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25.40 Leave |
25.40.10
October 1, 2008 |
Shared leave |
| 25.40.10.a |
General guidelines |
Per RCW 41.04.650 through 670, the state’s shared leave program allows a state employee to come to the aid of another state employee who is likely to take leave without pay or terminate his or her employment because:
When taken, this leave is classified as Shared Leave and tracked separately over the state career of the recipient employee (donee). |
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Department of Personnel WAC 357-31-380 through 455, or the CBAs, establish the definition and eligibility requirements for the state leave sharing program. Within these rules, the head of each agency determines the agency’s level of participation in the program. Agencies are strongly encouraged to establish policies that encompass these rules and that set the internal procedures for managing the program. |
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| 25.40.10.b | Definitions
Employee - Any employee entitled to accrue sick, vacation, or personal holiday leave and for whom an agency has maintained leave records. Donor - The employee making the donation of leave. Donee - The employee receiving the donation of leave (recipient). Donated leave - The dollar value of the leave hours a donor donates through the Shared Leave Program. Shared leave - The donated leave converted to hours by the receiving agency at the donee’s rate of pay. This may be more or less than the literal hours donated depending on the relative salary rates of the respective employees. |
| 25.40.10.c |
Shared leave program requirements and restrictions |
Employees on shared leave continue to receive the same salary, wage, and employee benefits that they normally receive when using accrued leave. Refer to RCW 41.04.665(7).
Shared leave can transfer within a state agency and account: or, it can transfer between accounts or agencies. Transfer of leave requires approval from the agency head or designee of both the donor and donee agencies. It is recommended that an agency's shared leave policies include approval procedures and identify authorized designees.
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| 25.40.10.d |
Computation of leave transferred |
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In transferring leave from the donor to the donee, it is the donor’s dollar value of the leave that transfers and purchases shared leave for the donee at the donee’s salary rate. |
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Calculate the dollar value of donated leave using the donor’s total current salary rate times the hours donated. |
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For the donee, divide the dollar value received by the donee’s total current salary rate to determine the leave hours to record. |
| Definition of Formula Elements for Calculating Shared Leave:
Base salary rate (BSR) = Current hourly rate OR Monthly Rate / 174 (or monthly hours) *Fringe benefits (FBR) = 41% x BSR Total salary rate (TSR) = BSR + FBR*Formula for deriving the fringe benefit rate is in Subsection 25.40.10.j. |
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Donor Formula for Shared Leave Transfer Calculation: Dollar value of donated leave = Donated leave hours x donor’s TSR Reduce the donor’s leave balance by the number of hours donated. |
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Donee Formula for Shared Leave Received: Shared leave hours credited to donee = Dollar value of donated leave received / Donee's TSR Record the donee's shared leave balance for the calculated shared leave hours received. |
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| 25.40.10.e |
Recording donated leave transfer(s) in accounting and payroll systems: |
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| 25.40.10.f |
Shared leave records |
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An employee requesting shared leave may be required to submit a medical certificate, copy of military orders, proof of acceptance of an employee’s offer to volunteer, court order, or other documentation as applicable. Refer to WAC 357-31-405. The agency head or designee must maintain the following shared leave information at a minimum:
Code donated leave as shared leave and maintain it separately from all other leave balances. |
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| 25.40.10.g |
Unused shared leave
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| Formula for calculating the return of shared leave to the donor: | ||
| Dollar value of reverting shared leave to donor agency and/or account = Shared leave hours remaining x donee's original TSR |
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| Reduce the donee's available shared leave balance to zero and prepare transfer of the remaining dollar value of the leave back to the donor agency and/or account. | ||
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| Formula for converting the dollar value of returned leave to one donor: | ||
| Converting dollar value of reverting = Dollar value of reverting shared Leave / Donor's Current TSR |
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| Record the calculated hours returned to the donor's leave balance. | ||
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| Step 1: Calculate this percentage for each donor: | ||
| Percentage of residual shared leave returned to donor = Shared leave dollars received from Employee 1 / Total dollar value of shared leave received |
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| Step 2: Calculate the dollar value of shared leave reverting back to the donor: | ||
| Dollar Value of Shared Leave Reverting Back to Donors = % calculated x Shared Leave Hours Remaining x Donee's Original TSR |
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| Step 3: Calculate leave hours returned to the donor: | ||
| Residual Shared Leave Returned to Donor Converted to Donor Hours = Dollar Value of Reverting Shared Leave from Step 2 / Donor's Current TSR |
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| 25.40.10.h |
Donation and reversion calculation examples For a sample donation and reversion case, refer to OFM's Payroll Resources website at: http://www.ofm.wa.gov/resources/payroll.asp. |
