and Labor Relations, Compensation & Classification
Administration, Risk Management, Safety and Workers Compensation and
Volunteer Administration.
As part of the FY2022-2023 Audit Plan approved by the City Council, a Remote and Flexible
Work Study audit was authorized. Through conversations with the Human Resources
management staff, analysis of current applicable remote work policies, and market research,
Baker Tilly created a framework for the implementation of a remote and Flexible Work Study
Program. This framework includes the use of a criteria tool and two potential options for the
implementation of the framework. The tool can be used to objectively evaluate City positions
for remote and flexible work eligibility.
The report provides market trend research to inform future implementation for this
recommended framework and optional surveys to distribute to City employees for assistance
in the determination of remote and flexible work eligibility.
More details on this framework are included in the Methodology and Detailed Testing
Results section.
Scope The scope of this engagement includes remote work policies, procedures, and eligibility
effective as of June, 2021.
Methodology
The Baker Tilly team conducted the following audit activities to meet the engagement
objectives:
Interviewed Human Resources staff to understand the current state, benefits, and
barriers of remote work,
Reviewed relevant policies and procedures,
Identified industry-relevant criteria to be used for evaluation,
Researched best practices, as well as remote work trends and challenges.
Compliance
Statement
This audit activity was conducted from May 2022 to July 2022 in accordance with generally
accepted government auditing standards, except for the requirement of an external peer
review1. Those standards require that we plan and perform the audit to obtain sufficient,
appropriate evidence to provide a reasonable basis for our findings and conclusions based
on our audit objectives. We believe that the evidence obtained provides a reasonable basis
for our findings and conclusions based on our audit objectives.
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June 2022 with Baker Tilly US, LLP (Baker Tilly) and appointed Kyle O’Rourke, Senior Consulting Manager in Baker Tilly's Public Sector
practice, as City Auditor. Given the transition in the City Audit office, a peer review was not conducted in 2020 and will be conducted
after the third year of Baker Tilly’s contract.
Organizational
Strengths
During this audit activity, we observed certain strengths of the City. Key strengths include:
Dedicated Human Resources staff committed to the organization.
A commitment to providing excellent service delivery in the community while
balancing the needs and safety of City employees.
Staff awareness regarding the ever-changing landscape of the remote work
environment in a post-covid workplace.
The Office of the City Auditor greatly appreciates the support of the Human Resources
Department in conducting this audit activity.
Thank you!
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Testing Results
During our assessment, we identified three key documents of improvement for Palo Alto to implement related to remote
work practices. The areas assessed, results of each assessment, and our recommendations for improvement are shown
below.
Policy and procedure criteria were based upon Society for Human Resources best practice documents:
SHRM Telecommuting Policy and Procedure
SHRM Short Term Telecommuting Agreement
International Public Management – Human Resources Association remote work best practices
Category/Theme
Document name
Finding
# Finding Recommendation
Remote Work
Policy
2-38/HRD Remote
Work Policy
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The City last updated the Remote Work
policy in June of 2021 in consultation with
City management, modifying the original
to accommodate telework modification
required as a result of the COVID-19
pandemic. The City's Remote Work
Policy is missing components that will
strengthen and clarify the remote work
arrangement between employees, their
departments, and the City. Some
components were recommended by
Human Resources during the most recent
revisions, but discussions with City
management resulted in their omission
from the final policy. The current policy
leaves the City susceptible to holding
employees accountable for attendance
and performance issues, City property
inventory discrepancies, and dependent
care responsibilities.
The City should revise the current
policy to strengthen its teleworking
risk mitigation and further clarify the
remote work arrangement between
its employees and departments. The
City should also implement a periodic
review of its telework policy in annual
intervals to ensure content is current
with best practices and meets
department needs.
A sample policy revision, based upon
The Society for Human Resources
Management and the International
Public Management – Human
Resources Association best practices
and sample policies, is provided in
Appendix A.
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Category/Theme
Document name
Finding
# Finding Recommendation
Remote Work
Procedures
Hybrid Work
Agreement Form
(FY23)
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The City's Hybrid Work Agreement Form
omits obligations of a remote worker that,
if present, would better define employee
responsibilities and commitments. As is,
the form leaves the City susceptible to
employee attendance and performance
issues, unclear accountability standards
with regard to City property and policy,
and an inability to modify the remote work
agreement as needed. The City last
updated the teleworking agreement form
June 2021, modifying the original to
accommodate remote work modification
required as a result of the COVID-19
pandemic. However, the revised form
does not comprehensively reflect
components of the City’s teleworking
policy. The Society for Human Resources
Management, with a thorough sample
agreement form for teleworking, frames
content that addresses these common
remote work risks.
The City should revise the current
agreement form to include a more
robust list of employee obligations to
improve the clarity of responsibilities
for remote workers and their
departments. The City should also
ensure that the agreement form
reflects the content of the current
teleworking policy.
A sample revision of the form is
provided in Appendix B.
Remote Work
Position
Eligibility
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The City does not have a standardized
approach to determine position eligibility
for remote or flex work schedules.
Department directors approve eligibility
on a case-by-case basis as employees
request it, with a strong consideration of
department norms and supervisor
preferences. This creates inconsistent
eligibility across departments for positions
with similar essential duties. Department
requirement of in-person work when
essential job duties do not require the
position to be on-site or in the office
damages the City’s ability to retain
employees and attract new talent.
The City should development
standardized criteria for position
remote and flex work eligibility. All
positions should be evaluated for full
remote, partial remote/flex schedule,
and ineligible remote work. Once
position eligibility is determined, The
City should follow existing policy to
review individual employee eligibility
for all eligible positions.
A sample criteria is provided in
Appendix C.
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Analysis on the Future of Remote Work
This section provides market and industry context to consider for future implementation to remain current and competitive
in the hiring market and considerations for executing a position eligibility assessment.
