Washington State University
BUSINESS POLICIES AND PROCEDURES MANUAL

PERSONNEL
60.41
Revised 8-08
Human Resource Services
335-4521
Payroll Services
335-9575

Payment for Unused Sick Leave

PDF link

ANNUAL ATTENDANCE INCENTIVE

Each year eligible employees may request payment for 25 percent of the unused sick leave accrued during the year if the employee maintains a 480 accrued hour balance. (WAC 357-31-150 and RCW 41.04.340)

At retirement, an eligible employee or the employee's beneficiaries may receive either benefits from the Voluntary Employee's Benefit Association Medical Expense Plan (VEBA MEP) or payment for the accrued sick leave. (WAC 357-31-375, RCW 41.04.340) See below and 55.49.

Employee Eligibility

The Office of Financial Management has approved classes of eligible employees who satisfy the following criteria, in accordance with SAAM 25.40.30 and RCW 41.04.340.

Civil Service Employees

All civil service employees are eligible.

Collective Bargaining Unit Employees

Employees covered by a collective bargaining unit agreement are to refer to the appropriate agreement for eligibility information.

AP Employees

All administrative professional (AP) employees are eligible.

Faculty

Research and teaching faculty are ineligible for the sick leave payment program.

Sick Leave Balance

The employee or the employing department deducts the sick leave hours which are the basis of the claim from the employee's sick leave balance.

480 Hour Minimum

Employee's December 31st sick leave balance must exceed 60 days (480 hours).

The employee must maintain a 480 hour minimum sick leave balance. The claim cannot reduce the sick leave balance below 480 hours. See the table below.

Pay Rate for Eligible Hours

Employees receive one hour's pay for each four hours of eligible sick leave. Payroll Services determines the hourly rate by dividing the employee's January monthly salary by 174.

January Claim

WSU honors only those claims for payment for unused sick leave which meet the January Payroll Documents Calendar deadline. Claims are processed only in January.

Partial Claim

Employees may not claim less than the number of eligible hours, e.g., an employee who earned but did not use 24 hours during the previous year may not base his claim on 20 hours.

PROCEDURES

January Claim

The January Payroll Documents Calendar includes the deadline for submitting a claim for unused sick leave payment.

To view the January Payroll Documents Calendar, go to the Payroll Services website at:

http://www.wsu.edu/payroll/

Select DEPTPAY Users, then
Select Payroll Documents Schedule Fall/Spring.

Applicable Form

Employees use the applicable report form to initiate claims for payment of unused sick leave:

Complete the WSU ID Number, Name, Title Code, Year, Employing Department, and Title fields.

Indicate that the report is for "Sick Leave Payment" in Month.

Indicate the sick leave accrual balances after deducting the compensated hours in the space for sick leave accrual balances. Use this figure when preparing January's Time or Leave Report.

In Comments, indicate the balance as of December 31, hours earned during the year, hours used during the year, and hours that are the basis of the claim. Refer to the table below.

See the Time Report example in the PDF version of 60.41.5 and the Leave Report example in the PDF version of 60.41.6.

The employee signs the report.

The employee's supervisor verifies and approves the report.

Routing

Civil Services and Collective Bargaining Unit Employees

After verification, the employing department routes the report to Payroll.

Faculty and AP Employees

After verification, the employing department routes the report to HRS.

HRS routes the report to Payroll.

Payment

Payroll calculates the payment and includes it on the employee's second January paycheck.

Retirement Attendance Incentive (VEBA MEP)

The employee does not personally choose between the VEBA MEP and sick leave payment. The decision to participate in the VEBA MEP is decided by a simple majority vote of each employee group and is binding each succeeding year until a request for a new vote is submitted. Contact HRS for information regarding participating employee groups.

Ten percent of employees eligible for sick leave payout, in any one of the eligible groups, may request a new vote for the ensuing year. Contact Human Resource Services to initiate the voting process.

Collective bargaining unit employees refer to the applicable bargaining unit agreement regarding payment of accrued sick leave.

Refer to 55.49 for additional information regarding sick leave payment.

CALCULATING ELIGIBILITY FOR SICK LEAVE PAYMENT

Dec 31
Sick Leave Balance

Hours Earned Minus Hours
Used

Eligible
Hours

Paid
Hours

Sick Leave Balance After Payment

Comments

646
(480 + 166)

+96 - 64 = 32

32/ 4

8

646 - 32 = 614

All 32 hours were above the 480 hour minimum.

446

+96 - 64 = 32

 0

0

446 - 0 = 446

No payment indicated because Dec. 31 balance is less than 480 hours.

496
(480 + 16)

+96 - 64 = 32

16/ 4

4

496 - 16 = 480

Only 16 of the 32 hours exceed the 480 hour minimum.

606
(480 + 126)

+96 - 108 = -8

0

0

606 - 0 = 606

No payment because year's use exceeds previous year's accrual.

476

+96 - 0 = 96

0

0

476 - 0 = 476

No payment because Dec. 31 balance is less than 480 hours.