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No Vacation Pay During Shutdown?
Benefits & Compensation
No Vacation Pay During Shutdown?
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
My company is looking at having a shutdown of 1-2 weeks, and not allowing employee's to use their vacation time to cover this tome off. Things are just that bad right now. My questions is this: Other
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Forums » Topic Forums » Benefits & Compensation » No Vacation Pay During Shutdown?
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No Vacation Pay During Shutdown?
posted at 3/2/2009 7:01 AM EST
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Posts: 12
First: 3/2/2009 Last: 1/27/2011 |
My company is looking at having a shutdown of 1-2 weeks, and not allowing employee's to use their vacation time to cover this tome off. Things are just that bad right now. My questions is this: Other than angering our employees, are there any issues with not allowing them to cover the shutdown with their vacation? Has anyone else been in this situation? |
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No Vacation Pay During Shutdown?
posted at 3/2/2009 7:21 AM EST
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Posts: 30
First: 1/29/2009 Last: 11/24/2009 |
I wouldn't think that there would be any issues unless there is something in your employee handbook that states otherwise. Vacation is a fringe benefit so it is at the employer's descretion when and if an employee can use it. |
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No Vacation Pay During Shutdown?
posted at 3/2/2009 8:10 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
What state are you in? Do you payout unused vacation at termination/layoff? If so, the company might just be delaying the inevitable liability and getting bad press to do so....especially if the 1-2 weeks turns into layoffs in the immediate future. Could the company compromise and allow part of it to be paid and part unpaid?
You also have to make sure that those 1-2 weeks match back to your "workweek" calculation for exempt employees. Because if you don't close a whole workweek, you would need to pay exempt employees 100% of their salary for the workweek. The workweek is not always the same as a calendar week. And you can't change it just for these two weeks. If you change it, it must be going forward. The DOL doesn't like companies messing with the "workweek" calculation except with very good reason. |
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No Vacation Pay During Shutdown?
posted at 3/2/2009 8:27 AM EST
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Posts: 12
First: 3/2/2009 Last: 1/27/2011 |
We are in Ohio, and yes, we do pay out unused vacation upon termination. We are hoping to avoid layoffs if we do this - it is not set in stone yet (I personally think we'll be laying off either way). I like the idea of a compromise though - had not thought of that. The thought of delivering this news to people that are already struggling is nauseating. |
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No Vacation Pay During Shutdown?
posted at 4/15/2009 9:01 AM EDT
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Posts: 4
First: 1/30/2007 Last: 8/17/2011 |
In some states, including WI, accrued vacation cannot be taken away from employees.
In addition, if vacation is not allowed, employees may be eligible for unemployment compensation for the period of the shutdown, as well as being paid for vacation later on in the year. The employer would be smarter to allow employees or even require employees to use vacation during the shutdown to reduce their unemployment liability |
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No Vacation Pay During Shutdown?
posted at 4/15/2009 12:37 PM EDT
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Posts: 1
First: 4/15/2009 Last: 4/15/2009 |
During our shutdowns, we require employees to use any accrued time they have. This way, they receive pay, time off and avoid the need to file for unemployment. This way, when you are back up and running, they aren't then requesting time off when you really need them. We also tell people that if they don't save their time as we required them to, they will also be "dinged" by way of our discplinary process for no paid time. |
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