23.1 Payment for Accruals - Separation

Attendance and Leave Manual

Drawing of Earned Credits Upon Separation
(Part 23)

Section 23.1 - Payment for Accruals Upon Separation

R-1 Purpose

The purpose of this Section is to provide authorization for cash compensation for overtime compensatory time and accrued and unused vacation credits upon separation from State service.

Eligibility for Cash Payment for Overtime Compensatory Time Credits

Any employee who is subject to the Attendance Rules (or the estate or beneficiary in the case of death) is entitled to cash payment for accrued and unused overtime compensatory time credits, not in excess of 30 days, whenever such employee separates, for any reason, from State service or moves from the classified service to the unclassified service or to a position subject to Attendance Rules for Institution Teachers.

For information on payment for or transfer of accrued overtime compensatory time credits when an employee is appointed, promoted or transferred within the classified service see Section 23.3 of this Manual.

Eligibility for Cash Payment for Vacation Credits

Eligibility

An employee who is subject to the Attendance Rules (or the estate or beneficiary in the case of death) is entitled to cash payment for accrued and unused vacation credits, not in excess of 30 days, when such employee separates from State service for any reason, except that no such payment shall be made if the employee:

is removed from State service as a result of disciplinary action (not a probationary termination; see "Separation of Probationer" ~~in this Section~~); [below]

See Related Contract Provision C-1

resigns after charges of incompetency or misconduct have been served (see "Separation After Charges Have Been Determined" below);
transfers and provision is made for the transfer of vacation credits, e.g. to the unclassified service of State University. See Section 21.2, "Transfer of Vacation Credits," and Section 24.1, "Written Agreement Required for Transfer of Leave Credits," in this Manual. Also, see "Transfers from Classified to Unclassified Service" ~~in this Section~~ [below].

R-2

Resignation Without Two Weeks' Notice

The appointing authority may, on a discretionary basis, withhold such payment if an employee resigns without giving written notice of the resignation at least two weeks prior to the last day of work.

Separation After Charges Have Been Determined

In cases where charges have been determined and the penalty imposed is other than dismissal, the employee is eligible for cash compensation for accrued and unused vacation credits following a subsequent resignation.

In cases where settlement of disciplinary charges results in an agreed upon disciplinary probationary period, an employee terminated as a result of unsatisfactory performance during the disciplinary probationary period is entitled to his/her lump sum payment for vacation credits.

Except where a disciplinary settlement provides otherwise, if disciplinary charges are withdrawn or dropped as a result of or in exchange for a resignation, the employee is entitled to his/her lump sum payment for vacation credits.

Transfers to 10-Month Teaching Positions

For the purpose of this Section, the term teacher is defined in Section 136 of the Civil Service Law. If an employee moves from a position subject to these Rules to a 10-month teaching position not subject to these Rules, such employee is entitled to a lump sum payment for accrued and unused vacation, at the time of movement, in accordance with this Section.

Transfers from Classified to Unclassified Service

Subject to the approval of the appointing authority of the releasing agency, an employee who transfers from a position in the classified service to a position in the unclassified service where no provision is made for the transfer of vacation credits and where such employee would normally receive cash compensation for unused vacation credits, may elect not to be paid for such credits if it is anticipated that the employee will return to the classified service within a reasonable period of time.

R-3

If it becomes apparent that the employee is not going to return to the classified service within a reasonable period of time, the appointing authority of the releasing agency may direct that the individual be paid for accrued vacation credits, or, the employee, if he/she requests, must be paid such payment. If the employee separates from State service without returning to the classified service the employee is entitled to payment for any outstanding vacation credits. Whenever payment is made it is computed on the basis of the employee's salary as of the date of separation from the classified service and establishment of eligibility for payment.

