Common use of Leave Programs Clause in Contracts

Leave Programs. A. The maximum accumulation of annual leave for employees hired before July 1, 1994 with 15 or more years of service is 980 hours. The maximum accumulation of annual leave for employees hired before July 1, 1994 with less than 15 years of service is 840 hours. The maximum accumulation of annual leave for employees hired on or after July 1, 1994 and before July 1, 2016 is 552 hours. The maximum accumulation of annual leave for employees hired on or after July 1, 2016 who regularly work administrative schedules of 40-hour workweeks is 395. The maximum accumulation of annual leave for employees hired on or after July 1, 2016 who regularly work suppression schedules of 56-hour workweeks is 552. B. Effective the first full pay period following July 1, 2016 and continuing at the same time each fiscal year thereafter, the City will process a mandatory payment-in-lieu of annual leave for employees who have not reduced their accrued annual leave balances below the maximum accumulation amounts set forth in Paragraph A of this Article, as follows: 1. If an employee has more than 1,000 hours of annual leave accrued and unused on the last day of the first full pay period following July 1 of each fiscal year, the City will process a mandatory payment-in-lieu of 175 hours. 2. If an employee has more than 2,000 hours of annual leave accrued and unused on the last day of the first full pay period following July 1 of each fiscal year, the City will process a mandatory payment-in-lieu of 350 hours. 3. If an employee has more than 3,000 hours of annual leave accrued and unused on the last day of the first full pay period following July 1 of each fiscal year, the City will process a mandatory payment-in-lieu of 525 hours. C. Prior to January 1, 2019, if an employee, who has not entered DROP, has earned and unused annual leave over the maximum accumulation of annual leave amounts set forth in Paragraph A of this Article, the employee may elect to receive voluntary payment-in-lieu of annual leave for any hours above the maximum accumulation amounts. D. Effective January 1, 2019, employees, who have not entered DROP and who have 160 hours or more of accrued annual leave, may elect to receive a maximum voluntary payment-in-lieu of 125 hours per fiscal year for employees with regular work schedules of 40 hours per week and 175 hours per fiscal year for employees with regular work schedules of 56 hours per week. Voluntary payment-in-lieu of annual leave will be administered in accordance with agreed-upon and approved procedures intended to comply with Internal Revenue Service regulations related to constructive receipt of income. E. Effective July 1, 2019, for Fiscal Year 2020, employees who have not reduced their annual leave balances below the maximum accumulation amounts set forth in Paragraph A of this Article by July 1, 2019 will cease to accrue annual leave as of that date until their accrued annual leave falls below their maximum accumulation amount. F. Effective June 30, 2020, for Fiscal Year 2021 and thereafter, employees who have not reduced their annual leave balances below the maximum accumulation amounts set forth in Paragraph A of this Article by their City anniversary date cease to accrue annual leave. However, employees, who have not entered DROP and expect to be in this situation, may submit a written plan by which to reduce excess annual leave by taking specified time off. If the Appointing Authority denies the specific request for time off and provides no alternative time off which is acceptable to the employee, the cease-to-accrue provision will not apply until the employee is granted and takes the time off. It is the City’s intent to accommodate employees’ requests to use annual leave and avoid any loss of this benefit. G. Employees in DROP may notify the City of their intent to extend their DROP period by the amount of accrued, unused annual leave, in accordance with the rules on DROP set forth in Article 4, Division 14 of the San Diego Municipal Code. Any annual leave used to extend an employee’s DROP period will not count towards the cease-to- accrue provisions. H. Employees in DROP no longer have access to voluntary payment-in-lieu of annual leave and must use their annual leave for time off. However, employees in DROP with unused annual leave remaining at the end of their five-year DROP period may extend their DROP period by the amount of accrued, unused annual leave, in accordance with the rules set forth in Article 4, Division 14 of the San Diego Municipal Code. If an employee in DROP separates from City service prior to the end of the five-year DROP period, the City will cash out the employee’s accrued, unused annual leave at the employee’s separation or retirement. If an employee extends the DROP period by accrued, unused annual leave, the City will cash out any annual leave earned during the DROP extension period upon the employee’s retirement. I. Payment In-Lieu of Annual Leave 1. Effective for all calendar years beginning on and after January 1, 2019, employees may convert up to 125 hours of annual leave, adjusted