Item 17 - Memorandum of Understanding Related to SEIU

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previously elected to cash -out (in the prior calendar year), the employee will only receive payment for the amount of accumulated vacation leave remaining at the time of the cash -out in either July or December. 6. If an employee makes an irrevocable election to cash -out vacation in the following calendar year and uses vacation leave during that subsequent calendar year, the vacation leave used will first come from vacation leave the employee had earned (if any) prior to January I st of the calendar year the employee had elected to cash -out. The use of such earned, but unused, vacation leave accumulated from previous calendar years shall not result in a reduction in the amount of vacation hours the employee is eligible to cash - out. B. Separation from Service Per Labor Code §227.3, the parties agree that an employee who leaves City employment prior to completing six (6) months of service shall not receive any payment for vacation. Employees with at least six (6) months of service upon separation from service shall be paid for all accumulated, but unused, vacation leave. C. Rate of Payment Payments shall be made based on the employee's base rate at the time of the payment. 9.7 Maximum Accumulation A. The maximum vacation an employee may accumulate is what they could earn based on their completed years of service. B. An employee whose vacation bank is at the maximum of what they can accumulate shall not continue to accrue vacation into their vacation bank until the amount of their vacation bank is reduced below the maximum cap. Even though an employee is not permitted to accrue vacation into their vacation bank above the maximum they can accrue as addressed in paragraph C below, employees are permitted to make an irrevocable election by December 31th of the prior calendar year (i.e., by December 31, 2025 for calendar year 2026) that if at any time in the upcoming calendar year, their maximum vacation cap is reached, the City shall convert the hours over the vacation cap to the employee's RHS or 457 account. Employees need to designate as part of their irrevocable election whether they want the hours contributed to their RHS or 457 account. If no irrevocable election is made in the prior calendar year, if the employee's vacation cap is reached, they shall neither accrue additional vacation until they use vacation to bring their accrual below the cap nor have the hours above the cap placed in their 457 or RHS account. 2025 MOU City of Santa Ana & SEIU Full -Time Employees Unit Page 45