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HomeMy WebLinkAboutResolutions - 2020.04.13 - 33041MISCELLANEOUS RESOLUTION #20103 April 13, 2020 BY: Commissioner David T. Woodward, Chairperson, Emergency Operations and Oversight Committee IN RE: HUMAN RESOURCES DEPARTMENT — REVISION TO MERIT RULE 23 FOR ANNUAL LEAVE BUY BACK To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS Miscellaneous Resolution #16311 authorized a once per 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 Miscellaneous Resolution #16312 adopted the corresponding change to Merit Rule 23; and WHEREAS employees may cash out a minimum of 20 hours to a maximum of 40 hours annual leave time in one-hour increments, until a minimum of 40 hours remains in their annual leave bank; and WHEREAS the annual leave time buy back provides 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 employees are required to submit a request for annual leave buy back by the end of the second pay period in July for each calendar year with pay out occurring in the second pay period of August; and WHEREAS the stay at home orders in response to the COVID-19 pandemic has caused County employees to cancel planned vacations and time off, and resulted in over 600 employees to become at maximum or nearing maximum accrual rates and will lose their leave time; and WHEREAS it is proposed to revise Merit Rule 23 to modify the provisions of Annual Leave Buy Back to allow the Human Resources Department to administer the program once per calendar year, on a flexible timeline; and WHEREAS Section IV, Subsection A of the Merit System resolution requires that all changes in the rules and regulations of the Merit System shall be submitted to the Board of Commissioners at a regular meeting of the Board and shall become effective thirty (30) days after such meeting unless an objective is received in writing by the Chairperson of the Board of Commissioners, in which case the objection shall become a matter of business at the next meeting of the Board; and WHEREAS it is requested that the Oakland County Board of Commissioners suspend Board rules and waive the thirty (30) day layover on adoption of this Merit Rule change to allow the Human Resources Department the ability to offer Annual Leave Buy Back to eligible County employees as soon as possible in order to avoid negative impact on Oakland County employees; 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 funding source for the annual leave cash out payments when employees separate from County services and for the Annual Leave Buy Back program. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes that the reading and distribution of this notice and copy of the proposed change to Merit System Rule 23 to all Commissioners present and absent, is considered as the official submission to the Board of Commissioners of the described changes in Merit System Rule 23. BE IT FURTHER RESOLVED to waive the thirty (30) day layover required by the Board Rules to adopt changes to Merit Rules to allow an immediate adoption of this Merit Rule change. BE IT FURTHER RESOLVED that a budget amendment is not required. Chairperson, on behalf of the Emergency Operations and Oversight Committee, I move the adoption of the foregoing resolution. aj Commissioner David T. Woodward, District 19 Chairperson, Emergency Operations and Oversight Committee EMERGENCY OPERATIONS AND OVERSIGHT COMMITTEE VOTE: Motion carried on a roll call vote with Gingell and Spisz voting no. PROPOSED CHANGE IN MERIT SYSTEM RULE Rule Number 23 Current Wording 23.12.1 Each calendar year in June, the Human Resources Department will send notification to all Departments announcing that full-time employees may cash -out annual leave time under certain conditions. 23.12.2 Eligible employees will complete a form with leave time verified and signed by their supervisor then turned into Payroll by the end of the second pay period in July. 23.12.3 Pay out of annual leave time will occur the second pay period in August of each calendar year. 23.12.4 Eligible employees must have a minimum of 60 hours in their annual leave bank at the time of the request and cash out payment. 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. Rule Number 23 Proposed Wordino 23.12.1 Each calendar year in dine March, the Human Resources Department will send notification to all Departments announcing the deadline and paycheck dates that full-time employees may request cash -out annual leave time under certain conditions. This date may change due to extenuating circumstances, following a letter of notification from the County Executive to the Board of Commissioners. 