The city of Quincy, Ill. is trying to end a sick-day buyback program that hits the municipal budget with an approximate cost of $130,000 each fiscal year.

The buyback program has already been cut back in recent years, according to local news source the Quincy Herald-Whig. City employees had previously accrued a sick day for every month of service up to 60 in all. Past that point, or upon retirement or termination, the city paid out the unused sick days. New full-time hires now get to bank up to 40 sick days and earn nine per year, with the payment for overages set at half of an employee salary.

For employees with the maximum amount of sick time banked, the payout was equal to more than two weeks of additional pay each year. Although the Fair Labor Standards Act doesn't include any provisions for providing sick days or compensating employees for unused amounts, many municipalities have sick leave programs.

When businesses provide sick days and secondary monetary compensation when they aren't used, employee management software can help organizations keep accurate records and minimize the financial effects of such policies.

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