Paid Time Off: Vacation

General

The Research Foundation (RF) recommends that each employee be encouraged to take vacation leave for rest and relaxation during the year if accrued leave is available.

Eligible employees may also use accrued paid time off (PTO) vacation for leave approved and taken under the Family and Medical Leave Act (FMLA). For additional information that applies specifically to the administration of leave under FMLA, see FMLA: Notification and Procedure for Leave Taken Under FMLA.

Vacations may be requested and, if approved, used at any time during the calendar year.

Eligibility

Salaried employees appointed at a minimum of .5 full time equivalent (FTE) are eligible to accrue vacation leave unless they are

When Accruals Begin

Upon the completion of 6 months of service, salaried employees are credited with vacation accruals from their date of hire as follows:

Accrual Rate for Exempt Employees

Full-time employees accrue vacation PTO biweekly as indicated in the table Paid Time Off Plan - Series I in the Rates resource area. Eligible exempt employees must be in pay status (working or on paid leave) for 50% or more work days within the past pay period to accrue vacation leave for that period.

Part-time employees accrue vacation leave on a prorata basis according to FTE. For example, if employed at .75 FTE, an employee will accrue at 75% of the full-time rate based on length of service.

Accrual Rate for Nonexempt Employees

Full-time employees accrue vacation PTO for each pay period as indicated in the table Paid Time Off Plan - Series II in the Rates resource area. Eligible nonexempt employees must be in pay status for 50% or more of the work days during the pay period to accrue vacation leave for that period. Additional leave is credited on the employee's Continuous Service Date (CSD) as indicated in the table Additional Leave for Nonexempt Employees in the Rates resource area.

Part-time employees accrue vacation leave on a prorata basis according to FTE. For example, an employee employed at .75 FTE will accrue at 75% of the full-time rate based on length of service.

Maximum Carry-Over

Employees may accumulate in excess of 40 vacation days (300 hours for 37.5 hour workweek and 320 for 40 hour workweek) during a calendar year, by combining current accruals with unused past accruals. However, no more than 40 vacation days may be carried over from calendar year to calendar year.

The table Maximum Accruals Carried Over to the Following Calendar Year in the Rates resource area lists the maximum carry-over in hours and days for nonexempt and exempt employees.

Payment for Accrued Vacation

Eligibility

Payment for up to 30 full days of accrued vacation leave is to be made to all eligible employees who:

Payment Calculation

The following calculation should be used when calculating vacation payment for part-time employees.

Example 1 (exempt employee): Employee making $30,000/year at .60 FTE terminates with 25 days of vacation leave accruals.

1. Calculate the daily rate of pay: $30,000/.60 = $50,000 (annualized salary). Then $50,000/ 260 (days of pay in a year) = $192.30 Daily Rate.

2. Use daily rate to calculate vacation payout: Daily rate * Accrued vacation days. $192.30 * 25 = $4807.50 Vacation Payout.


Example 2 (non-exempt employee): Employee making $30,000/year at .60 FTE (37.5 standard workweek) terminates with 150 hours of vacation leave accruals.

1. Calculate the hourly rate of pay: $30,000/.60 = $50,000 (annualized salary). Then $50,000/ 1950** (hours worked in a year) = $25.64 Hourly Rate.

2. Use hourly rate to calculate vacation payout: Hourly rate * Accrued vacation hours. $25.64 * 150 = $3846.00 Vacation Payout.

**Use 2080 hours for employees on a 40 hour workweek.

Timeframes for Payment

Payment must be made within 30 days of termination. Refer to Prompt Notice of Termination and Prompt Final Payments Policy and Compensation at Termination of Employment.

Leave of Absence

Payment should not be made if a person is on leave-of-absence or if rehiring is contemplated or will occur within one pay period following termination.


Making Payments

Payments are made from accounts established for making accrued vacation expense payments to terminating employees.


Documenting Payment for Accrued Vacation

All requests for vacation payments must be supported by a Vacation Payment at Termination Form.

Requests for vacation payments at termination must also be supported by an Oracle Information Change Form or an Employee Assignment Form with a termination date, documenting the employee's termination of employment.

Change History

 

 

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