Common use of Annual Leave Cash Out Clause in Contracts

Annual Leave Cash Out. On one occasion each calendar year during the term of the MOU, an employee who had used eighty (80) or more hours of Annual Leave during the preceding calendar year may elect to convert up to sixty (60) hours of accrued Annual Leave into a cash payment, at the base rate of pay in effect at the time of the cash-out. In order to sell back Annual Leave, an employee must make an irrevocable election (i.e., pre-designation) during the month of December, specifying the number of hours to be sold back from the next year’s Annual Leave accrual. During the calendar year following the pre-designation, no more than three (3) requests may be made to cash out the Annual Leave in a single block of not less than eight (8) hours and no more than sixty (60) hours. An employee shall be eligible to cash-out Annual Leave hours accrued up to the preceding pay period in which he/she requested the cash-out. For example, an employee who requests a cash-out in pay period 15 can only cash-out the Annual Leave accrued through pay period 14. The number of hours requested for cash-out shall not exceed an amount equal to or less than the amount accrued. For example, an employee in December 2018 makes a pre-designation to cash-out 25 hours. The employee accrues 7.385 hours of Annual Leave per pay period. At the end of pay period 3 the employee can request to cash-out the 14 hours of Annual Leave that she had accrued through pay period 2, but is not yet eligible to cash-out the entire 25 pre-designated hours because the employee has yet to accrue 25 hours of Annual Leave. Once an election is made, if the employee does not request that the designated number of hours be sold back by pay period 25, or 26 when applicable, of the calendar year in which the election is effective, the hours will be automatically converted to cash in the last pay period of the calendar year.

Annual Leave Cash Out. On one occasion each calendar year during the term of the MOU, an employee who had used eighty (80) or more hours of Annual Leave during the preceding calendar year may elect to convert up to sixty (60) hours of accrued Annual Leave into a cash payment, at the base rate of pay in effect at the time of the cash-out. In order to sell back Annual Leave, an employee must make an irrevocable election (i.e., pre-designation) during the month of December, specifying the number of hours to be sold back from the next year’s Annual Leave accrual. During the calendar year following the pre-designation, no more than three (3) requests may be made to cash out the Annual Leave in a single block of not less than eight (8) hours and no more than sixty (60) hours. An employee shall be eligible to cash-out Annual Leave hours accrued up to the preceding pay period in which he/she requested the cash-out. For example, an employee who requests a cash-out in pay period 15 can only cash-out the Annual Leave accrued through pay period 14. The number of hours requested for cash-out shall not exceed an amount equal to or less than the amount accrued. For example, an employee in December 2018 makes a pre-designation to cash-cash- out 25 hours. The employee accrues 7.385 hours of Annual Leave per pay period. At the end of pay period 3 the employee can request to cash-out the 14 hours of Annual Leave that she had accrued through pay period 2, but is not yet eligible to cash-out the entire 25 pre-designated hours because the employee has yet to accrue 25 hours of Annual Leave. Once an election is made, if the employee does not request that the designated number of hours be sold back by pay period 25, or 26 when applicable, of the calendar year in which the election is effective, the hours will be automatically converted to cash in the last pay period of the calendar year.