23.12.2 Eligible employees will complete a form with leave time verified and signed by their supervisor then turned into Payroll by the end of the s ..d pay period . ? l specified deadline. 23.12.3 Pay out of annual leave time will occur .. the d pay period :n August F M ealendar—year on the payout schedule identified in the announcement. 23.12.4 Eligible employees must have a minimum of 60 hours in their annual leave bank at the time of the request and cash out payment. If the annual leave balance falls below the 60 hours betiAmen the �r ss;a of •,h^�est-and at the time of payment, then the annual leave request to cash -out will be denied. Section IV Subsection A of Merit System Resolution Copies of the rules and regulation of the Merit System shall be submitted to the Board of Commissioners at a regular meeting of the Board and shall become effective thirty (30) days after such meeting unless an objective is received in writing by the Chairperson of the Board of Commissioners, in which case the objection shall become a matter of business at the next meeting of the Board. OAIL.AND COUNTY MICHIGAN TO: Board of Commissioners FROM: April M. Lynch, Deputy County Executive DATE: April 6, 2020 RE: Merit Rule 23.12 — Annual Leave Buy Back OAKLAND COUNTY EXECUTIVE DAVID COULTER April Lynch, Deputy County Executive (248) 858-1558 • Iynchap@oakgov.com Under Merit Rule 23, the County has been offering a one-week vacation buy out each year in August. This allows those who may be at maximum accrual for vacation to "cash out' up to one week. Eligibility requires that employees have a minimum of 60 hours in their bank to qualify for a cash out request. Due to the COVID-19 pandemic many employees have had to cancel their vacation as well as many employees may have their vacations denied due to a workforce impacted by this virus. We are requesting the date of Merit Rule 23.12 Annual Leave Buy Back be modified of the cash -out to allow for flexibility each year. The current Merit Rule states that it is the second pay of August, this year we are requesting to move it to the last paycheck in April or the first paycheck in May. Rather than putting a specific date in the Merit Rule we are requesting that the date be open, and the new date will be established each year in March. Our intention is to keep it the same date most years but adjusting the Merit Rule to reflect a more open- ended date allows for more flexibility in unique circumstance. We respectfully request that Merit Rule 23 be modified as written in the attached Miscellaneous Resolution. We are also requesting in this special circumstance to override the 30 day hold requirement before a merit rule can be implemented so that the payout for this year can be effective immediately. 2100 Pontiac Lake Road I L. Brooks Patterson Building 41W I Waterford, MI 48328 1 OakGov.com Draft 04/03/2020 23. ANNUAL LEAVE 23.1 DEFINITION OF ANNUAL LEAVE REVISED 12/08/16 Annual Leave is absence from work for which the employee is paid just as if he or she were at work. Annual Leave is earned and accumulated each pay period at a rate dependent on the length of the employee's County service. When Annual Leave is used, and the amount of Annual Leave that is taken at one time, are at the discretion of the employee's Department Head within the limitations of the employee's accumulation, of necessity, the welfare and convenience of the County and the continuation of the services the department renders must be the foremost consideration in allowing Annual Leave. An Annual vacation is the most common use of Annual Leave, although it also may be used for other purposes such as personal business and to cover a period of illness after Sick Leave Reserve or Personal Leave have run out. 23.2 ELIGIBILITY FOR ANNUAL LEAVE 23.2.1 See Rule 22 "Eligibility for Employee Benefits." 23.2.2 All employees eligible for Annual Leave shall begin their accumulation from the first day of eligible County employment. 