to 175 hours for 56-hour workers, to cash as pay-in-lieu each calendar year, subject to the following rules: a. If an employee fails to elect by December 31st of the preceding calendar year to receive any of the annual leave hours they will earn in the following calendar year as pay-in-lieu, their annual leave will accrue in accordance with the applicable Personnel Regulation, Index Code I-2. b. If an employee irrevocably elects by December 31st of the preceding calendar year to receive a portion of the annual leave hours they will earn in the following calendar year, not to exceed 125 hours total, adjusted to 175 hours for 56-hour workers, for the calendar year, as pay-in-lieu, the City will create an account where the employee’s designated pay-in-lieu accruals will be credited. This account will be referred to as a “pay-in-lieu bucket” (“PIL Bucket”) and will be kept separate from the employee’s annual leave accrual account or “annual leave bucket” (“AL Bucket”). The employee’s election must designate the amount of their annual leave being earned each pay period which they wish to have credited to the PIL Bucket; this designation may be stated as an even percentage (e.g., 10%, 20%, 30%, 40%, etc.) of the leave earned during each pay period up to 100%. Starting with the first pay period of the calendar year, the PIL Bucket will be credited with the designated amount of the employee’s annual leave each pay period until the employee’s full election amount is reached, not to exceed 125 hours, adjusted to 175 hours for 56-hour workers. Any annual leave being earned in a pay period which is not credited to the employee’s PIL Bucket will be credited to the employee’s AL Bucket. The balance available in the employee’s PIL Bucket, if any, will be specified on their timecard and paystub. In addition, the employee’s anniversary date and AL cap will also be displayed on the employee’s timecard. c. An employee must make an irrevocable election by December 31st of the preceding calendar year if the employee wishes to participate in the pay-in-lieu of annual leave program for the following calendar year. Elections will not carry over from one calendar year to the next calendar year. An employee who fails to elect by December 31st of the preceding calendar year to participate in the pay-in-lieu of annual leave program for the following year will be deemed to have elected not to participate and they will be prohibited from receiving any pay-in- lieu during that year except as, and only to the extent, permitted under Section 6. d. At least 60 days in advance of this annual December 31st deadline, the City will provide employees with notice and an explanation regarding the need for an irrevocable election as well as the relevant form for making the election. At the same time, the City will remind employees of the citywide cap maximums and how the pay-in-lieu election affects that cap. e. All pay-in-lieu hours which accumulate in the employee’s PIL bucket must be paid out to the employee in the calendar year in which these hours are earned. Pay-outs will be either employee-initiated or City- initiated. An employee may make up to two requests during the calendar year for a payout from their PIL Bucket. The timing of either request is entirely up to the employee and payment will occur as designated on the City approved form. However, an employee cannot request the pay-out of any pay-in-lieu hours until those hours have been earned and accrued in their PIL bucket. Since no PIL hours may be carried over to the following year, the City will initiate a pay-out of all hours accrued in the employee’s PIL Bucket no later than the final paycheck issued in the calendar year regardless of the number of pay periods in the calendar year and regardless of the number of hours. 2. When pay-in-lieu is cashed out, it will be paid based on the employee’s rate of pay at the time it is paid. All pay-in-lieu pay-outs are taxable income, subject to all applicable withholdings and payroll deductions. 3. Existing caps on the accrual of annual leave will remain in effect. However, any hours up to the 125-hour maximum, adjusted to 175 hours for 56-hour workers, which an employee allocates to their PIL bucket for the ensuing calendar year will not count toward the calculation of this cap. 4. Effective for calendar years beginning on and after January 1, 2019, an employee’s election with regard to pay-in-lieu shall be irrevocable except in the event of an unforeseeable financial emergency subject to the following rules: a. In the event of an unforeseeable emergency, as defined in subsection b, an employee may apply to the Risk Management Department to receive pay-in-lieu of annual leave accrued on or after January 1, 2019, but limited to the amount that is reasonably necessary to satisfy the emergency need, including any amounts that may be necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated as a result of the cash out. If the Risk Management Department approves an employee’s application, the City will pay the employee the pay-in-lieu amount the Risk Management Department deems necessary to meet the emergency need.

