State Sick Leave Laws Are Spreading: Get Your Accrual Plan ...
Transcript of State Sick Leave Laws Are Spreading: Get Your Accrual Plan ...
Session ID:
Prepared by:
State Sick Leave Laws Are
Spreading: Get Your Accrual
Plan Checkup Now
10474
Arvind Sripada
Introduction / Agenda
• Speaker Introduction
– Arvind Sripada; Sr. Business Systems Analyst, 9
years HCM EBS experience
• Company Profile
• Currently Enacted Sick Leave Laws
• Business Impact
• Design Decision and Approach
National Express LLC
• Founded in 1990
• North American subsidiary of National Express Group PLC
• Provider of student transportation services
• Second in the market
• Transit and Paratransit division added in 2012
National Express LLC
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• US School Bus
– 2102 Fulltime
– 21056 Seasonal Drivers
• Canada
– 255 Fulltime
– 3471 Seasonal Drivers
• Transit
– 1891 Total
NELLC Brands
• United States
– School Bus Operations
• Durham School Services
• Petermann
• The Provider
• Septran
– Transit Operations
• National Express Transit
• TransExpress
• Canada
– Stock Transportation
Mandated Sick Leave
• State
– Connecticut
– California
– Massachusetts
– Oregon
• Effective Date
– Jan 1 2012
– July 1 2015
– July 1 2015
– Jan 1 2016
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Mandated Sick Leave, cont.
• City/County
– Washington, DC
– Tacoma, WA
– Bloomfield, NJ
– Philadelphia, PA
– Montgomery Co., MD
• Effective Date
– Feb 22 2014
– Feb 1 2016
– July 1 2015
– May 13 2015
• PA Supreme Court
strikes down Pittsburgh
PA ordinance
– Oct 1 2016
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Basic Properties of Sick Leave
• 1 hour per total hours
worked.
• Annual accrual cap.
• Allows for carryover.
• Allows for year end
payout.
• Total accrual cap.
• Some allow a for cap on
usage.
• Not necessary if more
generous plan exists.
• 1 hour for every 40
worked
• 40
• 40
• Yes
• 80
CONNETICUT
NELLC Established Sick Leave Plan
• Fulltime exempt and non-exempt only.
• Monthly accrual of 6.63 hours.
• Annual accrual of 80.00 hours.
• Carry over to max of 1040.00 hours.
• No payout allowed by request or at termination.
Cost Analysis
• Adding impacted
employees to current
plan
• Employees = 5054
• Cost Per for total usage
= $6,367,860.80
• Creating new plans to
comply with State
minimums
• Employees = 5054
• Cost per for total usage
= $2,890,091.60
Design Decisions
• Add an individual plan for each state? each
municipality?
• Add additional element(s) for usage?
• Add additional element(s) for payout?
• How will employees get enrolled properly?
• How to maintain as more states/cities pass
laws?
Accrual Plan Purpose
• Final Outcome
– How many hours did the employee accrue so far (Net
Entitlement)
• Required Inputs
– State/City Rules
• How many hours should the employee work in order to
accrue 1 hour of Sick Time.
– Number of hours worked.
– Number of Sick Time hours taken.
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Key Decisions for Plan Setup
• Single Plan Vs Multiple Plans
• Initial Balance
• Use of Payroll Balance
• Ineligibility Period
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Single Plan Vs Multiple Plans
Single Plan
• One accrual plan that
addresses the
requirements of all the
States/Cities.
• Minimal setup changes
to add new State/City.
• Customization is
needed but is simple
and straight forward.
• Easy to maintain as
only one option.
Multiple Plans
• One accrual plan per
participating State/City.
• A new and complete plan
needs to be setup to add a
new State/City.
• Customization is needed and
must be replicated each time.
• Creates enrollment and data
integrity challenges for HR
Team.
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Initial Balance Load
Need to Load
• Accrual Plan is
setup at least one
pay period after start
date decided by the
State/City.
Need Not Load
• Accrual Plan is
setup prior start date
decided by the
State/City.
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Use of Payroll Balance
• Based on the organization’s requirement, it is
not a State’s requirement.
• Seeded functionality is available to
– Select the date on which balances need to
be reset.
– Associated balance dimension.
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Ineligibility Period
• All employees are immediately eligible as per
State/City rules.
