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Item 4D - Memo ITEM 4D CITY OF SOUTH LAKE MEMORANDUM March 30, 2026 TO: Alison Ortowski, City Manager FROM: Stacey Black, Assistant City Manager/ Sr. Director of Human Resources SUBJECT: Resolution No. 26-011, amending Section 705 — "Sick Leave" of the City of Southlake Employee Handbook and providing an effective date. Action Requested: The purpose of this item is to seek City Council approval of Resolution No. 26-011, amending Section 705 — "Sick Leave" of the City of Southlake Employee Handbook to align sick leave accrual rates with the Fire Department's transition from a 24-hour on /48-hour off(24/48) shift schedule to a 48-hour on / 96-hour off (48/96) schedule, effective June 20, 2026. Background Information: The City's Employee Handbook contains all personnel policies approved by both the City Council and the City Manager. In accordance with Section 4.14 of the City Charter, the City Council must approve any personnel policies that carry financial implications. The City Manager retains the authority to approve administrative updates or policies without financial impact, provided that City Council is notified of such changes. Effective June 20, 2026, Fire Department shift personnel will transition to a 48/96 shift schedule. This schedule is now the prevailing regional standard among peer fire departments and is designed to enhance firefighter well-being, improve work-life balance, and strengthen the City's ability to recruit and retain highly qualified personnel. The transition does not impact service levels, staffing coverage, or emergency response delivery. Staff is coordinating implementation across payroll, policy, HR systems, and departmental processes to ensure a seamless transition across all affected areas. As part of this transition, fire shift personnel will move from a fifteen (15) day pay cycle to a twelve (12) day pay cycle to align with the operational schedule and Fair Labor Standards Act (FLSA) work period requirements. This change increases the number of pay periods for fire shift personnel from twenty-four(24)to thirty (30) per year. Because sick leave accrues on a per-pay-period basis, the accrual rate must be recalibrated to maintain the same total annual accrual. The proposed amendment adjusts the per-pay-period accrual rates for Alison Ortowski, City Manager ITEM 4D March 30, 2026 Page 2 fire shift personnel so that the total annual sick accrual remains unchanged. This change does not increase the amount of leave employees receive or enhance the benefit. The adjustment is strictly a mathematical recalibration of the per-pay-period accrual rate to ensure consistency under the new pay structure. If not updated, employees would accrue additional sick leave solely due to the increased number of pay periods, resulting in unintended additional accruals and associated liability. Because the current policy specifies accrual amounts by pay period as part of the City's benefit framework, a City Council-approved amendment is required to implement this adjustment. The proposed revisions to Section 705 - Sick Leave are summarized below: • Update the per-pay-period sick leave accrual rate for fire shift personnel assigned to the 48/96 schedule from 7.5 hours to 6.0 hours per pay period, reflecting thirty (30) pay periods per year. • Clarify that fire shift personnel on the 48/96 schedule operate on a twelve (12) day pay period cycle. • Maintain all existing eligibility and maximum accrual limits as currently adopted by Council. No changes are proposed to civilian employee accrual structures or to the total annual sick benefit for any employee group. This adjustment applies only to fire shift personnel affected by the schedule change. If approved, the revised policy will take effect June 20, 2026. It will be published in the City's Employee Handbook and communicated to all affected employees. Financial Considerations: This amendment has no financial impact. Total annual sick leave accruals for fire shift personnel remain unchanged. The per-pay-period accrual rate is being reduced proportionally to offset the increase in pay periods. Strategic Link: • Focus Area: Performance Management and Service Delivery • Corporate Objectives: - L1: Defining and managing a professional workplace culture that supports City values and promotes a positive employee experience. - L3: Attracting, developing & retaining a talented and motivated workforce for lasting world-class performance. Alison Ortowski, City Manager ITEM 4D March 30, 2026 Page 3 Citizen Input/ Board Review: N/A Legal Review: The City Attorney has reviewed the proposed revisions to the Sick Leave policy. Alternatives: Make changes as desired by City Council. Deny the request and maintain the current approved policy. Supporting Documents: Attachment A: Resolution No. 26-011 Attachment B: Redlined Policy No. 705 — Sick Leave Staff Recommendation: Staff recommends City Council approval of Resolution No. 26-011, amending Section 705—"Sick Leave" of the City of Southlake Employee Handbook and providing an effective date. RESOLUTION NO. 26-011 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, AMENDING SECTION 705 — "SICK LEAVE" OF THE CITY OF SOUTHLAKE EMPLOYEE HANDBOOK AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Southlake (the "City") previously adopted an Employee Handbook; and WHEREAS, the City wishes to revise Section 705 — "Sick Leave" to replace Section 705 of the previously adopted Employee Handbook; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS, THAT: Section 1. The City of Southlake hereby approves and adopts the following policy that has financial implications, a copy of which is attached as Exhibit "A" and is incorporated into the Employee Handbook: Policy 705 — "Sick Leave" Section 2. That this resolution is in effect upon passage and adoption by the City Council effective June 20, 2026. PASSED AND APPROVED THIS THE DAY OF 2026. Shawn McCaskill, Mayor ATTEST: Amy Shelley, City Secretary CITY OF RESOLUTION NO. 26-011: EXHIBIT A SOUTHLAKE 705 SICK LEAVE 705.01 General. The purpose of sick leave is to provide income protection to employees who are unable to work due to an illness, injury, or other permitted use as outlined in this policy. 