Except as otherwise provided, this subtitle applies to employees in the State Personnel Management System and employees in the Transportation Service Human Resources Management System.

There is a Sick Leave Incentive Program for State employees that allows for the payment for unused sick leave. The Secretary shall adopt regulations to administer the Program. A unit that participates in this Program shall submit to the Secretary at the end of each calendar year a report that includes: the number of employees receiving payment for unused sick leave; the total payment received by employees; the number of unused sick leave hours exchanged for payment; the total sick leave hours used during the calendar year; and any estimated overtime savings as a result of this Program.

The Sick Leave Incentive Program consists of the following two incentives: payment for up to 40 hours of unused sick leave per calendar year if an employee has used no more than 40 hours of sick leave during the calendar year and has a sick leave balance of at least 240 hours on December 31 of that calendar year; and payment for up to 56 hours of unused sick leave per calendar year if an employee has used no more than 24 hours of sick leave during the calendar year and has a sick leave balance of at least 240 hours on December 31 of that calendar year. To be eligible for the Program, an employee shall maintain a sick leave balance of at least 240 hours after payment is received for leave. For the purpose of determining eligibility for the Program, the following use of leave does not qualify as sick leave usage: sick leave that is used for a death in the immediate family; sick leave that is donated to another employee in accordance with the provisions of the Employee-to-Employee Leave Donation Program; sick leave that is donated to the State Employees’ Leave Bank; and sick leave that is taken in accordance with the Family and Medical Leave Act. Leave used for the purpose stated in paragraph (1)(iv) of this subsection shall not be used to determine an employee’s leave balance under subsection (b) of this section.

The payment, sick leave usage rate, and sick leave balance for a part-time employee will be prorated based on the employee’s percentage of employment.