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Vacation and Introductory Period
Benefits & Compensation
Vacation and Introductory Period
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
We are a CA employer and currently begin vacation accruals at the time of hire and also have a 90 day introductory period. Employees are eligible for medical benefits after the 90 day intro period.
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Forums » Topic Forums » Benefits & Compensation » Vacation and Introductory Period
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Vacation and Introductory Period
posted at 5/28/2010 3:47 PM EDT
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Posts: 160
First: 12/5/2002 Last: 4/26/2011 |
We are a CA employer and currently begin vacation accruals at the time of hire and also have a 90 day introductory period. Employees are eligible for medical benefits after the 90 day intro period.
My boss would like to change our policy so that if employees quit or are fired during the 90 day period we are not obligated to pay the vacation. I said we can definitely change our policy and the best approach was to simply not begin the accruals until after the 90 day period. Simple. He does not want to delay the start of the accruals because this will somehow mess up the accounting for this. In other words, we would start the accruals (which appear on the paycheck), but have a policy that they would not be available or paid until after 90 days. I am of the opinion that this can't be done legally. Once you accrue it is due in CA. Period. Does anyone have experience or know of another CA employer that had it set up this way? |
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Vacation and Introductory Period
posted at 5/29/2010 9:14 AM EDT
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Posts: 562
First: 11/12/2009 Last: 9/14/2011 |
Well, you're right. You have to pay out accrued PTO upon termination in CA. Period. Your boss will have to change his precious accounting system - if this will save some serious money, it's an effort he should be willing to make.
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Vacation and Introductory Period
posted at 5/30/2010 11:46 AM EDT
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
On a side note, you should change the waiting period on your health plan as well. Attracting new employees has to be a challenge unless you are paying near the top of the scale since you're forcing new hires to elect COBRA for several months before they can join your plan. The waiting period on your health plan should be 1st of the month following 30 days so that new employees don't need to worry about HIPAA or COBRA. |
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