705.02 Eligibility. Regular,full-time employees are eligible to accrue and use sick leave. Probationary employees may use accrued sick leave from the first day of employment with supervisor's approval. Sick leave shall not be advanced. 705.03 Part-time, Temporary and Seasonal Employees. Part-time, temporary and seasonal employees are not eligible for sick leave. 705.04 Sick Leave Accrual.Sick leave shall not accrue during a leave of absence without pay, nor shall it be advanced. Sick leave cannot be transferred from one employee to another. 705.04.01 Regular full-time employees. Full-time employees, except for full-time fire-shift personnel, accrue sick leave on the City's standard bi-weekly pay cycle consisting of twenty-six (26) pay periods per year. Full-time employees assigned to this pay cycle shall accrue sick leave at the rate of 3.08 hours per pay period (80 hours per year). 705.04.02 Fire Shift Personnel. Fire shift personnel assigned to the 48-hour on/96-hour off (48/96)schedule operate on a twelve (12) day pay period cycle, resulting in thirty (30) pay periods per calendar year. Full-time fire shift personnel assigned to the 48/96 shift schedule shall accrue sick leave at the rate of 6 hours per pay period (7.5 shifts per year). For purposes of this policy, a shift for fire shift personnel equals twenty-four(24) consecutive work hours. A tour represents a forty-eight (48) hour duty cycle consisting of two consecutive 24-hour shifts under the 48/96 schedule. 705.05 Maximum Accrual Allowed. All employees shall accrue sick leave up to a maximum of 720 hours. Sick leave accruals shall cease when an employee's sick leave balance reaches 720 hours. 705.06 Holidays during Sick Leave. Official holidays occurring while an employee is absent from work due to an illness or injury that is not job-related shall be paid as holiday pay and not considered as sick leave. 705.07 Permitted Sick Leave Uses. Sick leave may be allowed in case of doctor appointments, personal illness, physical incapacity of an employee,or when it is necessary to care for a family member residing in the employee's household who is ill or incapacitated. Sick leave shall also be used for FMLA qualifying events. Policy No. 705: Sick Leave Page 1 CITY OF RESOLUTION NO. 26-011: EXHIBIT A SOUTHLAKE 705.07.01 Employees shall not be entitled to sick leave when absent from work due to illness or injury resulting from employment with another employer. 705.08 Use of Other Paid Leave. When an employee's accumulated sick leave has been exhausted, accrued vacation leave or compensatory time may be used upon request of the employee and with approval of the supervisor or Department Director. 705.09 Sick Leave Notice. Whenever possible, employees shall report and provide notice in accordance with Section 5, Policy 503 —Attendance. Failure to give notice may result in the employee being declared absent without leave and subject to corrective action. 705.10 Certification from Medical Provider. An employee may be required to provide documentation to the employee's supervisor or Department Director, with a statement from an attending licensed physician when: i. There is question as to the merits of an employee's claim that his or her absence was due to illness or injury of the employee or of a family member residing in the employee's household; ii. The employee's safety or ability to work is in question; iii. There is a question of sick leave abuse; iv. The safety or efficiency of the work unit is in question; or V. The employee has been absent from work for three (3) consecutive work days or longer. 705.11 Fit for duty examination. An employee who has been absent because of illness or injury may be required to submit to a fitness-for-duty examination by a licensed physician selected by the city prior to returning to work. In such cases the employee may return to work upon certification by the examining physician that the employee is physically or mentally fit to return to work, or if the employee is certified fit for limited or light duty, but not his or her regular duty, the employee may, at the discretion of the city, be required to report for light or limited duty. Refer to Section 7, Policy 711—Modified Duty for additional information. 705.12 Return to Work.An employee who is released by an examining physician to return to regular or light duty and refuses to report for work or perform his or her assigned duties is subject to corrective action, up to and including termination. 705.13 Sick Payout upon Termination of Employment. Employees who are separated from city employment for any reason shall not be entitled to receive pay for accumulated sick leave, except that an employee will be granted,upon retirement or separation,a lump sum payment of sick leave remaining to his or her credit in any amount that does not exceed four hundred (400) hours when he or she: Policy No. 705: Sick Leave Page 2 CITY OF SOUTHLAKE i. Retires from city employment under the city-sponsored program and is immediately eligible to receive retirement payments; and has at least ten (10) years of continuous employment with the City of Southlake; or ii. Separates from employment for any reason except for involuntary termination, with twenty (20) or more years of continuous full-time service with the city. 705.14 Approval and Effective Date. This policy was approved by City Council on April 7, 2026 by Resolution No. 26-011 and is effective June 20, 2026. It supersedes all previous sick leave policies. Policy No. 705: Sick Leave Page 3 CITY OF SOUTHLAKE -- DRAFT I REDLINED -- 705 SICK LEAVE 705.01 General. The intentpurpose of sick leave is to prevent a less of ineem^provide income protection to employees who are ahseetunable to work frem werk due to an illness,ef-injury, or other permitted use as outlined in this policy. 