2 Public Sector Telework Trends During the Coronavirus Pandemic | IPMA-HR
3 Public Sector Telework Trends During the Coronavirus Pandemic | IPMA-HR
4 Quick Steps to Prepare a Remote Work Policy for Your Local Government | icma.org
5 The Future of Remote Work in the Public Sector - Government Technology Insider
Remote Work Best Practices and Research
Governments and public sector organizations have continued to leverage remote work as a necessary alternative to
traditional in-person work. Forecast trends predict public sector reliance on remote work will continue and likely expand.
Standardized implementation of remote work will allow the City of Palo Alto to remain competitive as well as modernize
and expand the quality services its residents expect.
Early Covid-19 Pandemic Workforce Response
Prior to the Covid-19 Pandemic and government issued shutdowns, remote work was uncommon within the public
sector. The U.S. Bureau of Labor Statistics 2019 National Compensation Survey found flexible workplace benefits were
available to 4 percent of state and local government workers and 5 percent of management level positions . An
International Public Management Association for Human Resources (IPMA-HR) survey of local government members
found that 70 percent of public sector organizations did not have established remote work programs in early 2020 when
the Pandemic began.
During Covid, among the 30 percent of public sector organizations surveyed by IPMA-HR which already had remote
work programs, the percentage of remote workers increased to 63 percent after closures began. Among organizations
that did not have established programs, survey participants reported an average of 1 percent of their workforce worked
remotely before the Pandemic. Their share of remote workers grew to 41 percent by April 2020, representing an
increase of 4,000 percent and indicating industry-wide adoption of remote work flexibility.2
Sustaining Remote Workforce Responses
IPMA-HR reports 69 percent of the respondents at public sector organizations that already had established remote
work policies prior to February 2020 reported plans to continue allowing more remote work after reopening their offices.
Maintained remote work programs were lower, at 45 percent, among survey respondents whose organizations lacked
remote work programs prior to the Covid-19 Pandemic.3
Currently, local government policies and approaches address primarily four areas:
1) Employee eligibility for remote work,
2) Necessary forms and policy development,
3) Accessing communication channels, and
4) IT practices, procedures, and security.4
Government Technology Insider notes that investments made to enhance and maintain network architecture are
needed for continued support of remote work. Services, such as streamlined support tickets and an IT service desk, are
important to support remote end-users. Additionally, agencies should establish a business continuity plan (BCP) to train
workers on secure network practices while remotely working.5
The reported ability to work remote varies widely depending on the industry. Government, public administration, and
military organizations fall in the middle of this list with 46 percent of workers reporting most daily job functions can be
performed remotely.
According to the FlexJobs online trends database, The State of California has the most remote job listings of any state.
In terms of remote worker populations, The City of Palo Alto is among the top five cities in the State, with 9.3% of their
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6 Remote Job Market Map - Trends, Companies, & Facts by State | FlexJobs
7 Amid public sector hiring challenges, researchers highlight telework, flexibility as path forward - American City and County
8 Public Sector Remote Work Challenges - Exisor, California Transportation Commission, 2021, “Effects of COVID-19-Related Telework Policies
on the Transportation System”
9 Work remotely – Employees | telework.govops.ca.gov
total working population remote. Neighboring cities Mountain View, Sunnyvale, and Redwood, also make this list of the
top 50 California cities for remote work with 6.2 percent, 5.3 percent, and 4.6 percent, remote populations,
respectively.6
Future Workforce Challenges
As the public sector rebounds from the demands incurred from the Covid-19 Pandemic, hiring challenges, vacancies,
and burnout are impeding return to pre-pandemic workforce levels. Approximately 90 percent of jobs lost in the private
sector have returned as of April 2022, while only 53 percent of jobs lost have returned for the public sector. Pandemic
job loss and pre-pandemic hiring challenges have made quality talent recruiting and succession planning the highest
priority staffing challenges government organizations face.7 Burnout and stress have caused 44 percent of public sector
employees to experience decline in mental-emotional health. In California, other remote work challenges include public
sector work culture, high paper dependencies, and cybersecurity concerns according to the California Transportation
Commission.8
Remote work is likely preceding a future of public service performed by a network of workers across integrated
geographies, making “remoteability” a key metric for a public sector organization’s success. Addressing motivation and
the intrinsic value of public sector work is one strategy to retain devoted public servants. Increasing resources through
benefits and salary to match the increased demands placed on large City and County employees will further encourage
public sector participation.
We anticipate California will continue various resources, programs, and benefits that enable employers and local
governments to support their remote work segments. The California Government’s “telework.govops.ca.gov” is one
resource providing best practices and helpful tips for governments like Palo Alto. We encourage use of these resources
and others to achieve ideal remoteability.9
Position Eligibility Framework
Below is a sample framework to consider implementing for evaluating position eligibility for remote work and modifying
the position eligibility in context of the remote work policy at the City of Palo Alto:
1. Human Resources makes a framework for position eligibility assessment deployment
a. HR evaluates the positions first and solicits director feedback on potential eligible positions
b. HR collaborates with department directors to evaluation eligibility for all positions
2. Human Resources creates a communication plan for the evaluation framework
3. Human Resources selects pilot departments to evaluation position eligibility
4. Human Resources runs the pilot department evaluation
5. Human Resources modifies implementation plan using lessons learned from the pilot
6. Human Resources implements position evaluation with remaining departments
1. Creation of framework
a. Human Resources evaluates the positions first to eliminate positions for department review that are
ineligible to work remotely
The benefits of this method:
Creates a top-down efficient approach using the knowledge and expertise of the Human Resources
staff and reducing the volume of department position review.
The negatives of this method:
Reduced position review transparency for department leadership and employees
b. Department directors review all positions
The benefits of this method:
Illustrates to employees the desire to intimately understand positions when determining eligibility.
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Increases the volume of positions for department directors and employees to review.
The negatives of this method:
Increased review and implementation time-frame
2. Creation of a communication plan
Change management plan standards suggest the use of comprehensive and clear communications to all
affected parties. Human Resources will need to identify the target audience for each communication and the
intended purpose/goal of the communication. The City may consider a communication approach as follows:
- Notify all City employees of the position review. In the notification, state the pilot departments, phased
approach for additional department position reviews, roles and responsibility for Human Resources,
department supervisors, and employees.
