2104 - Leave Buy-Back (Historical View)

** Effective: 11/21/2016 12:31:34 PM - 11/21/2016 3:59:38 PM **

Status: Active

Change Notes

Added table as text.

Category

Leave

Audience List

Synopsis

This policy

Introduction

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

Some Memoranda of Understanding (MOU) 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

California Code of Regulations, title 2, section 599.744 provides by annual determination the California Department of Human Resources (CalHR) may authorize an Excluded Employee Leave Buy-Back Program.  CalHR will notify departments when the program is being offered.  Payment for all leave hours are made using existing departmental appropriations, therefore when offered, each departments 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 up to 80 unused leave hours.  Eligible leave may be a combination of vacation or annual leave, personal leave (personal leave 1992, 2003, 2010/11/12 and voluntary personal leave), personal holiday, or holiday credit.  Payments for all leave hours are made using existing departmental appropriations.

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:

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 departments participation is subject to the availability of departmental funds.

Each applicable MOU provides specific dates for the leave cash out.  Most MOU’s 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 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 MOU’s 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 to be eligible for the cash out.  Participation is limited to one time per fiscal year.

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.

Application

Excluded Employee Leave Buy-Back Program

When leave buy-back is offered, the Department Certification of Funding and Participation Form for the Leave Buy-Back Program 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 be complete and return the form whether they participate in the program or not.

When leave buy-back is offered, 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 80 hour maximum.  Documentation of the employee notification shall be maintained by each department.

Eligible excluded employees who wish to participate in the leave buy-back 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.

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 Units 2, 6, 7, 9, 10, 12, and 13 Vacation/Annual Leave Cash Out

The Department Certification of Funding and Participation Form for the Vacation/Annual Leave Cash Out Program for bargaining units 2, 6, 7, 9, 10, 12 and 13 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, and departments must complete and return the form even if they do not have employees in the impacted bargaining units.

Departments must notify their bargaining units 2, 6, 7, 9, 10, 12 and 13 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 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 garnishments, if applicable.  Instructions on how to process payments are issued by the State Controller’s Office.

Authorities

Resources

PML

Authorized By

Contact Person

Personnel Services Branch
Personnel Program Consultant, , Personnel Services Branch
Phone: 916-323-3343
Fax: 916-327-1886
Email: psb@calhr.ca.gov

Superseded Policies

Not Applicable.