Policy Summary
This policy establishes the administration of paid vacation for UW–Madison employees. The policy covers eligibility, accrual, use, reporting, carryover, paid leave banks, annual vacation cash-outs, and treatment of vacation balances when an employee changes jobs within UW–Madison, when an employee moves to UW–Madison from another state agency or UW institution, or terminates employment.
This policy does not apply to Crafts Workers as defined in UW-5028 Crafts Workers/Trades.
Policy Detail
The vacation policy provides eligible UW–Madison employees with paid time off work for vacations and other personal purposes.
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Eligibility for Paid Vacation
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University Staff.
All University Staff, except those in a Temporary Employee appointment, are eligible for paid vacation. University Staff in Crafts Worker appointments are subject to different vacation provisions from other University Staff. See UW-5028 Crafts Workers/Trades for more information.
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Faculty, Academic Staff, and Limited Appointees (FAASLI) (annual basis appointments only).
- All Faculty, Academic Staff, and Limited appointees are eligible for vacation if they are:
- In an annual-basis appointment; and
- Covered by the Wisconsin Retirement System (WRS), or
- Expected to work at least 440 hours (21 percent for annual-basis appointment) for at least one year.
- If not initially eligible to earn vacation, employees can later become eligible through a change in FTE percentage or appointment duration or by meeting the above criteria during the immediately preceding 12-month period.
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Rehired Annuitants.
A rehired annuitant is a UW–Madison employee who is currently receiving a WRS retirement or disability annuity. See UW-5009 Rehired Annuitants for additional information.
- Rehired WRS annuitants are eligible to earn vacation if they meet the eligibility requirements in this policy. Only time worked for a UW System institution after an employee’s WRS annuity effective date counts toward the requirement in Section I(b)(3) of this vacation leave policy.
- If not initially eligible to earn vacation, rehired annuitants can later become eligible through a change in FTE percentage or appointment duration or by meeting the above criteria during the immediately preceding 12-month period.
- Vacation hours earned as a rehired annuitant are subject to the provisions outlined in Section VI of this vacation leave policy regarding termination and movement to another appointment.
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Vacation Accrual
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University Staff.
Vacation is granted upon hire and again on January 1 of every year to eligible employees. Vacation granted during the year of hire is prorated based on the start date of the appointment.
- Vacation accruals for University Staff are based on years of continuous service, appointment percentage (defined as hours in pay status), and status under the Fair Labor Standards Act (FLSA); however, FLSA-nonexempt supervisors, as defined in this policy, earn vacation at the same rate as FLSA-exempt University Staff.
Table 1. Vacation Accruals for University Staff
|
Full-Time University Staff – Nonexempt |
Full-Time University Staff – Exempt and Supervisors (Exempt and Nonexempt) |
Full Years of Service |
Hours Earned Each Year |
Hours Earned Each Year |
0 to 5 Years |
104 |
120 |
5+ to 10 Years |
144 |
160 |
10+ to 15 Years |
160 |
176 |
15+ to 20 Years |
184 |
200 |
20+ to 25 Years |
200 |
216 |
25 Years & Over |
216 |
216 |
- If an employee has a less than full-time appointment or a full-time employee is paid for less than 80 hours in a pay period, the employee will earn a prorated amount of vacation based on the number of hours in pay status.
- If an employee terminates employment during the year, the amount of vacation accrued through the last day of employment will be prorated.
- If an employee becomes eligible for a new vacation accrual rate mid-year, the employee will earn vacation at the new rate as of the employee’s anniversary date.
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Faculty, Academic Staff, and Limited Appointees.
- Vacation is granted upon hire and again on July 1 of every year to eligible employees. For employees who begin work during the year, vacation granted is prorated based on the start date of the appointment.
- Full-time Faculty, Academic Staff, and Limited appointees in annual-basis appointments earn 176 hours of vacation per fiscal year (July 1-June 30). Employees cannot accrue more than 176 hours of vacation in a fiscal year.
- Employees who work less than full-time accrue vacation based on their percentage of appointment (defined as hours in pay status). Changes to FTE during the year or unpaid leave of absence (LOA) impact the leave accrued by an employee.
