Stanford Report, January 14, 2009

Changes to staff vacation-accrual policy

BY MICHAEL PEÑA

The university has announced that, starting in 2010, the maximum amount of vacation time that a staff member can accrue will be reduced incrementally over a three-year period. The policy change is intended to help departments and units avoid having to set aside money from their budgets to cover large accruals of time off that aren't used.

In response to the university's need to save costs across campus, the maximum amount of vacation time a staff member can accrue will decrease to 400 hours (50 days), starting on Jan. 1, 2010. Then at the start of the 2011 and 2012 calendar years, the maximum will be lowered to 320 hours and 240 hours, respectively.

Under current policy, the maximum amount of vacation time that can be banked is 480 hours. That far exceeds the average maximum vacation accrual of 216 hours for a benefits comparison group that includes 19 research universities, according to Diane Peck, vice president for human resources.

Once employees reach the maximum, they no longer earn additional hours until their vacation balance falls below the cap. Employees are being notified of this change now so they have time to plan how they want to use accrued vacation and keep their balances below the new maximums. Employees whose vacation balances already exceed the maximums will not lose those hours.

When vacation is not used in the year earned, the unused days add a financial burden to a unit's budget because it must pay the employee's salary and at the same time fund the accrued vacation. Provost John Etchemendy explained this and addressed other concerns in a question-and-answer article in the Jan. 7 issue of Stanford Report, at http://news-service.stanford.edu/news/2009/january7/etchfin-010709.html.

As part of their budget planning, Peck said some schools and units could require employees to use all vacation earned during the year, and some may require that employees take additional vacation that will result in balances that fall below these maximums. According to Peck, as long as employees are given adequate notice of the requirement to use vacation, those actions will be permitted.

The policy change will apply to all staff members who are eligible for vacation benefits. It will not, however, apply to bargaining-unit employees at this point. Discussions between the university and union representatives are under way. Once talks have concluded, the outcome will be communicated to affected staff and managers.