Reform 5.5.2: Pay In Lieu
Reform and Cap on “Pay In Lieu” Amounts. Other Information:
Some city labor contracts allow employees to receive “pay in lieu of leave” amounts each fiscal year. In FY 10, according
to preliminary close out reports, more than $6.1 million in General Fund payouts occurred due to this policy. (Note: As the
Comptroller’s Office reconciles and completes its close out under the ERP system, these numbers will be finalized.) For all
labor contracts the City should mandate that any future leave time accrued can only be paid out upon termination of employment.
If the City Attorney determines that this policy change can immediately be applied to current leave time accrued, then that
reform should be explored, taking into account potential management impacts.
Indicator(s):
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