California state workers can cash out accrued leave. Here’s how much you can take home

Some California state employees don’t have to wait until retirement to cash out their accrued vacation time.

The California Department of Human Resources released its updated policy this week, reminding certain state workers they can get an annual cash payment for unused vacation time and paid leave, via the Leave Buy-Back Program.

The department has authorized this program in the past for California state employees, allowing most union and non-union members, such as managers and supervisors, to trade up to 80 hours of accrued leave for money.

In 2020, the HR department removed limits on employees’ leave balance. Having a cap helped state departments rein in payouts when workers retire, according to a Bee report.

The program applies to specific departments and will depend on whether there are funds available for cashing out, according to the HR manual.

See who’s eligible

The buy-back program applies to employees represented by the following unions, up to a designated amount of hours of leave:

• California Attorneys, Administrative Law Judges and Hearing Officers, up to 160 hours

• Service Employees International Union Local 1000, up to 80 hours

• California Association Highway Patrolmen, up to 80 hours

• California Correctional Peace Officers Association, up to 80 hours

• California Statewide Law Enforcement Association, up to 80 hours

• Cal Fire Local 2881, up to 80 hours

• Professional Engineers in California Government, up to 80 hours

• California Association of Professional Scientists, up to 80 hours

• International Union of Operating Engineers, up to 80 hours

• Union of American Physicians and Dentists, up to 80 hours

• California Association of Psychiatric Technicians, up to 80 hours

• American Federation of State, County, and Municipal Employees, up to 80 hours

Most employees classified as exempt, managerial, supervisory, confidential, or otherwise excluded from collective bargaining can participate in cashing out.

When workers can cash out

There are specific dates when state workers can cash out their leave, depending on the employee’s memoranda of understanding.

Either before or on May 1, departments will inform employees if they have enough money to participate in the program.

Most MOUs will require workers to submit a request in May, called the Excluded Employee Leave Buy-Back Request, to cash out. Payments are expected in as early as May 2022 and as late as June 30, 2022.

How many times can workers cash out?

One time per fiscal year.

Payments are taxed

According to the manual, “Payments under this program are subject to the flat tax method and garnishments, if applicable.”