City urged to phase out paying for unused sick leave

The city of Las Vegas could have more money to hire employees and increase programs if it could reduce liabilities in the form of unused worker sick pay, city officials said Wednesday.

During a presentation to the City Council, Mark Vincent, the city's chief financial officer, said the city should phase out the practice of paying workers cash for unused sick leave they are allowed to bank.

Vincent said it could save the city big bucks over the long haul, but a firefighters union leader said the presentation was hot air aimed at manipulating public opinion just as the city and the firefighters are entering contract talks.

"We want to make sure that our fringe benefits are economically sustainable," Vincent said during the presentation. "Sick leave was never intended to be a retirement tool. Vacation was never intended to be a retirement tool either."

According to a chart Vincent presented, unused paid sick leave among the city's four collective bargaining units represents a liability of about $20 million. That is in addition to unpaid vacation.

He said if management could phase out the practice of paying for unused sick leave, like it did last year for executive and appointed employees, it could reduce the liability. Existing banked sick hours would be honored.

Under current collective bargaining contracts, workers can stash a maximum of 840 to 2,304 paid hours of sick leave, according to the presentation.

City Manager Betsy Fretwell said workers who save hours for years can get paid for the hours at their rate of pay at the time they cash them out, meaning an hour set aside at a lower pay rate can be cashed out years later when it is worth more to the employee.

It also means the city must keep money free to cover potential buyouts.

"That is less money to do anything, to employ new employees," Fretwell said.

But Dean Fletcher, president of Las Vegas Firefighters Local 1285, said the presentation was more about public relations than saving taxpayers money.

"They did it for a reason because we are in negotiations," said Fletcher, who also accused city officials of steering money from the general fund to redevelopment and maintaining an outsized ending fund balance.

"There are other areas where they can also look at their spending," he said.

Fletcher also said that even if the city could eliminate banked sick pay for some workers, it would be difficult to do for firefighters. That is because workers bank sick pay as insurance against lost time for an injury or disability.

Because firefighters are at a high risk for injury, it is difficult to find affordable disability insurance, which makes it more cost effective for workers to use their banked sick time for insurance.

"If I got hurt, I knew my family would be taken care of," Fletcher said .

Contact reporter Benjamin Spillman at bspillman@reviewjournal.com or 702-229-6435.