- Provide regular updates during executive team meetings
- Provide updates to department directors of when phases are complete and next steps
- Provide written communication to all employee participants at each phase. Hold a townhall meeting
introducing the project, communicating the purpose, approach and outcome
- Communicate position eligibility to the executive team and directors when all positions are evaluated
The methods and delivery for the communication plan should also be outlined, considering a formalized
message to staff and informal channels. Human Resources should be prepared for the responses they will
receive to the communication plan – both negative and positive - and appropriate response channels.
Human Resources should be clear and repeatedly communicate throughout the process that the assessment is
to determine position eligibility to equitably apply consideration across the City. Individuals who hold eligible
positions should continue to be assessed for approval and continued eligibility per the City’s policy.
3. Selection of pilot departments
When selecting the two departments for the pilot, consider the following:
- A department that performs administrative functions for the City (e.g. Legal, City Clerk and Information
Technology)
- A department that has positions performing some elements of fieldwork/operations
- Departments that are collaborative in nature and willing to adapt to changes in City policy
- Departments that are well respected within the City as they will serve as advocates for the future rollout of
the Remote and Flexible Work program
- Departments with a high volume of hard-to-fill positions or key positions with a high vacancy rate
Running the pilot
- Human Resources should consider the length of the pilot program, any changing needs of the community
and potential changes in service delivery requiring a stop or pause to the pilot, and any changing needs of
the department that may require a stop or pause.
- Develop a re-start plan to continue the pilot to keep staff engaged and invested in the pilot program.
Feedback from piloted departments should be solicited and factored into future implementation for improved
deployment. The pilot should be self-evaluated by all participants and ‘lessons learned’ documented when
providing feedback to Human Resources. The feedback provided in this phase will inform steps 5 and 6.
4. Pilot department evaluation
Human Resources outlines the approach needed for the evaluation of the pilot department program. Steps may
include:
- Department director meeting:
o Kick-off
o Project timeline/purpose
o Confirm approach and scope
- Employee kick-off meeting
o Kick-off
o Project timeline/purpose
o Confirm approach and scope
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The approach will differ and is dependent on if Human Resources will provide the first assessment of positions
or initiate preliminary assessment at the employee level.
1a Approach. Human Resources evaluates positions using essential duties from the job descriptions and
designates positions ineligible to work remotely. Human Resources reviews the assessment with department
directors. For all remaining positions, employees self-evaluate their position eligibility, directors review the self-
assessment and Human Resources analyzes the responses to find an average question score for each
position. Human Resources should review all results with Managers/Directors for their input and approval of the
results.
1b Approach. All employees self-evaluate their position eligibility, directors review the self-assessment and
Human Resources analyzes the responses to find an average question score for each position. Human
Resources should review all results with Managers/Directors for their input and approval of the results.
From this analysis, Human Resources can designate positions as eligible for options of fully remote, flexible
hours/day schedules, or ineligible for remote work.
All results of the analysis should be shared with both Directors and Employees and include any next steps.
For Directors, considerations for next steps to accommodate employee requests going forward:
- Technology needs
- Scheduling needs
- Ebbs and flows of services in their department
For Employees, considerations for next steps going forward:
- A review of essential duties for similar positions would result in an equitable approach amongst all
employees and improve program deployment
5. Modification of the implementation plan
Using the feedback received in Phase 3, Human Resources should adjustment the implementation plan.
Considerations of adjustments should include the ability to adapt the plan to a changing environment within the
City (e.g. at different times of the year different needs may arise where staff may need a more frequent
presence in the office)
6. Implementation of position evaluation
Human Resources will need to prioritize the remaining City departments. Considerations on prioritizing should
include:
- High turnover or high vacancy rate departments
- Departments with a balance of administrative and non-administrative functions
- Seasonality of work and City milestones (e.g. budget planning, Capital infrastructure planning, high
volumes of outdoor functions for summer and spring activities)
Consider developing a phased deployment. A potential implementation approach includes:
- Phase 1: common positions across all departments (e.g. administrative assistants, Directors, etc.)
- Phase 2: Departments with common functionality (e.g. operations and fieldwork functions)
- Phase 3: Departments with common functionality (e.g. administrative and internal shared services
positions).
As mentioned in Phase 2, elements of a change management plan can assist Human Resources in this
implementation. In addition to the communication plan, a Change Management Approach implementation
strategy includes a training plan, business systems plan and resistance plan.
Having a plan to address any resistance from employees will assist with a successful program. A possible tool
to consider is a Resistance Assessment Survey. This survey identifies areas of possible resistance, and
provides a space for rating (1-5 from strongly disagree to strongly agree). Human Resources could deploy this
survey and aggregate the scores as they did for the evaluation tool to find pockets of resistance and approval.
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Appendices
Appendix A: Sample Policy Modifications
SHRM Telecommuting Policy and Procedure
Blue highlighted text indicates content recommended to include in City Policy
Objective
Telecommuting allows employees to work at home, on the road or in a satellite location for all or part of their workweek.
[Organization Name] considers telecommuting to be a viable, flexible work option when both the employee and the job are
suited to such an arrangement. Telecommuting may be appropriate for some employees and jobs but not for others.
Telecommuting is not an entitlement, it is not a companywide benefit, and it in no way changes the terms and conditions
of employment with [Organization Name].
Procedures
Telecommuting can be informal, such as working from home for a short-term project or on the road during business travel,
or a formal, set schedule of working away from the office as described below. Either an employee or a supervisor can
suggest telecommuting as a possible work arrangement.
Any telecommuting arrangement made will be on a trial basis for the first three months and may be discontinued at will
and at any time at the request of either the telecommuter or the organization. Every effort will be made to provide 30 days’
notice of such change to accommodate commuting, child care and other issues that may arise from the termination of a
telecommuting arrangement. There may be instances, however, when no notice is possible.
Eligibility
Individuals requesting formal telecommuting arrangements must be employed with [Organization Name] for a minimum of
12 months of continuous, regular employment and must have a satisfactory performance record.