Leave Programs. A. The maximum accumulation of annual leave for employees hired before July 1, 1994 with 15 or more years of service is 980 hours. The maximum accumulation of annual leave for employees hired before July 1, 1994 with less than 15 years of service is 840 hours. The maximum accumulation of annual leave for employees hired on or after July 1, 1994 and before July 1, 2016 is 552 hours. The maximum accumulation of annual leave for employees hired on or after July 1, 2016 who regularly work administrative schedules of 40-hour workweeks is 395. The maximum accumulation of annual leave for employees hired on or after July 1, 2016 who regularly work suppression schedules of 56-hour workweeks is 552. B. Effective the first full pay period following July 1, 2016 and continuing at the same time each fiscal year thereafter, the City will process a mandatory payment-in-lieu of annual leave for employees who have not reduced their accrued annual leave balances below the maximum accumulation amounts set forth in Paragraph A of this Article, as follows: 1. If an employee has more than 1,000 hours of annual leave accrued and unused on the last day of the first full pay period following July 1 of each fiscal year, the City will process a mandatory payment-in-lieu of 175 hours. 2. If an employee has more than 2,000 hours of annual leave accrued and unused on the last day of the first full pay period following July 1 of each fiscal year, the City will process a mandatory payment-in-lieu of 350 hours. 3. If an employee has more than 3,000 hours of annual leave accrued and unused on the last day of the first full pay period following July 1 of each fiscal year, the City will process a mandatory payment-in-lieu of 525 hours. C. Prior to January 1, 2019, if an employee, who has not entered DROP, has earned and unused annual leave over the maximum accumulation of annual leave amounts set forth in Paragraph A of this Article, the employee may elect to receive voluntary payment-in-lieu of annual leave for any hours above the maximum accumulation amounts. D. Effective January 1, 2019, employees, who have not entered DROP and who have 160 hours or more of accrued annual leave, may elect to receive a maximum voluntary payment-in-lieu of 125 hours per fiscal year for employees with regular work schedules of 40 hours per week and 175 hours per fiscal year for employees with regular work schedules of 56 hours per week. Voluntary payment-in-lieu of annual leave will be administered in accordance with agreed-upon and approved procedures intended to comply with Internal Revenue Service regulations related to constructive receipt of income. E. Effective July 1, 2019, for Fiscal Year 2020, employees who have not reduced their annual leave balances below the maximum accumulation amounts set forth in Paragraph A of this Article by July 1, 2019 will cease to accrue annual leave as of that date until their accrued annual leave falls below their maximum accumulation amount. F. Effective June 30, 2020, for Fiscal Year 2021 and thereafter, employees who have not reduced their annual leave balances below the maximum accumulation amounts set forth in Paragraph A of this Article by their City anniversary date cease to accrue annual leave. However, employees, who have not entered DROP and expect to be in this situation, may submit a written plan by which to reduce excess annual leave by taking specified time off. If the Appointing Authority denies the specific request for time off and provides no alternative time off which is acceptable to the employee, the cease-to-accrue provision will not apply until the employee is granted and takes the time off. It is the City’s intent to accommodate employees’ requests to use annual leave and avoid any loss of this benefit. G. Employees in DROP may notify the City of their intent to extend their DROP period by the amount of accrued, unused annual leave, in accordance with the rules on DROP set forth in Article 4, Division 14 of the San Diego Municipal Code. Any annual leave used to extend an employee’s DROP period will not count towards the ceasecease- to-to- accrue provisions. H. Employees in DROP no longer have access to voluntary payment-in-lieu of annual leave and must use their annual leave for time off. However, employees in DROP with unused annual leave remaining at the end of their five-year DROP period may extend their DROP period by the amount of accrued, unused annual leave, in accordance with the rules set forth in Article 4, Division 14 of the San Diego Municipal Code. If an employee in DROP separates from City service prior to the end of the five-year DROP period, the City will cash out the employee’s accrued, unused annual leave at the employee’s separation or retirement. If an employee extends the DROP period by accrued, unused annual leave, the City will cash out any annual leave earned during the DROP extension period upon the employee’s retirement. I. Payment In-Lieu of Annual Leave 1. Effective for all calendar years beginning on and after January 1, 2019, employees may convert up to 125 hours of annual leave, adjusted to 175 hours for 