Human Resources News

Posted 3:44 p.m. Tuesday, April 28, 2026

Learn about the UW System policy and employee vacation, paid leave banks, and vacation cash payouts

Understanding how vacation and paid leave are administered can make a big difference in how you plan your time, career, and even your retirement. UW System Administrative Policy 1210 (formerly BN1) Vacation, Paid Leave Banks, and Vacation Cash Payouts lays out the rules for earning, using, banking, and cashing out vacation. Here are some key takeaways. 

Who’s Eligible for Vacation? 

Eligibility depends on your employee category: 

• University Staff (excluding temporary employees) earn vacation immediately. 
• Academic Staff, and Limited Appointees earn vacation if they hold an annual-basis appointment and meet Wisconsin Retirement System (WRS) or minimum-hours requirements. 
• Faculty 
  • 9-month (C-basis) faculty only earn sick leave 
  • 12-month (A-basis) faculty earn both sick leave and vacation leave.  
• Rehired Annuitants can earn vacation if they meet the same criteria, but only hours worked after their annuity start date count toward eligibility. 

How Vacation Accrues 

Accrual rules vary by employee type: 

• University Staff 
  • Vacation is front loaded upon hire and again every July 1. 
  • Accrual rates increase with years of service and differ for exempt vs. nonexempt staff. For exact rates, please see this chart in the policy.  
• Faculty, Academic Staff, and Limited Appointees 
  • Earn 176 hours per fiscal year (prorated if part‑time). 
  • Cannot accrue more than 176 hours a year. 
  • Sabbatical leave does not interrupt vacation accrual. 

* Vacation is prorated based on hire date and hours in pay status 

Using and Carrying Over Vacation 

• Employees may use vacation from their first day—no waiting period; however, employees should be aware that vacation is front-loaded and not fully earned upon hire. Overuse of vacation could occur if the employee separates employment prior to earning leave they have already used. 
• Unused vacation can be carried over for one fiscal year. 
• Any carried-over hours not used by the next June 30 are lost. 
• Catastrophic leave donations and military leave accruals are exempt from these limits. 

Banking Vacation (Paid Leave Banks) 

Once you meet certain service milestones, you can “bank” unused vacation into a paid leave bank that never expires. 

• University Staff 
  • Eligibility depends on years of service, FLSA status, and sick leave accumulation. 
  • Banking limits range from 40 to 120 hours per year, depending on service. 
    • University Staff who earn vacation at the 200‑hour rate may receive a cash payout of up to 40 hours from their eligible banked leave. 
• Faculty, Academic Staff, and Limited Appointees 
  • Can bank 40 hours after 10 years of service and 80 hours after 25 years. 
  • Cash payouts are not allowed for these groups during continuous employment. 

Vacation Cash Payouts 

What Happens to Vacation When You Leave or Change Jobs? 

At retirement or termination, any accrued and unused vacation/banked vacation is paid out upon separation. If you used more vacation than you earned, you must repay the value. 

When moving to another UW institution or state agency, transferability of leave depends on the receiving employer’s policies. 

How Vacation Is Reported 

• Full-time employees designate a 40‑hour work week for reporting purposes. 
• Increments of reporting leave are dependent on employee type.  
  • University Staff (nonexempt) report leave in 15‑minute increments. 
    • Leave must be reported biweekly, electronically through Workday 
  • Faculty, Academic Staff, Limited Appointees, and Exempt Staff report in half day (4 hour) increments. 
    • Example: if an employee will be missing 3 hours of work, they must request for 4 hours of leave. If an employee will be missing over 6 hours of work, they must submit a full 8 hours of leave. 

Why This Policy Matters 

This policy ensures consistency across the UW System and gives employees clear pathways to earn, save, and use vacation in ways that support work life balance. It also protects employees earned benefits during job changes, retirement, or unexpected life events. 

Please utilize the resources below or reach out to UWL Human Resources Office to assist you in understanding your leave at UWL.  

• Time Off Balances and Reports Overview 
• Requesting Time Off (Absence) in Workday – Employee 
• UW Policy - Vacation, Paid Leave Banks, and Vacation Cash Payouts