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4.9. SR 12-15-2003TO: FROM: DATE: SUBJECT: MEMORANDUM Mayor and City Council Lori Johnson, Finance Director December 15, 2003 Consider Updates to Personnel Policy Manual Item 4.9. There are a few changes being requested to the city's personnel policy manual. The requested changes are all in the leave section of the manual and address issues with part time leave accrual and holiday pay for hquor store employees. The changes as proposed are attached in the leave section of the manual and are summarized below. Deletions are identified with a strike line and additions are in italics. Holiday leave for liquor store employees - the current policy states that hquor store employees will receive time and one-half for working on certain holidays. Dave Potvin, Liquor Store Manager has requested a change in the holidays that qualify for overtime. This request is being made to make the liquor store more consistent with other retail operations in its overtime policy. The proposed policy eliminates overtime on work days preceding a holiday. Employees who work on a holiday when the store is open for business will receive time and one-half for the hours worked on that day. Leave time for certain part-time employees - currently all part-time employees who work 1040 hours or more per year receive pro-rated vacation, sick, and holiday leave benefits. This policy has worked fine for part-time employees who are regularly scheduled, meaning they have a set number of hours based on a set schedule each week. However, problems have arisen with employees who do not have a set schedule; these employees work different hours and a fluctuating number of hours each week. There are only a few part time employees in this category who work enough hours to qualify for leave. Generally, these part-time employees are scheduled by the supervisor on an as-needed basis. Therefore it is very difficult to use the accrued leave time because often the hours worked are scheduled based on the need and on each employee's availability. The leave time accrued is in essence additional pay because the employee is not really taking leave. Sometimes the leave hours are used to supplement work hours so the employee maintains enough hours to continue accruing leave. This is not the intent of leave time and it becomes difficult for the supervisor to schedule this leave when there is no set work schedule. The proposal to address this situation is to require part time employees with no set work schedule to put in 1560 hours per year (30 hours per week) to qualify for leave. The proposed change would be effective for all employees hired on or after January 1, 2004. Current part time employees would continue to accrue leave as in the past. This language would be added to the vacation, sick, and holiday leave sections of the policy. Finally, the current personnel policy manual ',vas adopted by the City Council in December 1999. Since that time it has undergone several revisions, mostly minor in nature. I recommend that in either 2004 or 2005 the policy manual undergo a complete review by the city's personnel attorney. Revisions may be necessary so that our policy is consistent with law changes and interpretations in law due to recent case law. This also provides staff and the Council an opportunity to review and update the policy to best fit the City's needs. Action Requested The City Council is asked to consider the two above noted changes to the personnel policy manual with language as attached. S:~Council~Lori~2003~personncl policy changes.doc VACATION Paid vacation leave is provided for regular full-time and on a prorated basis for eligible part- time employees. ~ .... ~ .... -* ~; ..... ~ ......... ~ ...... ~- a m~nimum ~c ~,~ ~. ........ ......... ;~ ...... ; ........... ~;~ according to *~ ..... ~- ~c ~ .......... ~d Eligible part time employees hired before Janua~ 1, 2004, include employees working a minimum of 1040 hours per year. Eligible part time employees hired on or after Janua~ 1, 2004, include re~larly scheduled part time employees who work a set, consistent schedule and who work a minimum of for~ (40) hours per biweek& pay period and non-scheduled part time employees who work ~ needed who work a minimum of 1560 hours per year. ..... I~;~ I~ *K~ 1 ~An K .................. * .l;.;~l. ~ ....... .1~. ~..n,,. Tem and ......... ~ .................... ~, j ............. ~ .......................... pora~ seasonal employees are not eligible for vacation benefits. Vacation leave is accrued based on consecutive years of full-time service. vacation leave at the following rates: Length of Service From start of employment through completion of the fifth year Beginning of the sixth year through completion of the seventh year Beginning of the eighth year through completion of the ninth year Beginning of the tenth year through completion of the eleventh year Beginning of the twelfth year through completion of the thirteenth year Beginning of the fourteenth year through completion of the fifteenth year Beginning of the sixteenth year through completion of the seventeenth year Beginning Beginning Beginning Beginning of the eighteenth year of the nineteenth year of the twentieth year of the twenty first year Employees accrue Accrual Rate 88 working hours per year 112 working hours per year 120 working hours per year 128 working hours per year 136 working hours per year 144 working hours per year 152 working hours per year 160 working hours per year 168 working hours per year 176 working hours per year 184 working hours per year 11 Beginning of the twenty second year and thereafter 192 working hours per year Employees must receive department head approval before taking vacation leave. Orientation Period employees may not use vacation leave unless otherwise authorized by the City Administrator. Employees taking more than two (2) consecutive weeks of vacation or a combination of vacation and compensatory time must obtain prior approval from the City Administrator. The City will make every effort to grant vacations at the time requested by the employee, but reserves the right to deny or approve vacation schedules. Regular full-time and regular part-time employees may carry forward ~¥om one year to the next unused vacation time up to an amount equal to the total number of vacation days eligible for use during the previous year. Unused vacation time will not be paid out in wages upon termination of employment, except as provided in the Resignation Policy above. SICK LEAVE Sick leave is not a privilege or vested right that an employee may use at his/her discretion. Eligible employees may use sick leave only for the following: Personal illness or injury; · To attend medical and dental appointments; · To care for sick dependents; · To take dependents to medical and dental appointments; · Up to five days per calendar month to care for seriously ill family members who may not live with the employee. For purposes of this provision, "seriously ill" shall be determined in the sole discretion of the City Administrator. Paid sick leave is provided for regular full-time and on a prorated basis for eligible part-time employees. Regular full-time employees accrue sick leave at a rate of eight (8) working hours for each calendar ~"~' +;~ CF,,, C~.'