- Faculty in annual-basis appointments who are on approved Faculty sabbaticals will continue to earn vacation at the same rate earned prior to the sabbatical date.
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Vacation Scheduling
- Divisions and supervisors will accommodate employee requests for vacation subject to workload demands. Vacation requests should be made in advance and require supervisor approval.
- Employees may use annual vacation allocation before it is earned. If the employee terminates employment, however, the university will recover the value of vacation used but not yet accrued. A department may limit the use of allocated vacation prior to accrual provided the policy is in writing and employees have sufficient notice to use all leave before the end of the accrual year.
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Vacation Usage, Carryover, and Exchange
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University Staff.
University Staff may use vacation from the first day of employment. There is no waiting period before eligible employees may use vacation leave. Employees currently in their original probationary periods are also eligible to use vacation.
- If vacation is not used within the calendar year it is earned, any remaining vacation may be carried over until December 31 of the following year. Carried-over vacation remaining at the end of the following calendar year (December 31) will be lost.
- A department or unit may further limit the amount of vacation that may be carried over provided the unit has a written policy in the division and all employees are notified of the policy with sufficient time to use all leave before the end of the calendar year.
- Requests to change the leave type used from Vacation to another type of leave must be received by the institution by the end of the calendar year in which the absence occurred.
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Faculty, Academic Staff, and Limited Appointees.
Faculty, Academic Staff, and Limited appointees may use vacation from the first day of employment. There is no waiting period before eligible employees may use vacation leave.
- If vacation is not used within the fiscal year it is earned, any remaining vacation may be carried over until the end of the following fiscal year. Carried-over vacation remaining at the end of the following fiscal year (June 30) will be lost.
- A department or unit may further limit the amount of vacation that may be carried over provided the unit has a written policy and the unit notifies all employees of the policy with sufficient time to use all leave before the end of the fiscal year.
- Requests to change the leave type used from Vacation to another type of leave must be received by the institution by the end of the fiscal year in which the absence occurred.
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Catastrophic Leave.
Vacation donated through the Catastrophic Leave policy is not subject to the above carryover provisions. A donor may donate vacation and personal holiday leave credits to any eligible recipient in any eligible employee category. For example, University Staff may donate leave credits to not only other University Staff, but also to Faculty, Academic Staff, and Limited appointees, and vice versa. See Catastrophic Leave.
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Military Leave.
Leave accrued while an employee is on approved military leave is not subject to the above carryover provisions. See Military Leave for details.
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Banking Unused Vacation and Vacation Cash Payouts
- Employees who earn vacation are eligible to bank unused vacation into an applicable Banked Leave accounts once the eligibility requirements outlined in this policy are met. Once vacation is banked, the hours do not expire. With supervisory approval, employees can use banked vacation at any time for any circumstance in which paid leave may be used. There is a limit by employee category to how many hours employees may bank per year (see Tables 2 and 3 below), but there is no limit on the total hours in a banked leave account.
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University Staff.
The option to bank vacation hours and/or receive a vacation cash payout is offered in the fall of each year. If an employee’s anniversary date falls in the middle of the year, the employee is eligible to either bank and/or receive a cash payout, prorated for the calendar year. If an employee reaches a new vacation accrual rate during the calendar year, he or she can bank a prorated amount of leave. If the eligibility to bank leave is based on the accumulation of 520 hours of sick leave, there is no proration.
- Employees must make a decision to bank vacation and/or receive a vacation cash payout before the end of the calendar year. If employees fail to meet this deadline, they cannot bank vacation or receive a cash payout. Employees may not elect to bank leave or receive a cash payout after the deadline to make the election.
- If employees choose the cash payout option, the amount is included in the last paycheck of the calendar year, or the first paycheck of the subsequent calendar year.
- Eligibility to bank unused vacation in a University Staff Banked Leave account is based on years of continuous service, appointment percentage (defined as hours in pay status), and status under the Fair Labor Standards Act (FLSA). Change to FTE or unpaid LOA will impact the amount of vacation an employee can bank. FLSA-nonexempt supervisors, as defined in this policy, may bank vacation at the same rate as FLSA-exempt University Staff.
