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Mayo Clinic to pay back reduced wages plus $1,000 to staff

Mayo Clinic CEO Dr. Gianrico Farrugia and Chief Administrative Officer Jeffrey Bolton announced to employees on Monday that workers who had wages reduced for eight weeks due to the pandemic losses will be repaid and “all full-time and part-time allied health staff" will receive a $1,000 payment. The payments will be made Oct. 23.

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Mayo Clinic announced Monday that its pandemic-damaged revenues have bounced back, so employees will receive a $1,000 payment. Plus, staff members who had wages reduced will receive a “lump sum” in recompense.

This is a reversal of Mayo Clinic strategy announced in April to furlough or reduce the hours of about 42 percent of its 70,000 employees across all of its campuses. Mayo said it was an attempt to mitigate an anticipated $3 billion loss due to the COVID-19 pandemic.

The furloughs and pay cuts reduced Mayo Clinic’s workforce of almost 70,000 full-time equivalents by 9,800 in May and 8,600 in June.

By June, officials announced that Mayo Clinic was operating at 85 to 90 percent of normal. Mayo Clinic also received $150 million in federal Coronavirus Aid, Relief and Economic Security (CARES) Act funding, plus an additional $900 million in advance Medicare payments.

The employee payments were announced Monday in a letter from Mayo Clinic CEO Dr. Gianrico Farrugia and Chief Administrative Officer Jeffrey Bolton.

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“The last six months have been among the most challenging in Mayo Clinic's history. Thanks to you and your unwavering commitment to put the needs of patients first, and with the help of our leadership teams, we are in a much stronger position than we ever could have predicted,” started the internal message. “To show our gratitude and to thank you for your efforts, we're pleased to share that our finances have stabilized to the point that we're in a position to make several salary and benefit payments.”

A “one-time lump sum payment of $1,000” will be paid on Oct. 23 to “ full-time and part-time allied health staff, including administrative voting staff on the Allied Health Staff Pay Plan, as well as residents and research associates in regular or limited-tenure positions hired prior to Sept. 1.”

Executive administrators, consultants and supplemental staff will not receive the $1,000 payment.

Employees who had their wages reduced by 7 percent or 10 percent from April 29 to June 23 will receive “a lump sum for eight weeks of pay reduction.”

The amount of the payment will not be affected by any temporary reduction in hours or time spent on furlough.

The letter also announced that Mayo Clinic will make retirement savings match payments of up to 4 percent of contributions for the full year. This change restores the match for the period it was suspended.

“We're extremely grateful for the efforts and sacrifices you made throughout these months that challenged us to work in new ways and at warp speed,” wrote Farrugia and Bolton. “Thank you. You are what makes Mayo Clinic extraordinary.”

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