2104 - Leave Buy-Back

Category

Leave

Audience List

• Employee Relations Officers
• Personnel Officers

Synopsis

This policy

• Provides information about the Excluded Employee Leave Buy-Back Program.
• Provides information about the annual cash out of accumulated vacation/annual leave provided in the Memoranda of Understanding (MOU).
• Provides information about the Bargaining Unit 6 one-time cash out. 

Introduction

Leave buy-back allows employees to receive cash payment in exchange for applicable leave credits. The California Department of Human Resources (CalHR) may authorize an annual Excluded Employee Leave Buy-Back Program (Program) and will notify departments of the opportunity to participate.

The MOUs provide that a department head or designee will advise department employees whether or not funds are available for cashing out vacation/annual leave.

Statement

Excluded Employee Leave Buy-Back Program (Program)

California Code of Regulations, title 2, section 599.744 provides by annual determination, CalHR may authorize the Program. CalHR and the Department of Finance have authorized the Program for fiscal year 2022-23, payment for all leave hours is made using existing departmental appropriations, therefore, each department’s participation is subject to the availability of departmental funds.

Leave buy-back means that eligible employees in participating departments may receive payment at their regular salary rate in exchange for unused leave hours. Excluded employees tied to bargaining unit 2 are eligible to buy-back up to 160 hours of eligible leave, all other excluded employees may buy-back up to 80 hours of eligible leave. Classifications tied to bargaining unit 2 are M02, S02, C02 and various E97, E98, and E99 classifications which can be found in the Resources section at the bottom of this policy. Eligible leave may be a combination of vacation or annual leave, voluntary personal leave, personal holiday, or holiday credit.

Employees designated Exempt, Managerial, Supervisory, Confidential, or otherwise excluded from collective bargaining in one of the following identifier codes are eligible to participate in this program:

• Exempt or Managerial – Exempt/M/E59/E99
• Supervisory – S/E48/E58/E68/E78/E98
• Confidential and otherwise excluded from bargaining – C/E67/E77/E97

Represented Employee Cash Out of Vacation/Annual Leave

Vacation/annual leave cash out means that eligible represented employees in participating departments may receive payment at their regular salary rate in exchange for accrued vacation or annual leave. Participation is limited to employees whose MOU specifically includes this provision. Payment for all leave hours are made using existing departmental appropriations, therefore when offered, each department’s participation is subject to the availability of departmental funds.

Each applicable MOU provides specific dates for the leave cash out. Most MOUs state on or before May 1 the department head or designee will advise department employees whether the department has available funds to participate. In addition, most MOUs provide that employees must submit their written request to cash out leave in the month of May and departments are to issue pay in June.

The following MOUs allow for annual cash out:

To participate, employees must have an appointment in one of the applicable bargaining units, work in a department with available funds, and be in the applicable bargaining unit at the time payment is issued. Participation is limited to one time per fiscal year, unless expressly stated in an MOU or applicable side letters, e.g. Bargaining Unit 13 allows for an advanced Vacation/Annual Leave cash out to employees who reside in counties where a State of Emergency is declared (please see MOU for additional details). For tax purposes, payments will be ordinary income in the month that payment is made.

Departments are encouraged, to the extent operationally feasible, to allow employees to use their leave hours as they accrue rather than letting the leave balances accumulate as a future fiscal liability.

Bargaining Unit 6 – One-time Leave Buyback Provision 

By October 6, 2023, the following employees will be notified by their department of the process for a one-time cash out up to 80 hours of accumulated compensable leave:

• R06;
• S06;
• M06; and
• Other employees related to Bargaining Unit 6. Refer to the “Exempt and Excluded Classifications Related to Bargaining Unit 6” link under the Resources section below.

Application

Excluded Employee Leave Buy-Back Program

The Program is currently being offered and employees in participating departments may receive payment at their regular salary rate in exchange for up to 160 hours of unused leave credits for excluded employees tied to bargaining unit 2 and up to 80 hours for all other excluded employees. The Department Certification of Funding and Participation form (CalHR 749) must be completed and returned to CalHR’s Personnel Services Branch prior to implementation. Forms may be scanned and emailed to psb@calhr.ca.gov. Departments must complete and return the form whether they participate in the Program or not.

Departments must notify their excluded employees to advise whether the department has funds available and is able to participate. Participating departments shall indicate the number of hours that may be bought back, not to exceed the 160-hours maximum for excluded employees tied to bargaining unit 2 and 80-hour maximum for all other excluded employees. Documentation of the employee notification shall be maintained by each department.

Eligible excluded employees who wish to participate in the Program must submit an Excluded Employee Leave Buy-Back Request Form to an individual designated by the department. Participation in the Program is limited to once per fiscal year.

Departments will deduct the number of corresponding leave credits from the employee’s available leave balances. Payments may be made as early as May 2023, but no later than June 30, 2023.

Payments under the Program are subject to the flat tax method and garnishments, if applicable. Instructions on how to process payments are issued by the State Controller’s Office.

