Common use of Future Accruals Clause in Contracts

Future Accruals. On one occasion each calendar year an employee who had used one hundred and twelve (112) or more hours of vacation leave during the preceding calendar year may elect to convert up to one hundred and twelve (112) hours of accrued vacation 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 vacation leave, an employee must make an irrevocable election (i.e., pre-designation) during the month of December (beginning in December of 2015), specifying the number of hours to be sold back from the next year’s vacation leave accrual. During the calendar year following the pre-designation, no more than three (3) requests may be made to cash out the vacation leave in a single block of not less than fourteen (14) hours and no more than one hundred and twelve (112) hours. An employee shall be eligible to cash-out vacation 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 vacation 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 2019 makes a pre-designation to cash-out 28 hours. The employee accrues 4.31 hours of vacation leave per pay period. At the end of pay period 5 the employee can request to cash-out the 17 hours of vacation leave that he had accrued through pay period 4, but is not yet eligible to cash-out the entire 28 pre-designated hours because the employee has yet to accrue 28 hours of vacation 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 of the calendar year in which the election is effective, the hours will be automatically converted to cash in pay period 26.