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HomeMy WebLinkAboutItem 06.q Date: Item No. Resolution Amending Paid Time Off Policy Proposed Action Staff recommends adoption of the following motion: Move to approve the amendment to the Paid Time Off Policy 6.50. Overview In 2018, The City Council adopted the SAFE job classification system and compensation plan to provide for internal equity and to remain competitive with other municipalities to attract and retain qualified employees. Currently, the City Administrator position cannot move further in the approved step range due to the waiver limit authorized by the Commission of the Office of Management and Budget (MMB). In the future, several other exempt positions could be impacted by the salary limit requirements of M.S. 43A.17, Subd. 9. The amendment to the paid time off policy would provide additional PTO hours for exempt employees who reached the salary limit requirement of MN Statute 42A.17, Subd. 9, or if applicable, the waiver limit authorized by MMB. The Personnel Committee reviewed the proposed amendment to the policy and is recommending approval. The proposed amendment was also reviewed by the City Attorney. Primary Issues to Consider • Amending the paid time off policy would allow exempt employees who reach the salary limit requirements of M.S. 43A.17, Subd. 9 or, if applicable, the waiver limit authorized by MMB, to receive equivalent hours above the limit in paid leave. Supporting Information • Resolution Amending Paid Time Off Policy 6.50 • Amended Paid Time Off Policy 6.50 Financial Impact: $ Budgeted: Y☐ N☐ Source: Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Tammy Schutta, Human Resources Manager December 21, 2020 CITY OF LAKEVILLE RESOLUTION NO. ____ RESOLUTION AMENDING THE PAID TIME OFF POLICY WHEREAS, The City Council adopted the SAFE job classification system and compensation plan to provide for internal equity and to remain competitive with other municipalities to attract and retain qualified employees; and WHEREAS, some exempt positions may be impacted by the salary limit requirements of M.S. 43A.17, Subd.9.; and WHEREAS, the policy amendment provides for a PTO program for exempt employees who reach the salary limit requirements of M.S. 42A.17, Subd. 9, or waiver limit set by MMB; and WHEREAS, the amount of paid leave for each such employee shall be determined by the City Council; and WHEREAS, paid leave will be accrued on a per-pay period basis and may be used as earned, maintained in a paid leave bank, or cashed out upon separation of employment; and NOW, THEREFORE, BE IT RESOLVED that the City Council approves the amendment to Paid Time Off Policy 6.50. ADOPTED by the Lakeville City Council this 21st day of December 2020 ______________________________ Douglas P. Anderson, Mayor _________________________________ Charlene Friedges, City Clerk PAID TIME OFF Policy 6.50 1) POLICY a) All eligible employees will accrue Paid Time Off (PTO) based on years of service with the City of Lakeville. The PTO benefit replaces the city policies on vacation and sick leave and combines these benefits into a single plan. b) PTO can be used for any purpose, subject only to normal request/approval procedures consistent with policy and labor agreements. c) Requests for leave for reasons other than illness or injury must be submitted to the supervisor a minimum of 14 days (two weeks) in advance and will be granted in seniority order. Requests made with less than 14 days of notice will be granted on a first-come, first-serve basis at the discretion of the supervisor. d) Emergency use (illness or injury) requires notification to the supervisor a minimum of 30 minutes prior to the employee’s scheduled workday. Requests made are subject to the discretion of the supervisor. Emergency use may require documentation of the emergency such as a physician’s note. e) PTO time is accrued biweekly on an hourly basis. f) The maximum amount of PTO than can be accrued and carried over to the next year will be 480 hours. g) An employee that leaves the city in good standing, after giving proper notice, will be compensated for PTO leave accrued and unused to the date of separation. The amount will be taxable to the employee at their regular compensation rate on the date of separation. h) Employees using PTO leave will be considered to be working for the purpose of accumulating additional PTO time. i) In December of each year, employees who have a leave balance of 240 PTO hours on November 30 will receive the option to elect to cash out a portion of the PTO to be earned in the following calendar year. Full-time employees may choose to receive cash for 40 hours of PTO. Part-time employees may choose to receive cash for a pro-rated value of 40 hours each calendar year. Employees cannot reverse the choice after December 31 of each year. PTO cash payment will be paid by July 1. The amount will be taxable to the employee at the regular compensation rate at the time of PTO cash payment. If the employee terminates employment before June 30, the cash payout will be pro -rated. i)j) Exempt employees, including the City Administrator, who reach the salary limit requirements of M.S. 43A.17, Subd. 9 (Governor’s salary cap) or, if applicable, the waiver limit authorized by the Commissioner of the Office of Management and Budget, will receive equivalent hours above the limit in paid leave. The amount of paid leave for each such employee shall be determined by the City Council. Paid leave will be accrued on a per-pay-period basis and may be used as earned, maintained in a paid leave bank, or cashed out upon separation of employment. The PTO program will be distinct and separate from the City’s normal paid time off program. While there will be no cap on PTO accrual, the City Administrator may place restrictions on the amount of vacation that may be taken annually. The City Council may place restrictions on the amount of vacation the City Administrator may take annually. 2) PARTICIPATION a) Effective February 1, 2007, all non-union and union employees that have bargained this benefit into their contracts will have the opportunity to participate in the PTO benefit. b) Employees who choose not to participate will have the option on an annual basis to switch to the PTO plan during a period of open enrollment. Once the election is made to convert to the PTO program, employees cannot return to the vacation, sick leave and funeral leave program. c) Employees who choose not to participate in the PTO benefit will continue to accrue sick and vacation time according to those policies. d) All employees hired after February 1, 2007 will participate in the PTO program. 3) PTO ACCRUAL SCHEDULE a) The accrual schedule for full-time employees is as follows: 1st year of employment 18 days 144 hours 2nd year of employment 18 days 144 hours 3rd year of employment 19 days 152 hours 4th year of employment 19 days 152 hours 5th year of employment 20 days 160 hours 6th year of employment 20 days 160 hours 7th year of employment 22 days 176 hours 8th year of employment 22 days 176 hours 9th year of employment 24 days 192 hours 10th year of employment 24 days 192 hours 11th year of employment 26 days 208 hours 12th year of employment 26 days 208 hours 13th year of employment 28 days 224 hours 14th year of employment 28 days 224 hours 15th year of employment 30 days 240 hours 4) CONVERSION a) Conversion to the PTO plan is optional for employees hired before February 1, 2007. b) Current vacation accruals will be converted 1:1 to the PTO accrual. c) Sick balances will be converted to an Extended Medical Bank (EMB) at a 1:1 ratio at the time of PTO election. d) At retirement or separation, the value of the EMB will be either placed into a Health Care Savings Plan or paid directly to the employee according to city policy and/or contract language. 5) EXTENDED MEDICAL BANK a) EMB hours may only be used after the first 40 consecutive hours of an absence for the employee’s serious health condition, or the serious health condition of the employee’s child. Effective August 1, 2013, EMB may also be used for the serious health condition of the employee’s adult children, spouse, siblings, parents, grandparents or stepparents. This use is limited to 160 hours in a year. The forty-hour waiting period shall apply to each separate incident of a serious health condition. b) For regular part-time employees, the waiting period before becoming eligible to use extended leave pay shall be based on a prorated basis by determining the actual hours the employee is scheduled to work according to the budget. c) EMB leave shall not be considered as a privilege or vested right which an employee may use at their discretion, but shall be considered as a type of insurance which shall be allowed in case of a serious health condition of the employee or the employee’s child. d) Employees shall notify their immediate supervisor or the Human Resources Department on the first day of a qualifying serious health condition. Any employee using EMB leave may be placed on concurrent FMLA leave.