Agenda - Council Work Session - 06/23/2015

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CC Work Session 2. 2. Meeting Date: 06/23/2015 Information Title: Discussion Regarding the Employee Sick Leave for Wellness Policy Purpose/Background: The Labor Management Committee (LMC), which is made up of 4 management employees, 2 non-union employees, 3 AFSCME employees, 2 LELS employees, and 3 ex -officio members, meets on a regular basis throughout the year. The Committee discusses issues that are relevant to all groups of City staff in an effort to ensure that the City's core values are upheld and organizational effectiveness is maximized. Organizational effectiveness and up-to-date workplace polices that foster employee satisfaction, physical wellness and financial wellness are important to the City and a good practice for all involved. The timing of this discussion is to allow an update of this item to be brought back to the LMC when they meet again on July 7, 2015. It should be noted that this change would increase the budgeted line item for salary expense for the year; but it reduces the fund balance liability that we carry over at year end. In summary, this discussion is intended to seek the City Council's views on amending the current policy to include the optional limited use of up to one to three vacation days per year to help offset the cost of approved wellness activities or to increase deferred compensation savings for employees. This limited use of up to one to three vacation days would not be available to employees until their 6th, 12th and 18th anniversary. As shown on the attached draft policy, there are provisions within the policy limiting its use and ensuring a win-win outcome for both the City and its employees. The current policy is listed below: Use of Sick Leave for Wellness Activities: Employees who have been employed with the City of Ramsey for at least five (5) years and who have accrued a minimum sick leave balance of 300 hours will be allowed to use up to 24 hours of sick leave annually for cash payment for approved wellness activities, described below. Sick leave used for wellness activities will be paid according to the City's sick leave severance schedule based on the employee's years of service and wage at the time the request for payment is made. The City's severance schedule at the time of this writing is as follows: 33% after five years of service; 35% after 15 years of service; 37% after 20 years of service; and 40% after 25 years of service. Once the benefit is received it is non-reversible and the employee's sick leave accrual will be reduced by the number of hours claimed and/or approved. Income Taxes and Effect to Sick Leave Accruals Payments other than to deferred compensation will be taxable income to the employee and subject to all applicable taxation requirements. Required Documentation Requests for using sick leave for wellness activities will be accepted twice annually, from June 1-15 and December 1-15. Such requests will be processed in July and December, respectively, unless otherwise indicated. An activity for which payment is requested must have occurred in the same calendar year in which the request for payment is made. All claims shall be submitted to Human Resources via a Sick Leave for Wellness Request Form accompanied by proper documentation for each activity.