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Paid time off- where can I find defined rules?
Benefits & Compensation
Paid time off- where can I find defined rules?
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I handle HR for a small company in Illinois. Currently our PTO bank is decreased for any increment amount. All of our employees are salaried/exempt. Can coemone suggest where I can find information on
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Forums  »  Topic Forums  »  Benefits & Compensation  »  Paid time off- where can I find defined rules?

Paid time off- where can I find defined rules?

posted at 9/28/2009 8:19 AM EDT
Posts: 2
First: 9/11/2009
Last: 9/28/2009
I handle HR for a small company in Illinois. Currently our PTO bank is decreased for any increment amount. All of our employees are salaried/exempt. Can coemone suggest where I can find information on confirming if I am handling this correctly? From soem of the posts it looks like I shouldn't decrease for partial days worked. Any help is much appreciated.

Paid time off- where can I find defined rules?

posted at 9/28/2009 10:57 AM EDT
Posts: 1783
First: 11/11/2003
Last: 5/13/2010
Nickel-and-diming exempt staff to use their PTO for incremental time off isn't illegal.

Probably not a good management practice, though - especially with those who often put in more than 40 hours a week.

Paid time off- where can I find defined rules?

posted at 9/28/2009 12:11 PM EDT
Posts: 2146
First: 2/15/2006
Last: 9/14/2011
Agree that it's not illegal as long as the employer isn't docking pay for exempts for less than full day absences (and only then for specific reasons) unless it falls under FMLA.

There are business arguments for both small and large increments. It's going to depend on your population, environment and industry. We use a 2 hr standard pretty much. But I know companies that dock 15 minutes to only full or half days. Honestly if you have a problem with employees abusing the exempt system, then I would deal with them individually unless it is widespread. No exempt employee wants to be or should have to be managed down to the minute.

Paid time off- where can I find defined rules?

posted at 9/28/2009 1:20 PM EDT
Posts: 464
First: 6/30/2004
Last: 11/22/2010
rrupert lays it out very well. In our shop, if we crack the door, we get credit for the whole day. Yes, that opens the door for abuse, but we then discipline based on performance.

My wife's company (she is also exempt) uses a 4 hour approach.

Paid time off- where can I find defined rules?

posted at 10/5/2009 8:32 AM EDT
Posts: 198
First: 5/6/2006
Last: 8/29/2011
My company allows PTO to be taken in hourly increments for non-exempts. For exempts, if you are here over 1/2 of the day, not PTO time is required to be taken. Under that, 4 hours of PTO are required.

Paid time off- where can I find defined rules?

posted at 10/20/2009 7:40 AM EDT
Posts: 15
First: 9/18/2008
Last: 5/13/2011
Here are a couple of DOL opinion letters that allow using PTO in less than full day increments:

http://www.dol.gov/esa/WHD/opinion/FLSA/2009/2009_01_16_18_FLSA.htm

http://www.dol.gov/esa/whd/opinion/FLSA/2005/2005_01_07_7_FLSA_PaidTimeOff.htm

Forums » Topic Forums » Benefits & Compensation » Paid time off- where can I find defined rules?

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