56-hour workers, to cash as pay-in-lieu each calendar year, subject to the following rules: a. If an employee fails to elect by December 31st of the preceding calendar year to receive any of the annual leave hours they will earn in the following calendar year as pay-in-lieu, their annual leave will accrue in accordance with the applicable Personnel Regulation, Index Code I-2. b. If an employee irrevocably elects by December 31st of the preceding calendar year to receive a portion of the annual leave hours they will earn in the following calendar year, not to exceed 125 hours total, adjusted to 175 hours for 56-hour workers, for the calendar year, as pay-in-lieu, the City will create an account where the employee’s designated pay-in-lieu accruals will be credited. This account will be referred to as a “pay-in-lieu bucket” (“PIL Bucket”) and will be kept separate from the employee’s annual leave accrual account or “annual leave bucket” (“AL Bucket”). The employee’s election must designate the amount of their annual leave being earned each pay period which they wish to have credited to the PIL Bucket; this designation may be stated as an even percentage (e.g., 10%, 20%, 30%, 40%, etc.) of the leave earned during each pay period up to 100%. Starting with the first pay period of the calendar year, the PIL Bucket will be credited with the designated amount of the employee’s annual leave each pay period until the employee’s full election amount is reached, not to exceed 125 hours, adjusted to 175 hours for 56-hour workers. Any annual leave being earned in a pay period which is not credited to the employee’s PIL Bucket will be credited to the employee’s AL Bucket. The balance available in the employee’s PIL Bucket, if any, will be specified on their timecard and paystub. In addition, the employee’s anniversary date and AL cap will also be displayed on the employee’s timecard. c. An employee must make an irrevocable election by December 31st of the preceding calendar year if the employee wishes to participate in the pay-in-lieu of annual leave program for the following calendar year. Elections will not carry over from one calendar year to the next calendar year. An employee who fails to elect by December 31st of the preceding calendar year to participate in the pay-in-lieu of annual leave program for the following year will be deemed to have elected not to participate and they will be prohibited from receiving any pay-in- lieu during that year except as, and only to the extent, permitted under Section 6. d. At least 60 days in advance of this annual December 31st deadline, the City will provide employees with notice and an explanation regarding the need for an irrevocable election as well as the relevant form for making the election. At the same time, the City will remind employees of the citywide cap maximums and how the pay-in-lieu election affects that cap. e. All pay-in-lieu hours which accumulate in the employee’s PIL bucket must be paid out to the employee in the calendar year in which these hours are earned. Pay-outs will be either employee-initiated or City- initiated. An employee may make up to two requests during the calendar year for a payout from their PIL Bucket. The timing of either request is entirely up to the employee and payment will occur as designated on the City approved form. However, an employee cannot request the pay-out of any pay-in-lieu hours until those hours have been earned and accrued in their PIL bucket. Since no PIL hours may be carried over to the following year, the City will initiate a pay-out of all hours accrued in the employee’s PIL Bucket no later than the final paycheck issued in the calendar year regardless of the number of pay periods in the calendar year and regardless of the number of hours. 2. When pay-in-lieu is cashed out, it will be paid based on the employee’s rate of pay at the time it is paid. All pay-in-lieu pay-outs are taxable income, subject to all applicable withholdings and payroll deductions. 3. Existing caps on the accrual of annual leave will remain in effect. However, any hours up to the 125-hour maximum, adjusted to 175 hours for 56-hour workers, which an employee allocates to their PIL bucket for the ensuing calendar year will not count toward the calculation of this cap. 4. Effective for calendar years beginning on and after January 1, 2019, an employee’s election with regard to pay-in-lieu shall be irrevocable except in the event of an unforeseeable financial emergency subject to the following rules: a. In the event of an unforeseeable emergency, as defined in subsection b, an employee may apply to the Risk Management Department to receive pay-in-lieu of annual leave accrued on or after January 1, 2019, but limited to the amount that is reasonably necessary to satisfy the emergency need, including any amounts that may be necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated as a result of the cash out. If the Risk Management Department approves an employee’s application, the City will pay the employee the pay-in-lieu amount the Risk Management Department deems necessary to meet the emergency need.

