Terms and Definitions

Extended Leave without Pay

Leave in excess of one-half the workdays and holidays in the month or in the pay period (whichever is applicable). Ex: 10 or more working days in a month.

Short Leave Without Pay

Leave for less than one-half the workdays and holidays in the month or in the pay period (whichever is applicable). Ex: less than 10 working days in a month.

Maximum Amount

Except for extended illness, extended leave without pay normally does not exceed 6 months. The Agency Head is responsible for the decision to grant leave without pay and the amount of time granted, except for leave required by the FMLA Policy.

Extended Illness

When an employee has a personal illness, the agency must consider the following.

• Does the need for leave qualify as Family and Medical Leave? If so, the rules of that policy shall be applied first.
• Is the illness likely to result in participation in the Disability Income Plan?
• Does the employee qualify for Voluntary Shared Leave?

Taking these into consideration, the agency should explain these policies to the employee and assist in determining which are applicable.

Vacation

An employee must exhaust all accumulated vacation/bonus leave before going on leave without pay for the purpose of vacation.

Personal or Other Reasons

An employee must exhaust accumulated vacation/bonus leave for personal or other reasons if the leave period is 10 workdays or less. If the period is greater than 10 workdays, the employee may elect to exhaust all, part, or none of the vacation/bonus leave prior to going on leave without pay.

Exhausting Leave

While exhausting leave, the employee:

• Continues to accumulate leave,
• Is eligible to take sick leave,
• Is entitled to holidays, and,
• is eligible for salary increases during that period.

Any accumulated unused vacation/bonus leave or sick leave shall be retained. Eligibility to accumulate leave ceases on the date leave without pay begins. If leave without pay extends through December 31, any vacation leave accumulation above 240 hours shall be converted to sick leave.

How Do I Apply

You must submit a written request for Leave Without Pay to your supervisor including:

• Reason for leave
• Date expected for beginning leave
• Duration of leave
• Expected date to return to work

In addition, you need to:

• Notify your supervisor immediately if the conditions of the leave change
• Notify your supervisor of your intent to return 30 days prior to the expected date of the return

Note: If you do not give notice of the intention to return, the agency is not required to provide reinstatement, but may do so if feasible. Failure to report at the expiration of a leave, unless an extension has been requested and approved, may be considered as a resignation.

Supervisors/Authorized Personnel Reps Should

Supervisors review requests and approve/disapprove in writing. The supervisor must consider several factors when determining whether to grant leave without pay and the amount of time to approve:

• Needs of the employee requesting leave
• Workload
• Need for filling employee’s job
• Chances of employee returning to duty
• The obligation of the agency to reinstate the employee to a position of like status and pay

Required System Actions:

Extended Leave Without Pay

If the Leave Without Pay is determined to be extended (i.e. more than 10 or more working days in a month or pay period), LWOP must be entered through JAR. When entered through JAR, LWOP entries should not be keyed in Absence Management to avoid a potential double deduction.

The employee should be informed of the impact on their benefits, as well as options for benefit continuation while on LWOP. If the employee’s total pay for the applicable pay period does not cover their benefit premiums owed, the employee should contact the benefits team to remit payment. Please see below for the continuation of benefits while on Extended LWOP.

Once the employee has returned to work, a return JAR must be entered as soon as possible in order for payroll to resume.

Short Leave Without Pay

If the Leave Without Pay is determined to be short term (i.e. less than 10 or more working days in a month or pay period), the LWOP can be entered through absence management. If the employee’s total pay for the applicable pay period does not cover their benefit premiums owed, the employee should contact the benefits team to remit payment.

Continuation of Benefits

While on extended leave without pay, an employee may select Continuation of Benefits by paying the full premium for coverage. If the employee wishes to adjust their benefits while on Extended LWOP, they should contact the benefits department for assistance within 30 days of the first date of LWOP. Some benefits cannot be continued, including

• Accumulation of Vacation and Sick Leave
• Retirement Contributions
• Supplemental Retirement, 401(k)
• Retirement Annuity, 403(b) and 457

Health Insurance

While on LWOP, the employee may continue coverage under the State Health Plan by paying the full premium costs (no contribution by NC State can be made). The current NC State contribution amount for health insurance is $674.54, the employee will be responsible for paying this amount monthly, in addition to their normal insurance premium. State Health Plan LWOP Premiums