Liquidation Versus Lump Sum Payment

Although the Rule does not specifically prohibit liquidation of credits prior to separation, it is recommended policy that separating employees not be continued on the payroll after the last day of work to liquidate those vacation credits (e.g., up to 30 days) for which they could receive a lump sum payment. It is essential that agencies are consistent in the manner in which such employee requests are handled to ensure equitable treatment of all employees.

See Related Contract Provision 21.2, C-6

[See also Policy Bulletin 08-04, 2007-2011 Negotiated Agreements (CSEA), Liquidation of Vacation Credits Side Letter, P-15]

Payment for Overtime Compensatory Time and Vacation Credits

The following provisions apply to both payments for overtime compensatory time and accrued and unused vacation credits:

Separation of Probationer

An employee who resigns or is terminated during or at the end of a probationary period is entitled to a lump sum payment for any vacation credits and overtime compensatory time credits accrued and unused at the time of separation, provided the employee is otherwise eligible for such payment. For example, an employee who is terminated at the end of a 26 week probationary period, or after having worked 7 days in the final pay period of a 26 week probationary period, may have satisfactorily completed the 13 biweekly pay periods necessary to be credited with 6 1/2 days vacation.

R-4

Payment to Estate or Beneficiary

Salary and cash payments for overtime compensatory time and accrued and unused vacation credits made on behalf of deceased employees must be made in accordance with instructions issued by the Office of the State Comptroller.

Payment for Accruals Upon Entry Into Armed Forces

See Section 23.2 of this Manual.

Waiting Period

Payments for overtime compensatory time and accrued and unused vacation credits due to be made to, or on behalf of, eligible employees who have retired or died or have been laid off should be made immediately following separation.

Payments for overtime compensatory time and accrued and unused vacation credits may not be submitted on behalf of employees who have resigned or transferred prior to the expiration of two complete pay periods following separation.

Layoffs

In the case of a layoff, and, where the employee does not liquidate credits prior to layoff, any such laid off employee should be paid for overtime compensatory time and accrued and unused vacation credits at the time of layoff. An appointing authority may withhold lump sum payment for vacation credits only, if an employee so requests, in anticipation of reemployment within a reasonable period of time. If it becomes apparent that the employee will not be returning to State service in a reasonable period of time, the appointing authority may direct that the individual be paid for vacation credits, or, the employee, if he/she requests, must be paid such payment. Whenever payment is made it is computed on the basis of the employee's salary as of the date of layoff. (If an employee is reinstated or reemployed or rehired from or while on a preferred list in a position covered by the Attendance Rules, and has not received cash payment for credits accrued and unused at the time of separation, these credits should be restored provided the employee is eligible for such restoration.)

R-5

Credits Not Earned and Accumulated Pursuant to the Attendance Rules for Employees in New York State Departments and Institutions

The statutory authorization for the lump sum payment for vacation and overtime compensatory time credits contained in the Attendance Rules applies only to employees in the classified service of the Executive Branch of State service and only to credits provided to employees in accordance with the Attendance Rules.

See Related Contract Provisions 21.1, C-16 and 21.2, C-2

Sick Leave, Personal Leave and Holiday Leave

There is no provision for cash payment for unused balances of sick leave, personal leave or holiday leave credits when an employee separates from the classified service. However, certain employees, after they retire, may continue coverage under the State Health Insurance Plan and have the dollar value of their accrued and unused sick leave credits applied toward the charges for health insurance (Section 167, Civil Service Law). Certain retirees may also be granted additional retirement service credit for accumulated and unused sick leave credits (Section 41(j), Retirement and Social Security Law).

See Related Contract Provision 21.3, C-2

See Section 21.1 ~~page 3~~ [R-3] on Holiday Leave concerning the use of this leave by certain employees prior to separation.

See Related Contract Provisions, 21.1, C-14 and C-16

Revision History	TM-6 - January 1991
R-1, 5	No Substantive Changes
R-2, 3, 4	New or Revised Material

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Drawing of Earned Credits Upon Separation (Part 23)