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The letter sets a maximum leave-hour cap of 640 per year on the books, explains fiscal solvency implications, and details leave transfer and separation considerations. It outlines CEO and rank-and-file leave reduction planning, reporting timelines, monthly leave accrual tracking, eligible leave types, and sample reduction strategies.",{"@graph":63,"@context":119},[64,80,102],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":41,"@type":70,"position":76},"https://docshare.wps.com/template/letters/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/d2023-04-vacationannual-leave-reduction-plans-for-ceo-and-state-employees/245191/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/d2023-04-vacationannual-leave-reduction-plans-for-ceo-and-state-employees/245191.png","ImageObject",442,249,{"name":88,"@type":89},"Sarah ","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-10-23","2026-09-12",true,{"@type":98,"interactionType":99,"userInteractionCount":101},"InteractionCounter",{"@type":100},"ViewAction",10,{"@type":103,"mainEntity":104},"FAQPage",[105,111,115],{"name":106,"@type":107,"acceptedAnswer":108},"What is the maximum vacation/annual leave balance allowed for CEOs and state employees?","Question",{"text":109,"@type":110},"The letter states that the prescribed maximum number of vacation/annual leave hours that should be on the books is 640 per year, aligned with CDFA Policy 9.4.3 and the California Code of Regulations.","Answer",{"name":112,"@type":107,"acceptedAnswer":113},"What should DAAs do if an employee or the CEO has leave balances exceeding the 640-hour threshold?",{"text":114,"@type":110},"The CEO must develop a leave reduction plan for excess balances, and for employees approaching or above the cap, the CEO works with each employee to create the leave reduction plan per the referenced regulation sections.",{"name":116,"@type":107,"acceptedAnswer":117},"What reporting and tracking steps are required for leave balances and accruals?",{"text":118,"@type":110},"DAAs must share CEO leave balances with F&E by July 31 each year, submit the leave balance tracking sheet annually by January 31 for rank-and-file staff, and timekeepers should track accrued and used leave types monthly using the attached Leave Balance Tracking Template.","https://schema.org",{"og:url":78,"og:type":121,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":123,"canonical":78},"index,follow",{"doc_id":125,"site_id":56},245191,1789226014,{"code":4,"msg":5,"data":128},{"doc_id":125,"user_id":129,"nickname":88,"user_avatar":130,"doc_module":9,"category_id":40,"category_name":41,"doc_title":59,"doc_description":61,"doc_content":131,"file_id":132,"file_url":133,"file_type":134,"file_size":135,"view_count":101,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":76,"language":136,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":61,"update_tm":126,"read_time":9},962085320529,"https://ap-avatar.wpscdn.com/davatar_9964176cb1d06d4a9deccf72a44ae3dc","August 21, 2023 D2023-04  \nTO: All District Agricultural Associations CEOs and Boards of Directors  \nSUBJECT: Vacation/Annual Leave Reduction Plans for the CEO and State Employees  \nThe purpose of this letter is to alert you of the cap on the number of leave hours which should be on the books for state employees and to inform you of F&E’s leave balance reporting requirements to ensure compliance with the updated CDFA Policy 9.4.3 and existing CALHR policy 2124-Employee Leave Management.  \nPer the California Code of Regulations and CDFA Policy, the prescribed maximum number of vacation/annual leave hours that CEOs and state employees should have on the books, per year, is 640 (CDFA Vacation / Annual Leave Accumulation Policy 9.4.3 ; CA Code of Regulations, Title 2, Section 599.752 ) .  \nThe purpose of a maximum leave balance is to ensure the fiscal solvency of the DAA because if an employee (including the CEO) retires, the vacation or annual leave will be paid out in full as a lump sum. For additional information on separation and leave balances, reference CALHR Employee Leave Management – 2124.  \nIf your individual DAA cannot financially afford the 640 hours of vacation/annual per employee, a policy outlining the maximum liability should be developed and adopted by the board.  \nIt is important to highlight that if the CEO or employee transfers to another state agency or DAA, their leave balances are transferred to the new state employer. Due to this, a good practice when hiring staff coming from other state agencies (including DAAs) is to request to see their leave balances to evaluate the extent of the liability the DAA would be acquiring through the hire prior to appointment.  \nLeave Balance for CEOs  \nCEOs may accumulate the unused portion of the vacation/annual leave , provided that on January 1 of each calendar year, there are not more than 640 hours of vacation/annual leave.  \nD2023-04  \nAugust 21, 2023  \nPage 2  \nAs CEOs approach a leave balance of 640 vacation/annual leave hours, the Board and CEO must develop a leave reduction plan to reduce the excess balances , (California Code of Regulations, title 2, section 599.742.1 ) . In order to facilitate F& E’s ability to exercise its fiscal oversight over this liability we ask that each DAA share with us a copy of the leave balances for the CEO by July 31st of each year.  \nLeave Balances for Employees (Rank and File)  \nFor employees that are approaching a vacation/annual leave balance of 640 hours, or are currently above this threshold, the CEO should work with the employee to create a leave reduction plan (California Code of Regulations, title 2, section 599.737) . Please submit the leave balance tracking sheet for the CEO, to the F&E Branch annually by January 31st. If a state employee is nearing the cap, please make note of this during the board meeting when reviewing the Finance Committee report or the CEO report.  \nLeave Accruals  \nEach month, the DAAs timekeeper should be tracking the various types of leave accrued and used by all employees. Attached is an Excel spreadsheet ( Leave Balance Tracking Template) that you can use as a tool to track the leave balances for each employee.  \nEach state employee is entitled to the following:  \n• Vacation and Sick  \n• Annual Leave ( in lieu of Vacation and Sick)  \n• Informal Time Off (ITO) -At the Governor’s discretion each year  \n• Personal Holiday – 1 day (8-hours) each July 1  \n• Personal Development Days (PDD)– 2 days (16–hours) at the start of each fiscal  \nyear (July 1st ) and must be utilized by the end of the fiscal year (June 30th) . Note: this leave is not compensable upon separation, and it does not roll over to the next fiscal year.  \nFor information on the accrual rate of vacation or annual leave for CEOs, please reference the CALHR Vacation vs. Annual Leave Comparison Chart for excluded employees. If you need assistance determining the appropriate rate of accrual, please contact your CDFA HR.  \nFor information on ","cbCaiqOtYBL9t6io","https://ap.wps.com/l/cbCaiqOtYBL9t6io","pdf",472165,"English","# Vacation/Annual Leave Reduction Plans\n## Leave balance cap and compliance requirements\n## Leave reduction plans for CEOs\n## Leave reduction plans for employees (rank and file)\n## Leave accruals and eligible leave types\n## Sample leave balance reduction strategies\n## Submissions and enclosed templates","[{\"question\":\"What is the maximum vacation/annual leave balance allowed for CEOs and state employees?\",\"answer\":\"The letter states that the prescribed maximum number of vacation/annual leave hours that should be on the books is 640 per year, aligned with CDFA Policy 9.4.3 and the California Code of Regulations.\"},{\"question\":\"What should DAAs do if an employee or the CEO has leave balances exceeding the 640-hour threshold?\",\"answer\":\"The CEO must develop a leave reduction plan for excess balances, and for employees approaching or above the cap, the CEO works with each employee to create the leave reduction plan per the referenced regulation sections.\"},{\"question\":\"What reporting and tracking steps are required for leave balances and accruals?\",\"answer\":\"DAAs must share CEO leave balances with F\\u0026E by July 31 each year, submit the leave balance tracking sheet annually by January 31 for rank-and-file staff, and timekeepers should track accrued and used leave types monthly using the attached Leave Balance Tracking Template.\"}]","D2023-04 - Vacation/Annual Leave Reduction Plans for CEO and State Employees | PDF"]