Payroll Services

Procedures for Making Damage Payments for Services Performed Prior to Signing the State Oath of Allegiance

Summary of University of California Policy AM-P196-21

It is the policy of the University of California to make a damage payment to an employee who, without knowledge of the State Oath of Allegiance requirement, performs services for the University prior to signing the State Oath of Allegiance. A damage payment constitutes a settlement of an employee's claim based upon services rendered. Please refer to the complete policy (AM-P196-21: Damage Payments for Services Performed Before Loyalty Oath is Signed) for more details.

Damages may be claimed where all of the following conditions are met:

  1. The employee entered into University employment in good faith, with no knowledge of the State Oath of Allegiance requirement.
  2. The employee would have executed the State Oath of Allegiance prior to commencing University employment had the University advised the employee of the requirement to sign the Oath.
  3. The employee did, in fact, sign the State Oath of Allegiance upon learning of the requirement.

Processing Procedures

The following procedures must be followed before a damage payment may be made:

Employee

The employee must submit a claim for a damage payment to the employing department.

Department

Complete all fields on the Damage Payment Report indicating the gross amount to which the employee would have been entitled if the employee had been in the payroll system with an active employment status. The Human Resources Partner/Representative or other authorized designee must sign the Report. The Assistant Vice Chancellor of Human Resources must approve any damage claims that are more than 120 days.

  1. Obtain a signed State Oath of Allegiance from the employee.
  2. Obtain a completed Damage Payment Release from the employee.
  3. Send the completed original forms to the Central Payroll office.
  4. Departments are required to advise employees of the following:
    1. Damage payments are subject to federal, state, and FICA withholding deductions. Vacation or other benefits, not including sick leave, accrued prior to signing the Oath must be included.
    2. If the employee has been paid UCRP eligible salary prior to the Oath being signed, UCRP deductions made by the employee, if any, will be refunded by the Central Payroll office.

Central Payroll

  • Review the claim for completeness and appropriate approval before processing payment. The deductions should be made for appropriate federal and state income tax and FICA.
  • If applicable, refund to the employee any contributions made to UCRP.
  • Notify the departmet when the payment to the employee will be available.
  • Retain a copy of the Damage Payment Report.

Damage Payment FAQs

Damage Payment Request Form

Release for Damage Payment

State Oath of Allegiance

Supplemental content

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