HomeMy WebLinkAbout20-162CITY OF LAKEVILLE
RESOLUTION NO. 20-162
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 211 day of December 2020
Douglas P. Anderson, Mayor
Charlene Friedges, City Cl
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.
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
lith 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.