Talent Exchange Guide for State Agencies

Talent Exchange Overview

A talent exchange is a temporary assignment or loan of an employee from one appointing power or participating entity to another. Talent exchanges may occur between state agencies or between jurisdictions, including federal, county, city, local and other non-state governmental entities, public colleges or universities and private colleges or universities.

The term “talent exchange” is used in this guide as a plain-language reference to temporary assignments or loans, including interjurisdictional employee exchanges when applicable. The exchange should be documented in an appropriate written agreement, such as an Interagency Agreement, Standard Agreement or memorandum of understanding, depending on the participating entities and the terms of the exchange.

State agencies should consult with their human resources, contracts or procurement, labor relations and legal teams to determine whether the exchange is appropriate and whether all applicable civil service, contracting, fiscal, labor and legal requirements are met.

Please note: Training and Development assignments are governed by separate requirements and should not be assumed to be interchangeable with every talent exchange. However, a temporary assignment or loan, including an interjurisdictional employee exchange, may be used for training and development when the applicable civil service requirements are met. Please see HR Manual Policy 3401 for more details on Training and Development assignments.

Purpose of Talent Exchange

Talent exchanges are intended to benefit the state by supporting employee development, sharing specialized knowledge and/or abilities or meeting a compelling program or management need that cannot reasonably be addressed through the existing organizational structure.

Considerations for Talent Exchange

Before approving a talent exchange, state entities should consider the purpose of the exchange, the participating entities, the employee’s eligibility, the duration of the assignment or loan, the appropriate agreement vehicle and any applicable civil service, contracting, fiscal, labor relations and legal requirements.

Participating Entities

A talent exchange may occur with any of the following types of entities:

Another state entity.
Another jurisdiction, including:
- A federal, county, city, local agency, board, commission, department, district or similar non-state governmental entity.
- A public college or university.
- A private college or university.

Another State Entity

State entities should consider the following employment-related requirements when planning a talent exchange between state entities.

Eligibility depends on the purpose and type of temporary assignment or loan. For interjurisdictional employee exchanges, the employee must have permanent status in their current classification. For temporary assignments or loans made to meet compelling program or management needs, employees with permanent or probationary status in their current class may be eligible.

For purposes of this guide, the “from” entity means the appointing power or other entity that employs the employee before the exchange. The “to” entity means the appointing power or other entity where the employee will perform work during the exchange.

When an employee accepts a temporary assignment or loan with another appointing power, the employee remains the employee of the “from” entity for purposes of salary, benefits, seniority and tenure, unless a collective bargaining agreement provides otherwise. During the assignment or loan, the employee is considered the temporary employee of the “to” entity, and the employee’s work and activities are subject to the direction and control of the “to” entity.

If the talent exchange is between two state entities, an Interagency Agreement, Standard Agreement, or Memorandum of Understanding (MOU) may be used to document the exchange, depending on the terms of the arrangement and any applicable contracting or fiscal requirements.

Colleges or Universities

When a talent exchange involves a college or university, the type of agreement used to document the exchange depends on the type of institution involved.

California State University (CSU) or University of California (UC) Campus

If the talent exchange is between a state entity and a CSU or UC campus, an Interagency Agreement may be used to document the exchange.

Other Public or Private College or University

If the talent exchange is between a state entity and a public or private college or university outside the CSU or UC system, a Standard Agreement may be used to document the exchange.

Agencies should consult with their contracts or procurement office to confirm the appropriate agreement type and any applicable approval requirements before the exchange begins.

Another Jurisdiction

When a talent exchange occurs between a state entity and another jurisdiction, the employee remains the employee of the “from” entity for purposes of salary, benefits, seniority, and tenure unless a collective bargaining agreement or other applicable agreement provides otherwise. During the exchange, the “to” entity directs and controls the employee’s work and related activities.

Other Non-State Public Entity

If the talent exchange is between a state entity and another non-state public entity, such as the federal government, a local government, or an international government, a Standard Agreement may be used to document the exchange.

A non-state employee participating in a talent exchange does not gain status in state civil service as a result of work performed during the exchange.

The employee remain the employee of the “from” entity for purposes of salary, benefits, seniority, and tenure, unless a collective bargaining agreement or other applicable agreement provides otherwise. Salary, benefits, and related costs may be paid in any proper manner agreed upon by the participating entities.

Talent Exchange Duration

Talent exchanges are temporary and must be for a limited period of time.

A talent exchange within a state entity or between state entities may not exceed a combined total of 24 months in any 36-month time period, unless a specific regulatory exception applies.

A talent exchange between jurisdictions may not exceed four years or 48 months, unless an extension is approved under Government Code section 19050.8.

In limited circumstances, Government Code section 19050.8 allows an interjurisdictional employee exchange to be extended for up to two additional years

Talent Exchange Process

Talent exchanges must be documented in writing.

The state entity and the other participating entity must approve and maintain a document that includes, at a minimum, the following information:

The purpose, duration, and duties of the assignment or loan.
Whether funds will be exchanged between the participating entities to cover wages, benefits, and other related costs.
If the assignment or loan is for learning or career development purposes, a description of the duties, goals, and employee development methods used.
If the assignment or loan is for a compelling program or management need:
- A description of the program or management need and the staff expertise required to meet that need.
- Justification that the state entity’s needs cannot be met through the existing organizational structure.
- Documentation that the employee possesses the required expertise.
- Documentation that the employee has voluntarily consented to the assignment or loan.

State entities should consider attaching a duty statement or scope of work that describes the employee’s role during the exchange.

The agreement type will depend on the participating entities, whether funds will be exchanged, and any applicable contracting or approval requirements. State entities should work with their contracts or procurement office to determine whether an Interagency Agreement, Standard Agreement, or memorandum of understanding, is appropriate.

The chart below identifies common elements to consider when documenting a talent exchange, though the appropriate agreement terms and approval requirements may vary depending on the participating entities and the specific terms of the exchange.

Talent Exchange Agreement Elements

Elements	State Organization	CSU or UC Campus	Private College or University	Other Non-State Public Entity
Name of participating entities	X	X	X	X
Effective dates of the talent exchange	X	X	X	X
Maximum dollar amount for the agreement, if funds will be exchanged	X	X	X	X
Maximum duration of the talent exchange	X	X	X	X
Purpose of the exchange and scope of work/duty statement	X	X	X	X
Points of contact for participating entities	X	X	X	X
Budget and payment method	X	X	X	X
Applicable General Terms and Conditions for Interagency Agreements	X	X
Applicable General Terms and Conditions			X	X
Applicable Contractor Certification Clauses			X	X
Applicable provisions on the use of confidential state data	X	X	X	X
Any other specific terms and conditions or provisions required by the entity for the work to be performed	X	X	X	X