Added and Amended Policies > Series 400 Budget, Finance and Operations > 4.18.3 Vacation Leave

4.18.3 Vacation Leave

A. Purpose

The purpose of this policy is to provide for the administration of vacation leave for employees of The University of Texas at Tyler (UT Tyler).

B. Authority/Persons Affected

Texas Government Code 661.031-661.038, Leave

Texas Government Code 661.061-661.068, Leave

Texas Government Code 661.151-661.153, Leave

The University of Texas System Board of Regents’ Rules and Regulations Rule 30201, Leave Policies

Texas Government Code, Section 661.151 Texas Government Code, Section 661.152 (a) Texas Government Code, Section 661.121 Ibid., Section 661.152 (3)

This policy applies to employees appointed to work at least twenty (20) hours per week for a period of at least four and one-half (4 ½) months. Faculty are excluded from this policy. Students employed in positions that require student status as a condition of employment are not covered by this policy. 

C. Definitions

Non-exempt employee: Employees appointed to positions which do not fall under one of the exemptions found in the Fair Labor Standards Act of 1938, as amended, and whose positions are therefore subject to all provisions of the FLSA, including overtime provisions.

State service credit: is earned for the actual days, months, and years of service with UT Tyler or other state of Texas agencies or higher education institutions, as long as employment at the other state agency or institution is not concurrent with employment at UT Tyler. Each month an employee is on active payroll counts as one (1) month of state service credit, regardless of the number of hours worked in a month. Only the actual days worked during those partial months at the beginning and ending of employment count as state service credit.

D. Policy and Procedures

1. Leave Accrual and Carryover. Full-time employees accrue vacation leave and may carry it forward from one fiscal year to the next in accordance with the following schedule:

   Employees with total state service credit of	Hours accrued per month	Maximum carryover hours to next fiscal year for full-time employees
   Less than 2 years	8	180
   At least 2 years but less than 5	9	244
   At least 5 years but less than 10	10	268
   At least 10 years but less than 15	11	292
   At least 15 years but less than 20	13	340
   At least 20 years but less than 25	15	388
   At least 25 years but less and 30	17	436
   At least 30 years but less than 35	19	484
   At least 35 years or more	21	532

   Employees are encouraged to use vacation hours during the fiscal year in which they accrue. If this is not possible, employees are entitled to carry forward from one fiscal year to the next the balance of unused accumulated vacation leave that does not exceed the maximum number of hours allowed by law, as indicated above. All hours of unused accumulated vacation leave that may not be carried forward at the end of a fiscal year will be credited to the employee's sick leave balance effective on the first day of the next fiscal year.

   An eligible part-time employee accrues vacation leave on a proportionate basis. The maximum amount of vacation leave a part-time employee may carry forward from one fiscal year to the next is also on a proportionate basis.

   Credit for vacation leave accrual will be given on the employee's first day of employment and on the first day of each succeeding month thereafter. An employee who works any part of a calendar month accrues vacation for the entire month. Employees do not earn vacation leave when they are in an ineligible status, including when they are on leave without pay for an entire calendar month. If an individual's state employment anniversary date occurs on the first calendar day of a month, the employee begins to accrue vacation leave at a higher rate as indicated on the above chart on the first calendar day of the month. Otherwise, the higher rate of accrual begins of the first calendar day of the month following the anniversary date.

   If an employee is on any type of paid leave that extends into the next month, any vacation accrual for the next month will not be credited until the date the employee returns to duty. An employee who goes on paid leave following his/her last day of duty, then subsequently separates from employment, is not entitled to leave accruals while on such paid leave for any calendar month(s) following the month in which the last day of duty occurs.

2. Entitlement to Leave. 

   Employees may not take vacation leave until they have been continuously employed with the state for six (6) months, although vacation hours will be accrued during that period. Continuous employment means that the employee is paid a regular state salary for the period, with the exception that continuity of employment is not interrupted if the employee is placed on leave without pay for less than one (1) calendar month (i.e., a full calendar month of leave without pay does not count toward state service nor towards vacation accrual).

   An employee who has completed six (6) months or more of continuous state employment and then leaves state employment is entitled to take vacation leave as it is earned upon reemployment in an eligible position.

