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Council lowers sick-leave cap to 500 hours, approves 50% payout for current overages

Gaylord City Council · April 2, 2026
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Summary

Council amended the personnel policy to cap sick-leave accrual at 500 hours and authorized a one-time payout of 50% of hours above 500 for eligible employees with at least 10 years of service; staff estimated the immediate payout would total about $12,800.

Staff returned to a recurring personnel discussion and proposed reducing maximum sick-leave accrual from 960 hours to 500 hours. The staff report calculated the immediate fiscal impact if the city paid the 50% payout for current overages for employees meeting the 10-year service threshold: "that would calculate out to $12,800 at this particular time," staff said.

Councilmembers discussed whether a 500-hour cap was too low and considered alternatives such as 600 hours, and noted existing leave protections such as Family and Medical Leave Act coverage. A motion to amend the personnel policy to cap accrual at 500 hours and to pay out 50% of any balance over 500 to employees with at least 10 years of service was made and seconded. Counsel clarified payout timing and staff said the payout would occur as soon as administratively possible, likely the next pay period; the motion carried.

Next steps: staff will implement the policy change and process the authorized payouts on the next payroll cycle.