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HomeMy WebLinkAbout17. 21-119MARCH 9, 2021 21-119 RESOLUTION BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached update for the Employee Handbook, Sections 111, 217, 221, 314, and 316 for City of Oshkosh are hereby approved effective 3/14/2021 and the proper City officials are hereby authorized to execute and deliver the handbook update in substantially the same form as attached hereto, any changes in the execution copy being deemed approved by their respective signatures, and said City officials are authorized and directed to take those steps necessary to implement the terms and conditions of the handbook update. BE IT FURTHER RESOLVED by the Common Council of the City of Oshkosh that this Employee Handbook update to Sections 111, 217, 221, 314, and 316 for City of Oshkosh supersedes all previous versions of these sections of the Employee Handbook. (CARRIED_6-0__ LOST _______ LAID OVER _______ WITHDRAWN _______) PURPOSE: APPROVE EMPLOYEE HANDBOOK UPDATE INITIATED BY: HUMAN RESOURCES TO: Honorable Mayor and Members of the Common Council FROM: John Fitzpatrick, Assistant City Manager / Director of Administrative Services DATE: March 2, 2021 RE: Employee Handbook Updates BACKGROUND The majority of these are routine updates to our Employee Handbook. The handbook is intended to be a helpful reference regarding City policies, benefits, and procedures related to employees, their expected behavior, action, and interaction. Although it is not all-inclusive, the purpose of this document is to cover a variety of topics about which questions may frequently arise, increase the understanding of expected outcomes, and help assure uniformity of application for common issues, across the organization. ANALYSIS The most significant change to the handbook involves Section 221, Subsection #4 which describes vacation accumulation. Although this section states that no vacation shall be permitted to accumulate from one year to the next, it also provides the opportunity for a supervisor to request that their employees’ vacation be carried over from one year to the next, if the employee was requested to delay taking their vacation and was unable to reschedule it within the calendar year. I have approved several of these requests over time in my capacity as Director of Administrative Services after also securing agreement from the respective department heads that oversee the requesting supervisors. Most often these originate due to a vacancy that occurs and when a non-represented FLSA exempt employee is asked to take on acting and / or additional responsibilities, or in the event of some emergent situation which causes the employees’ originally vacation, to be cancelled. The dedication of our employees is always very much appreciated; however, when vacation is carried over from one year to the next, it can become very difficult to get it off the books. Examples of the circumstances involved can include training and orientation of a new employee by the person who was temporarily performing the duties of the position, as well as serial or prolonged emergencies, like those we recently experienced in 2020 during the cyber- attack and COVID-19 pandemic. Even though employees may be able to use their carry over time off in subsequent years, exhausting the current time can then become problematic as unused time accumulates on top of one another. Additionally, we are required to pay the employee out for time earned and on the books when they retire or leave our employment. When time is carried into the future, if it is not taken, it is paid out at the rate in effect upon separation, which also increases costs. As a solution to this problem, we have proposed that the language in this section used to evaluate unique circumstances be retained and modified in order to provide the City flexibility to address the current back log as well as any unforeseen future issues, and that the remaining language be modified to mitigate future accumulation. After discussing this issue extensively with City Manager Rohloff and Finance Director Van Gompel, we believe that the clearing of all unused accumulated time in 2021, and the implementation of a requirement that any unused vacation will automatically be paid out for non-represented FLSA exempt employees annually on the last paycheck of the present year, up to a maximum of five (5) unused vacation days going forward, beginning in 2022, will minimize future exceptions, as well as help improve our current and future situation. Other handbook changes include the:  Clarification of overtime determination (Section 111)  Clarification regarding sick leave purpose (Section 217)  Clarification regarding employment termination notification (Section 314)  Clarification regarding conflicts of interest (Section 316) FISCAL IMPACT The only potential fiscal impacts involve the previously described handbook change to Section 221, Subsection #4. As described in the analysis section, the changes made to this language involve the intent for us to clear the books of any unused accumulated vacation in 2021, which has a potential one-time maximum cost of approximately $145,000. The other potential future cost beginning in 2022 would be the automatic payout of no more than 5 unused vacation days annually for non-represented FLSA exempt employees. Although this fiscal impact is more difficult to predict, paying out 5 unused vacation days at current rates annually, rather than carrying amounts of 5 unused vacation days or more over into future years, which would be paid at higher future rates, will be more cost effective. These adjustments are needed so as to eliminate the potential for increased pay out cost liability upon separation for vacation that has been carried over from one year to the next, and to minimize the future exposure for the City by establishing an automatic annual payout of unused vacation up to a maximum of 5 unused vacation days in the present year for non-represented FLSA exempt employees. RECOMMENDATION I included the revised sections of the handbook for your information. Red strikethrough text indicates proposed deletions and red underline text illustrates replacement or new language. I am asking that the changes be made effective 3/14/2021. Please review these materials and let me know if you may have any additional questions in regard to this subject. Thank you. Respectfully Submitted, Approved: John Fitzpatrick John Fitzpatrick Mark A. Rohloff Assistant City Manager/Director of Administrative Services City Manager Employee Handbook Changes Effective 3/14/21 Section 111 Scheduled Hours, Overtime, Compensatory Time, and Extra Pay, subsection 6, 1st paragraph, alter 2nd sentence Overtime – With the exception of certain protective service positions, overtime is time worked in excess of forty (40) hours in a workweek. Full days of holiday, vacation and floating holiday time , or any combination of the aforementioned time that equates to a fu ll day, are counted toward the calculation of time worked. Substitution of these forms of leave for other forms of leave will not be counted toward the calculation of time worked. When reasonably possible, all overtime shall be approved in advance by the employee’s Supervisor. It shall be the responsibility of every Department Head and Supervisor to assign overtime work only when emergencies or other compelling circumstances prevent the reasonable accommodation of additional work through the reassignment of work priorities or through the rescheduling of hours within the same workweek. Section 217 Sick Leave, subsection 7, 1st paragraph, alter 1st sentence Unused Accumulation – Although the primary purpose of sick leave is to provide employees time off of work to care for themselves and / or their Spouse / Dependent , Uunused sick leave shall accumulate without limit and be paid out in accordance with the options specified in this section unless other collective bargaining agreements apply to the contrary or do not provide these options. Section 221 Vacation, subsection 4, add to end of paragraph Accumulation - No vacation shall be permitted to accumulate from one year to the next unless by direction of the employee’s supervisor, the employee was requested to delay taking a vacation and was unable to reschedule it within the calendar year. In such instances, the supervisor shall inform the Director of Administrative Services in writing of the circumstances and request waiver of the policy. In the absence of any action taken by the Director of Administrative Services, non- represented exempt employees will automatically have any residual vacation on paid out on the last paycheck of the year, up to a maximum of five (5) days. Automatic payouts shall begin on the last check of 2022. Section 314 Employment Termination, subsection 1, add to end of paragraph Notification - Employees planning to voluntarily terminate their employment with the City of Oshkosh are expected to notify their immediate supervisor as far in advance as possible but not less than two weeks prior to their last day on the job. Terminating Department Heads and others holding FLSA exempt positions shall normally be expected to provide an advance notice of one month. These notification periods are required for employees to be considered in g ood standing upon termination. Persons dismissed or involuntarily terminated from employment shall not normally receive advance notice of termination. Employees who fail to report to work as scheduled, will have their termination date adjusted to reflect the last day actually worked, as allowed by law. Section 316, Conflict of Interest, subsection 2, add to end of 2nd paragraph Additionally, City employees shall not serve on a City of Oshkosh Council, Board, Commission or Committee, but may act in a City of Oshkosh Staff Liaison capacity.