1. (a) This subsection shall apply to excluded employees paid pursuant to section 599.612(a).

   1. (1) The following Voluntary Personal Leave Program (VPLP) shall be effective for all excluded employees [as defined in section 599.615(b)] who have permanent status and work full-time. As specified below, the VPLP allows eligible employees to receive additional leave time in return for a corresponding reduction in pay.
   2. (2) Each agency shall decide whether it will offer the VPLP. Participating agencies will notify employees of any program conditions and procedures. Employee participation in the program shall be on a voluntary basis, subject to their agency's approval.
   3. (3) Except for subsection (14) below, only permanent full-time employees are eligible to participate in the VPLP. The number of VPLP hours will be set by the Department with an equal reduction in pay. Interested employees may request the number of VPLP hours as established by the Department. Approval or denial of the request shall be at the general discretion of the agency and may vary within an agency. An agency may only approve up to the number of hours established by the Department. Salary ranges and rates shall not be affected because of VPLP participation.
   4. (4) Participating employees shall be credited with Voluntary Personal Leave hours on the first day of the monthly pay period following each month of participation in the VPLP.
   5. (5) Once approved, employees must remain in the VPLP for 12 months unless an agency establishes a lesser time period. Once approved for the VPLP, an employee agrees to remain in the program for that time period. In the case of a financial hardship, an employee's request to cancel participation may be approved by an agency on a case-by-case basis. The state reserves the right to cancel the VPLP on an agency, subdivision, or individual basis at any time with 30 days notice to the employee.
   6. (6) The maximum number of accumulated VPLP hours will be set by the Department. When an employee reaches the maximum number of hours set by the Department, the employee shall be removed from the VPLP.
   7. (7) When an employee is removed from the VPLP, the employee may not participate for a minimum of twelve (12) months and the employee is not eligible to re-enroll until the employee's VPLP balance is reduced to a maximum of one hundred twenty (120) hours.
   8. (8) Voluntary Personal Leave shall be requested and used by the employee in the same manner as vacation or annual leave. Requests to use Voluntary Personal Leave must be submitted in accordance with agency policies on vacation or annual leave. Employees may not be required to use Voluntary Personal Leave credits.
   9. (9) At the discretion of the Department, all or a portion of unused VPLP credits may be cashed out at the employee's salary rate at the time the VPLP payment is made. The application of this cash out provision may differ from agency to agency and from employee to employee. Upon termination from state employment, the employee shall be paid for unused Voluntary Personal Leave credits in the same manner as vacation or annual leave. Cash out or lump sum payment for any Voluntary Personal Leave credits shall not be considered as “compensation” for purposes of retirement.
   10. (10) Participating employees shall be entitled to the same level of state employer contributions for health, vision, dental, flex-elect cash option, and enhanced survivor's benefits he or she would have received had they not participated in the VPLP.
   11. (11) The VPLP shall not cause a break in state service, a reduction in the employee's accumulation of service credit for the purposes of seniority and retirement, leave accumulation, or a merit salary adjustment.
   12. (12) The VPLP shall neither affect the employee's final compensation used in calculating state retirement benefits nor reduce the level of state death or disability benefits the employee would otherwise receive or be entitled to receive nor shall it affect the employee's ability to supplement those benefits with paid leave.
   13. (13) The VPLP shall be administered consistent with the existing payroll system and the policies and practices of the State Controller's Office.
   14. (14) Employees on Enhanced Disability Leave, Nonindustrial Disability Leave, Industrial Disability Leave or Worker's Compensation for the entire monthly pay period shall be excluded from the VPLP.
   15. (15) Continued participation in the VPLP when an employee transfers to another agency shall be at the discretion of the new agency.
   16. (16) If any dispute arises about this VPLP, an employee may file a grievance under section 599.859 of these regulations.

2. (b) This subsection shall apply to excluded employees paid pursuant to section 599.612(b).