- Full-time employees are eligible to bank unused vacation earned in the current calendar year or carried over from the previous calendar year into a paid leave bank according to the following schedule:
Table 2. University Staff Paid Leave Banking Schedule
Years of Service |
Full-Time University Staff – Nonexempt |
Full-Time University Staff –Supervisors (Exempt and Nonexempt) |
0 to 5 Years |
0 hours |
0 hours |
5+ to 10 Years |
0 hours |
40 hours |
10+ to 15 Years |
40 hours |
40 hours |
15+ to 20 Years |
40 hours |
80 hours |
20+ to 25 Years |
80 hours |
120 hours |
25+ Years |
120 hours |
120 hours |
Earn < 160 hours of vacation and have accrued at least 520 hours of sick leave |
40 hours |
40 hours |
- If employees work less than full time during the calendar year, reach a new eligibility level mid-year, or are on unpaid LOA, the amount of leave that can be banked is prorated. If the eligibility to bank leave is based on the accumulation of 520 hours of sick leave, there is no proration.
- If employees reach a new vacation accrual rate during the calendar year, the amount of leave that can be banked is prorated. If the eligibility to bank leave is based on the accumulation of 520 hours of sick leave, there is no proration.
- Vacation Cash-Out. Once employees begin earning vacation at the 200-hour rate (or a prorated amount of 200 hours if part-time), they can receive up to 40 hours of bank-eligible leave as a cash payout. For example, if an employee is eligible to bank 80 hours of vacation, the employee can receive 40 hours as a cash payout and put 40 hours into a University Staff Banked Leave account.
- If an employee’s anniversary date falls in the middle of the year or the employee is part-time, the number of hours that can be cashed out is prorated.
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Faculty, Academic Staff, and Limited Appointees.
- The option to bank vacation hours is offered in the first July following the fiscal year in which the employee qualifies. Employees must enter their Banked Leave Conversion by the prescribed deadline set by their division but no later than September 30th of that year. If an employee fails to meet this deadline, the vacation will be treated as though the option were not available (see section IV(2)).
- Employees may not elect to bank leave after the deadline to make the election.
- Eligibility to bank unused vacation is based on years of continuous service and appointment percentage (defined as hours in pay status).
- Full-time employees are eligible to bank unused vacation earned in the current fiscal year or carried over from previous fiscal year into a Banked Leave account. Cash payouts are not permitted. Leave may be banked according to the following schedule:
Table 3. Full-Time Faculty, Academic Staff, and Limited Appointees Leave Banking Schedule
Years of Continuous Service |
Number of Hours that Can Be Placed in Leave Bank |
First 10 Years |
0 |
10+ to 25 Years |
40 |
25 Years & Over |
80 |
- Years of Continuous Service for Banked Leave eligibility is determined in accordance with the UW-5029 Continuous Service and includes time in any sick leave-earning University Staff, Faculty, Academic Staff, and/or Limited positions with UW–Madison, UW System or State of Wisconsin agencies, adjusted for breaks in service as applicable.
- The vacation banking option is offered immediately following the fiscal year in which an employee is eligible. An employee is first eligible to bank up to 40 hours of vacation at the start of the 11th fiscal year of employment and is allowed to bank up to 80 hours of vacation at the start of the 26th fiscal year of employment.
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Vacation Credits upon Retirement, Layoff, Termination of Employment, or Movement to Another Appointment
- An employee who terminates employment or retires is eligible to receive a lump-sum payment for any remaining vacation and/or banked vacation hours. If the termination is not the result of layoff, nonrenewal, or termination for cause, UW–Madison will allow employees to extend their termination date beyond the last day worked by the amount of their vacation and/or banked vacation hours. Employees may also elect to use some leave to remain on payroll and receive the rest as a lump sum payment. Employees will need to have submitted all leave reports, on all active appointments, before any lump sum payment can be made or before the employee is permitted to extend their termination date beyond their last day worked.
