HomeMy WebLinkAboutResolutions - 2016.11.10 - 22681MISCELLANEOUS RESOLUTION #16311 November 10, 2016
BY: Human Resources Committee, Robert Hoffman, Chairperson
IN RE: HUMAN RESOURCES DEPARTMENT — ANNUAL LEAVE BUY BACK
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS Merit Rule 23, Annual Leave, defines how annual leave will be accrued and used; and
WHEREAS Merit Rule 23.10, indicates that employees separated from County service shall be paid for
unused time at their current hourly rate; and
WHEREAS the hourly rate of pay for most County employees is at its highest level at the time of
separation from County employment; and
WHEREAS Merit Rule 23, indicates the maximum amount of annual leave accrual allowed based on
years of service and overtime designation; and
WHEREAS there have been County employees who reach their maximum accrual amount of time
allowed and are unable to take time off, thereby, losing earned annual leave time; and
WHEREAS there are a number of County employees who do not maintain sufficient annual leave banks
to cover the time off they request; and
WHEREAS it is proposed to offer a once a year buy back of annual leave time to full-time employees who
have a minimum of 60 hours in their annual leave bank; and
WHEREAS it is proposed that no employee can cash out annual leave time to less than 40 hours in their
annual leave bank; and
WHEREAS it is proposed that an employee may only cash out annual leave time in one hour increments;
and
WHEREAS it is proposed that if the annual leave balance falls below the 60 hours between the
submission of the request and the time of payment then the annual leave request to cash-out will be
denied; and
WHEREAS all annual leave time cashed out is subject to all payroll income tax withholding requirements
as well as any garnishment, wage assignment, levy, income withholding order requirements, employee
benefit contributions and/or arrearages; and
WHEREAS the annual leave time buy back may provide those employees who reach their maximum
accrual allowance and would otherwise lose time an opportunity to cash out some of their annual leave
time; and
WHEREAS the annual leave time buy back may also incentivize employees with insufficient leave banks
to build their banks for use or future cash out opportunities; and
WHEREAS the County will realize incremental savings if annual leave is allowed to be paid out over a
period of time versus when an employee separates from County service as amounts being paid out on an
annual basis may be at lower salary rates in comparison to future salary rates where general salary
increases and/or promotional salary increases have been added; and
WHEREAS no additional funding is required as the annual leave buy back hours will be paid from the
Fringe Benefit Fund; and
WHEREAS the Fringe Benefit Fund is where the accumulated annual leave liability is recorded and is the
source for annual leave cash out payments when employees separate from County service.
NOW THEREFORE BE IT RESOLVED to approve a once a year buy back of annual leave time for full-
time employees at the employee's current hourly rate of pay and where there is a minimum of 60 hours in
their annual leave bank.
BE IT FURTHER RESOLVED that no employee can cash out annual leave time to less than 40 hours
remaining in their annual leave bank.
BE IT FURTHER RESOLVED that the employee may request a minimum of 20 hours to a maximum of 40
hours of annual leave time to cash out and must be in one hour increments.
BE IT FURTHER RESOLVED that if the annual leave balance falls below the 60 hours between the
submission of the request and the time of payment then the annual leave request to cash-out will be
denied.
BE IT FURTHER RESOLVED that employees shall submit their requests for annual leave cash out by the
end of the second pay period in July of each calendar year.
BE IT FURTHER RESOLVED that pay out for annual leave buy back will occur the second pay period in
August of each calendar year.
HUMAN RESOURCES COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Zack absent.
BE IT FURTHER RESOLVED that the payment received as a result of annual leave cash out shall not be
included in the final average compensation (FAC) for employees on the defined benefit plan and no
additional contributions will be made to an employee's defined contribution plan by the County or the
employee as a result of the payment.
BE IT FURTHER RESOLVED all annual leave time cashed out is subject to all payroll income tax
withholding requirements as well as any garnishment, wage assignment, levy, income withholding order
requirements, employee benefit contributions and/or arrearages.
Chairperson, on behalf of the Human Resources Committee, I move the adoption of the foregoing
resolution.
HUMAN RESOURCES COMMITTEE
Resolution #16311 November 10, 2016
The Chairperson referred the resolution to the Finance Committee. There were no objections.