.~,~S ,.,l., ......Ir ,?. .......................... r'~, ] ......... 1-' .... month. ....... t.~.: ...... ~; ..... ~ ..... ~.~. Ar ~ .......... ~r~ Eligible part time employees hired before January 1, 2004, include employees working a minimum of 1040 hours per year. Eligible part time employees hired on or after January 1, 2004, include regularly scheduled part time employees who work a set, consistent schedule and who work a minimum of forty (40) hours per biweekly pay period and non-scheduled part time employees who work as needed who work a minimum of 1560 hours per year. Rcgalar pan tim; cmplcycca warldng !ess +~.._ ~nan h .................. + ~;~;t,]~ r ...... x,;~, t.~_~c,. Temporary and seasonal employees are not eligible for sick leave. There is no limit on the amount of accrued sick time that can be accumulated and carried forward from one year to the next. 12 An employee must notify his/her immediate supervisor at least thirty (30) minutes before the start of his/her regular start time if the employee intends to be absent from work. If an emergency prevents the employee from notif.ving his/her immediate supervisor at such time, the employee must call his/her immediate supervisor as soon as possible during the workday. The employee is required to keep his/her immediate supervisor informed of his/her anticipated return to work. An employee attempting to use sick time for reasons other than those explicitly permitted in this policy will be subject to disciplinary action up to and including termination. A doctor's note shall be required if an employee is absent more than four (4) days or if abuse of sick leave is suspected by the employee's immediate supervisor, department head, or the City Administrator. In some circumstances, an employee may be requested to submit to a medical examination by a physician or medical facility licensed to practice medicine. In such a circumstance, the City may select the physician and facility that will conduct the examination. Unused sick leave will not be paid out in wages upon termination of employment, except as provided in the Severance Pay section of this Policy Manual. HOLIDAYS The following holidays are observed by the City: · New Year's Day (January 1) · Martin Luther King's Birthday (third Monday in January) · President's Day (third Monday in February) · Memorial Day (last Monday in May) · Independence Day (July 4) · Labor Day (first Monday in September) · Veteran's Day (November 11) · Thanksgiving Day (fourth Thursday in November) · Friday After Thanksgiving · Christmas Eve (December 24) · Christmas Day (December 25) Regular full-time employees are eligible to receive pay for these holidays. Eligible Regular part-time employees '"~' ...... ~' ~ ~:": ..... c ~nAn ~ ............. will receive paid holidays on the same basis as regular full-time employees, except that holiday pay will be pro-rated according to the number of hours worked. Eligible part time employees hired before January 1, 2004, include employees working a minimum of 1040 hours per year. Eligible part time employees hired on or after danuary 1, 2004, include regularly scheduled part time employees who work a set, consistent schedule and who work a minimum of forty (40) hours per biweekly pay period and non-scheduled part time employees who work as needed who work a minimum of 1560 hours per year. Rcgalar part *; ..... ~ ........... ~.:.~ ~ .... h~ ~nAn t~ ..... 13 per year are net eligible fcr ~cliday pay. Temporary and seasonal employees are not eligible for holiday pay. Generally, for employees working a Monday through Friday workweek, holidays occurring on Saturday will be observed the preceding Friday and holidays occurring on Sunday will be observed on the following Monday. When Christmas Eve Day falls on a Saturday or Sunday, or when Christmas Day falls on a Saturday, the City may designate one of these holidays as a floating holiday to be taken at another time as approved by the employee's supervisor. When applicable, special notice will be issued regarding such holiday changes. When a holiday falls during an employee's vacation or sick leave, the employee will not be charged with vacation or sick leave for the holiday hours; the hours will be considered holiday leave. Although the City prefers that employees enjoy the observed holidays, emergencies may arise. Non-exempt employees required to work on a recognized holiday will be paid in accordance with the Holiday Pay provisions of the most recently adopted Pay Resolution. If the Pay Resolution does not specifically address the affected non-exempt employee or group of employees required to work, pay shall be at one and one-half times the regular base rate for all hours worked on the holiday, in addition to holiday pay. Liquor store employees may be required to work certain holidays. If a regular full-time liquor store employee works on a day designated as a holiday as listed above, the employee may take another day (eight hours) off in lieu of the holiday. The cmployee",:' ....... :,,~ ~;,4%, ..... e ....... ,.: .... ~,:.~., ,h~, +k~ ~,^.~ is v~,., except c^. r-h~:~.~ ~.,~ Day Non-exempt Liquor store employees will be paid at one and one-half times their regular base rate for working the following days: · After 4:30 p.m. on New Year's Eve; Sunday; · Memorial Day (when open) · ~uly 4 (when open) · Labor Day (when open) · Christmas Eve Day (when open). LEAVES OF ABSENCE The City of Elk River (the City) provides leaves of absence according to the following policies. Unless otherwise indicated, all leaves of absence are unpaid. An employee requesting a leave of absence must complete a Request for Leave of Absence form. Forms for requesting a leave of absence are available from the Finance Department. When possible, advance notice of a leave 14