Title
Adopt a Resolution to:
a. Approve P-123 Monterey County Catastrophic Leave Donation Program and Donated Leave Bank Policy, and rescind the existing Monterey County Leave Donation Program and Sick Leave Bank Resolution No. 90-484;
b. Direct the Human Resources Department and Auditor Controller's Office to take the necessary actions to implement the policy.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Adopt a resolution to approve P-123 Monterey County Catastrophic Leave Donation Program and Donated Leave Bank Policy, and rescind the existing Monterey County Leave Donation Program and Sick Leave Bank Resolution No. 90-484;
b. Direct the Human Resources Department and Auditor Controller Office to take the necessary actions to implement the policy.
SUMMARY/DISCUSSION:
On December 7, 1999, the Board of Supervisors adopted a Countywide Leave Donation Program and Sick Leave Bank (Attachment A) to assist County employees who have exhausted their accrued leave due to their own or their immediate family member's medical emergency. The current Donated Leave Policy allows County employees to voluntarily donate a portion of their accrued leave to the Sick Leave Bank or directly to the eligible employee to allow the impacted employee to remain in a paid status.
In 2007, the Internal Revenue Service (IRS) adopted Revenue Ruling 90-29, indicating that leave sharing program can provide negative tax consequences for the employee who decides to donate their accrued leave directly to the impacted employee. To prevent negative tax impacts to employees who choose to donate a portion of their accrued leave to the sick leave bank, the Human Resources Department recommends the following policy changes to the Leave Donation Program and Sick Leave Bank Policy:
* Retitle the policy to Monterey County Catastrophic Leave Donation Program and Donated Leave Bank;
* Redefine the medical emergency to catastrophic medical condition and retain the same d...
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