Exempt Vacation Pay

rla

Our exempt employees are required to use or loose their vacation pay. Exception to this if they request vacation time (30 days notice is required) and Supervisor is unable to grant due to dept requirements time off may be extended to next year with documentation to HR as to length of time allowed for extension. Exempt ee's are not paid for their vacation time on anniversary date - non-exempt are paid if they have not used the time.

Second issue: we also do not pay exempt ee's their accrued vacation time on termnationm, but we do pay non-exempt.

Do I have problems here I need to address and correct?

Hatchetman

Check your state's laws. Many of them prohibit "use or loose it " policies or require that all unused paid vacation time, including "paid annual leave" time, (and possibly other unused accrued time) be paid out at terminaiton

System

Hatchetman
We also require all salaried employees to use it or loose it. Where can I find the state laws on this for Missouri, Illinois and Arkansas? Thanks

Lola815

Definitely check your states law. I personally hate "use it or lose it" policies. We have a maximum that you can accrue and we pay out vacation when the employee terminates and we have the same rules for all employees regardless of there status...makes my job so much easier

njjel

Lola do you pay the employee for the vacation that they haven't used? We permit our exempts to carry over a certain amount of vacation time however if it isn't used they loose it.

Lola815

when a employee terminates, we pay them any vacation time and personal time that they have not used. We have a policy where you accrue your time off and you can accrue up to 280 hours of vacation, personal time you get 2 hours a month and accrue up to 48 hours and sick time where there is no maximum accrual rate. This has worked quite well for the company and employees. This way we don't have all our employee wanting to take time off at the same time (end of the year). Also, when employees terminate they are always happy to get their earned vacation and personal time they didn't use and they leave the company on a happier note. I think this has helped us avoid hard feelings and potential lawsuits.

Note: the owners of the company I work for try really hard to be kind and fair to their employees. It might seem like they are spending a lot on things that really are not nessesary, but it seems to help keep lawsuits away. I'm pretty sure that out of the 25 years they have been in business they have only had 2 lawsuits, which they won both.