- Academic Staff employees who are laid off/non-renewed for any reason may be required, with sufficient notice in writing, to use accrued leave prior to termination. Any remaining leave that could have been used prior to the end date will be forfeited. Any remaining leave that could not have been used prior to the end date must be paid in a lump sum at termination. Decisions on payments should be handled on a case-by-case basis. The decision to restrict payment of leave should not be arbitrary and capricious. For situations involving a group layoff/nonrenewal, employees with similar notice periods should be treated equally with regards to payments. If an employee receives notice of layoff/nonrenewal and was told in writing to use accrued leave prior to termination or forfeit the hours, then special payout rules apply if the employee elects to resign or retire on or prior to the scheduled layoff/nonrenewal date. In this circumstance, at termination the employee will only receive a lump sum payout of remaining accrued leave that could have been used between the resignation/retirement date and the original layoff/nonrenewal date.
- An employee who terminates employment during a probationary period is eligible to receive payment for any vacation credits earned during that period of service.
- If a lump-sum payout of hours is made to an employee, the value of the outstanding leave will be calculated as follows:
- University Staff – multiply the number of remaining hours by an employee’s hourly rate at the time of termination.
- Faculty, Academic Staff, and Limited appointees – appropriate lump sum payments of accrued vacation will be calculated as follows: full-time monthly rate / 22 days (176 hours) * number of days of accrued vacation = lump sum payment
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Overuse of Vacation.
At termination, if employees used vacation that was not yet earned, they are required to repay the institution the value of the overused leave. The value of the overused leave is calculated as follows:
- University Staff – multiply the number of overused hours by an employee’s hourly rate at the time of termination.
- Faculty, Academic Staff, and Limited appointees – appropriate lump-sum payments of accrued vacation will be calculated as follows: full-time monthly rate / 22 days (176 hours) * number of days of accrued vacation = lump sum payment
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Movement to New Appointment.
When employees move from one appointment to another within UW–Madison, any current vacation earned during the calendar or fiscal year transfers to the new leave-eligible appointment. Banked Leave also transfers to the new position. When an employee moves to UW–Madison from another state agency or UW institution, the university will not assume leave deficiencies (over-usage). The movement of earned vacation or Banked Leave balances to UW–Madison from another state agency or UW institution is at the discretion of the new hiring unit. Such an agreement must be made in writing prior to hire as part of the offer of employment. When an employee moves to another state agency or to a UW System institution, the movement of vacation is at the discretion of the new employer. If they do not accept the vacation, the employee will receive a lump sum payment for all accrued vacation from UW–Madison.
- For movement to a leave-eligible position outside UW–Madison, the state agency or UW institution will determine if vacation carried over from a prior year and/or banked leave hours will be transferred to the new appointment. Any leave not accepted by the state agency or UW institution will be paid to the employee as a lump sum.
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For movement to any leave eligible position within UW–Madison, the new hiring unit must accept vacation carried over from a prior year and/or banked leave hours.
PLEASE NOTE: For Faculty, Academic Staff, and Limited appointees, an employee may only transfer or be paid for those vacation and vacation carryover hours that could have been used by the employee had the employee stayed in the previous position. If the transfer occurs in June, careful attention must be paid to carryover hours to ensure that the hours transferred or paid do not exceed the amount of leave time the employee was eligible to use during the working days remaining before the end of the fiscal year. At no point may an employee transferring receive a greater benefit than an employee who is not transferring. Example: an employee accepts a new unclassified position on June 20th. The employee has 176 hours current fiscal year vacation and 176 hours vacation carryover. There are nine working days from June 20 to June 30.
- Current fiscal year vacation – the new department must accept the current fiscal year vacation hours.
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Vacation carryover – the new department must accept all vacation carryover hours. Vacation carryover hours are available to be used within the new department for the working days remaining in that fiscal year (72 hours). All other remaining vacation carryover hours will be forfeited if not used by June 30 (unless the employee is eligible to bank hours in a Banked Leave account - see below).
For University Staff, an employee may only transfer those vacation and vacation carryover hours that could have been used by the employee had the employee stayed in the previous position.
- Current calendar year vacation – the new department must accept the current calendar year vacation hours.
- Vacation carryover – the new department must accept all vacation carryover hours. Vacation carryover hours are available to use in the new department for the working days remaining in that calendar year. All other remaining vacation carryover hours will be forfeited if not used by December 31 (unless the employee is eligible to bank hours in a Banked Leave account - see below).
