Business and Labor

State employee vacation policy amended, advanced

Lawmakers amended and advanced a bill from select file March 7 that would ensure state employees are compensated for unused vacation time.

Under LB830, introduced by Omaha Sen. Burke Harr, a state agency that denies an employee’s reasonable request to use vacation leave before it is forfeited under the “use it or lose it” policy must pay the employee the cash equivalent of the forfeited leave that was denied.

A Harr amendment, adopted 28-0, would give the employing agency discretion in approving or denying vacation requests. The length of vacation leave requested, the number of days left before forfeiture and the prior notice given to management all would be considered in determining what is and is not a reasonable request. These provisions also would require that any cash payment for forfeited vacation leave be paid by the state agency within 30 days after the requested and denied leave is forfeited.

Omaha Sen. Bob Krist also introduced an amendment, which exempted from the bill employees of the Legislature and the court systems. He said employees of the two state agencies should not be denied vacation leave.

“Just like batteries need to be recharged, people need vacation time,” he said. “It’s a health, safety and welfare issue to afford those folks to take that opportunity.”

The amendment was adopted on a 34-0 vote.

Under the bill, cash payments made would be considered compensation in state employees’ defined contribution and cash benefit plans but would not be considered compensation for state employees’ defined benefit plans.

Currently only judges, state patrol and public school employees have defined benefit retirement plans. Harr said the change would ensure that an employee under a defined benefit plan could not artificially inflate his or her compensation right before retirement, thus inflating benefits received in retirement.

LB830 also incorporated provisions of LB972, another bill introduced by Harr. These provisions added major, nontenured policymaking positions under the definition of employment under the Employment Security Law, making them eligible for compensation under LB830.

The bill advanced to final reading by voice vote.

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