This report requests adoption of the attached resolution providing for the continuation of a permanent City employee=s salary and benefits in the event that the employee is called to active military duty.

Section 2.04.600 of the Santa Monica Municipal Code currently provides that an employee with permanent civil service status be granted a leave of absence without pay in the event the employee is inducted into the armed forces of the United States or leaves his/her employment to voluntarily enter the armed forces. Under State law, Military and Veterans Code Section 389, an employer is required to provide for the continuation of the employee=s salary for thirty (30) calendar days in the event the employee is called for active duty in a time of war or national emergency as proclaimed by the President of the United States or the Congress of the United States.

Once the thirty (30) day salary continuation provided under State law has ended, employees who are called to active military duty incur a significant reduction in salary. In addition, once an employee is placed on Aleave of absence without pay@ status, the employee must reimburse the City for the cost of his/her dependent health insurance coverage in order to maintain said coverage. This further adds to the financial burden placed on the employee.

During the 1991 Gulf War, some public agencies, including Santa Monica, adopted a policy that provided for the continuation of the permanent employee=s salary and benefits for the period of time that he/she was required to participate in active military duty. The continuation of the employee=s salary was handled similarly to jury duty. The affected employee was paid his/her normal salary but was required to reimburse the City for any pay which was received from the U.S. Government.