Before entering into any telecommuting agreement, the employee and manager, with the assistance of the human
resource department, will evaluate the suitability of such an arrangement, reviewing the following areas:
Employee suitability. The employee and manager will assess the needs and work habits of the employee,
compared to traits customarily recognized as appropriate for successful telecommuters.
Job responsibilities. The employee and manager will discuss the job responsibilities and determine if the job is
appropriate for a telecommuting arrangement.
Equipment needs, workspace design considerations and scheduling issues. The employee and manager will
review the physical workspace needs and the appropriate location for the telework.
Tax and other legal implications. The employee must determine any tax or legal implications under IRS, state and
local government laws, and/or restrictions of working out of a home-based office. Responsibility for fulfilling all
obligations in this area rests solely with the employee.
If the employee and manager agree, and the human resource department concurs, a draft telecommuting agreement will
be prepared and signed by all parties, and a three-month trial period will commence.
Evaluation of telecommuter performance during the trial period will include regular interaction by phone and e-mail
between the employee and the manager, and weekly face-to-face meetings to discuss work progress and problems. At
the end of the trial period, the employee and manager will each complete an evaluation of the arrangement and make
recommendations for continuance or modifications. Evaluation of telecommuter performance beyond the trial period will
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be consistent with that received by employees working at the office in both content and frequency but will focus on work
output and completion of objectives rather than on time-based performance.
An appropriate level of communication between the telecommuter and supervisor will be agreed to as part of the
discussion process and will be more formal during the trial period. After conclusion of the trial period, the manager and
telecommuter will communicate at a level consistent with employees working at the office or in a manner and frequency
that is appropriate for the job and the individuals involved.
Equipment
On a case-by-case basis, [Organization Name] will determine, with information supplied by the employee and the
supervisor, the appropriate equipment needs (including hardware, software, modems, phone and data lines and other
office equipment) for each telecommuting arrangement. The human resource and information system departments will
serve as resources in this matter. Equipment supplied by the organization will be maintained by the organization.
Equipment supplied by the employee, if deemed appropriate by the organization, will be maintained by the employee.
[Organization Name] accepts no responsibility for damage or repairs to employee-owned equipment. [Organization Name]
reserves the right to make determinations as to appropriate equipment, subject to change at any time. Equipment
supplied by the organization is to be used for business purposes only. The telecommuter must sign an inventory of all
[Organization Name] property received and agree to take appropriate action to protect the items from damage or theft.
Upon termination of employment, all company property will be returned to the company, unless other arrangements have
been made.
[Organization Name] will supply the employee with appropriate office supplies (pens, paper, etc.) as deemed necessary.
[Organization Name] will also reimburse the employee for business-related expenses, such as phone calls and shipping
costs, that are reasonably incurred in carrying out the employee’s job.
The employee will establish an appropriate work environment within his or her home for work purposes. [Organization
Name] will not be responsible for costs associated with the setup of the employee’s home office, such as remodeling,
furniture or lighting, nor for repairs or modifications to the home office space.
Security
Consistent with the organization’s expectations of information security for employees working at the office, telecommuting
employees will be expected to ensure the protection of proprietary company and customer information accessible from
their home office. Steps include the use of locked file cabinets and desks, regular password maintenance, and any other
measures appropriate for the job and the environment.
Safety
Employees are expected to maintain their home workspace in a safe manner, free from safety hazards. [Organization
Name] will provide each telecommuter with a safety checklist that must be completed at least twice per year. Injuries
sustained by the employee in a home office location and in conjunction with his or her regular work duties are normally
covered by the company’s workers’ compensation policy. Telecommuting employees are responsible for notifying the
employer of such injuries as soon as practicable. The employee is liable for any injuries sustained by visitors to his or her
home worksite.
Telecommuting is not designed to be a replacement for appropriate child care. Although an individual employee’s
schedule may be modified to accommodate child care needs, the focus of the arrangement must remain on job
performance and meeting business demands. Prospective telecommuters are encouraged to discuss expectations of
telecommuting with family members prior to entering a trial period.
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Time Worked
Telecommuting employees who are not exempt from the overtime requirements of the Fair Labor Standards Act will be
required to accurately record all hours worked using [Organization Name]’s time-keeping system. Hours worked in excess
of those scheduled per day and per workweek require the advance approval of the telecommuter’s supervisor. Failure to
comply with this requirement may result in the immediate termination of the telecommuting agreement.
Ad Hoc Arrangements
Temporary telecommuting arrangements may be approved for circumstances such as inclement weather, special projects
or business travel. These arrangements are approved on an as-needed basis only, with no expectation of ongoing
continuance.
Other informal, short-term arrangements may be made for employees on family or medical leave to the extent practical for
the employee and the organization and with the consent of the employee’s health care provider, if appropriate.
All informal telecommuting arrangements are made on a case-by-case basis, focusing first on the business needs of the
organization.
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POLICY AND PROCEDURE 2-38/HRD
Revised: June 2021
Blue highlighted text indicates content recommend to include from SHRM policy.
Green highlighted text indicates Baker Tilly language based upon review of current state and federal reimbursement
requirements. Baker Tilly does not provide legal advice. We recommend the City consult with their employment law
counsel prior to any sample form or policy adoption.
REMOTE WORK POLICY
PURPOSE
The purpose of this Policy is to provide guidance for administering remote work.
DEFINITIONS
Remote Work is the practice of working from an alternative worksite on either a voluntary (Remote Work
Arrangement) or assigned (Remote Work Assignment) on a regular basis. Occasional remote work is when an
employee is approved to work remotely on an infrequent or project basis. Occasional remote work does not
require a formal remote work agreement.
Remote Work Agreement is the formal agreement between a supervisor and an employee which defines the
employee’s regular remote work schedule and details any City-owned resources the employee will use in the
alternative worksite.
Alternative Worksite is a location where the employee works other than at a City facility.
POLICY
It is the policy of the City of Palo Alto to allow and/or assign employees to work remotely when it is consistent with the
City’s operational needs.
