Oregon University System, Chapter 580
Rule Caption: Increase the amount of vacation payout to 260 hours for a set period of time
Adm. Order No.: OUS 1-2014
Filed with Sec. of State: 3-21-2014
Certified to be Effective: 3-21-14
Notice Publication Date: 2-1-2014
Rules Amended: 580-021-0030
Subject: With the passage of Senate Bill 270 (2013) and the substantial change in the governance of Oregon’s public universities, it is vital that the State Board of Higher Education and the Office of the Chancellor make every reasonable effort to ensure that adequate staff are retained in order to make transition to Oregon State University, Portland State University, and the University of Oregon, as well as any possible change to the governance of the remaining OUS institutions, as seamless as possible. Under current administrative rules, as a general matter, full-time unclassified OUS employees accrue 15 hours of vacation each month; however, these employees may not accrue more than 260 hours of vacation leave and, upon separation of service, may not cash out more than 180 hours of vacation leave. In order to incent Office of the Chancellor employees to remain at OUS during the critical period of transition facing public higher education in the state over the next 18 months and, after consulting other public sector vacation leave schemes in Oregon, including those for state employees under the purview of DAS, the OSBHE approved that payment for accrued vacation leave be increased for a specific period of time for unclassified employees in the Office of the Chancellor.
Rules Coordinator: Marcia M. Stuart—(541) 346-5749
(1) Eligibility. Vacation means absence from work permitting rest and recreation for a specified period of time during which regular compensation continues. Unclassified employees gain vacation privileges only if employed at .50 FTE or more on a 12-month appointment.
(2) Computation. Eligible unclassified employees accrue vacation on a monthly basis, beginning the first of the month following date of hire or on the first of the month if an employee is hired the first working day of the month. Vacation accrues on the last day of the month and is available for use the first day of the next month subject to the restrictions in section (3) of this rule. A 9-month employee appointed to a 12-month contract may receive credit for the previous 9-month contract, on a pro-rata basis. Eligible employees with a 12-month, 1.0 FTE contract accrue 15 hours of vacation per month; eligible employees on a .50 FTE or more contract accrue vacation in proportion to their FTE. An employee who terminates OUS employment before completing the 6-month wait period receives no vacation, and is not entitled to compensation for vacation accrued. On February 28, 1998, eligible employees shall be credited with vacation leave on a pro-rata basis at a rate of 14.67 hours per month as if monthly accrual had begun on their last vacation anniversary date or, for those employed fewer than 11 months, on their date of hire.
(3) Wait Period and Maximum Balance. Vacation accrual is available to the unclassified employee for use six months after vacation accrual begins. Until September 1, 1999, there will be no maximum on the amount of vacation leave that an employee can accrue. However, effective September 1, 1999, no employee may accrue in excess of 260 hours, and any accrued vacation leave in excess of this cap will be forfeited.
(a) Inter-institutional/Unclassified to Unclassified. If an eligible unclassified employee transfers to another unclassified position within the Department and remains eligible for vacation accrual, the employee shall transfer all accrued vacation leave to the new position. However, if there is a break in service for more than 30 days, all accrued vacation pay will be paid off by the sending institution and the employee will be considered a new hire in the position. Moving from position to position within the same institution shall not be considered a transfer or a break in service for purposes of this rule.
(b) For purposes of this Rule, OHSU shall be considered an institution within the Department whereby an OHSU unclassified employee who “transfers to unclassified position within the Department and remains eligible for vacation accrual,” may, subject to approval by the receiving department or institution, transfer all accrued vacation time from OHSU to an institution within the Department; upon such a transfer, the vacation benefits of a former OHSU employee shall be administered in accordance with 580-021-0030.
(c) Classified to Unclassified Appointment. If a classified employee of the Department receives an unclassified appointment within the Department and is eligible for vacation leave, the employee may bring up to 80 hours of accrued vacation leave; the receiving department or institution may accept up to 250 hours maximum. The former classified employee shall receive cash compensation from the sending department or institution for any remaining accrued vacation leave. The former classified employee may use accrued vacation without serving a 6 month wait period.
(5) The accrual of vacation leave is reduced on a pro-rata basis for the period of leave without pay, sabbatical leave, and educational leave. Vacation leave is accrued during other periods of paid leave.
(6) Payment for Accrued Vacation Leave. Unclassified employees are not entitled to payment for unused vacation leave except upon termination of employment or upon transfer within the Department to another unclassified position not eligible for vacation benefits. Unclassified employees who transfer to a classified position within State of Oregon employment are subject to applicable OUS rules or collective bargaining agreements governing payment for accrued vacation. The maximum number of hours that can be paid upon termination or transfer is 180 hours.
(7) Scheduling and Use of Vacation Leaves. Vacation leaves are scheduled with the approval of the employee’s supervisor and should be planned cooperatively with the employee. Vacation leave should be scheduled in such a manner as to minimize disruption to the organization. Supervisors must be reasonable in allowing the use of vacation leave and may not unreasonably deny vacation requests where the result would be the forfeiture of accrued vacation. For purposes of calculation, one normal work day is the equivalent of eight hours of vacation leave for a full-time employee.
(8) Record Keeping. Each institution is responsible for maintaining the individual records of vacation accrual and use.
(9) Vacation Donation. The transfer of vacation time, for use by another employee, classified or unclassified, is not permitted.
(10) Vacation Borrowing. Employees are not permitted to borrow against vacation that is not yet accrued. (Section 12, relating to interim provisions for employees moving from Management Service to Unclassified Service, was repealed December 1, 1999.)
(11) Notwithstanding section (6) of this rule, from the period December 1, 2013 through June 30, 2015, unclassified employees of the Office of the Chancellor, upon termination or transfer as described in this rule, may receive cash payment for up to 260 hours of accrued vacation leave.
Stat. Auth.: ORS 240 & 351.070
Stats. Implemented: ORS 351.070
Hist.: HEB 3-1978, f. & ef. 6-5-78; HEB 11-1984, f. & ef. 11-9-84; HEB 10-1990, f. & cert. ef. 7-26-90; HEB 1-1993, f. & cert. ef. 2-5-93; HEB 4-1996, f. & cert. ef. 10-24-96; HEB 5-1996, f. & cert. ef. 12-18-96; OSSHE 2-1998, f. & cert. ef. 2-25-98; OSSHE 7-2001(Temp), f. & cert. ef. 12-5-01 thru 5-1-02; OSSHE 2-2002, f. & cert. ef. 5-1-02; OUS 8-2013(Temp), f. & cert. ef. 11-20-13 thru 3-13-14; Administrative correction, 3-18-14; OUS 1-2014, f. & cert. ef. 3-21-14
Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
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