Ariz. Admin. Code § 2-5A-B602

Current through Register Vol. 30, No. 17, April 26, 2024

Section R2-5A-B602 - Annual Leave

A. Definitions. For the purposes of this Section:

1. "Annual leave" means a period of approved absence with pay that is not chargeable to another category of leave.

2. "Hire date" means the employee's first day of work upon hire or, if the employee has a break in service, rehire.

B. Accrual.

1. All employees, except temporary and part-time employees shall accrue annual leave as follows:

a. Covered employees shall accrue annual leave in accordance with the following schedule:

Credited Service	Hours Bi-weekly
Fewer than 3 years	3.70
3 years but fewer than 7 years	4.62
7 years but fewer than 15 years	5.54
15 years or more	6.47

b. Except as provided in subsection (B)(1)(c), uncovered employees shall accrue leave based on the following schedule:

Credited Service	Hours Bi-weekly
Fewer than 3 years	4.00
3 years but fewer than 9 years	5.54
9 years or more	6.47

c. An uncovered employee shall accrue annual leave at the rate of 6.47 hours bi-weekly if:

i. The employee's hire date is prior to September 29, 2012, the employee has remained employed without a break in service since that date, and the employee either was uncovered prior to September 29, 2012 or became uncovered in accordance with A.R.S. Title 41, Chapter 4, Article 4; or

ii. The employee is in a position listed in A.R.S. § 41-742(F).

2. Temporary employees shall not accrue annual leave.

3. Part-time employees who:

a. Work 1/4 time, 1/2 time, or 3/4 time shall accrue a proportional amount of annual leave;

b. Work a percentage of full-time other than 1/4 time, 1/2 time, or 3/4 time shall accrue annual leave at the next lower rate;

c. Work less than 1/4 time shall not accrue annual leave.

4. Except as provided by R2-5A-D602 for an employee on industrial leave, an eligible employee accrues annual leave each bi-weekly pay period if the employee is in pay status for at least one-half of the employee's scheduled work hours in that pay period.

5. An annual leave accrual is credited on the last day of the bi-weekly pay period in which the accrual is earned and is available for use on the first day of the following pay period.

a. Annual leave accrued during the last pay period that begins in a calendar year is not subject to forfeiture under subsection (D).

b. An employee who is separating from state employment is compensated in accordance with subsection (I) for annual leave accrued through the employee's last date of employment.

6. The effective date for change in the accrual rate is the first day of the pay period immediately following the attainment of the required credited service.

C. Credited service.

1. Credited service shall be calculated from the first day of the first complete pay period worked.

2. Credited service shall include:

a. A period of service as an employee of a state budget unit before a break in service of less than two years;

b. A period of leave without pay of 240 hours or less;

c. Family and Medical Leave Act (FMLA) leave;

d. Military leave taken under A.R.S. §§ 26-168, 26-171, or 38-610; and

e. Active military service of an employee who is restored to state employment under A.R.S. § 38-298.

D. Accumulation.

1. Except as provided in subsections (D)(2) and (3), an employee shall forfeit annual leave in excess of the accumulation limit as of the last day of the last pay period that begins in a calendar year. The accumulation limit is:

a. 240 hours for a covered employee.

b. 320 hours for an uncovered employee.

2. An agency head may request an exception to the accumulation limit contained in subsection (D)(1) for an employee in an individual case.

a. An agency head seeking an exception shall submit a written request to the Director that contains a plan to use the excess hours during the following calendar year, pay the employee for the excess hours, or a combination of both.

b. The Director may approve, modify, or deny the request.

3. Annual leave earned for working on a day on which a state holiday is observed is not included in the accumulation limit specified in subsection (D)(1) and shall not be forfeited.

E. Use of annual leave.

1. An employee may take annual leave at any time approved by the agency head.

2. An agency head shall not advance annual leave to an employee.

F. Donation of annual leave.

1. Definitions. For the purposes of this subsection:

a. "Immediate family" means the recipient employee's parent, spouse, or child, whether natural, adopted, foster, or step. A.R.S. § 41-748(B)(1)

b. "Family" means spouse, natural child, adopted child, foster child, stepchild, natural parent, stepparent, adoptive parent, grandparent, grandchild, brother, sister, sister-in-law, brother-in-law, son-in-law, daughter-in-law, mother-in-law, father-in-law, aunt, uncle, nephew, or niece. A.R.S. § 41-748(B)(2)

c. "Disability that is caused by pregnancy or childbirth" means, as certified by a licensed health care practitioner:

i. An employee is unable to work due to the employee's pregnancy, childbirth, or medical care associated with the pregnancy or childbirth; or

ii. A member of the employee's immediate family requires assistance to perform regular daily activities due to the immediate family member's pregnancy, childbirth, or medical care associated with the pregnancy or childbirth.

d. "Extended" means a period of at least three consecutive weeks.

e. "Seriously incapacitating" means a licensed health care practitioner certifies that an illness, injury, or disability that is caused by pregnancy or childbirth:

i. Involves in-patient care, or

ii. Involves continuing treatment.

