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Vacation policy changes to support your health

Chevron's vacation policy provides you with time off to relax and recharge, so you can be safe and effective at work. Not taking vacation can have a direct impact on your health - increasing your levels of stress and anxiety. That's why, effective January 1, 2017, there will be some changes to the vacation policy for U.S.-payroll employees.

The core of our vacation program remains unchanged.

  • The amount of vacation time for which you qualify each year will not change.
  • You will earn (or accrue) vacation throughout the year at the rate of 1/365ths per day, just as you do now.
  • You can take vacation at any time during the year, even if you have not yet earned all of it.

What's Changing

Currently, you see your entire year's allowance in your vacation bank on the first work day of January. To allow greater transparency into how vacation is actually earned, your balance will show the amount you have earned as of the most recent pay period, minus any vacation you have already taken. Early in the year, this number may be relatively small because you earn vacation at a rate of 1/365ths per day. The amount will change with each pay period as you earn and take vacation.

You'll still be able to take your full annual vacation allotment at any time during the year, even if there aren’t enough hours displayed in your bank. If you take more vacation than you have earned, your vacation balance will show a negative amount until your accrual catches up. If you have a negative vacation balance when your employment ends, you won't be required to pay back the unearned hours already taken.

Taking time off is good for your health and productivity, and you're encouraged to use all of your vacation every year. That's why there will be a cap on vacation accruals. The cap is equal to your annual vacation allowance plus 80 hours. You won't lose any of the vacation you've earned; however, the cap will limit the amount of vacation you can earn going forward. The chart below shows the annual vacation and cap amounts based on years of vacation service.

Vacation Allowance and Cap

Years of vacation service Annual vacation Cap
0 - 4 80 hours 160 hours
5 - 9 120 hours 200 hours
10 - 19 160 hours 240 hours
20 - 29 200 hours 280 hours
30 or more 240 hours 320 hours

If you reach the cap, you'll stop earning (accruing) vacation until you take vacation and your balance falls below the cap. Once you reduce your balance below the cap, you'll begin earning vacation again. Any hours you could have earned while you were at the cap, will not be retroactively earned.

One Vacation Bank

With the new cap, there will no longer be a separate deferred vacation bank*. Instead you will have one bank — your vacation balance — which will reflect your earned vacation. In the event that you have earned vacation hours at the end of a year that you have not yet taken, they will remain in your bank. This means that your vacation bank may not reflect a zero balance on January 1. For example, if at the end of a year you have not used 20 hours of vacation, on January 1 of the following year you will have a vacation balance of 20 hours. Keep in mind that you are strongly encouraged to take your annual vacation each year, and to minimize carryover from year to year. Local business unit approvals regarding use of vacation still apply.

* If you have unused vacation at the end of 2016, you will continue to see a deferred vacation balance through the first quarter of 2017.

If your vacation bank is already in excess of the cap today, you should start working to reduce your vacation balance. Be sure to work with your supervisor or manager to determine the best way to do this. If you aren’t able to reduce your balance by the deadline, you'll be contacted directly regarding next steps for reducing your balance in accordance with the new policy provisions.

When your employment ends, you’ll receive a payout of your earned vacation as of your last day of employment, minus any vacation already taken. Advanced (unearned) vacation is no longer deemed earned for purposes of payout when you leave the company. With management approval and at the company’s discretion, if you are voluntarily terminating your employment, you may extend your termination date by the number of annual vacation days for which you qualify during the calendar year — less the number of any vacation days you already took – as long as you:

  • Are at least age 50, and
  • Have at least 10 years of Health and Welfare Eligibility Service, including five years since your last hire date.

You may not extend your termination date across calendar years.

Example: Mary
Annual vacation allowance: 240 hours (30 days)
Work schedule: 5/40
Years of vacation service: 30
Amount of vacation earned per pay period: 10 hours* (240 hours annual allowance / 365 days per year x 15 days per pay period)
Pay frequency: Twice a month

Mary plans to retire on March 31, 2017. On January 1, 2017, she has 80 hours of vacation remaining from her 2016 bank. She’ll earn another 60 hours of vacation in January through March (10 hours x 6 pay periods).

  • If she doesn’t take any vacation in 2017, she’ll receive a payout of 140 hours (80 hours from 2016 plus 60 hours earned as of March 31, 2017).
  • If she takes more vacation than she earned (for example, she takes her 2016 balance of 80 hours plus her entire 2017 vacation allowance of 240 hours, even though she hasn’t earned all of it), she won’t be required to pay back the amount she took but didn’t yet earn.
  • If she takes all of her 140 hours of earned vacation (80 hours from 2016 plus 60 hours earned in 2017), she won’t receive a payout of any additional vacation.

* Approximate amounts rounded to the nearest whole number.

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