City of Birchwood Village Policy: Earned Leave Time
Effective Date: April 8, 2025
1. Purpose:
This policy outlines the provisions for Earned Leave Time for eligible employees of the City of Birchwood Village, incorporating the requirements of the Minnesota Earned Sick and Safe Time (ESST) law (Minnesota Statutes 181.9447 and 181.9448). This policy establishes separate provisions for Earned Sick and Safe Time (ESST) as mandated by state law, and Vacation Leave, which provides time off for vacation and personal time. This policy is designed to comply with all applicable federal, state, and local laws, including Minnesota’s ESST law. In the event of conflict between this policy and law, law shall govern. Where this policy conflicts with any previous city policy, this policy shall prevail.
2. Definitions:
- Eligible Employee: All employees of the City of Birchwood Village who work at least 80 hours in a year in Minnesota, as defined by Minnesota’s Earned Sick and Safe Time law, unless otherwise excluded by specific employment agreement. This definition is intended to align with the eligibility requirements of Minnesota’s ESST law.
- Earned Sick and Safe Time (ESST): Leave time accrued and used according to the requirements of Minnesota Statutes 181.9447 and 181.9448. ESST is accrued for hours worked in Minnesota and can be used for reasons specified under Minnesota law (see Section 4.A).
- Vacation Leave: A separate leave bank providing time off for vacation, personal appointments, and other authorized absences not covered under Minnesota ESST. Vacation Leave is accrued based on hours worked and years of service as defined in this policy.
- Accrual: The process by which Eligible Employees earn ESST and Vacation Leave based on hours worked.
- Resignation: Voluntary termination of employment by the employee.
- Termination: Involuntary termination of employment by the City of Birchwood Village.
- Base Hourly Rate: The employee’s regular hourly rate of pay, excluding overtime or other forms of supplemental compensation.
3. Eligibility and Accrual:
A. Earned Sick and Safe Time (ESST) Accrual:
- Eligibility Commencement: Eligible employees begin accruing ESST upon their date of hire or as required by Minnesota law, whichever is earlier.
- Accrual Rate: Employees will accrue ESST at a rate of one (1) hour of ESST for every thirty (30) hours worked in Minnesota, consistent with Minnesota Statutes 181.9447.
- Maximum Accrual and Carryover:
- Employees may accrue a maximum of forty-eight (48) hours of ESST earned per year.
- Employees may carry over up to forty-eight (48) hours of unused ESST from year to year.
- The total ESST available for use at any point in time will not exceed eighty (80) hours.
- The “year” for accrual and carryover purposes will be the calendar year (January 1 – December 31).
- Accrual Limitations: ESST is not accrued for:
- Overtime hours worked.
- Paid holidays.
- Unpaid leave of absence.
B. Vacation Leave Accrual:
- Eligibility Commencement: Full-time, salaried employees begin accruing Vacation Leave upon their date of hire. Part-time and hourly employees do not accrue Vacation Leave.
- Accrual Rate: Full-time, salaried employees accrue vacation leave at a rate of 4.62 hours per two weeks. (4.62 hours per two weeks corresponds to 120 hours over 52 weeks).
- Maximum Accrual: Full-time, salaried employees may accrue a maximum of 120 hours of Vacation Leave. Any accrual beyond this cap will be forfeited at the end of each calendar year (December 31).
- Accrual Limitations: Vacation Leave is not accrued for unpaid leaves of absence.
4. Use of Leave Time:
A. Use of Earned Sick and Safe Time (ESST):
- Purpose of ESST: Employees may use ESST for the following reasons as defined by Minnesota Statutes 181.9447:
- Employee’s or family member’s:
- Mental or physical illness, injury, or health condition.
- Need for medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition.
- Need for preventive medical care.
- Care of a family member: who is ill or injured or who needs medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition, or who needs preventive medical care.
- Absence due to domestic abuse, sexual assault, or stalking: of the employee or employee’s family member, provided the absence is for the purposes described in Minnesota Statutes 181.9447, subd. 2(a)(3).
- Closure of the employee’s place of business or a family member’s school or place of care by order of a public official due to public health emergency; or when it has been determined by a health official or health care provider that the employee or employee’s family member is a risk to others because of exposure to communicable disease.
- When an employee is unable to work or telework because the employee is seeking assistance for themselves or a family member regarding: domestic abuse, sexual assault, or stalking.
- Requesting ESST:
- Employees must notify their supervisor of the need to use ESST as soon as practicable. Advance notice is not always required, especially for unforeseen illnesses. Employees who report to the City Council shall notify the personnel committee.
- Supervisors or the personnel committee will approve ESST requests when the absence is for a qualifying reason under Minnesota law. Denial for a qualifying reason is a violation of state law.
B. Use of Vacation Leave:
- Purpose of Vacation Leave: Vacation Leave is intended to provide employees with paid time off for:
- Vacation and rest.
- Personal appointments and errands not related to ESST qualifying reasons.
- Bereavement leave.
- Other personal reasons as approved by the employee’s supervisor.
- Requesting Vacation Leave:
- Employees must request Vacation Leave in advance of the anticipated absence whenever possible.
- For foreseeable absences (e.g., vacation, appointments), requests should be submitted to the supervisor at least two weeks prior to the requested leave.
- Supervisors will review and approve or deny Vacation Leave requests based on operational needs and coverage requirements. Approval is not guaranteed. Employees who report to the City Council shall notify the personnel committee.
5. Payout Upon Resignation or Termination:
A. Earned Sick and Safe Time (ESST) Payout:
- There will be NO payout for any accrued and unused ESST upon resignation or termination. This is consistent with Minnesota law. Accrued ESST is intended to provide income protection during periods of illness and safe time needs and has no cash value upon separation from employment. Any unused ESST balance is forfeited upon resignation or termination.
B. Vacation Leave Payout:
- Vacation Payout: Upon resignation or termination, employees will be paid out for ONLY accrued and unused Vacation Leave. This payout will be capped at a maximum of forty (40) hours (five (5) days) of accrued and unused Vacation Leave. Any accrued and unused Vacation Leave exceeding this 40-hour cap will be forfeited.
- Calculation of Payout: Any eligible payout will be calculated based on the employee’s base hourly rate in effect at the time of resignation or termination. All applicable deductions and withholdings will be applied to the payout.
- Forfeiture: Any accrued and unused Vacation Leave exceeding the payout cap will be forfeited upon resignation or termination and will not be paid out. Employees are responsible for managing their Vacation Leave balances accordingly. All accrued and unused ESST is forfeited upon resignation or termination.
6. Policy Administration:
- The City Administrator is responsible for the administration of this policy, including:
- Maintaining employee ESST and Vacation Leave records.
- Interpreting and clarifying policy provisions.
- Processing leave requests and payouts.
- Regularly reviewing and proposing updates of this policy to the City Council.
- Ensuring employees are aware of this policy, particularly the provisions of Minnesota ESST law.
- Approving or denying Vacation Leave requests in accordance with operational needs and policy guidelines and approving ESST requests when legally required.
- Monitoring employee leave balances.
7. Policy Review and Amendment:
This policy may be amended or updated by the City Council as deemed necessary to ensure it remains consistent with best practices, legal requirements, and the needs of the City of Birchwood Village and its employees, and to ensure ongoing compliance with Minnesota’s Earned Sick and Safe Time law.
8. Disclaimer:
The City of Birchwood Village reserves the right to modify, amend, or terminate this policy at any time, with or without notice, subject to applicable law and any collective bargaining agreements.