Aligned with University goals of sustaining growth in key areas including financial aid for students and salaries and support for faculty and staff while strengthening our financial stability, several benefits changes will take effect as of the new fiscal year, beginning July 1, 2026:
Narrowing the Vacation Benefits Gap
Historically, exempt and nonexempt staff members at Lehigh have not earned vacation time at the same rate. This gap will be narrowed by increasing nonexempt vacation benefits in years 0 through 10, beginning in the new fiscal year.
Modifying Vacation Carryover for Staff
Currently, all classified staff may carry over up to the equivalent of one year of vacation days earned. Vacation balances of up to that amount may then be paid out at the end of employment. Effective with the start of the next fiscal year on July 1, 2026, the carryover and payout amount will move to a 12-day maximum for all exempt and nonexempt staff. Employees will have until June 30, 2027 to spend their vacation balances down to the new maximum.
Ending Vacation Carryover for University Leadership Positions
Currently, University leadership (unclassified staff) positions may carry over and be paid out for up to one year’s accrual upon separation. Effective July 1, 2026, this carryover and payout will be eliminated. Employees in these positions will have until June 30, 2027 to spend their balances down.
Learn More
More detailed information regarding these changes can be found in the FAQ below.
A representative group of faculty and staff participated in a Benefits Review Working Group which provided a set of recommendations regarding non-medical employee benefits to University leadership. An executive summary and link to their full report can be found at this link.
Frequently Asked Questions
The working group was a representative group of volunteer faculty and staff members who were charged with reviewing Lehigh’s non-medical employee benefits and providing recommendations for potential changes that would allow us to maintain strong employee support, hiring competitiveness, and financial sustainability.
The chief fiscal officers of the institution must make decisions regarding budget expenditures with a focus on Lehigh’s mission and long-term goals. Reviewing a variety of areas of the University’s budget and making changes in areas such as this allows Lehigh to sustain growth in key areas while simultaneously strengthening the institution’s financial stability. Current areas of growth include financial aid for students and salaries and support for faculty and staff.
Lehigh is narrowing the gap of vacation accrual benefits between exempt and nonexempt staff in early and mid-career by increasing the rate for nonexempt staff in years 0 through 10 to align more closely with the exempt vacation accrual rate.
The new rate of vacation accrual for nonexempt employees as of July 1, 2026 will be:
0-4 Years: 14 days (previously 10 days)
5-9 Years: 16 days (previously 15 days)
10-14 Years: 20 days
15+ Years: 25 days
Effective with fiscal year 2026-27, the carryover and payout amounts for vacation leave will move to a 12-day maximum for all exempt and nonexempt staff. Employees have until June 30, 2027, to use any vacation balances over and above the new 12-day maximum.
If you leave employment at Lehigh before July 1, 2027, you will receive a payout of remaining vacation days up to the new payout maximum of 12 days of unused vacation leave.
Yes, vacation carryover and payout for University Leadership (unclassified staff) will be eliminated effective July 1, 2026. These employees also have until June 30, 2027, to spend down their current vacation balances. This change impacts approximately 21 positions at the University.
The Benefits Review Working Group provided recommendations in a number of areas. University leadership continues to review the recommendations in the context of the need to optimize university resources while meeting our goals.
Further changes under consideration will be implemented in ways that minimize disruptions and changes to existing employees, spouses, and dependents currently using benefits.
University leadership plans to share further decisions with the faculty and staff community in the fall.
In the next 12 months, Lehigh will engage an outside firm to conduct a comprehensive compensation and career framework review for all staff positions. This may take several months to conclude once it is underway.