When the employee and their position are eligible and well-suited for remote work, Department Directors are strongly
encouraged to allow remote work.
Remote work can be advantageous to the employee, department and the community. Research and numerous sources
have identified that remote work:
• Reduces air pollutants and decreases traffic, parking congestion and overcrowding of public transportation.
• Improves the City’s ability to maintain services during an emergency when the regular worksite is inaccessible.
• Enhances the ability to recruit and retain quality employees, improves job satisfaction, supports work-life balance,
and may increase productivity.
While remote work is typically a voluntary arrangement, the City may require work to be performed remotely based on
operational needs or in emergency circumstances. Remote work is a service delivery model that can be used to meet
operational needs, and is not to be viewed as an entitlement, reward or benefit. All City employees who are working
remotely on a regular basis must have an approved Remote Work Agreement under this Policy. Occasional Remote Work
must be documented and approved in advance by the employee’s supervisor, but no formal Remote Work Agreement is
required.
Remote work does not alter duties, obligations, responsibilities and conditions of employment for the employee who is
approved and/or assigned to work remotely. Employees working remotely remain obligated to comply with all City rules,
regulations, policies, procedures, and state and federal laws.
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Remote Work is not designed to be a replacement for appropriate child care. Although an individual employee’s schedule
may be modified to accommodate child care needs, the focus of the arrangement must remain on job performance and
meeting business demands. Prospective remote workers are encouraged to discuss expectations of remote work with
family members prior to entering a trial period
PROCEDURE
All employees must have a Remote Work Agreement in order to work remotely on a regular basis.
Any Remote Work arrangement made will be on a trial basis for the first three months and may be discontinued at will and
at any time at the request of either the telecommuter or the organization. Every effort will be made to provide 30 days’
notice of such change to accommodate commuting, child care and other issues that may arise from the termination of a
remote work arrangement. There may be instances, however, when no notice is possible.
Evaluation of telecommuter performance during the trial period will include regular interaction by phone and e-mail
between the employee and the manager, with recommended bi-weekly meetings to discuss work progress and problems.
At the end of the trial period, the employee and manager will each complete an evaluation of the arrangement and make
recommendations for continuance or modifications. Evaluation of telecommuter performance beyond the trial period will
be consistent with that received by employees working at the office in both content and frequency but will focus on work
output and completion of objectives rather than on time-based performance.
An appropriate level of communication between the telecommuter and supervisor will be agreed to as part of the
discussion process and will be more formal during the trial period. After conclusion of the trial period, the manager and
telecommuter will communicate at a level consistent with employees working at the office or in a manner and frequency
that is appropriate for the job and the individuals involved.
Remote Work Request Initiated by Employee (Remote Work Arrangements)
Employees who believe they may be eligible for Remote Work as defined in this Policy must first discuss their desire to
work remotely with their direct supervisor. At that time, the supervisor and employee can discuss eligibility, schedule,
equipment needs, work hours, and other items that are part of the Remote Work Agreement and this Policy.
The employee must then submit the Remote Work Agreement to their supervisor for approval. If the supervisor approves
the Remote Work Agreement, they will submit the agreement to the Department Director or designee for consideration.
The Department Director or designee will either approve, deny, or modify the agreement. A copy of the final signed
agreement must be provided to the employee, their supervisor, and submitted to Human Resources.
Should an employee’s remote work request be denied, the decision is final and not subject to the grievance procedure or
any other appeal. The employee may request to meet with the Human Resources Director or their designee to discuss
their denial.
As part of an employee’s annual performance appraisal, the Remote Work Agreement should be evaluated by the
employee and supervisor to determine if the arrangement is successful and if it should continue. The Remote Work
Agreement should be updated with any changes and submitted for approval by the Department Director or designee.
The Department Director or designee can suspend or cancel the Remote Work Agreement with at least five business
days’ written notice when possible. In the event operational necessity does not allow for five business days’ notice, the
Department Director or designee may suspend or cancel the Remote Work Agreement with less notice. General
considerations for terminating the agreement include, but are not limited to, operational need, performance, conduct,
safety, and violation of the Remote Work Policy and other City policies. Termination of the agreement is administrative
and not considered discipline. The decision is not be subject to the grievance procedure nor can it be appealed.
Remote Work Required by the City (Remote Work Assignment)
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If operational needs require remote work for continuity of City services, or in cases of emergency, managers and the
Department Director will evaluate each position for remote work. The requirement to perform work remotely will be
assigned in consultation with the City Manager’s Office and Human Resources. Employees assigned to work remotely
must complete a Remote Work Agreement. Remote Work Assignments may be discontinued at any time at the sole
discretion of the City pursuant to the procedures outlined above.
ELIGIBILITY
Not all positions or employees are eligible for remote work. When determining whether an employee requesting remote
work is eligible, employees must meet both the position eligibility criteria and performance eligibility criteria. When a
position is being required to work remotely due to operational necessity and continuity of service or emergency
circumstances, City management will evaluate the eligibility of the position and follow any local, state or federal guidance.
Individuals requesting Remote Work arrangements must maintain a satisfactory performance record.
*** Eligibility requirements may need to be revised based on the final outcome of the Remote and Flexible Work Study***
Position Based Eligibility:
Criteria for establishing eligibility of a position:
In-person interaction or physical presence on a daily basis is not essential to the performance of job duties and may
be scheduled or conducted virtually to permit Remote Work.
Some or all the job duties are able to be performed from an alternative worksite without diminishing the quality and
timeliness of the work.
Appropriate equipment must be available or can be made available in the alternative worksite to perform job duties
and assigned tasks.
Remote Work must not unduly disrupt or create problems for projects, staff, the community or other stakeholders.
When performed remotely, job duties can be completed in compliance with all applicable IT, Security, Privacy and
Confidentiality policies and procedures.
Performance Based Eligibility:
Criteria for establishing eligibility of an employee:
Employee is adaptable, with a proven ability to work independently.
Employee demonstrates good time-management skills by completing quality assignments on time.