23.3 RATE OF ACCUMULATION OF ANNUAL LEAVE AND MAXIMUM ACCUMULATION 23.3.1 Annual Leave shall be earned and accumulated by pay periods, according to the following chart. LENGTH OF ELIGIBLECOUNTY DAYS OF ANNUAL LEAVE MAXIMUM" ACCUMULATION SERVICE (SEE RULE 22) EARNED* HOURS/DAYS From Throuqh Hours Per Pay In 12 Months I Elig, Orr N/Eliq. O/T 0 1 Year 3.07 10 Days I N/A N/A 2 Yrs 4 Years 1 3.69 12 Days 144/18.0 288/36.0 5 Yrs 9 Years 1 4.61 15 Days 180/22.5 360/45.0 10 Yrs 14 Years 1 5.53 18 Days 216/27.0 432/54.0 15 Yrs 19 Years 1 6.15 20 Days 240/30.0 480/60.0 20 Yrs 24 Years 6.76 22 Days 1 264/33.0 528/66.0 25 Yrs Remainder of 7.38 24 Days 288/36.0 576/72.0 County Service *While the amounts earned per pay period do not appear to add up exactly to the amounts earned in a twelve month period, the computer which does the accumulating automatically corrects for this, once a year. See also Section 23.2.2 of this rule. "The maximum accumulation for employees eligible for Overtime is based on one and one-half year's worth of Annual Leave earnings. The maximum accumulation for employees not eligible for overtime is based on 3 years worth of Annual Leave earnings. When the maximum accumulation of Annual Leave is reached, additional time spent in County service, while an employee's Annual Leave accumulation is at the maximum, will not earn annual leave, either for immediate or future use when the employee's accumulation is below the maximum. 23-1 Draft 04/03/2020 23.4 USE OF ANNUAL LEAVE REVISED 12/08/16 23.4.1 Annual Leave may be used only with the permission of an employee's department head. This provision shall apply to all other sections of this plan. 23.4.2 Annual Leave may be used at any time after it is earned, subject to item 23.4.1 above. 23.4.3 Annual Leave may not be used before it is earned. 23.4.4 Annual Leave may be used in any combination of days, subject to item 23.4.1 above. 23.4.5 Employees not eligible for overtime for whom Annual Leave has been placed in an Annual Leave Reserve Bank may draw from their reserve subject to item 23.4.1 above. NOTE: At the time the maximum accumulation was applied to "non -overtime" employees, all banked Annual Leave days in excess of two times the annual earnings rate was placed in the Annual Leave Reserve. This allowed all "non -overtime" employees one more year to accumulate Annual Leave and schedule vacations before reaching the accumulation maximum. 23.5 EFFECT OF PERSONAL LEAVE AND SICK LEAVE RESERVE ON ANNUAL LEAVE 23.5.1 Employees utilizing Personal Leave or Sick Leave from their Sick Leave Reserve Bank shall continue to accumulate Annual Leave just as if they were on the job. 23.5.2 If an employee has reason to draw from his or her Sick Leave Reserve Bank during a period of Annual Leave usage and if such Sick Leave Reserve is used to cover an illness of the employee and this usage is documented by a physician's written statement to the department head's satisfaction, such time may be deducted from the employee's Sick Leave Reserve instead of from his or her Annual Leave Accumulation. 23.6 EFFECT OF SHORT TERM AND LONG TERM DISABILITY INCOME INSURANCE ON ANNUAL LEAVE 23.6.1 Employees receiving Short Term Disability Income Insurance payments shall continue to accumulate Annual Leave just as if they were on the job. 23.6.2 Employees receiving Long Term Disability Income Insurance payments who remain on the roll as a County employee shall not accumulate Annual Leave. 23.7 EFFECT OF DEATH LEAVE ON ANNUAL LEAVE 23.7.1 If an employee has reason to use Death Leave during a period of Annual Leave usage, and such Death Leave is documented to the department head's satisfaction, such time may be considered as Death Leave instead of deducted from the employee's Annual Leave accumulation. (See also, Rule 25, "Death Leave") 23-2 Draft 04/03/2020 REVISED 12/08/16 23.12.4 Eligible employees must have a minimum of 60 hours in their annual leave bank at the time of the cash out payment. If the annual leave balance falls below the 60 hours at the time of payment, then the annual leave request to cash -out will be denied. 23.12.5 Employees will not be allowed to cash out annual leave to less than 40 hours balance in their annual leave bank. 23.12.6 A request for a minimum of 20 hours is required to cash out annual leave. Annual leave time will be cashed out in one hour increments up to a maximum of 40 hours. 23.12.7 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. 23.12.$ 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. 23-4 Resolution #20103 April 13, 2020 Moved by Gersehnson seconded by Quarles the resolution be adopted. Discussion followed. Vote on resolution: AYES: Luebs, Markham, McGillivray, Miller, Nelson, Powell, Quarles, Weipert, Woodward, Zack, Gershenson, Jackson. (12) NAYS: Kochenderfer, Kowall, Kuhn, Long, Middleton, Spisz, Taub, Gingell, Hoffman. (9) A sufficient majority having voted in favor, the resolution was adopted. ",'. Q L' I HEREBY APPROVE THIS RESOLUTION CHIEF DEPUTY COUNTY EXECUTIVE F,CTING PURSUANTTO MCL 45.559A (7) STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on April 13, 2020, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the Circuit Court at Pontiac, Michigan this 131h day of April, 2020 Lisa Brown, Oakland County