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  Item # G.       
Town Council Regular Session
Meeting Date: 06/21/2017  
Requested by: Gary Bridget Submitted By: Gary Bridget, Human Resources
Department: Human Resources  

Information
SUBJECT:
Resolution No. (R)17-28, amending Personnel Policy 2 – Definitions, and Personnel Policy 10 - Leaves
RECOMMENDATION:
Staff recommends that Council adopt the proposed changes to Personnel Policy 2 - Definitions, and Personnel Policy 10 - Leaves.
EXECUTIVE SUMMARY:
The proposed changes to Personnel Policy 2 - Definitions, and Personnel Policy 10 - Leaves support changes to the Arizona Revised Statutes, Title 23, Article 8.1 regarding employee rights to earn paid sick time. Changes to the law were passed by voters in November 2016 with Proposition 206, which increased the state minimum wage and mandated that all employees earn one-hour of paid sick time for every 30 hours worked.

The increase for the minimum wage to $10 dollars per hour took effect January 1, 2017. The mandate for paid sick time takes effect July 1, 2017. The attached documents include the current policy, illustrated in strike through text, followed by the recommended changes to the policies illustrated in red capitalization.
 
BACKGROUND OR DETAILED INFORMATION:
Currently, Personnel Policy 10 – Leaves, provides that full time employees, defined as those who work 32 or more hours per week, earn 3.6923 hours of paid sick leave per pay period. Part time, benefit eligible employees, defined as those working 20-31 hours per week, earn 1.8462 hours of paid sick leave per pay period. There is currently no limit to the amount of sick leave an employee may accrue. Part time employees working 19 hours or less per week, to include temporary and seasonal employees, do not earn paid sick or annual leave.
 
In order to bring the Town into compliance with the law, staff proposes amending Personnel Policy 10 – Leaves, Section 10.2, paragraphs A & B to allow part time employees, working 19 or less hours per week, who are not benefits eligible, to accrue one-hour of paid sick leave for every 30-hours worked. As allowed by the law, accruals for this group of employees would be capped at 40-hours per calendar year. Unused paid sick leave hours would carry forward to the next calendar year.
 
Additionally, staff proposes part time, benefit eligible employees, defined as those working 20-31 hours per week, who are hired on or after July 1, 2017, earn one-hour of paid sick leave for every 30-hours worked. Accruals would be capped at 40-hours per calendar year and unused paid sick leave hours would carry forward to the next calendar year.

Staff proposes that the 10 employees currently in this category be grandfathered so they continue to earn 1.8462 hours of paid sick leave per pay period.
 
The full time employee accrual rate of 3.6923 hours per pay period would be unaffected as the rate exceeds the minimum earned sick time mandated under the law.
 
In addition to mandating paid sick time for all employees, the revisions to the law provides for additional reasons to use of paid sick time and it redefines the term family member.
 
Staff recommends amending Section 10.2, Paragraph C, Use of Sick Leave, to include language used in the law providing for additional reasons for using paid sick leave for family emergencies to include care for a child whose school or daycare was closed by a public health official and absences necessary to seek services or care due to domestic violence, sexual violence, abuse or stalking of the employee or family member.
 
Staff recommends amending to Section 10.2, Paragraph D, Sick Leave Requests, where the law provides specific procedures for the request and approval of the use of paid sick leave.
 
Finally, staff proposes amending Personnel Policy 2 - Definitions, Section 2.1.A, items 17 and 31 to allow for the new definition of family member under the law and changing the definition of sick leave to include all employees and family emergencies.
 
FISCAL IMPACT:
There are 309 benefit-eligible full-time and part-time employees now earning paid sick leave. The proposed changes in support of the law would add another 232 non-benefit eligible employees who would accrue paid sick leave at a rate of one-hour of paid sick leave for every 30-hours worked, capped at 40-hours per calendar year. Per the law, unused paid sick leave carries forward at the end of the calendar year. 

There is no requirement under the law to pay out unused paid sick leave upon termination of employment. However, our policy currently allows for the payout, upon termination of employment, of any unused accrued sick leave beyond 480 hours at 50-percent of the value. The law does call for restoration of unused accrued sick leave for employees who resume employment with the Town within nine months of their termination.
SUGGESTED MOTION:
I MOVE to (approve/deny) Resolution No. (R)17-28, adopting the proposed revisions to Personnel Policy 2 - Definitions, and Personnel Policy 10 - Leaves.
Attachments
(R)17-28 Sick Leave
Personnel Policy 2
Personnel Policy 10


    

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