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Colleagues,
Just something to think on and ensure we stay between the left and right limit of what we are authorized to do on this one please:
We collectively are not within tolerance level when it comes to buying out / paying off or back of employee vacation time / hours earned but not used and especially when it comes to step down agreements.
The bottom line is that we can not buy back accrued but unused vacation leave from an employee unless that employee is totally separating from employment from the State of Idaho. A change in job status within our University does not meet the criteria. In fact, if an employee separates from the University and remains a State employee without a break in service, they too are not allowed to have their vacation time paid off.
In other words, if we take a personnel action that ends up with an employee changing jobs within the University, we specifically are not allowed to pay them for any accrued but not used leave / vacation time. And, employees that separate from our University and remain State employees, we can not pay out / buy back their accrued but not used leave either.
There may be correspondence that is “out and about” that might offer vacation pay out for step downs. Regardless of who authored the correspondence, please understand that we can not offer something that we are not allowed to do. We are collecting those offers, to the best of our ability, and we will work through them; however, it is important for each of us to understand that we can only pay off earned vacation time when an employee terminates from State of Idaho employment. What this means is that this “tool” is not one for us to use in any negotiation or personnel actions. It is a policy upon termination from State employment…not considered when changing jobs within the State / University.
I do understand that what this means could be that an employee goes from a higher pay rate to a lower and then when they do terminate from the University and the State, the pay off for their accrued leave is calculated off of the lower rate. The reason for that is accrued leave when taken is taken at the pay grade that one is at when they take it. The lower rate is correct in this case. That is understood by all as well as considered by our officials when the verbiage was drawn up in the code.
Our Controller will discuss this with the fiscal officer group next Tuesday. We have been in discussion with State of Idaho officials on this and we will work through the cases; however, please do not offer accrued vacation hour pay outs for employees that will remain employed by the University or if leaving the University, still employed by the State of Idaho with no break in employment.
Last year, this was an item of concern and we sent out guidance (July 06) stating that we would not consider paying off vacation time unless the employee terminates employment from the University. We collectively are not yet within the parameters on this one and I ask your personal awareness, support, and understanding. This requirement is driven by our need to conform to Idaho code 67-5534 and its specific verbiage:
(e) Vacation leave not taken shall be compensated for at the time of
separation only to the maximum accruals and accumulations allowed by this
section.
……………………
(3) Upon separation from state employment and to the limits allowed by subsection (2) of this section, all classified officers and employees shall receive a lump sum payment for accrued but unused vacation leave at the hourly rate of pay of that officer or employee.
P.S. I do sense that some might ponder if we must follow this ….due to our Constitutionality …. The answer is, yes, and that too is described in fair detail by our Board of Regents, and again under Idaho Statute / Vacation Time: ….”to the extent possible, the SBOE shall adopt policies which are compatible with the State’s ….
I appreciate your understanding on this one. We just need to tighten up a little and in the end we will all be better off for it.
Lloyd