- If employees move to a UW–Madison appointment that is ineligible for earning vacation:
- Any earned vacation and vacation carryover will be paid out as a lump sum using the calculation method in Section VI(4) of this vacation leave policy; and
- Any leave in a Banked Leave account may be
- Paid out as a lump sum using the calculation method in Section VI(4) of this vacation leave policy; or
- Retained (for Faculty, Academic Staff, and Limited appointee Banked Leave accounts only) in a separate account until all university employment is terminated or the employee moves to a vacation-earning appointment. Leave held in this account may be used in lieu of sick leave.
- If an employee moves from a University Staff Fixed-term Finite position within UW–Madison to a successive leave-eligible position, all leave earned in the Fixed-term Finite position will transfer into any successive leave-eligible appointment. See UW-5022 Temporary Employee policy and UW-5020 University Staff Appointment Types .
- If an employee moves from a University Staff appointment to a vacation-eligible Faculty, Academic Staff, or Limited appointment within UW–Madison, any vacation earned during that calendar year in the University Staff appointment will be transferred to the current fiscal year’s vacation allocation in the new appointment. The employee will also be granted a prorated amount of vacation in the new appointment.
- The amount of vacation transferred from the University Staff appointment plus the new vacation allocation cannot exceed 176 hours. If the amount is greater than 176 hours, any remaining vacation hours will be moved to vacation carryover and must be used by the end of the fiscal year (June 30) in which the leave transferred to the new appointment, or the hours will be lost.
- The hiring authority must accept vacation carryover from a University Staff appointment. Carryover will be treated in the same manner as in Section IV of this vacation leave policy. Vacation carryover will first be credited to the current fiscal year’s vacation until the 176-hour limit is reached. Any remaining balance will be moved to vacation carryover and must be used by the end of the fiscal year (June 30) in which the leave transferred to the new appointment, or the hours will be lost.
- The number of hours in vacation carryover may not exceed 176. If the vacation hours that must be moved to vacation carryover are greater than 176, any remaining vacation will be paid out to the employee at the wage rate of the University Staff appointment.
- If employees move from vacation-eligible Faculty, Academic Staff, or Limited appointments to vacation-eligible University Staff appointments, any vacation earned during that fiscal year in the Faculty, Academic Staff, or Limited appointment will be transferred to the current calendar year’s vacation allocation in the new appointment. The employee will also be granted a prorated amount of vacation in the new appointment.
- The amount of vacation that transfers from the Faculty, Academic Staff, or Limited appointment plus the new vacation allocation cannot exceed the annual vacation allocation in the University Staff appointment. If the amount is greater than the annual vacation allocation, any remaining vacation hours will be moved to vacation carryover and must be used by the end of the calendar year (December 31) during which the leave transferred to the new appointment, or the hours will be lost.
- The hiring unit must accept vacation carryover when the person is moving within UW–Madison. The carryover will be treated in the same manner as in Section IV of this vacation leave policy. Vacation carryover will first be credited to the current calendar year’s vacation until the annual vacation allocation is reached. Any remaining balance will be moved to vacation carryover and must be used by the end of the calendar year (December 31) during which the leave must be transferred to the new appointment, or the hours will be lost.
- The number of hours in vacation carryover may not exceed the annual vacation allocation. If the number of hours that must be moved to vacation carryover is greater than the annual vacation allocation, any remaining vacation will be paid out to the employee at the wage rate of the Faculty, Academic Staff or Limited appointment.
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Vacation Reporting
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Designated Workweek.
For leave reporting, each full-time leave-eligible employee will designate a 40-hour workweek. The workweek will be prorated for less than full-time appointments. For Faculty, Academic Staff, and Limited appointees, the workweek will include all scheduled classes, office hours, and research, as well as other regular university meetings and professional activities.
- For purposes of this section, a normal workweek consists of 40 hours worked within a fixed and regularly recurring period of seven consecutive days. Hours worked per day may vary.
- SeeUW-5049 Standard Office Hours and UW-5050 Personal and Legal Holidays policies for information about standard office hours.