– Should the employees wait for a set of time in
order to accrue?
» Seeded functionality if the waiting time is
constant.
» Can use Fast Formula for varying waiting
time.
– This part of the setup can be ignored.
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Implementation Path
• Create Accrual Plan.
• Enroll employees to accrual Plan
• Run payroll to be able to see net entitlement on
paycheck.
– Can alternatively use accruals screen to
review balances.
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Accrual Formula
• Function:
– Identifies the dates between which accrual needs to
be calculated.
– Calculates the accrual.
• Seeded Formula Available
– PTO_HD_ANNIVERSARY_BALANCE
– PTO_PAYROLL_BALANCE_CALCULATION
– PTO_PAYROLL_CALCULATION
– PTO_ROLLING_ACCRUAL
– PTO_SIMPLE_BALANCE_MULTIPLIER
– PTO_SIMPLE_MULTIPLIER
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Which Accrual Formula to use?
• Decision is based on the following
– Accrual Start Date/ Restart date each year
– Accrual Frequency
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Which Accrual Formula to use?
Formula / Accrual Term
PTO_HD_ANNIVERSARY_BALANCE
Hire Date
PTO_PAYROLL_BALANCE_CALCULATION /
PTO_PAYROLL_CALCULATION
01 January (Term: 01 Jan to 31 Dec)
PTO_ROLLING_ACCRUAL
No fixed date; (Term: Start Date to 12 Mo)
PTO_SIMPLE_BALANCE_MULTIPLIER /
PTO_SIMPLE_MULTIPLIER
01 June (Term: 01 June to 31 May)
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Which Accrual Formula to use?
Formula / Frequency
PTO_HD_ANNIVERSARY_BALANCE
Monthly
PTO_PAYROLL_BALANCE_CALCULATION /
PTO_PAYROLL_CALCULATION
Per Pay Period
PTO_ROLLING_ACCRUAL
Monthly
PTO_SIMPLE_BALANCE_MULTIPLIER /
PTO_SIMPLE_MULTIPLIER
Monthly
Which Accrual Formula to use?
• Winner
– PTO_PAYROLL_BALANCE_CALCULATION
• Extended version of
PTO_PAYROLL_CALCULATION.
• More flexibility to address future changes.
– Sub formula:
PTO_PAYROLL_PERIOD_ACCRUAL
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Carryover Formula
• PTO_HD_ANNIVERSARY_CARRYOVER
• PTO_PAYROLL_CARRYOVER
• PTO_ROLLING_CARRYOVER
• PTO_SIMPLE_CARRYOVER
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Accrual Bands
• Exclusive for each plan
– Years of Service: From and To
– Annual Rate
– Maximum Carryover
– Ceiling
• Customization will be needed to use single plan vs
multiple plans
– Create lookup to mimic the functionality of this form.
– Use this lookup in the fast formula instead of bands.
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Customizations Needed
• Identify the balance for Hours Worked in order to
calculate the accrual.
– Use _RUN dimension, as accrual is calculated based
on current payroll run
• New functions are needed to capture the Accrual
Band details from lookup.
• Use the above in the customized Fast Formula.
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Troubleshooting
• Formula Definition and Corresponding PL/SQL
wrapper package.
• Values of the formula input and output.
• Database items used and their derived values.
– Debugging HRMS Fast Formula, An Oracle White
Paper, May 2005
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PYUPIP Trace
• Need UNIX access
• Set Trace ON
• Execute the statement
– $PAY_TOP/bin/PYUPIP
$DB_USERNAME/$PASSWORD PID211 >
test_log.txt
• Perform necessary actions from Accruals window.
• Set Trace OFF
• Additional info from FF
– ret = hrtrace(xxxxxxxxxx)
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Resources
• Doc ID 2037127.1
Complying with California’s Healthy Workplace Healthy Family Act
0e 2014 (AB1522
• Doc ID 236538.1
PTO Setup and Usage Instructions
• Doc ID 146702.1
Paid Time Off (PTO) Accruals and Accrual Formulas
• Doc ID 267289.1
Almost Everything You Want to Know About PTO
• Doc ID 2097767.1
Sample Accrual Plan Examples using seeded PTO accrual and
Carry Over Formulas
• Doc ID 372019.1
PTO Setup Flow 36