Loading...
HomeMy WebLinkAbout#14 - Annual Leave Policy STAFF REPORT DATE: May 7, 2024 CONSENT TO: Mayor and Council Members FROM: Karissa Goers, Administrative Services Director AGENDA ITEM: Approve Annual Leave PTO policy update BACKGROUND: The City of Lake Elmo strives to be an employer of choice. We are working to increase retention, morale, and work life balance for our employees. ISSUE BEFORE COUNCIL: Should the Council approve the PTO policy update and allow a one-time PTO adjustment for current staff? PROPOSAL DETAILS/ANALYSIS: Staff is seeking Council approval to update language in the PTO policy to allow new hires to earn PTO accrual rates commensurate with their previous government experience. We would like to add the following language to the PTO policy: New hires with relevant county, city, local, or state government work experience may be eligible for an advanced accrual rate based on years of experience, with the approval of the City Administrator. If approved, we would like to make a one-time adjustment for current staff with previous government experience into the correct PTO accrual rate. In addition, we would like to put a cap on the number of PTO hours an employee can cashout upon termination. Currently there is no limit. We would like to limit the cashout to 240 hours, which is the yearly carryover amount. FISCAL IMPACT: If implemented, the PTO hours given to staff would increase by about 700 hours per year. We don’t see this fiscally until PTO hours are used or cashed out upon termination. By limiting the termination cash out to 240 hours we would save money. Typically, our PTO cashouts upon termination are over 240 hours and closer or above 300 hours. OPTIONS: 1) Approve the updates to the PTO policy. 2) Do not approve the updates to the PTO policy. RECOMMENDATION: If removed from the consent agenda, “Motion to approve the updates to the PTO policy.” ATTACHMENTS: - Annual Leave PTO Policy ANNUAL LEAVE – PAID TIME OFF (PTO) The city believes that time away from work is important to the health and well-being of our employees and as such, provides paid time off (PTO) for eligible employees. This policy meets the requirements of the Earned Sick and Safe Time (ESST) Law. Employees can designate up to 48 hours of PTO per year as ESST. Annual leave can be used for any reason, subject to existing request and approval procedures. As with all paid time off programs, the city needs to ensure that service to the public and work requirements are not adversely impacted. Paid time off (PTO) should be taken in fifteen (15) minute increments. Career firefighters should take paid time off in twenty-four (24) hour increments. PTO hours are calculated and updated each biweekly pay period. An employee may not borrow against future PTO accruals or carry a negative PTO balance. Employees may use PTO in the same pay period in which it is earned. Annual leave will not accrue during unpaid leaves of absences. For the purpose of determining an employee’s PTO accrual rate, years of service will include all continuous time that the employee has worked at the city (including authorized leave, but excluding time worked in a temporary, seasonal position or internship). New hires with relevant county, city, local, or state government work experience may be eligible for an advanced accrual rate based on years of experience, with the approval of the City Administrator. Accrual Rates for Annual Leave Years of Service Annual / Per Pay Period Accrual Rates 0-2 Years 123.50 hours/4.75 hours 3-5 years 156 hours /6.0 hours 6-10 Years 195 hours /7.50 hours 11-15 Years 221 hours/8.50 hours 16-24 Years 247 hours/9.5 hours 25 Years or More 260 hours/10 hours Full-time employees will earn paid time off in accordance with the above schedule. Part-time employees who work at least 18 hours per week on a regular basis will accrue paid time off on a prorated basis of the full-time employee schedule. Part-time employees who work less than 18 hours per week on a regular basis, temporary, seasonal employees, and interns will not earn or accrue paid time off. Career firefighters (who work 24-hour shifts and must take 24 hours of leave to take a shift off) will earn paid time off in accordance with the schedule below: Accrual Rates for Career Firefighter Annual Leave Years of Service Annual/ Per Pay Period Accrual Rates 0-2 Years 156 hour/6 hours bi-weekly 3-5 years 208 hours/8 hours bi-weekly 6-10 Years 260 hours/10 hours bi-weekly 11-15 Years 286 hours/11 hours bi-weekly 16-24 Years 312 hours/12 hours bi-weekly 25 Years or More 338 hours/13 hours bi-weekly ANNUAL LEAVE – PAID TIME OFF (PTO) No more than 240 hours of annual leave may be carried over into the following year. Any amount above the maximum 240 hours shall be converted to a contribution to the MSRS Health Care Savings Plan. Such conversion shall be capped at 40 hours per year. The conversion shall take place in conjunction with issuing the calendar year’s final paychecks. Employees leaving the city in good standing will receive 100 percent of their annual leave balance as compensation up to a maximum of 240 hours (applicable taxes will be withheld) with their final pay. Employees have the option of directing those dollars into a 457 deferred compensation plan (subject to IRS maximum deferral regulations and Minnesota law).