7-0116: Relocation Allowance

Purpose

The purpose of this policy is to provide direction and guidance to appointing authorities and the Department of Personnel Services (DPS) regarding the offer and approval of relocation allowances during the hiring process for hard-to-fill, critical, and unrepresented senior or executive leadership positions.

Authority

• Sacramento County Charter Article VII
• Sacramento County Charter Article IX Section 40
• Sacramento Code of Ordinances, Volume I, Title 2, Chapter 2.09
• Board of Supervisors Resolution 2025-0250

Scope

This policy applies to appointing authorities and eligible Sacramento County (County) job candidates entering into relocation agreements for hard-to-fill, critical, and unrepresented senior and executive leadership positions approved as part of the offer and acceptance of County employment.

Policy

It is the policy of the County to support and facilitate the recruitment of hard-to-fill, critical, and unrepresented senior and executive leadership positions by offering a relocation allowance when necessary to incentivize candidates with special skillsets to relocate and accept employment with the County.

This relocation allowance is intended to recruit qualified individuals to meet critical needs of the County and assist new employees in offsetting the expenses associated with relocating to Sacramento County.

The intention of this policy is to limit the use of relocation allowances to hard-to-fill, critical, and unrepresented senior and executive leadership positions.

Reimbursement

The County Executive Officer has the authority to authorize reimbursement for up to five (5) percent of an employee’s annual starting base salary at time of hire, or up to $10,000, whichever is higher. Under exceptional circumstances, the County Executive Officer may authorize an amount exceeding this limit.

Appointing authorities may request reimbursement beyond five (5) percent or $10,000 by including a compelling justification with their request. However, only the Board of Supervisors (Board) has the authority to approve or deny any request over the County Executive’s delegated authority.

The actual amount offered in each agreement should take into consideration the distance the new employee is required to move, the costs involved, and past practices. The agreement should specify the election of either relocation reimbursement or lump sum payment and the election is irrevocable. Any relocation amount offered must be approved by the County Executive Officer or designee, or the Board of Supervisors before becoming effective.

The actual amount of compensation for relocation shall be determined on an individual basis by DPS and approved by the County Executive Officer, or designee, and/or Board of Supervisors.

Moving expenses include the cost of loading, transporting, and unloading household goods and personal property. Covered travel costs include meals, rental vehicles, gas, parking fees, tolls and airfare. Meals will be reimbursed at the per diem rate.

Any approved reimbursement shall be made contingent upon employment, with payment being issued either as a lump sum or as a reimbursement following submission of receipts. Documentation demonstrating the relocation and/or receipts must be submitted within six (6) months of the date of hire.

Eligibility

The relocation allowance is only available to selected candidates for hard-to-fill, critical, and unrepresented senior and executive leadership positions who relocate from outside of Sacramento County.

In accordance with IRS rules, the assigned worksite for the position must be at least 50 miles farther than the candidate’s current work commute at the time of offer and their relocation must be within 40 miles of the assigned worksite for the position they are being offered.

Requesting Approval

The requesting department must submit a request to DPS that includes:

• The candidate’s current residence location and why relocation reimbursement is necessary to accept employment.

This request must be reviewed by DPS prior to routing to the Deputy County Executive of Administrative Services and County Executive Officer, or designee, for review and approval.

If the total reimbursement exceeds the County Executive’s delegated authority, the request will be presented to the Board for final approval.

An offer of the relocation allowance cannot be made without pre-approval. The requesting department is responsible for incurring the relocation allowance out of its budget.

Repayment of Reimbursement

Employees who separate from the County less than two years from appointment may be subject to reimburse the County for the relocation allowance as described below.

Exceptions to the repayment requirement include discontinuance of their employment due to death, illness, disability, involuntary separation (other than willful misconduct), or similar eventualities beyond the control of the employee as determined by the appointing authority.

Repayment shall be subject to the following:

The County may withhold funds from the employee’s final pay warrant for purposes of reimbursing the County for the relocation allowance.

Tax Implication

Any employee who receives relocation allowances is responsible for all tax consequences. Under current IRS regulations, the relocation allowance paid to a new employee is considered compensation and will be added to the employee’s W-2 statement at the end of the year. These rules are subject to change, and it is the responsibility of the recipient to understand the tax consequences prior to accepting such reimbursement.