3. Payment or Transfer of Vacation Leave When an Employee Separates from Employment
   1. Employees who at any time worked for the state for six (6) continuous months and who separate from state employment for any reason are entitled to be paid for the balance of accrued vacation time as of the date of separation, under any of the following conditions:
      1. Leave one state agency or institution to begin working for another state agency or institution that grants vacation time after a break in service and are not reemployed in a position that accrues vacation leave during the thirty (30) day period after leaving the previous job.
      2. Move from a position in a state agency or institution that accrues vacation time to a position in that same agency or institution that does not accrue vacation time. The institution shall make such payments only under unusual circumstances when payments are deemed to be in the best interest of the institution. Holiday hours that fall within the period after the date of separation is not paid. When an employee moves to an ineligible position and is not paid vacation hours, the accrued time is frozen until the employee becomes eligible again or terminates employment.
      3. Move from a position in a state agency or institution that accrues vacation time to a position in another state agency or institution that does not accrue vacation time. Payment must be made by the first employer if the other state agency or institution refuses to credit the employee for the balance of the employee's vacation time as of the date of the move. Holiday hours that fall within the period after the date of separation are not paid.
      4. Hold two or more positions and separate from one that accrues vacation time.
   2. Employees may, with the written approval of the chair or department head and the concurrence of the respective executive, be allowed to remain on the payroll after the last day worked to utilize vacation leave in lieu of being paid in a lump sum. Employees will continue to receive all compensation and benefits that the employee was receiving on the last day of duty, including paid holidays, longevity, and/or hazardous duty pay. Employees will not accrue any additional vacation leave or personal leave while remaining on the payroll to utilize such vacation leave, nor can such leave be used. Employees will not accrue any additional sick leave while remaining on the payroll to utilize such vacation leave, nor can such leave be used. The written approval to exercise this option must be provided to Human Resources prior to the effective date of the employee's termination.
   3. If employees are paid for vacation upon separation, they will be credited for any holiday that falls within the period after the date of separation and the last date of the period in which the employee would have used the time had the employee remained on the payroll. Lump sum payments for accrued but unused vacation time are computed as though the employees actually worked the holiday.
   4. Lump sum payments to employees will be computed based on the rate of compensation or the last date of employment. For employees who transfer from an eligible to an ineligible position and who then terminate employment, payment will be made based on the rate of compensation in the eligible position.
   5. Lump sum vacation payments will not include any hazardous duty or longevity pay. Such payments will include any emoluments received in lieu of pay, such as car or housing allowances.
   6. An employee transferring from one state agency or institution to another without a break in service will have his/her accrued but unused vacation leave balance transferred.
   7. If an individual separates from one state agency and is reemployed by a state agency in a position that accrues vacation leave within thirty (30) days after the individual's date of separation, the individual is entitled to reinstatement of the unused balance of the previously accrued vacation leave unless the leave has been paid out.
   8. A deceased employee’s estate is entitled to payment for unused annual leave if the employee had at least six (6) months of continuous state employment at the time of death. The payment is based upon the employee's rate of pay at the time of death.
4. To Request Leave
   1. Employees should make requests for vacation leave with as much advance notice as possible (30 days preferred).
   2. Leave requests must be approved by the supervisor with consideration for staffing requirements in the department.
   3. Vacation leave time must be accounted for and used in hours. When charging for time less than an hour, vacation leave taken or earned must be expressed as a decimal fraction, i.e., thirty (30) minutes = 0.50 hours, forty-five (45) = 0.75 hours, etc.
   4. Holidays falling during an individual's vacation leave period are not charged against vacation leave.
   5. Illness occurring during a vacation period will be charged against sick leave and will not be charged against vacation leave if the employee presents a physician's statement or other acceptable verification.
   6. All time taken during a month must be submitted on an electronic leave slip by the employee or department head/supervisor on behalf of the employee with the appropriate electronic signatures to Time and Attendance before the payroll due dates. If there is not enough vacation in the employee's bank to cover the submitted hours, the Time and Attendance System will automatically roll to the other accrual balances (floating holiday, grandfathered floating holiday, holiday compensatory, etc) except sick.
   7. When an employee has exhausted all vacation and personal leave entitlements, that employee will receive leave without pay rather than incurring a negative leave balance.
   8. For those employees terminating employment with accumulated vacation, Time and Attendance will submit hours to Payroll for disposition of the unused balance.
   9. For employees who transfer from a position that was eligible for vacation accrued to one that is ineligible and then subsequently terminate employment, payment for vacation hours must be made based on the last salary rate that was in effect in the eligible position.
   10. For employees transferring to another state agency with or without a break in service, the new employing agency should contact Human Resources so that vacation hours are transferred appropriately. Falsification of leave records by an employee or by a departmental person responsible for leave record keeping is a violation of University policy and is subject to disciplinary action, up to and including termination.
5. Limitations on Use
   1. Outside employment – While on annual leave, an employee may not be employed elsewhere unless the requirement and approvals for outside employment have been met.
   2. Use and Exhaustion – Annual leave may not be used before it is accrued. When an employee exhausts all appropriate and available leave, leave without pay is the only option.
   3. Illness or Injury during Annual Leave – An employee who becomes ill or is injured while on approved annual leave will be allowed to use accrued sick leave to cover the illness or injury. Upon receipt of a medical certification, an employee may request to have the actual time they were incapacitated due to illness or injury changed to sick leave.
   4. Emergency Closure during Annual Leave - An employee who is on a prior approved annual leave during an emergency closure shall have the annual leave changed to administrative leave.
6. Vacation/Floating Holiday Payout from Benefit to Non-Benefit Eligible Position
   1. If the employee's appointment changes to less than twenty (20) hours per week before completing six (6) months continuous, benefits eligible, state employment, the annual leave accrual is frozen.
   2. If the employee's appointment changes to less than twenty (20) hours per week after six (6) months of continuous, benefits eligible, state employment, the accrued annual leave is frozen. No further annual leave will accrue and none of the existing annual leave balance may be used. If the employee's appointment returns to twenty (20) hours or more per week, the annual leave balance will be restored and may be used upon approved request.

E. Responsibilities

1. Employee Responsibilities – The employee shall provide appropriate notice to the supervisor of the request to use annual leave. The employee shall promptly and accurately record the use of leave.
2. Supervisor and Department Responsibilities - The supervisor must review the employee's request based on university and departmental guidelines and approve/disapprove the request. Employee time reports should be verified for accuracy and signed. 
3. Delegation of Authority - Authority is hereby delegated to the department head or designee to determine annual leave eligibility and approve use of leave. 

F. Review

This policy shall be reviewed by Human Resources every five years or as legislation changes.