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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Create Accrual Plan

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Absence Type

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Net Calculation Rules

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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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Customized Accrual Bands

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High Level Fast Formula Flow Chart

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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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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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Are you Sick?

• Is your State about

to pass a Sick Leave

Law?

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

Questions

Arvind Sripada – arvind.sripada@nellc.com

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Thank You