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Accident Leave Process

Accident Leave may be granted to regular employees who sustain a work-related personal injury. Employees approved to use accident leave receive 66 2/3 of their regular pay which is exempted from Federal and State taxes.

Accident Leave may fall within 2 categories:

  • Leave code ACC – equal to or less than 6 months; and
  • Leave code ACE – greater than 6 months.  Accident Leave greater than 6 months is exempted from Social Security taxes.

The Department of Environmental Health & Safety notifies the Human Resources Department of employees who have filed a work-injury claim. An HR/Benefits representative conducts a review of the accident claim and supporting documents to determine eligibility and approval of leave usage. Note: If appropriate medical documentation is not provided, accident leave will not be approved.

Employees who are approved to use accident leave are notified in writing (via email) by an HR/Benefits representative. A copy of the email is sent to the employee’s supervisor, departmental payroll preparer (for appropriate payroll processing), the departmental payroll approver (for approval of payroll processing) and the HR Payroll Representative. The approval email outlines the following information:

  • Date of receipt of First Report of Injury from Environmental Health & Safety;
  • Approval of accident leave with duration dates; and
  • Request of any additional documentation, if required.

Thereafter, employees are then able to record the ACC code (or ACE if applicable) on the time sheet(s). Any employee who elects to use accrued leave (ie. sick, personal, etc.) must notify the Human R Department in writing of the decision not to use accident leave.

Supervisors must maintain communication with employees regarding work schedules and leave usage especially as it impacts accident leave.

CAUTION: Supervisory approval of a time sheet that reflects accident leave is verification that the supervisor is in agreement with the information reported.

Payroll Preparers must monitor time entry for employees on accident leave. Payroll Preparers must:

  1. Reduce the employee’s bi-weekly pay in time entry by selecting the NAJ code (Negative Adjustment) and entering the dollar amount to be reduced. If the employee is on accident leave for the entire pay period, the preparer must enter the employee’s full bi-weekly rate with the NAJ code. If the employee is on accident leave for a portion of the pay period, the preparer must enter the appropriate pro-rated dollar amount for the NAJ code.
  1. Complete a Payroll Adjustment Form recording the ACC or ACE leave code and the applicable hours. Completing this form will ensure the employee’s pay will be adjusted accordingly. The form must be submitted to the HR/Payroll staff for processing by the established payroll deadline as identified on the posted departmental payroll calendar.
  1. Review the Preliminary Gross Pay Report to identify any potential discrepancies and work with the HR/Payroll staff for resolution for accurate payment and reporting on Final Gross Pay Report.

CAUTION: (1) If the Payroll Preparer does not enter a negative adjustment (NAJ) in time entry or submit the Payroll Adjustment Form, the employee will be at risk of overpayment as they could potentially receive the regular bi-weekly in addition to additional pay for accident leave. (2) A Payroll Preparer cannot process accident leave information (via time entry or payroll forms) for him/herself. The Payroll Preparer must communicate and make arrangements with the alternate Payroll Preparer for the processing of his/her accident leave.

Payroll Approvers must review the departmental time entry as well as any payroll-related forms. The Payroll Approver should question any accident leave transaction that does not consist of a negative adjustment and a Payroll Adjustment Form.

CAUTION: Approval of time entry and the signature on the Payroll Adjustment Form indicates the Payroll Approver’s agreement with the information recorded.

The business processes and guidelines identified in this document is to ensure audit compliance; accurate pay processing; and data quality checks between the departments and Human Resources.