25 NCAC 01E .0210. SEPARATION: PAYMENT OF VACATION LEAVE

(a)  The agency shall pay an employee in a lump sum for vacation leave only at the time of separation. 

(b)  When separated from state service due to resignation, dismissal, or death, an employee shall be paid in a lump sum for accumulated vacation leave not to exceed a maximum of 240 hours.  The employee is not entitled to any scheduled holiday occurring after the last day of work.  The employee ceases to accumulate leave and ceases to be entitled to take sick leave.  The last day of work is the date of separation. 

(c)  When separated from state service due to service retirement, early retirement, or reduction in force, an employee may, at the discretion of the employee's supervisor, elect to exhaust vacation leave after the last day of work but prior to the effective date of the separation.  All benefits accrue while leave is being exhausted including holidays that occur during the period.  Unused leave not exhausted shall be paid in a lump sum not to exceed 240 hours.  An employee who was reduced in force and who had over 240 hours of vacation leave at the time of separation shall have the excess leave reinstated when reemployed within one year. The date of separation is as follows:

(1)           If leave is exhausted, the last day of leave is the date of separation. 

(2)           If no leave is exhausted, the last day of work is the date of separation.

(d)  If an employee separates and is overdrawn on leave, the employing agency shall deduct the value of the overdrawn leave from the final salary check. 

(e)  The employing agency shall make a retirement deduction from all leave payments.

(f)  Receipt of lump sum leave payment and retirement benefit is not considered as dual compensation.

(g)  In the case of a deceased employee, the employing agency shall make a payment for unpaid salary, leave, and travel, upon establishment of a valid claim, to the deceased employee's administrator or executor.  In the absence of an administrator or executor, the employing agency must make a payment in accordance with the provisions of G.S. 28A‑25-6.

 

History Note:        Authority G.S. 28A‑25-6(a),(c); 126‑4;

Eff. February 1, 1976;

Amended Eff. December 1, 1988; January 1, 1993;

Temporary Amendment Eff. January 1, 1989 for a Period of 180 Days to Expire June 29, 1989;

Amended Eff. December 1, 2008; December 1, 2007; July 1, 1995; March 1, 1989.