BUSINESS PROCESS GUIDE

PEOPLESOFT

HUMAN CAPITAL MANAGEMENT

Release 9.2

Vacation and Compensatory Time Payouts

For Departments

December 2015

Business Process Guide – HCM – Release 9.2 Department Vacation and Compensatory Time Payouts

Last Revised: 1/28/2016 Page 2 of 12

TABLE OF CONTENTS

Vacation Payouts Overview ......................................................................................................................................... 3

Compesatory Payouts Overview ................................................................................................................................. 5

Verifying and Processing the Vacation/Compensatory Time Payouts…….……………………………………..8

Adding an Earnings Code to Maintain Position Accounting ................................................................................. 9

Business Process Guide – HCM – Release 9.2 Department Vacation and Compensatory Time Payouts

Last Revised: 1/28/2016 Page 3 of 12

Vacation Payouts Overview Vacation and compensatory payouts at termination or change of status are now centrally funded. The ERE rate includes a component to fund vacation and compensatory payouts. Prior to submitting a vacation/compensatory payout, departments are required to map the terminating or change of status employee’s position number for Earnings Specific Distribution for the earnings code VPO and CTP to account number ET51056 in the Maintain Position Accounting screens in PeopleSoft. This guide will assist departmental representatives with the steps needed to accomplish this.

SPP 702–01: Vacation Leave—General Policy

Benefits-eligible employees accrue vacation in accordance with this policy. Furthermore, employees and supervisors are responsible for requesting, using, approving, and recording vacation in accordance with this policy. Accrual and Accumulation Vacation leave benefits begin to accrue on the first day in a benefits-eligible position as follows:

The computation of vacation accrual is based on a full-time, eight-hour day. An employee’s actual accrual is based on the number of hours worked plus any paid leave benefits hours (e.g., vacation, sick, bereavement, holiday, jury duty, or parental) in a pay period.

Unused vacation leave may be accumulated and carried forward from one calendar year to the next in a total amount not to exceed 1 1/2 times the maximum number of hours that can be accrued by an employee in a given year. Vacation accruals in excess of 1 1/2 times the maximum number of hours are forfeited at the end of each calendar year. Forfeited time may take up to two pay periods following the end of the year to reflect on an employee’s pay advice.

Any vacation leave benefits used pending workers’ compensation benefits will be credited back to vacation leave accrual balances, up to the amount of the workers’ compensation determination.

Vacation leave benefits do not accrue when an employee is taking an unpaid leave of absence, is receiving income-replacement benefits paid by a third party (i.e., short-term disability insurance), or is using hours received from a compassionate transfer of leave (see SPP 702–04, “Compassionate Transfer of Leave Benefits”).

Business Process Guide – HCM – Release 9.2 Department Vacation and Compensatory Time Payouts

Last Revised: 1/28/2016 Page 4 of 12

Academic-Year Employees An employee who works an academic year accrues vacation leave benefits during the employment period only. This period usually begins on the first day and ends on the last day of the academic year and includes semester breaks and non-class periods occurring during this employment period. For reporting of vacation for academic-year employees, see Requesting and Reporting/Recording Vacation Leave. Transfers Lateral Transfer within Arizona State University

An employee who has a lateral transfer, and continues in a vacation-accruing position, retains the vacation balance and accrual rate. The new employing department assumes liability for the accrued vacation hours of the transferred employee. An employee transferring from one department to another and going to a non-accruing position must use or be paid for his or her unused accrued vacation time, up to one year’s accrual, by the original department prior to the effective date of the transfer. Transfer within the Arizona University System

Employees who change employment between the Arizona Board of Regents, Arizona State University, Northern Arizona University, or the University of Arizona within 30 calendar days shall accrue at the rate based on the combined, benefits-eligible years of service at any of the aforementioned organizations. Transfer from Other State Agencies

An employee hired from a State of Arizona agency into Arizona State University shall accrue vacation based only on years of service with ASU according to the accrual schedule for classified staff, university staff, or administrative employees.

Business Process Guide – HCM – Release 9.2 Department Vacation and Compensatory Time Payouts

Last Revised: 1/28/2016 Page 5 of 12

Compensatory Payouts Overview Vacation and compensatory payouts at termination or change of status are now centrally funded. The ERE rate includes a component to fund vacation and compensatory payouts. Prior to submitting a vacation/compensatory payout, departments are required to map the terminating or change of status employee’s position number for Earnings Specific Distribution for the earnings code VPO and CTP to account number ET51056 in the Maintain Position Accounting screens in PeopleSoft. This guide will assist departmental representatives with the steps needed to accomplish this.

SPP 404–04: Vacation Leave—General Policy

To provide overtime compensation for more than 40 hours actually worked in a work week Applicability All nonexempt employees Policy Vice presidents shall establish internal procedures for the review and approval of overtime within their areas. Overtime work shall be authorized only when absolutely necessary. Nonexempt employees are not permitted to work more than 40 hours during a work week unless the additional work is ordered and approved in advance by the supervisor. Employees may be required to work additional hours when necessary, and may be scheduled for flexible working hours so that no more than 40 hours are worked in a work week.

Departments may provide compensatory time off in lieu of overtime compensation with respect to applicants and employees as follows:

Applicants after April 15, 1986 An agreement or understanding to provide compensatory time off in lieu of overtime compensation may be made a condition of employment. Such an agreement is valid if the applicant knowingly and voluntarily is informed that the compensatory time received may be preserved, used, or cashed out consistent with the provisions of the Fair Labor Standards Act. Employees Hired on or before April 15, 1986 University policy in effect on or before April 15, 1986 is that compensation for overtime will normally be made in the form of compensatory time off. The appropriate vice president or designee may authorize payment in lieu of compensatory time provided funds are available.

