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HR director proposes policy changes, HSA rule and CPI-linked pay plan to address recruitment and leave use

May 24, 2025 | Clark County, Kentucky


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HR director proposes policy changes, HSA rule and CPI-linked pay plan to address recruitment and leave use
The county's HR director presented several proposed updates to the county administrative code and personnel policies aimed at simplifying leave programs, clarifying benefit administration, and addressing recruitment and retention.

Key proposals the HR director described:
- Remove the sick-leave donation policy from the administrative code because it has been used rarely and has been misused in at least one instance. The director said the policy "does not work for the people that could use it" and recommended revamping it as a federal-style policy at a later date.
- Clarify health-insurance open-enrollment and HSA procedures by requiring employees to open their own HSA accounts within 30 days of the county's first contribution; otherwise the employee forfeits that month's contribution. The director said the treasurer has been holding funds while some employees delay opening accounts.
- Change Family and Medical Leave (FMLA) policy language so that while on FMLA the employee would be required to use sick time first, then vacation, then comp time concurrently with FMLA; once paid leave is exhausted the leave would convert to unpaid FMLA. The director said this approach keeps employer-paid benefits intact while ensuring continuity in insurance coverage.
- Add clarity for workers' compensation: employees eligible for workers' comp may be able to supplement leave with vacation or sick time (not to create double payment) and to preserve insurance eligibility rules for employees working 40 hours per week.
- Propose a compensation/merit change: replace the current flat 1% July increases with a raise tied to the Consumer Price Index (CPI) published by the Department for Local Government each July, to better keep wages competitive and address recruitment/retention. The director said local average pay lagged state averages and tying raises to CPI would be "a more strategic way" to catch up.

The HR director noted she would not put the finalized language in front of the court without first running it by the county attorney; she said she planned to send the drafts to the attorney and return with suggested ordinance or code changes.

Why it matters: HR changes affect county employees' benefits, pay, and leave use; the proposals are intended to reduce administrative overhead, tighten benefit processes (e.g., HSA fund management), and address recruitment and retention challenges amid high turnover.

What happens next: The HR director will send the proposals to the county attorney for legal review and will return to the court with proposed language; magistrates asked for financial estimates for CPI-linked raises and asked the director to provide projected 3- and 5-year costs before final adoption.

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Scribe from Workplace AI
Scribe from Workplace AI