| 25.40.10.i |
Direct questions on shared leave calculations to OFM |
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Direct any questions arising due to the transfer of funds or the adjustment of appropriation authority with regard to the Shared Leave Program to the agency’s assigned OFM financial consultant. |
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| 25.40.10.j | Formula for fringe benefit rate |
| Formula for Deriving the Fringe Benefit Rate: | |||
| Benefits (Object B) as a percentage of Salaries and Wages Accrued Holidays, Sick Leave, and Vacation Leave |
27.1% 13.5% Total 40.6% (Rounded to 41%) |
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**The additional 13.5% provides for holidays, sick leave, and vacation leave that an employee could potentially earn while on shared leave. The following formula is the method OFM has historically used to derive the percentage. |
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| Holidays Sick Leave Vacation Leave Total TOTAL |
x |
11 days a year 12 days a year 12 days a year 35 days a year 8 hours per day 280 hours |
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25.40.12
October 1, 2007 |
Uniformed service shared leave pool |
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Per RCW 41.04.685, the uniformed service shared leave pool allows general government and higher education employees to voluntarily donate leave to be used by any eligible employee who has been called to service in the uniform services. Department of Personnel WAC 357-31-640 through 725 establishes the rules for the uniformed service shared leave pool. The Military Department, in consultation with the Department of Personnel and the Office of Financial Management, administer the uniformed service shared leave pool. Procedures can be found on OFM’s Payroll Resources website at: http://www.ofm.wa.gov/resources/payroll.asp. In order to participate in the uniformed service shared leave pool, employers must develop a written policy which, at a minimum, addresses:
An employer may limit the amount of leave an employee may donate to or receive from the pool only if it would result in the violation of rule or statute. Leave that is donated or received is calculated consistent with the Washington State Leave Sharing Program. Refer to Subsection 25.40.10. However, shared leave received under the uniformed service shared leave pool is not included in the 261 day total specified in RCW 41.04.665. |
25.40.15
July 1, 2007 |
Sick leave pools |
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Per RCW 41.04.680, general government state employees may pool sick leave within an agency to be used by participating employees who have a personal illness, accident, or injury. Department of Personnel WAC 357-31-570 through 635 establish the rules for creating and administering a sick leave pool. Prior to creating a sick leave pool, an agency must appoint an administrator and develop a written policy. For purposes of calculating maximum sick leave that may be donated or received by any one employee, pooled sick leave is counted and converted in the same manner as sick leave under the Washington state Leave Sharing Program. A participating employee may not withdraw more that 261 days from a sick lave pool for the entire duration of state employment. The 261 days includes any days an employee has received under the Washington State Leave Sharing Program. Refer to Subsection 25.40.10. This provision is for non-represented employees only. *The formula for deriving the .0063 factor follows. |
25.40.20October 1, 2005 |
Vacation leave buyout at termination |
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Compute termination leave payments by multiplying an average hourly rate times the number of vacation leave hours accumulated. Determine the average hourly rate by multiplying .0063* times the monthly salary rate. The fraction of .0063 is based upon the number of work hours in an average month. Do not include premium pay such as standby, shift differential, and overtime in the monthly salary rate used as the basis for termination leave payment. *The formula for deriving the .0063 factor follows. |
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Formula for Deriving the Vacation Leave Buyout Termination Factor: |
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________________________________1__________________________ |
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(8 hours) |
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(365 days - 104 Saturdays and Sundays | |
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1 | ||
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.0063 | ||
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25.40.30 October 1, 2005 |
Accrued sick leave buyout |
| 25.40.30.a |
Authority |
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In order to provide eligible state employees an attendance incentive program, RCW 41.04.340 establishes rules when monetary compensation may be paid for accrued sick leave. Compensation is permitted for only that portion of sick leave accumulated at a rate of one day (8 hours) per month. |
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WAC 357-31-150 or the CBAs provide additional rules and guidance. |
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| 25.40.30.b |
Eligibility Rules |
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| 25.40.30.c |
Medical Expense Plans |
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RCW 41.04.340 (7-9) authorizes retiring state employees to participate in medical expense plans, subject to conditions provided in statute, WAC 357-31-375, or the CBAs. In lieu of remuneration for unused sick leave at retirement, agencies may, with equivalent funds, provide eligible employees with a benefit plan that provides for reimbursement for medical expenses. |
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| 25.40.30.d |
Determination of the Current Hourly Rate |
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The appropriate current hourly rate for sick leave buyout compensation depends on how an eligible employee is paid. Most situations are addressed in the following examples.
