News  OIG issued a report entitled Ratepayer Cost Burden: The Expense of Municipal Light Plants’ Sick-Leave Payouts

The Office reviewed the sick-leave policies at 40 municipal light plants in Massachusetts, including the plants’ policies for paying employees for unused sick leave.  That Office found that for some light plants, employees’ accrued sick leave represents a significant financial liability that ultimately is borne by their communities’ ratepayers. 

Over a six-year period, for example, 26 light plants paid approximately $10.7 million to 219 employees for unused sick leave, an average of more than $49,000 per employee.  Just three communities’ light plants accounted for $9.2 million (85 percent) of that total. The Office also found that light plants’ sick-leave policies vary widely, from paying employees for 100 percent of their unused sick time when they leave the plant to no payouts to departing employees. Also, certain light plants pay employees at the end of each year for 100 percent of any unused sick leave.

The Office recommends changes to light plant policies to bring them in line with either state or local rules on sick leave. The Office urges municipal officials to take an active role in overseeing the light plants in their communities, including conducting thorough reviews of light plant expenditures. Lastly, the Office recommends legislative measures, including requiring periodic audits and reporting leave balances.

To learn more, see: Ratepayer Cost Burden: The Expense of Municipal Light Plants’ Sick-Leave Payouts