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Amount of Vacation to be Charged.
- University Staff not exempt from the FLSA – vacation leave is charged in 15-minute increments. For those divisions currently using this practice for exempt University Staff, there is no change required to current practice.
- Faculty, Academic Staff, and Limited Appointees and University Staff exempt from the FLSA
- The standard work week exists only for the purpose of reporting vacation. This is not a university standard for actual work hours since most Faculty, Academic Staff, and Limited appointees are salaried employees who are expected to work at least 40 hours per week (on a full-time basis) with schedules that may fluctuate. Therefore, vacation leave for full-time Faculty, Academic Staff, and Limited appointees and FLSA-exempt University Staff is charged in half-day increments. Absences of between one-quarter and three-fourths of a day should be charged as one half-day. Absences of three-fourths or greater of a day should be charged as one day.
Table 4. Example: Employee works five 8-hour days per week
Hours Missed |
Leave Reported |
0 to < 2 hours |
0 hours |
2 hours to 6 hours |
4 hours |
> 6 hours |
8 hours |
- Employees with less than full-time appointments should report actual hours absent.
- If employee is using leave under FMLA, vacation is charged in actual hours absent.
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Reporting and Recording Leave
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Leave Reports.
All leave eligible FAASLI and University Staff will have access to these balances through their MyUW Employee Portal.
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Submitting Time Worked and Leave Used – University Staff.
All leave-eligible University Staff are required to submit both time worked and leave taken on a biweekly basis electronically or on a paper timesheet. Each division will determine which leave reporting method to use.
- Paper timesheets must be signed by an employee’s supervisor or designee.
- An employee’s supervisor or designee must electronically approve both time worked and leave taken for timesheets submitted electronically.
- Employees must submit all required paper leave reports/leave entries at time of retirement. Missing leave reports or missing leave entries may result in a delay in certification of an employee’s sick leave with the Department of Employee Trust Funds. A delay may interrupt health insurance coverage.
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Submitting Leave Used – Faculty, Academic Staff, and Limited Appointees.
- All leave-eligible UW–Madison Faculty, Academic Staff, and Limited appointees are required to submit monthly leave reports, whether or not leave is used. This report may be submitted electronically or on a paper leave report in accordance with the applicable division/department policies.
- Employees using paper leave reports must complete, sign, and file their monthly leave reports with their designated unit record keeper whether or not leave is used. The leave report must contain the written attestation “I certify that my leave report is accurate. I understand that misrepresentation can lead to disciplinary action.” The employee’s department chair, director, supervisor, or designee must also sign the monthly leave report.
- Employees submitting electronically must enter leave usage information every month. If no leave is used, employees must indicate that no leave was taken. Once leave is electronically submitted, an employee’s department chair, director, supervisor, or designee must approve the report electronically.
- Employees must submit all required paper leave reports/leave entries at time of retirement. Missing leave reports or missing leave entries may result in a delay in certification of an employee’s sick leave with the Department of Employee Trust Funds. A delay may interrupt health insurance coverage.
- The designated signatory for the Chancellor’s monthly leave report is the Provost.
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Records.
Employees’ signed leave reports must be retained for five years. Electronic submission of leave reports through HRS will be archived in the HRS Enterprise Performance Management (EPM) Data Warehouse for a minimum of five years.
Consequences for Non-Compliance
Employees who terminate employment before the end of the year (calendar year for University Staff and fiscal year for Faculty, Academic Staff, and Limited appointees) may be required to refund any paid leave used in excess of leave earned.
Responsibilities
Table 5. Responsibilities
Office of Human Resources (OHR) |
- Provides policy oversight to ensure compliance with campus policy
- Conducts periodic reviews of the policy with campus human resources departments
- Implements needed changes to the policy
- Coordinates any necessary changes to HRS with the UW Service Center
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Deans and Directors |
- Ensures the college/school/division is consistently applying and complying with this policy
- Communicates division strategy to all employees
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College/School/Division HR |
- Defines consistent parameters within the guidelines of this policy to address specific needs
- Enters leave usage into HRS and informs employees of their leave balances upon request
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Supervisor |
- Reviews employee leave requests
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