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| 25.40.30.e | Exemption from Retirement Credit |
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Do not take retirement contributions on payments for sick leave buyouts. Compensation for unused sick leave is not used in computing retirement allowances. |
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| 25.40.30.f |
Buyout Upon Disability or Death |
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Per IRS Publication 15-A, sick leave buyouts made to employees who retire due to disability, or to deceased employees’ survivors, are exempt from OASI and Medicare taxes. |
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| 25.40.30.g |
Buyout Calculation |
| Calculation for a Continuing Employee: |
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| Sick Leave Hours Unused in Previous Year in Excess of 480 Hours Elected for Buyout x Employee's current hourly salary rate* = Buyout |
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| Calculation for a Terminating Employee: |
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| All Unused Sick Leave Hours Remaining x 25% Employee's Current Hourly Salary Rate* = Buyout |
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| *Refer to Subsection 25.40.30.d for determination of the current hourly rate. | ||
| Example: An eligible employee has 650 hours of unused sick leave as of January 1, 20xx. The employee has 48 hours of unused prior year sick leave. |
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| Calculation for a Continuing Employee: (25% x 48 hours) Pay 12 hours |
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| Calculation for a Terminating Employee: (25% x 650 hours) Pay 162.5 hours |
25.40.40
July 1, 2008 |
Workers' compensation time loss payments |
| 25.40.40.a |
Purpose |
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This subsection pertains to determining when a state agency needs to recover time loss compensation received by employees while absent from work and in approved disability status under the state workers' compensation law. |
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| 25.40.40.b |
Authority |
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| 25.40.40.c |
Agency procedures for time loss recovery determinations |
An employee is entitled to both payments for the same time period without any deductions for the time loss payments. Note: It is the position of the Department of Personnel that buy-back of vacation leave is not allowable. |
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| 25.40.40.d |
Time loss recovery procedures |
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Upon notification by the Department of Labor & Industries (L&I) that an employee has received time loss payments, the agency is to determine if the employee received paid sick leave during the temporary disability period. If the employee received paid sick leave for a period covered by time loss payments, the agency is to recover the dollar value of the sick leave by having the employee select one of the following:
For a sample calculation worksheet, contact your agency's assigned OFM accounting consultant. Note: The L&I daily rate is based on a calendar month basis, not on the workday basis used for payroll calculations. |
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Actual Hourly Rate | ||
Time Loss Payment Dollar Value |
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Amount of Sick Leave Hours to be Restored (Nearest 10th of an Hour) | ||
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$850 |
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$9.66 |
Actual hourly rate |
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$400 |
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41.40 |
Sick Leave hours to restore |
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41.40 hours |
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.24 FTEs |
25.40.50October 1, 2005 |
Recognition Leave |
WAC 357-31-565 authorizes employers who have received performance management confirmation to grant employees up to five (5) days of paid leave within a twelve-month period to recognize outstanding accomplishments or the achievement of pre-defined work goals by individual employees or units. Leave granted under this provision is not payable upon layoff, dismissal, separation, or resignation or transferable between employers. Accordingly, it need not be accrued at fiscal year end. This provision is for non-represented employees only.
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