Employee communicates information efficiently with leadership, coworkers, support staff and customers.
Employee sets appropriate priorities, changes priorities as needed, and maintains a suitable workspace.
Employee possesses computer and other necessary skills sufficient to work independently at an alternate worksite.
CONDITIONS
Schedule and Work Hours:
The actual time worked by the employee, as established by the Remote Work Agreement, must be accurately recorded
on the timesheet.
Employees FLSA status as exempt or non-exempt will not be altered as a result of the employee working
remotely.
The number of hours worked by the employee will not change because the employee is working at an alternative
worksite.
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Employees eligible for overtime may work overtime only when directed to do so and approved in advance by the
supervisor.
Employees must obtain approval to use vacation, sick, or other leave in the same manner as departmental
employees who do not work remotely.
Employees working remotely will maintain accessibility via email, phone, or as otherwise agreed to by their
supervisor during agreed upon work hours.
Employees must follow all regular timecoding requirements.
Employees working at an alternate worksite may be required to report to a City facility on a remote workday. Supervisors
should give at least 24 hours’ notice of this change, unless an unforeseeable immediate need should arise. An employee
who is required to report to a City facility instead of their alternative worksite is not eligible for travel reimbursement. When
an employee is required to report to a City Facility on the same day, then travel time to the City facility shall be considered
hours worked.
Occasional requests by employees to change their schedule should be accommodated by the supervisor if possible.
Occasional changes (such as working remotely on a different day in the same week) do not constitute a change in the
underlying agreement. A permanent schedule change would require an employee to resubmit an approved Remote Work
Agreement.
Remote Worksite & Equipment
It is the responsibility of the employee to create a safe and ergonomically suitable environment for work. Employees shall
make all reasonable efforts to ensure their remote work area meets the ergonomic standards of the City. Upon request,
the City will provide an ergonomic evaluation for the employee’s alternative worksite.
Employees working remotely must work in an environment that allows them to perform their duties safely and efficiently.
Employees are responsible for ensuring their work areas comply with health and safety requirements. Employees are
covered by workers’ compensation laws when performing work duties at their designated alternate locations during their
regular work hours. Employees who suffer a work-related injury or illness while remote working must notify their
supervisor and complete any required forms immediately in accordance with the City’s Workers’ Compensation Policy.
In order to work remotely, employees and supervisors must identify the equipment, software, and supplies required to
successfully work at an alternate location. The employee will not be eligible for Remote Work if the required equipment is
not available. IT will serve as resources to assist employees and supervisors determine appropriate equipment needs.
The remote worker must sign an inventory of all City property received and agree to take appropriate action to protect the
items from damage or theft
City Equipment:
Any equipment and software shall remain the property of the City and is limited to use for purposes relating to City
business only. Employees working remotely must keep City-owned equipment in good working order, report any problems
or malfunctions immediately, and must promptly return equipment upon completion or termination of their Remote Work
Agreement, or separation from the City.
Basic office supplies that normally are available at the City worksite for the employee's use (e.g., pens, binders, notepads,
Post-its, etc., but not including printer ink cartridges) may be used at the employee’s remote worksite in accordance with
the same policies that govern their use at the City worksite. Employees working remotely will not be reimbursed for
additional office supplies unless approval to purchase supplies is given in advance. City issued supplies must be used for
City work purposes only. Any other costs may be incurred only with prior approval by the Department Director.
City-issued laptops or other required computer equipment and repairs will be provided based on need and availability. To
ensure hardware and software security, all software used for remote work must be approved by the department and IT
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before installation. Networking can only be established using compatible hardware and software. All remote work must be
done through the City VPN or approved applications.
Personal Equipment:
When not provided by the City, employees under a Remote Work Agreement are expected to use personal office
equipment including, but not limited to, furniture, seating, internet access, scanners, calculators, ink cartridges, etc., used
while working remotely.
Employees working remotely are responsible for the maintenance and repair of their office equipment and are required to
install and maintain personal office equipment at no expense to the City. The employee is responsible for ensuring that
software used on non-City premises is compatible with City standards.
Business-related Expenses:
Employees voluntarily working remotely are responsible for all business expenses incurred. Should the City require
employees to work remotely, the City will supply the employee with “necessary” and “reasonable” expenses 10. Employees
may not incur expenses before receiving written approval from a department supervisor.
Information Security and Protection
Remote workers, like all City employees, are expected to protect confidential, proprietary, and business information from
unauthorized or accidental access, destruction, or disclosure. Employees may not disclose confidential or private files,
records, materials, or information, and may not allow access to
City networks or databases to anyone who is not authorized to have access.
Employees who work remotely shall comply with the City’s Information Security Policy, Information Security Standards,
Information Privacy Policy and ensure the protection of the City’s protected information.
Ad Hoc Arrangements
Temporary remote work arrangements may be approved for circumstances such as inclement weather, special projects or
business travel. These arrangements are approved on an as-needed basis only, with no expectation of ongoing
continuance.
Other informal, short-term arrangements may be made for employees on family or medical leave to the extent practical for
the employee and the organization and with the consent of the employee’s health care provider, if appropriate.
All informal remote work arrangements are made on a case-by-case basis, focusing first on the business needs of the
organization.
Exceptions
The City is not liable for loss or destruction of the employee’s home or personal property while working remotely. The City
is not liable for injury to the employee that occurs outside of remote work hours or while not conducting City work. The City
is not liable for injury to the employee’s family members, visitors, or invitees within or around the remote worker’s home.
10 California Labor Code 2802
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Appendix B: Hybrid Work Agreement Form
Baker Tilly does not provide legal advice. We recommend the City consult with their employment law counsel prior to any
sample form or policy adoption.
Hybrid Work Agreement
Sample teleworking agreement modified from the SHRM and other industry samples. Blue text indicates added content
from SHRM template.
Definition
For purposes of this agreement, “telework” means an agreed-upon regular, modified work location outside of City
premises or standard work location (e.g., home office, community workspace. etc.)
