Port St. Joe amends sick-leave payout policy, applies changes retroactively to Dec. 1, 2024

The Port St. Joe City Commission on Jan. 8 adopted changes to the city personnel manual that alter how unused sick leave is paid out when an employee separates from city service.

Under the newly adopted policy language the commission discussed at length, employees with less than 10 years of service will receive 25% of unused sick leave at separation; employees with 10 years or more will receive 100% of their unused sick leave. Commissioners also added a 15-year tier that allows a 100% payout up to 750 hours and adopted a 20-year tier as discussed during the meeting. The commission made the policy change retroactive to Dec. 1, 2024.

Commission debate centered on preserving a reasonable cap while recognizing long-tenured employees. Commissioner Arthur Scott Hoffman described the proposal as a way to retain experienced staff and to remove an opaque “cap” that staff had been administratively bending: "we're just saying do away with the cap," he said during discussion. Other commissioners asked for clarity about how hours would convert and whether the change would increase long-term liabilities; staff representation and the city manager confirmed the city would maintain current accrual rates and only change maximum carryover/payout mechanics.

The commission voted unanimously to adopt the changes and to make them retroactive to Dec. 1, 2024.

Human Resources and Finance staff were directed to update the personnel manual, notify employees and implement payroll changes. The motion specified administrative follow-up to publish the amended policy and to process any retroactive payments required by the new rules.

The policy revision will affect current employees’ separation payouts and the city’s long-term liability estimates; staff will report back once the manual has been updated and calculations for retroactive payments have been completed.