Bill wants vacation leave hours capped

Several agencies have thrown their support behind a bill to cap the number of vacation leave hours that public employees may accrue, even as government employment offices spot loopholes that could defeat the proposal’s purpose of cutting government liabilities.

The agencies agreed with the intent of House Bill 15-186, which would limit the accumulation of annual leave at 360 hours a year. Under the bill, anything beyond the cap would be converted into sick leave.

The Saipan Mayor’s Office, Department of Public Lands, Department of Public Works, and the Department of Community and Cultural Affairs—all in support of the bill—touted the bill as a way to reduce government liabilities that arise from accrued annual leave being converted to lump sum payments.

However, the Office of Personnel Management and the Civil Service Commission raised concern that the bill may not be effective if certain provisions are not amended.

Personnel director Mathilda A. Rosario said that the bill, for one, lacks a clear definition of “separation from employment” or a payback clause in case of reemployment. If these points are not clarified, the bill would allow civil service employees to cash in unused annual leave at the end of a limited term or with a short break in service.

Rosario, as well CSC executive director Norbert S. Sablan, also raised concern about the language of a provision that would restrict the payment of lump sum annual leave “upon separation from employment or otherwise.”

“The ‘or otherwise’, as opposed to separation from employment, is employment. This unclear term could allow the payment of up to 360 hours of unused annual leave during periods of employment, which is not now allowed,” Rosario said.

Sablan echoed her argument, “The use of the term ‘or otherwise’, other than separation, appears to contemplate the payment for accrued annual leave while the person is employed. The term ‘otherwise’ should be removed or clarified.”

The pair, however, seemed to disagree on the issue of granting same leave benefits to all government employees, regardless of employment status.

Besides limiting the accumulation of annual leave, the bill also seeks to standardize government policy regarding accrued annual leave.

Rosario noted that the bill would allow excepted service employees to accrue and cash in up to 360 hours of annual leave. Currently, they can only carry over 160 hours from one contract to the next and cannot cash in unused annual leave for a lump sum payment at separation or any other time.

“Unless it is the Legislature’s intent to make both civil service and excepted service leave benefit programs the same, removing the current ‘use-it-or-lose-it’ regulation would defeat the purpose of the bill and increase the government’s liability,” she said.

That the bill would apply to all government employees across the board gained approval from other agencies including the Civil Service Commission.

“H.B. 15-186 is a desirable bill and will eliminate inequities that exist in respect to the accumulation of paid annual leave,” Sablan said. “Equal treatment of employees is desirable and supported by the commission.”

The House bill is pending before the House Committee on Health, Education and Welfare, chaired by Rep. Jesus SN Lisama.