Employee Information
Name: ____________________________________ Hire date: __________________
Employee ID: _________________________________________________________
Job title: _____________________________________________________________
Department: ___ ______________________________________________________
Supervisor’s Title: _____________________________________________________
Is your supervisor the Department Director (Y/N) ______________________________
Department Director’s email address: ______________________________________
FLSA status: Exempt Nonexempt
This telework agreement will begin and end on the following dates:
Start date: _______________ End date: _______________
Primary work location: ________________________________________________
Employee Telework Schedule - Mark “X” where applicable
Remote
Work
Onsite
Work
Remote/Onsite
Combination
Regular
Day Off
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday
The employee agrees to the following conditions:
The employee will remain accessible and productive during scheduled work hours.
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Nonexempt employees will record all hours worked and meal periods taken in accordance with regular timekeeping
practices.
Nonexempt employees will obtain supervisor approval prior to working unscheduled overtime hours.
The employee will report to the employer’s work location as necessary upon directive from his or her supervisor and notify
the supervisor in advance of work location modifications.
The employee will communicate regularly with his or her supervisor and co-workers, with a cadence and format
established by the supervisor.
The employee will comply with all City rules, policies, practices and instructions that would apply if the employee were
working at the employer’s work location.
The employee will maintain satisfactory performance standards.
The employee will make arrangements for regular dependent care and understands that telework is not a substitute for
dependent care. In pandemic or natural disaster circumstances, exceptions may be made for employees with caregiving
responsibilities.
The employee will maintain a safe and secure work environment at all times.
The employee will allow the employer to have access to the telework location for purposes of assessing safety and
security, upon reasonable notice by the City.
The employee will report work-related injuries to his or her supervisor as soon as practicable.
City will provide the following equipment: __________________________
______________________________________________________________________
The employee will provide the following equipment: ____________________________
______________________________________________________________________
The employee agrees that City equipment will not be used by anyone other than the employee and only for business-
related work. The employee will not make any changes to security or administrative settings on City equipment. The
employee agrees to promptly install all technology security upgrades to ensure network security. The employee
understands that all tools and resources provided by the City shall remain the property of the City at all times.
The employee agrees to protect City tools and resources from theft or damage and to report theft or damage to his or her
supervisor immediately.
The employee agrees to comply with City’s policies and expectations regarding information security. The employee will be
expected to ensure the protection of confidential and customer information accessible from their home offices.
The employee understands that telework is a privilege, subject to position eligibility and performance review requirements.
The employee understands that reomote eligibility may be revoked based upon performance reviews, non-compliance of
this agreement and/or position essential duty modifications.
Palo Alto will reimburse employee for the following expenses:
________________________________________________________________
Employee will submit expense reports with attached receipts in accordance with City expense reimbursement policy.
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The employee understands that all terms and conditions of employment with the City remain unchanged, except those
specifically addressed in this agreement.
The employee understands that management retains the right to modify this agreement on a temporary or permanent
basis for any reason at any time.
The employee agrees to return City equipment and documents within five days of termination of employment.
Employee signature: ______________________________ Date: ____________________
Manager signature: _______________________________ Date:______________________
Human resources signature: ________________________ Date: ______________________
Hybrid Work Agreement Form (FY23)
All workers who are assigned to Telework, including those who partially Telework, should complete this
form. Telework minimizes the number of employees at City facilities, while allowing essential work to
continue.
By submitting this Telework Agreement you acknowledge and agree to the following: While on this
telework arrangement, you are expected to fully engage in your job and to work in a manner that is
safe, efficient and responsible. Telework requires that you take extra care to remain in close
communication with your supervisor and co-workers. When you telework, you have the same
responsibilities as when you work at your normal worksite. Responsibilities include being immediately
available during work time, following work policies and protocols; protecting the confidentiality of
sensitive data; maintaining a safe work area and reporting any injury; protecting government property;
and reporting your absences accurately. In addition, if you are in a classification that allows for
overtime or comp time you are required to obtain prior approval from your supervisor.
If you have any questions regarding telework arrangements please contact HR at (650)329-2376 or
HR@CityofPaloAlto.org (mailto:HR@CityofPaloAlto.org)
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Appendix C: Position Eligibility Criteria
Key
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Appendix D: Management Response
Summary Statement:
The Palo Alto City Administration thanks the City Auditor’s Office for their work on this important and timely topic. As requested by the Administration, this
study provides an independent perspective on one of the most widely discussed and rapidly evolving contemporary workplace issues. The study affirms that
the City’s efforts, initiated pre-pandemic, continue to reflect a progressive and balanced approach to ensuring worker productivity in delivering services to the
community while continuing to model an “employer of choice.” This will continue to guide and inform future decision making and strategic opportunities for
revision of hybrid working practices.
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Recommendation Responsible
Department(s)
Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action
Plan
Finding 1: Remote Work Policy
The City should revise the current policy to strengthen its teleworking
risk mitigation and further clarify the remote work arrangement between
its employees and departments. The City should also implement a
periodic review of its telework policy in annual intervals to ensure
content is current with best practices and meets department needs.
A sample policy revision, based upon The Society for Human Resources
Management and the International Public Management – Human
Resources Association best practices and sample policies, is provided in
Appendix A.
Human
Resources
Concurrence: Partially agree
Target Date: March 2023
Completion Date: To be determined during the OCA’s follow-up review
Action Plan:
Currently the City’s policy includes Position Based and Performance Based
Eligibility criteria for the Department Director to consider their employee’s
request for a hybrid work schedule. City equipment, is tracked by the
Information Technology department therefore incorporating an additional
equipment tracking component into the hybrid work policy would be duplicative
and could lead to confusing and contradictory practices.
In regards to excluding employees on probation, the City did not include this
provision as providing hybrid work as an option may offer flexibility candidates
are seeking.
The City’s policy update has been updated to reflect the workforce transition to
“hybrid work”, now titled the Hybrid Work Policy, and will be reviewed
periodically or at minimum, annually as recommended.