Bargaining Units 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, and 21 Vacation/Annual Leave Cash Out

The Department Certification of Funding and Participation form (CalHR 878) for the Vacation/Annual Leave Cash Out Program for bargaining units 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, and 21 must be completed and returned to CalHR’s Personnel Services Branch by April 30, 2023. Forms may be scanned and emailed to psb@calhr.ca.gov. Departments must complete and return the form whether they participate in the Program or not.

Departments must notify their bargaining units 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, and 21 employees in the month of April to advise whether the department has funds available and is able to participate. Participating departments shall advise employees of the number of hours that may be cashed out, not to exceed the allowable amount specified in the applicable Memorandum of Understanding. Documentation of the employee notification shall be maintained by each department.

Eligible represented employees must submit an Employee Leave Cash Out Request form during the month of May to an individual designated by the department. Participation in the program is limited to once per fiscal year.

Departments will transact payment information on a flow basis in the month of June and deduct the corresponding number of vacation/annual leave hours from the employee’s available leave balances. All payments must be issued during the month of June, but no later than June 30.

Payments under this program are subject to the flat tax method and garnishments, if applicable. Instructions on how to process payments are issued by the State Controller’s Office.

Bargaining Unit 6 – One-time Leave Buyback Provision

Employees who wish to cash out compensable leave must submit the One-time Employee Leave Cash Out Request form to their local Personnel Office no later than October 20, 2023.

Forms will be processed on a flow basis, including the corresponding deduction of leave hours from the employee’s available leave balances. Payments will be issued by December 15, 2023.

Additional Information

Departments that participate in the Excluded Employee Leave Buy-Back and Represented Employee Cash Out programs must submit an Excluded Leave Buy-Back Log and Represented Leave Cash Out Log by July 31, 2023. Departments may use the logs provided in the forms section below or create a MIRS (or similar) report. If departments choose to create a report it must include the data on the CalHR form, in an excel format, and in the same order as the CalHR provided logs. Do not add additional columns of information. If an employee opts to cash out multiple leave types, separate rows should be inserted in the tracking log to capture each leave type and the amount of hours being cashed out (ex. AL 64 hours and PH 16 hours). Do not make any changes to the formula in column H. All logs must be submitted electronically to psb@calhr.ca.gov by the date specified above.

Bargaining Unit 6 – One-time Leave Buyback Provision

The Department of Corrections and Rehabilitation and Office of Inspector General must submit a One-time Leave Cash Out log – Bargaining Unit 6 and Related Classifications by January 31, 2024. The department may use the log provided in the forms section below or create a MIRS (or similar report). If the department chooses to create a report it must contain the exact data and remain in the same order as the CalHR provided log. All logs must be submitted electronically in an excel format to psb@calhr.ca.gov by the date specified above. 

Authorities

• Bargaining Contracts - MOUs
• California Code of Regulations, title 2, section 599.744
• Government Code section 19849.13

Resources

Forms

• 2023 BU 6 One-Time Leave Cash Out Tracking Log: 2023 BU 6 One-Time Leave Cash Out Tracking Log
• 2023 One-Time Employee Leave Cash Out Request Form Unit 6: 2023 One-Time Employee Leave Cash Out Request Form Unit 6
• CalHR 138: Leave Reduction Plan
• CalHR 749: Department Certification of Funding and Participation - Excluded Leave Buy-Back Program
• CalHR 878: Department Certification of Funding and Participation - Bargaining Units
• Classes Tied to Bargaining Unit 2: Classes Tied to Bargaining Unit 2_Leave Buy-Back
• Excluded Employee Leave Buy-Back Request: Excluded Employee Leave Buy-Back Request
• Excluded Leave Buy-Back Tracking Log : Excluded Leave Buy-Back Tracking Log
• Exempt and Excluded Classifications Related to Bargaining Unit 6: Exempt and Excluded Classifications Related to Bargaining Unit 6
• Represented Employee Leave Cash Out Request: Represented Employee Leave Cash Out Request
• Represented Leave Cash Out Tracking Log : Represented Leave Cash Out Tracking Log

PML

• PML 2007-010: PML 2007-010 - 3/27/2007 - Excluded Employee Leave Buy Back
• PML 2015-011: PML 2015-011 - 4/3/2015 - Bargaining Units 2, 7, 9, 10, 12 and 13 Cash Out of Vacation/Annual Leave – Fiscal Year 2014-15
• PML 2015-012: PML 2015-012 - 4/3/2015 - 2015 Excluded Employee Leave Buy-Back Program
• PML 2016-009: PML 2016-009 - 4/18/2016 - Bargaining Units 2, 7, 9, 10, 12 and 13 Cash Out of Vacation/Annual Leave
• PML 2016-011: PML 2016-011 - 4/20/2016 - Excluded Employee Leave Buy Back Program
• PML 2016-032: 2017 Excluded Employee Leave Buy-Back Program

Web Pages

• SCO PPM section G: Miscellaneous Payments

Authorized By

Melissa Russell
Chief
Personnel Management Division

Contact Person

Personnel Services Branch
Personnel Program Consultant , Personnel Services Branch
Phone: 916-909-3702
Fax: 916-327-1886
Email: psb@calhr.ca.gov

Superseded Policies

History

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