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Vacation Leave
Benefits & Compensation
Vacation Leave
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Hi: One of our employees is interested in adopting a policy whereby an employee may take vacation in advance of it being earned. Any non-legal thoughts regarding such
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Forums » Topic Forums » Benefits & Compensation » Vacation Leave
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Vacation Leave
posted at 10/10/2011 10:26 AM EDT
on Workforce Management
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Posts: 10
First: 9/22/2011 Last: 1/20/2012 |
Hi: One of our employees is interested in adopting a policy whereby an employee may take vacation in advance of it being earned. Any non-legal thoughts regarding such an approach? Thank you. Dave Arnold, Ph.D., J.D. |
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Re: Vacation Leave
posted at 10/10/2011 12:48 PM EDT
on Workforce Management
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Posts: 174
First: 9/20/2011 Last: 2/11/2013 |
In Response to Vacation Leave: Hi: One of our employees is interested in adopting a policy whereby an employee may take vacation in advance of it being earned. Any non-legal thoughts regarding such an approach? Thank you. Dave Arnold, Ph.D., J.D. Posted by davearnold Dave This is a fairly common practice with a fairly low risk profile. As long as the employee is not on official or unofficial probation and the person is asking for a vacation advance that would not exceed the amount they would normally accrue in the next 6 months or so, the risk is of "overpaying" is slight. "I Trust This is of Assistance" :-)) Howard |
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Re: Vacation Leave
posted at 10/10/2011 12:56 PM EDT
on Workforce Management
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Posts: 147
First: 9/21/2011 Last: 2/12/2013 |
I agree with Howard that it is low risk, especially in a professional, low turnover environment. We also allow it at our professional locations. At our service/retail locations where turnover is much higher, the employee has to be there a certain amount of time and then they get a lump sum that is 100% vested/earned. In our vacation policies, we prorate the amount of vacation in the first year and the termination year. We do realize that an employee at our professional locations could "over-use" the amount but it rarely happens. We don't really allow it at our other locations. But do allow unpaid timeoff if they don't have enough paid timeoff. In some states, you can have the employee sign an authorized deduction form stating that if they leave prior to the vacation being accrued that the employer has the right to deduct from final pay. But that does assume there is final pay from which to be deducted. If there is no pay, then you could possibly go to small claims court, but who wants to go to that hassle for a few hundred dollars? |
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Re: Vacation Leave
posted at 10/14/2011 9:51 AM EDT
on Workforce Management
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Posts: 1
First: 10/14/2011 Last: 10/14/2011 |
We allow our employees to use their time in advance but our policy is that if employment terminates before year end, the value of the time used but not yet accrued is withheld from final pay. |
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Re: Vacation Leave
posted at 10/14/2011 11:10 AM EDT
on Workforce Management
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Posts: 174
First: 9/20/2011 Last: 2/11/2013 |
In Response to Re: Vacation Leave: We allow our employees to use their time in advance but our policy is that if employment terminates before year end, the value of the time used but not yet accrued is withheld from final pay. Posted by apulley Apulley- It is my understanding that: 1. Regardless of your policy, you may not make a deduction from the employees paycheck unless you have a written agreement to do so. 2. You can never make a deduction that will reduce the employees pay below the minimum wage for that period. |
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Re: Vacation Leave
posted at 10/18/2011 2:56 PM EDT
on Workforce Management
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Posts: 2
First: 10/18/2011 Last: 2/4/2013 |
Sorry about the legal territory, but DOL guidance does allow offset of vacation pay advances against final pay, even if it takes the employee's pay below minimum wage - see the discussion and cites at http://www.twc.state.tx.us/news/efte/allowable_deductions.html#vacationadvances. In many states, including Texas, such deductions would need to be authorized by the employee in writing. Tommy Simmons |
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Re: Vacation Leave
posted at 10/18/2011 5:26 PM EDT
on Workforce Management
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Posts: 173
First: 9/29/2011 Last: 2/11/2013 |
Besides serving the interests of one employee, what would you gain from such a policy? A bit of an administrative headache? The possibility of being stiffed if an employee leaves with a negative vacation balance? Possibly some good will (but don't count on it)? While there are a few - IMO, a very few - instances in which advance vacation might be warranted, such policies mostly serve those whose interests are outside the workplace. For them, a Leave of Absence policy, subject to the approval of the supervisor, might be more appropriate and would limit your financial exposure. It's been my experience that very few people use advance vacation. Some take all their annual vacation, many take less, and only a few go "in the hole" on vacation. |
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Re: Vacation Leave
posted at 12/14/2011 10:29 PM EST
on Workforce Management
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Posts: 1
First: 12/14/2011 Last: 12/14/2011 |
My suggestion: You can make it happen by making minor changes to the leave policy. there are two imp things that you need to add to the leave policy: 1. specify that employees can take advance vacation leave (provided manager approves) 2. if the employment is terminated, the company is within its limits to make recovery from the final pay. Also as a compliance issue, whenever an employee wants to take advance vacation he/she has to sign a consent agreement.
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