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<br />Compensation and Benefits Report <br />March 7, 2011 <br />Page 3 <br /> <br />Replacing the traditional vacation and sick leave policies with PTO would require substantial <br />work and would require negotiation with each of the bargaining groups. Gaining acceptance <br />of the unions would likely require some level of concession on the part of the City, including, <br />but not limited to, converting, buying back or cashing out some large balances. (Staff has <br />requested sample policies from other communities that use PTO and requested feedback <br />from the League of MN Cities as well.) The League identified many questions that need to <br />be asked when considering such a policy, which are reprinted herein for the Council’s <br />consideration: <br /> <br />• Which employees qualify to earn PTO? <br />• What leaves does PTO replace? <br />• How is PTO accrued? <br />• Is there any period of time during which an employee cannot use PTO? <br />• What is the maximum number of PTO hours that can be accrued? <br />• What happens if an employee reaches maximum accrual? <br />• When can PTO be used? <br />• For what reasons can PTO be used - for employee, for family, for fun, etc.? <br />• How do employees request to use PTO? <br />• Who has the authority to approve and/or question the use of PTO? <br />• Are there any circumstances that the city would require an employee to use PTO? <br />• What about unplanned use of PTO versus planned uses? <br />• When might a medical certification or fitness for duty statement be required? <br />• Is PTO “use it or lose it” or is it paid out when an employee leaves? <br />• Can employees with high balances cash out some of their PTO hours? <br />• Can employees with high balances donate PTO hours to those with medical <br />emergencies? <br />• Are there any rewards for not using PTO during the year? <br />• Will PTO hours count as “hours worked” for purposes of calculating overtime under <br />the federal Fair Labor Standards Act? <br /> <br />As you can see, the issues and considerations are numerous. For your reference and <br />review, staff has attached a copy of Bemidji’s PTO policy as well as the League’s model <br />policy for PTO, which they refer to as “Annual Leave”. <br /> <br />Recommendation: <br /> <br /> Review attached Section Three of the Personnel Manual relating to “Compensation and Benefits” <br />and the proposed addition of Section 3.47 regarding Severance. <br /> <br />Respectfully submitted, <br /> <br /> <br />________________________ <br />James Ericson <br />City Administrator