Palm Beach State College Board Policy

Title: Payout of Vacation and Sick Time

Policy Number: 6Hx-18-5.021

Legal Authority: 1001.64 FS, 1001.65 FS, 1012.865 FS

Date Adopted/Amended: Formerly included in 6Hx-18-5.02; Adopted 6/19/2001; Amended 10/9/2001, 5/12/2009, 6/17/2025

Payout to an employee who is not using their accrued time off for an absence is permitted for regular non-bargaining unit employees in accordance with the provisions of this policy. Employees in grant or gift funded positions are not permitted a sick or vacation payout unless the grant/gift language specifies permission for payment.

The College may deduct funds owed from payouts, including but not limited to, benefit deductions, overpayments, fee waivers, reimbursement for unreturned or damaged property, re-keying expenses, purchasing card transactions, etc. Requests for payouts shall be made pursuant to the accompanying Board Policy 6Hx-18-5.021P.

Vacation Payout Reasons

All vacation time payments are subject to the rules of the Florida Retirement System “FRS”, the College’s Special Pay Plan, and the Internal Revenue Code. The College permits vacation time to be paid out to an employee in a regular position for the following reasons:

A position change from an exempt position to a non-exempt position.
Demotion, promotion, or transfer to a position that does not accrue vacation.
Entry into the FRS Deferred Retirement Option Program “DROP”.
Separation from the College.

Transfer from an Exempt Position to a Non-exempt Position
An employee may request a payout of up to 40 hours of vacation time in the online system when transferring from an exempt position to a non-exempt position. The payment will be made at the hourly rate of the position that is ending.

Transfer to a Temporary Position, DROP Entry, or Separation
A. An employee with accumulated and unused annual vacation time, under the provisions of this section, shall be paid at the employee’s current rate of pay. Such payment shall not exceed an amount equal to 360 hours of pay for employees who have continuously worked at Palm Beach State College in a vacation accruing position for 10 years or less or up to 500 hours of pay for employees who have continuously worked at Palm Beach State College in a vacation accruing position for more than 10 years.

B. In the case of the death of an employee, the employee’s terminal vacation leave pay shall be made to the legal beneficiary, estate, or as provided by law. Such payment shall not exceed an amount equal to 500 hours of pay at the employee’s current rate.

C. The payout maximums for vacation within this section are considered lifetime limits. An employee may not have a second or multiple payments that would exceed the policy limits based on service.

Sick Leave Payment

All sick leave payments are subject to the College’s Special Pay Plan and the Internal Revenue Code. No sick balance shall remain following any payment to an employee or their beneficiary due to death or separation. The College permits sick time to be paid out from a regular sick account, (not a grant sick account) to an employee for the following reasons:

Transfer to a position that does not accrue sick.
Separation from the College

A. Full-time employees who are in an administrator or senior management position who were employed in the Florida Community College System on or after July 1, 1995, will receive one-fourth of unused accumulated sick time up to a maximum of sixty (60) days of actual payment providing the employee has completed at least three (3) years of full-time college service.

B. Full-time non-bargaining unit employees who do not meet criteria set forth above, will be eligible to receive payment for earned accumulated sick leave. Sick leave earned at another Florida community college, State college, the Florida Department of Education, a State university, a Florida district school board, or a Florida State agency, and transferred to Palm Beach State under Florida Statute 1012.865(2) will be considered earned when originally earned; however it may not be included in the terminal payment calculation until it is recognized by Palm Beach State in accordance with Florida Statute 1012.865(2) based upon the following amounts:

After the completion of three (3) years of continuous full-time service until the completion of six (6) years of service, an amount equal to 40 percent of the employee’s daily salary times the number of accumulated sick leave hours at the time of termination.
After the completion of six (6) years of continuous full-time service until the completion of nine (9) years of service, an amount equal to 45 percent of the employee’s daily salary times the number of accumulated sick leave hours at the time of termination.
During the 10th year of service, an amount equal to 50 percent of the employee’s daily salary times the number of accumulated sick leave hours at the time of termination plus 2.5 percent per year for each year of service beyond 10 years up to a maximum accumulation of 100 percent.
Accumulated sick leave may be transferred to another Florida community college, State college, the Florida Department of Education, the Florida university system, or a Florida district school board in lieu of receiving payment indicated above.
If service is terminated by death, payment shall be made to the legal beneficiary, estate, or as provided by law and in accordance with payout limits within this policy.

C. Employees who are administrators or senior management and who were employees in the Florida Community College System before July 1, 1995, shall have their sick payment as follows:

Payout of Frozen Sick should be done in accordance with the current payout rule/formula based on years of service for full-time employees in “B” above.
If the payout of frozen sick is less than 480 hours, one-quarter (1/4), or 25 percent, of the current sick account can be added to frozen sick to allow for a maximum payout of 480 hours.