Davis County staff propose benefit cuts and freezes in 2026 HR policy update

At a Davis County Commissioners work session on Dec. 9, Deputy Human Resources Director Rick Heavey presented six proposed HR policy updates that staff say are intended to reduce long‑term liabilities and update aging policy language. Key proposals include adding three non‑accruing personal‑preference days, freezing existing sick‑leave balances and phasing out the payout benefit, reducing the employer 401(k) match to 2% with auto‑enroll for new hires, and lowering the top end of the merit increase schedule.

Heavey told commissioners the changes were a mix of budget‑driven reductions and routine updates. "We've proposed three personal preference days per year," he said, describing them as floating holidays that do not carry over. On the proposed sick‑leave change, Heavey explained staff would freeze employees' accrued sick‑leave balances as of the end of the month and transition the payout over time: "Sick leave that people have accrued through December, the balance will be frozen," he said, and future employees would not become eligible for the payout going forward.

Why it matters: County staff framed the package as a way to reduce long‑term liabilities and modernize policy language while preserving some valued benefits. Commissioners pressed staff for details about how the sick‑leave freeze and payout would work in practice, the budget accounting for annual conversions or buyouts and whether the changes could incentivize staff to work when ill. Commissioner Jeff Hassett asked specifically about the annual buyout and whether retaining it would create a perverse incentive to avoid taking sick time; Heavey said the buyout has been used historically as an incentive for employees who do not use sick leave and that staff will provide budget accounting details.

Other major proposals presented: - Retirement match and auto‑enroll: Staff proposed reducing the employer 401(k) match from 4% to 2% and automatically enrolling new hires in the plan (with an opt‑out). Heavey said this would be accompanied by a 2% cost‑of‑living adjustment to wages so employees could choose to direct that pay into retirement if they wanted. "Current employees will stay as they are," Heavey said; the match reduction applies as the change phases in for new hires. - Performance evaluations: The proposed table of merit increases would lower the top automatic increase from 3.5% to 2.5%. Budget staff said they have budgeted assuming a 2% average increase and commissioners asked for a six‑month check‑in to monitor whether rating behavior changes under the new system. - Insurance and LTD: Staff codified long‑standing practices, including treating long‑term disability (LTD) benefits as taxable income for recipients and continuing county contributions of 50% of the STAR plan deductible into employees' HSA accounts; pet insurance was added to policy language. - Anti‑discrimination and investigation process: The county reorganized definitions and codified a complaint‑investigation process, including an updated hotline referenced in the circulated draft.

Commissioners requested follow‑up data and next steps. They asked HR to provide comparative data on whether other counties offer similar personal‑preference days, to estimate the budgetary impact of annual buyouts or conversions, and to propose administrative steps if a hiring freeze is pursued. Heavey said staff will return with additional research and implementation recommendations. No formal motions or votes were taken at the work session; commissioners signaled they will discuss the items again in committee and at future commission meetings.

The county circulated strikeout drafts of the proposed changes to agency officers and department directors in advance; staff indicated more detailed budget accounting and an implementation plan will be provided before any formal adoption.