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Do any private employers pay unused traditional sick time at separation? (*not* PTO)
Benefits & Compensation
Do any private employers pay unused traditional sick time at separation? (*not* PTO)
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
Some state government agencies allow employees to use banked / unused sick time as additional service time to retire earlier; e.g. some may have months of sick time banked. I've heard some state agenc
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Forums » Topic Forums » Benefits & Compensation » Do any private employers pay unused traditional sick time at separation? (*not* PTO)
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Do any private employers pay unused traditional sick time at separation? (*not* PTO)
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Do any private employers pay unused traditional sick time at separation? (*not* PTO)
posted at 7/18/2009 1:55 AM EDT
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Posts: 49
First: 7/18/2009 Last: 8/17/2011 |
Some state government agencies allow employees to use banked / unused sick time as additional service time to retire earlier; e.g. some may have months of sick time banked. I've heard some state agencies also pay out unused sick time at separation.
Do any non-governmental employees pay out unused sick time at employee separation? I mean traditional sick time and not PTO (which is governed by various state law, and sometimes has to be paid at separation because it is more like vacation time). If any non-governmental companies do this, who are a few? And what justification do they have for doing this? Thanks very much. |
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Do any private employers pay unused traditional sick time at separation? (*not* PTO)
posted at 7/18/2009 5:03 PM EDT
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
I don't know of any private companies that do this. Some allow a sick bank to be accumulated in case of a long medical leave, but none I have heard that pay out sick time at termination.
That said, I do know of a few companies who pay some type of attendance bonus at the end of the year for employees who do not use more than a specific amount of their sick time. Kind of a reward for not using it. However, that can have cons -- i.e. sick people will come to work sick/contagious just to get a bonus. |
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Do any private employers pay unused traditional sick time at separation? (*not* PTO)
posted at 7/19/2009 11:53 AM EDT
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Posts: 464
First: 6/30/2004 Last: 11/22/2010 |
We do not pay it out upon termination. We allow it to accumulate with no cap.
My wife's employer (a state run college) does not pay it out either, but they do have a cap on individual accrual. |
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Do any private employers pay unused traditional sick time at separation? (*not* PTO)
posted at 7/20/2009 7:16 PM EDT
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
Some employers do pay out sick time, although it's relatively uncommon. Also keep in mind that some states mandate that it's paid out at termination. I'm sure you can check out the statutes in your specific state to see if that mandate exists.
Any company that uses a sick bank as a replacement for STD and LTD is very short-sighted. Consider the following: * Most group paid STD policies are relatively inexpensive, especially when you consider the potential liability of your entire workforce's sick bank. * STD plans usually pay between 60% and 70% of an employee's pay so that there's a financial incentive for them to return to work. I've never seen a sick bank that pays anything less than 100% unless it's supplementing an STD policy. * Do you as an employer really want to be determining whether or not a person is disabled? What parameters are you going to use to determine a disability? Do you actually want a detailed description of a disability that one of your employees has, especially if it's a sickness? A carrier is there as a buffer to manage the disability and ensure it's legitimate and something that should require 2 weeks off work doesn't turn into 12. * And for LTD, most of these policies pay to age 65. No sick bank could even remotely protect an employee that has a catastrophic disability. |
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Do any private employers pay unused traditional sick time at separation? (*not* PTO)
posted at 7/21/2009 10:47 AM EDT
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Posts: 79
First: 3/19/2008 Last: 10/15/2009 |
At my last empolyer, we only had PTO, no sick days, vacation, etc, except holidays. Made things much simpler. And so at separation the EE was paid for all unused PTO. |
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Do any private employers pay unused traditional sick time at separation? (*not* PTO)
posted at 7/21/2009 11:17 AM EDT
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
I'm an advocate of PTO banks. Just keep in mind everything that accrues in a PTO bank needs to be paid out at termination. So for employers in states where sick time does not need to be paid out at termination, additional liabilities could be accrued. On the flip side, the number of sick days + vacation days when kept separate is usually higher than the number of days off provided to employees in a PTO bank. |
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