Leave Programs. A. The maximum accumulation of annual leave for employees hired before July 1, 1994 with 15 or more years of service is 980 hours. The maximum accumulation of annual leave for employees hired before July 1, 1994 with less than 15 years of service is 840 hours. The maximum accumulation of annual leave for employees hired on or after July 1, 1994 and before July 1, 2016 is 552 hours. The maximum accumulation of annual leave for employees hired on or after July 1, 2016 who regularly work administrative schedules of 40-hour workweeks is 395. The maximum accumulation of annual leave for employees hired on or after July 1, 2016 who regularly work suppression schedules of 56-hour workweeks is 552. B. Effective the first full pay period following July 1, 2016 and continuing at the same time each fiscal year thereafter, the City will process a mandatory payment-in-lieu of annual leave for employees who have not reduced their accrued annual leave balances below the maximum accumulation amounts set forth in Paragraph A of this Article, as follows: 1. If an employee has more than 1,000 hours of annual leave accrued and unused on the last day of the first full pay period following July 1 of each fiscal year, the City will process a mandatory payment-in-lieu of 175 hours. 2. If an employee has more than 2,000 hours of annual leave accrued and unused on the last day of the first full pay period following July 1 of each fiscal year, the City will process a mandatory payment-in-lieu of 350 hours. 3. If an employee has more than 3,000 hours of annual leave accrued and unused on the last day of the first full pay period following July 1 of each fiscal year, the City will process a mandatory payment-in-lieu of 525 hours. C. Prior to January 1, 2019, if an employee, who has not entered DROP, has earned and unused annual leave over the maximum accumulation of annual leave amounts set forth in Paragraph A of this Article, the employee may elect to receive voluntary payment-in-lieu of annual leave for any hours above the maximum accumulation amounts. D. Effective January 1, 2019, employees, who have not entered DROP and who have 160 hours or more of accrued annual leave, may elect to receive a maximum voluntary payment-in-lieu of 125 hours per fiscal year for employees with regular work schedules of 40 hours per week and 175 hours per fiscal year for employees with regular work schedules of 56 hours per week. Voluntary payment-in-lieu of annual leave will be administered in accordance with agreed-upon and approved procedures intended to comply with Internal Revenue Service regulations related to constructive receipt of income. E. Effective July 1, 2019, for Fiscal Year 2020, employees who have not reduced their annual leave balances below the maximum accumulation amounts set forth in Paragraph A of this Article by July 1, 2019 will cease to accrue annual leave as of that date until their accrued annual leave falls below their maximum accumulation amount. F. Effective June 30, 2020, for Fiscal Year 2021 and thereafter, employees who have not reduced their annual leave balances below the maximum accumulation amounts set forth in Paragraph A of this Article by their City anniversary date cease to accrue annual leave. However, employees, who have not entered DROP and expect to be in this situation, may submit a written plan by which to reduce excess annual leave by taking specified time off. If the Appointing Authority denies the specific request for time off and provides no alternative time off which is acceptable to the employee, the cease-to-accrue provision will not apply until the employee is granted and takes the time off. It is the City’s intent to accommodate employees’ requests to use annual leave and avoid any loss of this benefit. G. Employees in DROP may notify the City of their intent to extend their DROP period by the amount of accrued, unused annual leave, in accordance with the rules on DROP set forth in Article 4, Division 14 of the San Diego Municipal Code. Any annual leave used to extend an employee’s DROP period will not count towards the cease-to- accrue provisions. H. Employees in DROP no longer have access to voluntary payment-in-lieu of annual leave and must use their annual leave for time off. However, employees in DROP with unused annual leave remaining at the end of their five-year DROP period may extend their DROP period by the amount of accrued, unused annual leave, in accordance with the rules set forth in Article 4, Division 14 of the San Diego Municipal Code. If an employee in DROP separates from City service prior to the end of the five-year DROP period, the City will cash out the employee’s accrued, unused annual leave at the employee’s separation or retirement. If an employee extends the DROP period by accrued, unused annual leave, the City will cash out any annual leave earned during the DROP extension period upon the employee’s retirement. I. Payment In-Lieu of Annual Leave 1. Effective for all calendar years beginning on and after January 1, 2019, employees may convert up to 125 hours of annual leave, adjusted to 175 hours for 56-hour workers, to cash as pay-in-lieu each calendar year, subject to the following rules: a. If an employee fails