Employees Hired after April 15, 1986 Current employees may accept compensatory time off in lieu of overtime compensation. The employee’s decision, however, must be made freely and without coercion or pressure.

An employee who actually works more than 40 hours in a work week must be compensated for the excess hours. Compensation will normally be made in the form of compensatory time off. The appropriate vice president or designee may authorize payment in lieu of compensatory time provided funds are available.

Business Process Guide – HCM – Release 9.2 Department Vacation and Compensatory Time Payouts

Last Revised: 1/28/2016 Page 6 of 12

To be eligible for compensatory time or overtime compensation, an employee must actually work more than 40 hours in a work week. A nonexempt employee whose regular work schedule is less than 40 hours in a work week and who works more than the regular schedule up to 40 hours shall be paid for all hours over their regular scheduled hours up to 40 hours, with any hours over 40 eligible for compensatory time or overtime compensation.

Time off for holidays, vacation, sick leave, and leave with pay (i.e., jury duty, material witness service leave, emergency leave, voting leave, and compensatory time off) will not be considered time worked for the calculation of compensatory or overtime. However, a 15-minute rest period in a continuous four-hour work shift will be considered time worked.

On-call duty will not count as actual hours worked in a 40-hour week for the purpose of determining overtime eligibility.

Time actually worked on callback duty will be included in the total hours worked within a work week.

The following types of work should be included or excluded in determining the number of hours worked for overtime purposes:

Supervisors should ensure that compensatory leave balances are kept to a minimum. The number of compensatory hours accrued should not exceed a maximum of 96 hours for nonexempt employees or 192 hours for nonexempt law enforcement officers. Employees should be provided the ability to use accrued comp time as soon as earned as feasible within the department’s work schedule. Each department is authorized to adopt a lower maximum cap on the number of compensatory hours that nonexempt employees can accrue.

Payment shall be made for all accrued compensatory time upon termination, before transfer to another department, or before changing from nonexempt to exempt status. Payment shall be at the current hourly base pay rate received.

A supervisor or department head must maintain accurate daily and weekly records of hours worked and time charged to paid or unpaid leave for each nonexempt employee. Time will be recorded to the nearest quarter hour.

To calculate a nonexempt employee’s base hourly rate for overtime purposes:

1. Paid on a fiscal annual base salary:

Business Process Guide – HCM – Release 9.2 Department Vacation and Compensatory Time Payouts

Last Revised: 1/28/2016 Page 7 of 12

divide the annual base salary by 2,080 hours.

2. Paid on an academic annual base salary:

divide the annual base salary by 1,560 hours.

Employees on Military Leave of Absence Non-exempt employees called for active duty who have accrued compensatory time may elect to:

1. retain accrued hours until return to active work status 2. have hours paid out each pay period at either a normal or reduced work schedule

or

3. request a lump sum payment through their department for all accrued compensatory hours.

Business Process Guide – HCM – Release 9.2 Department Vacation and Compensatory Time Payouts

Last Revised: 1/28/2016 Page 8 of 12

Verifying and Processing the Vacation/Compensatory Time Payout

Once the department determines the employee termination date or the employee change of status, it is their responsibility to submit a PTR Personnel Transaction Request. This can be done by navigating to Main Menu>ASU Customizations>ASU HCM Custom> ASU HR> Personnel Transaction Request> Personnel Transaction Request. The following are example of employee change of status: changing from benefit eligible to non-benefit eligible, decrease in fte, voluntary termination, involuntary termination, retirement; for Comp time payout: paygroup change.

Business Process Guide – HCM – Release 9.2 Department Vacation and Compensatory Time Payouts

Last Revised: 1/28/2016 Page 9 of 12

Adding an Earnings Code to Maintain Position Accounting Vacation and Compensatory payouts are now charged to a centralized funding account. It is the department’s responsibility to add these codes to the employee’s position to ensure the payout is posted to the appropriate account. To accomplish this, navigate via these menus: Navigation: ASU Customization > ASU HCM Custom > ASU Position Management > Maintain Position Accounting

If known, type in the position number. If unknown, click on the magnifying glass and select the appropriate position number. Click Continue.

Type in the Effective Date: Beginning Date of the Pay Period.

Business Process Guide – HCM – Release 9.2 Department Vacation and Compensatory Time Payouts

Last Revised: 1/28/2016 Page 10 of 12

Click the + sign in the “Optional: Earnings-Sepcific Distribution” section to insert the earnings code. Type in the following information:

1. Earnings Code: Type in VPO or CTP 2. Description: will automatically appear 3. Acct: Type in ET51056 regardless of the earnings code selected in step 1. 4. Dist %: Type in 100.00 5. Repeat Steps 1 through 4 if needed for an additional earnings code. 6. Click Save and Submit

Business Process Guide – HCM – Release 9.2 Department Vacation and Compensatory Time Payouts

Last Revised: 1/28/2016 Page 11 of 12

You will receive a confirmation message when submittal is completed. Click Return.

Below are the results obtained utilizing this process

Business Process Guide – HCM – Release 9.2 Department Vacation and Compensatory Time Payouts

Last Revised: 1/28/2016 Page 12 of 12