6.2. ERMUSR 04-12-2005Elk River
Municipal
13069 Orono Parkway
Elk River, MN 55330
March 29, 2005
To: Elk River Municipal Utilities Commission
Jerry Takle
Jim Tralle
John Dietz
From: Bryan Adams
Subject: Sick Leave
phone: 763.441.2020
Fax: 763.441.8099
An issue has recently arisen concerning the proper use of sick leave. The issue is, can
employees use paid sick leave in the case of their parents being sick and needing care.
The Elk River Municipal Utilities current sick leave policy does not directly address how
sick leave is to be used. The current policy states...
16. SICK AND SEVERANCE PAY
Employees accrue sick leave at a rate of one day per month of employment
to a maximum of 120 days. An employee, upon resignation, termination or
retirement, will be paid for unused sick leave to a maximum of 40% of 100
days (40 days) at his or her then prevailing wage. At the end of any calendar
year, an employee who has over 120 days accrued, will be paid for 40% of
any amount over 120 days to bring the balance back to 120 days.
The resigning, terminating or retiring employee may elect, in lieu of being
paid cash for the previously defined unused sick leave, to have 50% of the
unused sick leave to a maximum of 50% of 100 days (50 days) placed in a
fund which will be used for payment of medical insurance by the Utility.
This medical insurance may be one of the employee's choosing, or the group
policy in effect for the Utilities at that time. It can be used for either single
or family coverage. If the employee dies before the fund is expended, the
remainder shall be paid to the employee's designated beneficiary.
ties
Sick leave is a privilege, and misuse may result in disciplinary action. Medical
confirmations by licensed medical personnel may be asked for by the Utilities.
Employees are required to notify their immediate supervisor at least thirty (30)
minutes prior to the start of their regular working hours if they intend to be absent
from work. If an emergency prevents the employee from notifying his/her super-
visor at such time, the employee is expected to call as soon as possible during the
work day. Employees are also required to keep their supervisors informed of their
condition and anticipated return to work.
Past practice at the Elk River Municipal Utilities indicates paid sick leave can be taken in
the case of sickness of employee, spouse or child, and does not include parents.
Minnesota law requires paid sick leave for employee and child only, spouse and parents
are optional (Sick Child Care Leave Act). The federal Family and Medical Leave Act
(FMLA) provide eligible employees unpaid leave in case of illness for employee, along
with spouse, child and parent with serious health conditions. There is no legal
requirement to include parents under the paid sick leave policy and it is at the employers'
discretion.
I have had a number of discussions with our employees concerning sick leave is a
privilege, as our policy suggests and not an entitlement. Some employees view this
benefit as an entitlement. I am finding it more of a generation issue where the older
employees consider it a privilege where the younger employees consider it more of an
entitlement. We must also keep in mind the following items.
1) We are still a relatively small company (34 employees) and employees
being away from work affects the remaining employees, for much of our
work has deadlines.
2) We compensate our employees for unused sick leave, thus hopefully
minimizing the amount of sick leave used.
3) Unused or accrued sick leave is the bridge to disability insurance in case
of off duty injury not covered by workers compensation insurance.
4) To avoid this discussion all together, many companies have gone to a paid
time off (PTO) scenario, where vacation and sick leave are combined (with
a reduction in overall time off) and the employee can take it off at their
discretion.
5) Although I have not actually surveyed this issue, our insurance consultants'
feeling is generally parents are not included as a reason for employees to use
sick leave.
6) Some policies, including the City of Elk River, allow employees to utilize
sick leave for dependants. A dependant is living under your roof and included
on income taxes as a dependent.
Do you have any strong feelings on this issue? The dependent approach may be a good
compromise to this issue.
Attached is a recent newspaper article on calling in sick.
Calling in sick
...when
you're not
Surprise, surprise: Many
American workers who
call in sick may not actu-
ally be ill, a study suggests. A recent Harris
Interactive poll of 305 human resources
execs found only 38% of employee absences
on an unscheduled day off were due to ill-
ness.The remaining workers took "sick days"
to address family issues, stress or personal
needs, or because of an "entitlement men-
tality," says Paui Gibson, a vice president of
CCH,an Illinois human resources information
provider and the study's sponsor.
Faced with a tougher job climate and
increased work pressure, employees may be
skipping work to "establish equity," says
Arthur Brief, a business and psychology pro-
fessor at Tulane University in New Orleans.
When you feel overwhelmed, he says, call-
ing in sick is a way to "get payback."
Most employers allow for paid sick days
(which usually are lost if unused), but com-
panies that use a more flexible "paid time
off bank"have cutabsenteeism,Gibson says:
"The major benefit is giving people more
control over their time away from work."