to elect by December 31st of the preceding calendar year to receive any of the annual leave hours they will earn in the following calendar year as pay-in-lieu, their annual leave will accrue in accordance with the applicable Personnel Regulation, Index Code I-2. b. If an employee irrevocably elects by December 31st of the preceding calendar year to receive a portion of the annual leave hours they will earn in the following calendar year, not to exceed 125 hours total, adjusted to 175 hours for 56-hour workers, for the calendar year, as pay-in-lieu, the City will create an account where the employee’s designated pay-in-lieu accruals will be credited. This account will be referred to as a “pay-in-lieu bucket” (“PIL Bucket”) and will be kept separate from the employee’s annual leave accrual account or “annual leave bucket” (“AL Bucket”). The employee’s election must designate the amount of their annual leave being earned each pay period which they wish to have credited to the PIL Bucket; this designation may be stated as an even percentage (e.g., 10%, 20%, 30%, 40%, etc.) of the leave earned during each pay period up to 100%. Starting with the first pay period of the calendar year, the PIL Bucket will be credited with the designated amount of the employee’s annual leave each pay period until the employee’s full election amount is reached, not to exceed 125 hours, adjusted to 175 hours for 56-hour workers. Any annual leave being earned in a pay period which is not credited to the employee’s PIL Bucket will be credited to the employee’s AL Bucket. The balance available in the employee’s PIL Bucket, if any, will be specified on their timecard and paystub. In addition, the employee’s anniversary date and AL cap will also be displayed on the employee’s timecard. c. An employee must make an irrevocable election by December 31st of the preceding calendar year if the employee wishes to participate in the pay-in-lieu of annual leave program for the following calendar year. Elections will not carry over from one calendar year to the next calendar year. An employee who fails to elect by December 31st of the preceding calendar year to participate in the pay-in-lieu of annual leave program for the following year will be deemed to have elected not to participate and they will be prohibited from receiving any pay-in- lieu during that year except as, and only to the extent, permitted under Section 6. d. At least 60 days in advance of this annual December 31st deadline, the City will provide employees with notice and an explanation regarding the need for an irrevocable election as well as the relevant form for making the election. At the same time, the City will remind employees of the citywide cap maximums and how the pay-in-lieu election affects that cap. e. All pay-in-lieu hours which accumulate in the employee’s PIL bucket must be paid out to the employee in the calendar year in which these hours are earned. Pay-outs will be either employee-initiated or City- initiated. An employee may make up to two requests during the calendar year for a payout from their PIL Bucket. The timing of either request is entirely up to the employee and payment will occur as designated on the City approved form. However, an employee cannot request the pay-out of any pay-in-lieu hours until those hours have been earned and accrued in their PIL bucket. Since no PIL hours may be carried over to the following year, the City will initiate a pay-out of all hours accrued in the employee’s PIL Bucket no later than the final paycheck issued in the calendar year regardless of the number of pay periods in the calendar year and regardless of the number of hours. 2. When an employee chooses to cash out pay-in-lieu is cashed outhours in the City’s SAP Portal, it they select the check date and the number of hours they wish to sell. The pay-in-lieu cash out request will be paid out based on the employee’s their rate of pay at on the time it is paidpay period end date of the selected payment date. All pay-in-lieu pay-outs are taxable income, subject to all applicable withholdings and payroll deductions. 3. Existing caps on the accrual of annual leave will remain in effect. However, any hours up to the 125-hour maximum, adjusted to 175 hours for 56-hour workers, which an employee allocates to their PIL bucket for the ensuing calendar year will not count toward the calculation of this cap. 4. Effective for calendar years beginning on and after January 1, 2019, an employee’s election with regard to pay-in-lieu shall be irrevocable except in the event of an unforeseeable financial emergency subject to the following rules: a. In the event of an unforeseeable emergency, as defined in subsection b, an employee may apply to the Risk Management Department to receive pay-in-lieu of annual leave accrued on or after January 1, 2019, but limited to the amount that is reasonably necessary to satisfy the emergency need, including any amounts that may be necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated as a result of the cash out. If the Risk Management Department approves an employee’s application, the City will pay the employee the pay-in-lieu amount the Risk Management Department deems necessary to meet the emergency need.