HR Policy #60-110

Eligibility/Usage
Vacation leave with pay is earned by all regular full-time employees except for faculty and athletic coaches. (Note: Although they are generally recognized as “faculty”, twelve-month academic department heads earn vacation leave because of their administrative appointments; leave is not earned by academic department heads whose appointments are for periods of less than twelve months.)

Vacation leave may be used for vacations, personal business, or for any other personal reason. Leave may only be taken at times agreed upon by the employee and his/her supervisor/department head and must be approved in advance. Vacation leave may be denied, when in the opinion of the supervisor/department head, the employee’s absence would unduly affect the efficient functioning of the unit. The approval of vacation leave may not be arbitrarily withheld or withheld without justifiable cause. A supervisor/department head may specify that vacation leave only be taken based on departmental needs and schedules.

The responsibility for administering this policy is delegated to each department head based on departmental records and determinations complying with the requirements of this policy.

General Rules
A. Vacation leave accrues based on continuous service with Western Kentucky University in a qualified position according to the following accrual schedule:

Employees hired before July 1, 1994, accrue according to the following schedule:

B. Vacation leave is earned on the 15th calendar day of each month. Employees who are hired on or before the 15th shall receive an accrual for that month. Employees who terminate employment prior to the 15th shall not accrue vacation leave for that month.

C. Vacation leave shall be reported in hours rounded to the nearest quarter hour increment.

D. Employees who work in 9, 10, or 11 month positions may only accrue and use accumulated vacation leave during their employment period.

E. Employees may not take or be granted vacation leave with pay in an amount greater than earned and accumulated.

F. Employees are charged with vacation leave only for days which they would otherwise work and receive pay. Should a University holiday be observed on one of the employee’s regularly scheduled workdays while he/she is on vacation, he/she will not be charged vacation leave for the holiday.

G. There is no limit to the accumulation of earned vacation leave. However, the maximum number of days which may be carried forward from one fiscal year to the next (July 1) is 20 days (150 hours). All days in excess of 20 (150 hours) as of July 1 of each year shall be transferred to each employee’s medical leave balance.

H. Employees who transfer or otherwise change from one University department to another shall retain his/her accrued vacation leave in the new department.

I. Employees who transfer to a non-covered position (for example, a transfer from an administrative position to a nine-month faculty position) shall be paid any accumulated vacation leave up to a maximum of 20 days (150 hours) at the time of the transfer.

J. Accumulated vacation leave may be used for an employee’s own illness in cases where the employee has no medical leave balance. In such instances, the requirement for advance approval of vacation leave shall be waived.

K. Employees who are laid off or terminated involuntarily due to reductions in work force for reasons beyond his/her control will be given credit for prior years of continuous service upon re-employment.

L. Employees who terminate employment with Western Kentucky University and who are re-employed within one calendar year, shall receive his/her prior continuous service credit with the institution for vacation leave accrual purposes.

M. Should an employee die during the course of employment, any unused vacation leave up to the 20 day (150 hour) maximum will be paid to the employee’s estate.

Compensation for Accrued Vacation Leave Upon Termination/Separation of Employment
Employees separating from employment with Western Kentucky University shall be eligible to receive pay for up to 20 days (150 hours) of accumulated vacation leave which is unused at the date of termination/separation when the following conditions are met:

A. The employee provides appropriate notification of his/her intent to resign. Employees must provide a notice of two (2) weeks except for employees holding positions in EEO Category 10 who must provide a notice of thirty (30) days. An employee may not use accrued vacation in meeting this notification period unless approval is granted by his/her supervisor/department head. The University reserves the right to waive, at its sole discretion, the required notification period.

B. The date of termination/separation is the last day the employee actually works. An exception to this rule is applicable for individuals who are on certified medical leave immediately prior to separation of employment. All payments for accumulated vacation leave shall be paid in lump sum in the employee’s last payroll check (or the next available payroll check if payroll cycle has closed). Retirement contributions will not be paid by the University or by employees for lump sum vacation leave pay.

C. Retirement contributions will be paid by the University and appropriate deductions withheld from vacation pay for employees who are members of the Kentucky Techers' Retirement System (KTRS).

For employees who are participants in the Optional Retirement Plan (ORP: TIAA-CREF, ING, AIG) or who are members of the Kentucky Employees' Retirement System (KERS), retirement contributions will not be paid by the University nor withheld from employee pay.

Special Exception for Retirees
Employees who are members of KTRS or KERS who terminate due to gaining official retirement status may elect to remain on the payroll through the last day of accumulated vacation (maximum of 20 days or 150 hours) so that retirement credit is earned. Retirement contributions will be paid by the University and appropriate deductions withheld from employee paychecks in such cases.

Should a KTRS retiree elect to receive his/her accumulated vacation leave in lump sum payment, retirement contributions will be paid by the University and withheld from his/her earnings.

Should a KERS retiree elect to receive his/her accumulated vacation leave in lump sum, no retirement contributions will be paid by the University or withheld from employee earnings

Special Provisions Pertaining to Grant-Funded Positions
Employees who hold positions that are grant-funded shall accrue vacation leave according to the same policies that apply to employees holding positions that are not grant-funded. Certain unique provisions do apply related to leave usage as well as terminal vacation pay upon separation from employment.

Vacation accruals for grant-funded employees shall be truncated to 20 days (150 hours) as of June 30 of each year, according to general policy provisions. Because various grants have differing budget periods, June 30 is used for uniformity and for efficient administrative purposes.

Upon resignation or other reasons of separation from employment, grant-funded employees shall not be paid lump sum terminal vacation leave. An employee who anticipates resignation or separation from employment is responsible for working with his/her supervisor to use accumulated vacation leave prior to leaving employment. Vacation leave must be used in a manner so that grant activities/operations are not adversely affected. Consistent with general University policy, a grant-funded employee may not be on continuous leave leading up to his/her official separation date. The last day of employment (effective date) is to be the last day of actual presence of the employee. Grant-funded employees who cannot use their total accumulated vacation leave without adversely affecting grant activities/operations—as determined by his/her supervisor—shall forfeit any remaining vacation days.

Employees in grant-funded positions who transfer to positions that are not grant-funded, or vice versa, shall have their vacation leave balances transferred to their new positions except for cases in which the new position is in an ineligible category. The general University policies that govern non-grant transfers shall apply to such transfers.

Employees in some grant-funded units may not be allowed to carry over vacation leave balances from one grant year to the next, according to grant regulations.

Principle Investigators/Project Directors of grant-funded units are expected to communicate leave usage rules to each new employee and to provide notice to all affected employees at the commencement of each grant period.