Since the legislative session ended in March, UPEA has been hard at work trying to make sure we stay ahead of the curve when it comes to possible legislation affecting public employees. Through UPEA’s contacts and legislators UPEA staff hears of budget, health insurance, and many issues prior to any action being taken up on Capitol Hill. Some discussions come to fruition and others don’t. This year we have heard rumor of another piece of legislation that may affect public employees – PTO.
Over the course of the past decade, several private entities have changed how their annual and sick leave systems work in an effort to streamline their leave programs. Many companies moved to a Paid Time Off (PTO) System that does not differentiate between sick and vacation leave. Employees are given a set number of hours a year that they may use in whatever manner they wish. If they do not get sick, they can use it all as vacation time. However, if they are sick frequently, vacation may not be an option.
Currently, each employee receives a certain number of annual leave hours and sick leave hours, based on their years of service. Annual leave must be scheduled ahead of time and can be used for vacations, personal matters, etc. Sick leave can be used when an individual is ill, needs to go to a doctor’s appointment, or just needs a “mental health” day.
State employees also have a great benefit that they may use upon retirement. An employee may save their pre-2006 sick leave hours to purchase health insurance. Sick leave hours earned after 2006 can be cashed in upon retirement to be placed into a health savings account to use toward medical purchases.
This benefit has been instrumental in helping productivity in the state of Utah, and ensuring that employees use their sick leave wisely.
Would a PTO program take away from this benefit?
At this time, it is not known. However, UPEA is currently concerned about such a program because it may affect current Sick Leave Benefit upon retirement.
Also, if it does not impact current employees, will it be just for new employees? While UPEA is still seeking answers to this question, it is cause for anxiety.
Many studies have indicated that when a company has moved to a PTO-based system, that the leave hours given to employees has dropped, or cannot be carried over from year-to-year. UPEA’s concern is that employees will be negatively impacted by such a move.
UPEA is continually keeping in contact with legislators and other policy-makers that may potentially be close to this issue to ensure employees are protected and maintain the best benefits possible. As more information develops, UPEA will send emails or additional communications to its members.
