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Use it or Lose it vacation policies
Benefits & Compensation
Use it or Lose it vacation policies
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
I'm looking for a recommendation as to whether to adopt a use it or lose it vacation policy or to pay cash for vacation accrued above a certain amount.
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Forums » Topic Forums » Benefits & Compensation » Use it or Lose it vacation policies
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Use it or Lose it vacation policies
posted at 3/27/2000 4:55 AM EDT
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Posts: 14
First: 10/1/1999 Last: 5/24/2000 |
At my Company we utilize a use it or lose it policy. We want people to take the vacation time to get away from work to decompress. For the most part there are no problems with it. We do allow an individual to carry over upto 40 hours with the Plant Managers approval.
At apervious Company we required that an indivudal use two weeks for vacation and then could sell any excess back. Most took all the time. I feel that people should use their time and not sell it. They need the time away from the stress of work. Good luck |
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Use it or Lose it vacation policies
posted at 3/27/2000 6:40 AM EDT
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Posts: 434
First: 6/14/1999 Last: 4/25/2001 |
As Cathieg noted, many states don't allow use it or lose it vacation policies. Please check with your state DOL before you do anything.
If your intent is to minimize an accrued liability, it might be better from both an ER and legal perspective to set a maximum accrual cap, beyond which the employee won't get any more vacation credit until some is taken. In it's opinion in knocking down "use it or lose it" policies, the California Suprement Court noted that an accrual cap set at 1 and 1/2 times the annual vacation entitlement would be acceptable. Example: Ernie Employee is entitled to two weeks of paid vacation per year. He has a vacation balance of 80 hours, or two weeks. Over the next 6 months, he doesn't take any vacation but accrues an additional week (40 hours) putting him at a balance that is 1 and 1/2 times his annual entitlement. Because he is at the max accrual amount, he doesn't get credit for any more vacation. Three months later, he takes a week of vacation; at that point, he accrues again until he once again reaches a balance of 120 hours. Note that if you do implement an accrual cap, it would be illegal in many states to automatically deduct excessive vacation balances to get people down to the max accrual cap (if you have any in excess). That'd fall into the same category as "use it or lose it". |
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