Copyright© 2002 by School Services of California, Inc.

Volume 15                   For Publication Date: December 20, 2002             No. 25

Can We Allow Confidential/Supervisory
Employees to Bank Vacation Days?

Q.        Our confidential/supervisory folks have asked, as part of the meet and confer process, to be allowed to bank vacation days to be used at some future time or be paid for when they leave the district or retire. Currently, they are paid for any unused days at the end of the year. We are considering giving them two banked days per year to a maximum of 10 days. We are concerned that if we give this to confidential/
supervisory employees, other units will bring it to the table in the future.  

We are also concerned about the long-term liability we could incur if we do extend some type of banking to all employees who earn vacation. I also question the policy of allowing employees who get overtime to also bank vacation days.  

What is your view of this issue and the possible long-term impact of such an arrangement?  

A.        While I believe the “banking” you describe to be allowable, it may be unwise for several reasons. Each year there are a couple of districts that make the newspapers precisely because they allow long-term employees, usually senior administrators, to cash in large numbers of vacation days for seemingly huge dollars. As a policy question, what makes sense for one group should be considered in light of what you would be willing to do for other similarly situated groups.  

Some districts have developed policies that prevent employees from accruing large vacation balances. They have written legal policies that establish maximum accrual levels and then stop the employee from accruing any more vacation until they use some of the balance. There is apparently a fine legal line between taking away earned vacation (not allowed) and not giving any more vacation until the balance is reduced (allowed).  

Over time, the long-term liability of large vacation balances can be substantial. The policy of offering vacation is based upon a need for employees to get away from the job periodically and thus perform at a higher overall level; it is not intended to be another source of cash compensation.  

Having said all that, you could indeed offer to bank 10 days, restricted to confidential/supervisory employees, and probably would not break the bank. The one big positive that I see in giving them the bank is that we often forget that confidentials give up their right to union representation and need to feel that they are getting something for that. A small pay differential is normal, but something like this would reinforce that notion in a positive way.

                                                                                                                                                                                 —Ron Bennett