Finding 2: Remote Work Procedures
The City should revise the current agreement form to include a more
robust list of employee obligations to improve the clarity of
responsibilities for remote workers and their departments. The City
should also ensure that the agreement form reflects the content of the
current teleworking policy.
A sample revision of the form is provided in Appendix B.
Human
Resources
Concurrence: Partially Agree
Target Date: March 2023
Completion To be determined during the OCA’s follow-up review
Action Plan:
The City provides regular and consistent training to supervisors and managers
on how to effectively communicate performance feedback, use progressive
discipline, targeted development plans, and leave of absence tracking to
ensure efficient and effective delivery of City services. Changes to the Hybrid
Policy and agreement form that infer disciplinary results or actions would
detract from the City’s established performance management processes and
cause meet and discuss obligations with the City’s different impacted labor
groups. Authority of managers and supervisors is clearly articulated in the
City’s merit rules to document expectations of an employee to perform their
assigned tasks. An employee performing their assigned tasks remotely does
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not impact the supervisor’s responsibility to complete the performance
management process.
The City closely reviewed sample documents from the Society for Human
Resources Management in developing the revision to the Remote Work Policy
and Agreement form currently utilized. The City’s Hybrid Work agreement
form has been updated to reference the Hybrid Work policy and include link.
Finding 3: Remote Work Position Eligibility
The City should development standardized criteria for position remote
and flex work eligibility. All positions should be evaluated for full remote,
partial remote/flex schedule, and ineligible remote work. Once position
eligibility is determined, The City should follow existing policy to review
individual employee eligibility for all eligible positions.
A sample criteria is provided in Appendix C.
Human
Resources
Concurrence: Partially Agree
Target Date: February 2023
Completion Date: February 28, 2023
Action Plan:
The Hybrid Work Policy clearly outlines and distinguishes the difference between
position eligibility and employee eligibility creating a two-step process for
approving hybrid work. Fully remote is not articulated as an option going forward
as no longer mandated by public health conditions, except as a special
exemption authorized by the City Manager’s Office. A survey tool such as
discussed during the audit, using criteria tailored to City operational
requirements, will be placed on the HR website as a resource that can be
incorporated into future use by supervisors and managers when reviewing a new
position for hybrid work eligibility.
Opportunities
We provide context to consider for future implementation of a remote and
flexible work policy to remain current and competitive in the hiring market
and considerations for executing a position eligibility assessment.
Summarized by:
- Early Covid-19 Pandemic Workforce Response
- Sustaining Remote Workforce Responses
- Future Workforce Challenges
We recommend a six-step framework for position eligibility implementation:
- Creation of a framework
- Creation of a communication plan
Human
Resources
The process outlined above was very similar to that utilized prior to the pandemic
to test the revised changes to an earlier version of the City’s policy. Two city
divisions were selected to pilot the new policy with surveys of employees being
conducted at the beginning, middle, and end of the pilot process. This feedback
was then incorporated into the final version of the policy adopted in June 2021.
We believe it is consistent with existing practice to follow this similar framework
if/when significant additional changes are needed to the framework of the hybrid
work policy. An additional pilot is not necessary to accomplish the minor updates
being pursued at this time. However the critical position assessment suggested
can be used when new positions are submitted for Annual Budget in support of
providing flexible work options.
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- Selection of pilot departments
- Pilot department evaluation with two approaches
- Modification of the implementation plan
- Implementation of position evaluation
Attachment B
City Attorney’s Response to Policy and Services’ Questions regarding the Potential for Waiver of
Workers’ Compensation Coverage in the Context of Remote Work
At Policy and Services, the Committee noted that both the SHRM remote work model policy and the City
of Palo Alto’s remote work policy state that employees are covered by workers’ compensation laws
when performing work duties at their designated alternate locations during their regular work hours.
Committee members expressed concern that alternative work environments are not entirely within the
employer’s control, with the potential that these environments could carry increased risk of worker
injury without the employer’s knowledge and ability to take corrective action. Committee members
inquired whether it is possible for the City to require employees to waive workers’ compensation
coverage under these circumstances.
The answer is no. California’s Workers’ Compensation Act is meant to apply to all workplace injuries,
irrespective of the fault of any party.1 A waiver is a type of contract, and State law provides that no
contract, rule, or regulation can exempt an employer from liability for workers’ compensation.2
Even if waivers were an option, which they are not, it would likely not be advisable to require waivers
for remote work. This is because, in general, workers’ compensation liability is often preferable to the
alternative, which is civil liability. While the Workers' Compensation Act expands employers’ liability for
workplace injuries, it also strictly limits the amount recoverable3 and the types of damages available 4, as
compared to the civil litigation system where disputes over employee injuries would otherwise be
adjudicated. When workers’ compensation applies, an employee may generally only seek damages
within the framework of workers’ compensation.5 Broad application of workers’ compensation lowers
an employer’s exposure to high dollar damage awards, while increasing the employees’ access to
expeditious and reasonable relief.
As the audit recommends, an employer’s best tools to address concerns around the safety of alternative
workspaces is to establish policies, educate remote workers, and conduct inspections as needed.
1 Farmers Bros. Coffee v. Workers' Comp. Appeals Bd. (App. 2 Dist. 2005) 35 Cal.Rptr.3d 23, 27.
2 Cal. Labor Code section 5000.
3 See e.g., Cal. Labor Code section 4653 (“If the injury causes temporary total disability, the disability payment is
two-thirds of the average weekly earnings during the period of such disability”).
4 See West v. Industrial Acc. Com. (1947) 79 C.A.2d 711, 718; 82 Am.Jur.2d (2013 ed.), Workers' Compensation §
356 et seq.
5 See, e.g., Melendrez v. Ameron Int. Corp. (2015) 240 C.A.4th 632, 193 C.R.3d 23 (wrongful death action was
barred by workers' compensation exclusive remedy rule, when employee exposed to employer’s asbestos at home
as well as at the workplace); Walker v. San Francisco (1950) 97 C.A.2d 901, 904, 219 P.2d 487 (workers'
compensation was exclusive remedy for family of fireman killed in collision with municipal railway car while
responding to fire).