4at4s ^^+ '^" .^',+^� 705.02 Eligibility. Regular,full-time employees are eligible to accrue and use sick leave. Probationary employees may use accrued sick leave from the first day of employment with supervisor's approval. Sick leave shall not be advanced. 705.03 Part-time, Temporary and Seasonal Employees. Part-time, temporary and seasonal employees are not eligible for sick leave. 705.04 Sick Leave Accrual. Sick leave shall not accrue during a leaves of absences without pay, nor shall it be advanced. Sick leave cannot be transferred from one employee to another. 705.04.01 Regular full-time employees. Full-time employees, except for full-time fire-shift personnel, accrue sick leave on the City's standard bi-weekly pay cycle consisting of twenty-six(26) pay periods per year. Full-time employees assigned to this pay cycle Regular full time^mpleyees shall accrue sick leave at the rate of 3.08 hours per pay period (80 hours per year). 705.04.02 Fire Shift Personnel. Fire shift personnel assigned to the 48-hour on/96-hour off (48/96)schedule operate on a twelve(12) day pay period cycle, resulting in thirty (30) pay periods per calendar year. Full-time fire shift personnel assigned to the 48/96 shift schedule FiFe shift^ ^'..."^ 24 he,-r shift.-,."^d„'^shall accrue sick leave at the rate of 756 hours per pay period (7.5 shifts per year). For purposes of this policy, a shift for fire shift personnel equals twenty-four(24) consecutive work hours. A tour represents a forty-eight (48) hour duty cycle consisting of two consecutive 24-hour shifts under the 48/96 schedule. 705.05 Maximum Accrual Allowed. All employees shall accrue sick leave up to a maximum of 720 hours. Sick leave accruals shall cease when an employee's sick leave balance reaches 720 hours. 705.06 Holidays during Sick Leave. Official holidays occurring while an employee is absent from work due to an illness or injury that is not job related shall be paid as holiday pay and not considered as sick leave. 705.07 Permitted Sick Leave Uses. Sick leave may be allowed in case of doctor appointments, personal illness, physical incapacity of an employee,or when it is necessary to care for a family member residing in the employee's household who is ill or incapacitated. Sick leave shall also be used for FMLA qualifying events. Policy No. 705: Sick Leave Page 1 CITY OF SOUTHLAKE -- DRAFT I REDLINED -- 705.07.01 Employees shall not be entitled to sick leave when absent from work due to illness or injury resulting from employment with another employer. 705.08 Use of Other Paid Leave. When an employee's accumulated sick leave has been exhausted, accrued vacation leave or compensatory time may be used upon request of the employee and with approval of the supervisor or Department Director. 705.09 Sick Leave Notice. Whenever possible, employees shall report and provide notice in accordance with Section 5, Policy 503 —Attendance. Failure to give notice may result in the employee being declared absent without leave and subject to corrective action. 705.10 Certification from Medical Provider. An employee may be required to provide documentation to the employee's supervisor or Department DirectorfuFRish his er her supeFviseF or Department Direaer with a statement from an attending licensed physician when: i. There is question as to the merits of an employee's claim that his or her absence was due to illness or injury of the employee or of a family member residing in the employee's household; ii. The employee's safety or ability to work is in question; iii. There is a question of sick leave abuse; iv. The safety or efficiency of the work unit is in question; or V. The employee has been absent from work for three (3) consecutive work days or longer. 705.11 Fit for duty examination.An employee who has been absent because of illness or injury may be required to submit to a s+ea4—fitness-for-duty examination by a licensed physician selected by the city prior to returning to work. In such cases the employee may return to work upon certification by the examining physician that the employee is physically or mentally fit to return to work, or if the employee is certified fit for limited or light duty, but not his or her regular duty, the employee may, at the discretion of the city, be required to report for light or limited duty. Refer to Section 7, Policy 711—Modified Duty for additional information. 705.12 Return to Work. An employee who is released by an examining physician to return to regular or light duty and refuses to report for work or perform his or her assigned duties is subject to corrective action, up to and including termination. 705.13 Sick Payout upon Termination of Employment. Employees who are separated from city employment for any reason shall not be entitled to receive pay for accumulated sick leave, except that; an employee will be granted; upon retirement or separation, a lump sum payment of sick leave remaining to his or her credit in any amount that does not exceed four hundred (400) hours when he or she: Policy No. 705: Sick Leave Page 2 CITY OF SOUTHLAKE -- DRAFT I REDLINED -- i. Retires from city employment under the city sponsored program and is immediately eligible to receive retirement payments; and has at least ten (10) years of continuous employment with the City of Southlake; or ii. Separates from employment for any reason except for involuntary termination, with twenty(20) or more years of continuous full-time service with the city. 705.14 Approval and Effective Date. This policy was approved by City Council on April 7, 20264kpw 5, 2016 by Resolution No. 16 01126-011 and is effective ApFil 15, 2016June 20, 2026. It supersedes all previous sick leave policies. Policy No. 705: Sick Leave Page 3