2. Eligibility to receive donation of annual leave. An employee who has exhausted all available leave balances is eligible to receive donations of annual leave if, as certified by a licensed health care practitioner:

a. The employee is unable to work due to:

i. A seriously incapacitating and extended illness or injury, or

ii. A seriously incapacitating and extended disability that is caused by pregnancy or childbirth, or

b. The employee needs to care for a member of the employee's immediate family who has:

i. A seriously incapacitating and extended illness or injury, or

ii. A seriously incapacitating and extended disability that is caused by pregnancy or childbirth.

3. Eligibility to donate annual leave. An employee may donate annual leave to another employee who has exhausted all available leave balances if:

a. The recipient employee is employed in the same state agency as the donating employee, or

b. The recipient employee is a family member of the donating employee and employed in another state agency.

4. Exhaustion of available leave. Before using donated annual leave, a recipient employee:

a. Who has a qualifying illness, injury, or disability caused by pregnancy or childbirth shall exhaust all available sick leave, compensatory leave, annual leave earned for working on a day on which a state holiday is observed and accrued annual leave; or

b. Whose immediate family member has a qualifying illness, injury, or disability caused by pregnancy or childbirth shall exhaust sick leave granted in accordance with R2-5A-B603(A)(4), if available, and all available compensatory leave, annual leave earned for working on a day on which a state holiday is observed and accrued annual leave.

5. Calculation of hours donated. An agency head shall adjust the number of hours of annual leave donated in proportion to the hourly rate of pay of the donating employee and the recipient employee. To calculate the number of hours of donated annual leave:

a. Multiply the actual number of hours donated by the donating employee's hourly rate of pay, and

b. Divide the result by the recipient employee's hourly rate of pay.

6. Maximum duration. A recipient employee is limited to using donated annual leave to allow the employee to be absent from work for a maximum of six consecutive months, or if the leave is intermittent, 1040 hours (the employee's available leave plus leave donated to the employee) for each qualifying occurrence. If the recipient employee has a seriously incapacitating and extended illness or injury, or a seriously incapacitating and extended disability that is caused by pregnancy or childbirth and the employee applies for Long-term Disability (LTD) by the end of the fifth month of the employee's leave, the recipient employee may continue to use donated annual leave for up to 60 additional days or until LTD benefit payments begin, whichever is sooner.

7. Unused donated leave. If the recipient employee separates from state employment, recovers before using all donated leave, attains the maximum donation of annual leave as permitted under subsection (F)(6), or the need for the donated annual leave is otherwise abated, the agency head shall return unused donated leave to employees who donated leave on a pro-rata basis.

G. Payment of annual leave. Subject to funding availability:

1. An agency head may pay an employee at any time at the employee's current rate of pay for all or any portion of the employee's annual leave that was earned as the result of working on a day on which a state holiday is observed.

2. An agency head may approve pay to a non-separating employee for all or any portion of the employee's accumulated and unused annual leave at the employee's current rate of pay subject to the following:

a. Agency procedures. Before paying an employee under this subsection, an agency head shall develop written standards and procedures that provide for equal consideration of all employees similarly situated. The agency head shall submit proposed standards and procedures and any subsequent changes to the Director for approval. The agency's procedures shall include at minimum:

i. Request and approval procedures;

ii. Documentation required to support the request for payment;

iii. Any limitations, as applicable, including, but not limited to: the maximum number of times an employee may receive payment under this subsection; the maximum number of hours an employee may be paid per occurrence; the minimum number of hours of annual leave an employee must have used in the previous 12 months; and the minimum balance an employee is required to maintain after payout, if any.

b. Restrictions. The agency head shall obtain the employee's concurrence if the payment would reduce the employee's annual leave balance to fewer than:

i. 240 hours for a covered employee;

ii. 320 hours for an uncovered employee.

H. Movement.

1. To another state agency. If an employee moves from one agency to another state agency, the employee's accumulated and unused annual leave shall be transferred to the employee's annual leave account in the new state agency, unless:

a. The provisions of subsection (H)(2) apply; or

b. The employee's leave exceeds the accumulation limit contained in subsection (D)(1). An agency head may pay an employee who transfers to another state agency for all excess annual leave at the time of the transfer. An agency head may transfer part or all of the employee's excess annual leave accumulated by the employee who transfers to another agency with the gaining agency's concurrence. If the gaining agency does not concur, the losing agency shall pay all of the unused excess annual leave that the gaining agency will not accept.

2. To an employment status ineligible for leave accrual. If an employee becomes ineligible for accrual of annual leave under R2-5A-A601(B), the agency head or the agency head of the losing agency if the employee moves to another state agency, shall pay the employee for all unused and unforfeited annual leave at the employee's current rate of pay immediately before the change in status.

I. Separation. An agency head shall pay an employee who separates from state employment for all unused and unforfeited annual leave at the employee's current rate of pay.

Ariz. Admin. Code § R2-5A-B602

Section made by exempt rulemaking at 18 A.A.R. 2782, effective September 29, 2012 (Supp. 12-4). Amended by exempt rulemaking at 19 A.A.R. 717 effective April 13, 2013 (Supp. 13-1).