Vacation and Overtime Credits

An employee in the classified service who is covered by the Civil Service Attendance Rules and earns leave accruals may, upon separation from State service or appointment to a position not subject to those Attendance Rules, be paid for overtime and vacation credits for up to 30 days accrued and unused in each category.

Following are some of the basic provisions covering leave accruals:

1. An employee must have completed 13 biweekly periods of service before he or she is credited with 6 ½ days vacation leave. No Lump Sum payment may be made until the credits are actually earned.
2. Overtime credits may not be accrued by employees in positions which the Director of the Budget has defined as ineligible for overtime compensation. Budget Bulletin G-1024 att
3. Since cash payments for overtime service in excess of 40 hours per week is mandatory, an eligible employee on a 37 ½ -hour-work-week can only accumulate 2 ½ hours overtime leave credits for each week in which he or she performed overtime services. An employee with a 40 hour work week would not accrue overtime service credits.

   Exception: MC employees may choose to receive extra compensatory time in lieu of overtime payment

   Exception: CSEA and PEF employees may choose to receive compensatory time is lieu in overtime payment

Waiting Period

Lump sum payment for retired or deceased employees or those whose positions are abolished or terminated due to a reduction in force and who are placed on preferred lists may be processed without any waiting period.

Employees permanently separated from service must remain off the payroll for two full biweekly periods before payment may be processed: if the employee is re-employed in State service within two periods following separation, he or she may not receive the payment.

Payment of accruals upon entry into armed forces

An employee who is subject to the Attendance Rules and who is on military leave without pay is eligible for cash payment for accrued and unused vacation and overtime compensatory time credits, not in excess of 30 days each, provided the employee requests such payment and has entered the Armed Forces of the United States for active duty and for other than training purposes.

1. Categories of military leave which are defined as training:
   1. The National Guard summer encampment program;
   2. The Reserve Forces Act training program which requires the enlistee to perform an initial period of active duty for training of not less than three months or more than six months;
   3. Assignment to a specific service school.

An employee is entitled to only one lump sum payment for all vacation and overtime compensatory time credits earned and accumulated as of the date of the beginning of military leave without pay. Any such credits for which an employee is not paid should be restored when the employee returns to the payroll from military leave.

Section 23.2 Civil Service
Leave and Attendance Manual

Transfer to a Position that is not subject to Civil Service Attendance Rules

Employees who transfer to positions where they will no longer be subject to the Civil Service Attendance Rules (e.g., 10-month teaching position) must wait two full biweekly periods before payment may be processed. If the employee returns to a position covered by the Civil Service Attendance Rules within the two biweekly periods, he or she may not receive such payment. If the employee chooses to not receive payment at the time of transfer, when ultimately separated from service, payment is processed at the last salary paid in the eligible position.

Movement from Classified to Unclassified Service

An employee may be paid for accrued leave credits upon movement from a classified-service position to a position in the unclassified-service. However, there are exceptions to this rule: Movements between classified-service positions and non-teaching professional-service positions in the State University require transfer of vacation credits; while these positions are in the unclassified service; these employees are eligible to accrue vacation credits and to receive lump sum payments under rules identical to that which apply for classified-service employees.

Movements between various State authorities and State agencies in certain titles require transfer of credits.

Civil Service Leave and Attendance Manual
Appendix for Reciprocal Agreements

Payment of Overtime Credit upon Transfer

Upon transfer from one department or agency to another, an employee may be paid for up to 30 days accrued overtime credits except where the employee transfers between units or institutions within the same department in the Offices for People with Developmental Disabilities, Department of Health, Department of Corrections and Community Services or within the State University. On such transfers, overtime credits must be transferred to the employee’s new unit.

Payment of Vacation and Overtime upon Separation or Transfer a position not subject to Civil Service Attendance Rules

Payment for accumulated vacation and overtime credits is made at the full-time salary rate received by the employee at the time of separation or transfer to a position no longer subject to the attendance rules. This is also applicable to a part-time employee, except that the number of days accumulated must be pro-rated according to the part-time work schedule (e.g., a half-time employee could accrue up to 30 half days vacation which would be reported as 15 full days of lump-sum payment). Payment is made at the work day rate, which for lump sum payments is based on 10 work days per biweekly period. Multiply the number of full days accrued leave credits by the work day rate to obtain the total payment amount.

Employees NOT eligible for Lump Sum Payments

State officers and employees in the unclassified service are not subject to the Civil Service Attendance Rules and are not eligible for lump-sum payment for accrued leave credits. In general, all elected officers, officers and employees of the legislature, appointees of the Governor, commissioners and heads of departments are in the unclassified service.

Section 26.1 Civil Service
Leave and Attendance Manual

Salary Withholding Program (5 day Lag)

Payment of the days withheld may be made to employees who have retired or died or have been laid off* immediately following separation.

*Note: Employees who have been laid off have the option to request that their 5 day lag be frozen.

Employees are paid for the days withheld two pay periods after one of the following occurs:

1. Employee is permanently separated from State Service.
2. Employee is moved into a bargaining unit not under the Salary Withholding Program.
3. Employee is transferred into an agency considered to be a separate authority with regard to the Salary Withholding Program.

The payment of the salary withheld is for the total number of full days previously withheld calculated using the salary rate plus additional salary factors in effect at the time of payment or the salary plus additional salary factors at the time of the original withholding, whichever is greater. Refer below for special instructions for Institution Teachers who changed pay basis code between the time of the original withholding and the time of payment.

• For Institution Teachers, the salary lump sum payment for an employee who was originally withheld as a:
  • 21P employee, but is a CAL employee at the time of payment, payment will be made using the Academic Year Method (using the current academic year schedule). The salary to be used is the salary plus additional salary factors at the time of payment or the salary plus additional salary factors at the time of the original withholding, whichever is greater.
  • CAL employee, but is a 21P at the time of payment, payment will be made using the Academic Year Method (using the current academic year schedule). The salary to be used is the salary plus additional salary factors at the time of payment or the salary plus additional salary factors at the time of the original withholding, whichever is greater.
• Employees that leave state service or move into an ineligible position and receive a lump sum payment for the days withheld who are subsequently rehired or moved back into an eligible position must be placed back on the Salary Withholding Program.
• Employees who are on a military leave with or without pay are not eligible to receive a lump sum payment for the days withheld unless they are permanently separated from state service.