PTO Leave

[Guest Alice Back]

In October 1997 we switched from sick leave and vacation leave to Paid Time Off. Employees sick leave balances were grandfathered. Employees are allowed to use Grandfathered sick leave after 5 consecutive day of personal illness or injury. Sick Leave is no longer accrued.

PTO is accrued each pay period with carry over to the maximum allowable carryover. Once an employee meets the maximum carryover they stop accruing PTO until PTO is used. Since 1997 we are having a significant number of employees hitting their maximum on PTO and are no longer accruing PTO leave.

We are trying to address this situation so employees are not penalized for not taking Paid time off. Company executives are not willing to raise the maximum. Any suggestions?

[Sheila K]

Alice:

If your management team doesn't want to raise the maximum accrual, you probably aren't going to have a lot of choices. Since raising the max will cost $$$, so will most of the alternatives. We allow our employees to carry over a maximum of 80 PTO hours per year. After year-end, we review accruals, and the employee has 3 choices...

1. Any PTO hours over 80 paid in cash at 75%.

2. Any PTO hours over 80 may be transferred to RSB (reserve sick bank). In your case, adding to the sick leave total

3. Any PTO hours over 80 may be donated to a fund for employees on extended leave w/o sufficient PTO/RSB leave-administered by HR.

The 2nd & 3rd options should make your management happy. If you were to transfer to the sick bank, then the likelihood of those hours being used decreases drastically.

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Good Luck!!!

Sheila K 8^)

[Guest nac]

Sounds like a very labor-intensive environment - have you tried addressing the issue with your managers/supervisors?

I worked for a company that did the same thing; it generated a number of complaints but the bottom line was still use the time to start the accrual clock again.

I think Sheila pretty much covered the options; my only addition would be to set a number of hours (i.e. 40) that could be cashed out each year.