   1. (1) The following Voluntary Personal Leave Program (VPLP) shall be effective for all excluded employees [as defined in section 599.615(b)] who have permanent status and work full-time. As specified below, the VPLP allows eligible employees to receive additional leave time in return for a corresponding reduction in pay.
   2. (2) Each agency shall decide whether it will offer the VPLP. Participating agencies will notify employees of any program conditions and procedures. Employee participation in the program shall be on a voluntary basis, subject to their agency's approval.
   3. (3) Except for subsection (15) below, only permanent full-time employees are eligible to participate in the VPLP. The number of VPLP hours will be set by the Department with an equal reduction in pay. Interested employees may request the number of VPLP hours as established by the Department per biweekly pay period with an equal reduction in pay. Approval or denial of the request shall be at the general discretion of the agency and may vary within an agency. An agency may only approve up to the number of hours established by the Department. Salary ranges and rates shall not be affected because of VPLP participation.
   4. (4) Participating employees shall be credited with Voluntary Personal Leave hours on the first day of the biweekly pay period following each pay period of participation in the VPLP.
   5. (5) Each calendar year, the Department will designate two biweekly pay periods that are ineligible for VPLP participation. During these designated pay periods there will be no salary reduction and no VPLP hours accrued.
   6. (6) Once approved, employees must remain in the VPLP for 52 weeks unless an agency establishes a lesser time period. Once approved for the VPLP, an employee agrees to remain in the program for that time period. In the case of a financial hardship, an employee's request to cancel participation may be approved by an agency on a case-by-case basis. The state reserves the right to cancel the VPLP on an agency, subdivision, or individual basis at any time with 30 days notice to the employee.
   7. (7) The maximum number of accumulated VPLP hours will be set by the Department. When an employee reaches the maximum number of hours set by the Department, the employee shall be removed from the VPLP.
   8. (8) When an employee is removed from the VPLP, the employee may not participate for a minimum of twelve (12) months and the employee is not eligible to re-enroll until the employee's VPLP balance is reduced to a maximum of one hundred twenty (120) hours.
   9. (9) Voluntary Personal Leave shall be requested and used by the employee in the same manner as vacation or annual leave. Requests to use Voluntary Personal Leave must be submitted in accordance with agency policies on vacation or annual leave. Employees may not be required to use Voluntary Personal Leave credits.
   10. (10) At the discretion of the Department, all or a portion of unused VPLP credits may be cashed out at the employee's salary rate at the time the VPLP payment is made. The application of this cash out provision may differ from agency to agency and from employee to employee. Upon termination from state employment, the employee shall be paid for unused Voluntary Personal Leave credits in the same manner as vacation or annual leave. Cash out or lump sum payment for any Voluntary Personal Leave credits shall not be considered as “compensation” for purposes of retirement.
   11. (11) Participating employees shall be entitled to the same level of state employer contributions for health, vision, dental, flex-elect cash option, and enhanced survivor's benefits he or she would have received had they not participated in the VPLP.
   12. (12) The VPLP shall not cause a break in state service, a reduction in the employee's accumulation of service credit for the purposes of seniority and retirement, leave accumulation, or a merit salary adjustment.
   13. (13) The VPLP shall neither affect the employee's final compensation used in calculating state retirement benefits nor reduce the level of state death or disability benefits the employee would otherwise receive or be entitled to receive nor shall it affect the employee's ability to supplement those benefits with paid leave.
   14. (14) The VPLP shall be administered consistent with the California State Payroll System and the policies and practices of the State Controller's Office.
   15. (15) Employees on Enhanced Disability Leave, Nonindustrial Disability Leave, Industrial Disability Leave or Worker's Compensation for the entire biweekly pay period shall be excluded from the VPLP.
   16. (16) Continued participation in the VPLP when an employee transfers to another agency shall be at the discretion of the new agency.
   17. (17) If any dispute arises about this VPLP, an employee may file a grievance under section 599.859 of these regulations.

Note: Authority cited: Sections 3539.5 and 18502, Government Code. Reference: Sections 19824 and 19996.3, Government Code.

History

1. New section filed 5-4-94; operative 5-4-94. Submitted to OAL for printing only pursuant to Government Code section 3539.5 (Register 94, No. 18).

2. Change without regulatory effect amending section and adding Note filed 10-13-2014 pursuant to section 100, title 1, California Code of Regulations (Register 2014, No. 42).

3. Amendment of section and Note filed 9-8-2025; operative 9-8-2025 pursuant to Government Code section 3539.5(b). This action was submitted to OAL for filing and printing only and is exempt from OAL review and approval pursuant to Government Code section 3539.5(b) (Register 2025, No. 37).

4. Amendment of subsections (a)(3)-(4) and (b)(3)-(4) filed 1-13-2026; operative 1-13-2026. Exempt from OAL review and approval pursuant to Government Code section 3539.5(b) and submitted to OAL for filing and printing only pursuant to Government Code section 11343.8 (Register 2026, No. 3).