How to Change PTO Policy-Help

jmcaa

We have paid time off (vacation, sick, anytime)at the following levels:
0 to 2.99 yrs = 12 days; Max. Carryover 30 days
3 to 4.99 yrs = 15 days; Max. Carryover 30 days
5 to 9.99 yrs = 18 days; Max. Carryover 36 days
10 to 19.99 yrs. = 21 days; Max. Carryover 42 days
20 to 29.99 yrs. = 24 days; Max. Carryover 48 days
30 to 34.99 yrs = 27 days; Max. Carryover 54 days
35 to 39.99 yrs. = 30 days; Max. Carryover 60 days
40 to 44.99 yrs. = 33 days; Max. Carryover 66 days

We want to lower these numbers, specifically the Maximum Carryovers. We would like to take the total accrued leave as of Dec. 31, 2003 and pay out any hours over 54 days (432 hours). This will make the maximum carryover 54 days (432 hours). Then maybe the following year do it again and change the maximum to 48 days (384 hours).

Is there any easier way to do this? Employees are in KY, TN, and NC.

Don D

Although rather complicated to administer, sounds as reasonable as any approach to me and one the company can perhaps easily afford. When I worked for the state, at one time we had unlimited leave buildup of what was called 'annual leave' (vacation). It was so out of hand that the state implemented a system of partial payouts just like you are thinking about. Initially they paid out all days over 75, then next year all over 50, then skipped a year or so and paid out all over 40. 40 were then paid out at termination or rolled into retirement. It gave everybody what they had coming and also accommodated the budgeting process.

moneyman

[font size="1" color="#FF0000"]LAST EDITED ON 08-08-03 AT 09:18AM (CST)[/font][p]Our policy allowed for 34 days carryover when management decided to change. They basically gave everyone a warning at mid-year that this policy was going to change to 5 days rollover which needed to be scheduled within January of the following year (this allowed for people to save time for holiday vacations). We had one employee had to schedule more than one week every month for the rest of the year in order to get down to only 5 at December 31st. I didn't think that this was fair, but that was the decision that was made.

Going through this situation before (and from the feedback I received from the employes) I would certainly think of your employee opinions and morale. I think that a graduated schedule that you are proposing is good, and I think that you need to give warning a quickly as possible. I would also explain the entire proposal so that they know that the reduction will take place over the next few years and that in 200X you will only have XX rollover. This would just be a courtesy but courtesy to your employees can go a long way with employee morale. Employees will see this as a benefit that is being taken away from them. Our company did not offer disability and by building up a PTO bank, they felt comfortable that if needed for a medical emergency, they would be taken care of. Also, our company did not have any provisions for paid maternity leave so women would save and plan for that too. It was viewed as a lost benefit when they took away the rollover provision. They felt like the company did not care if they had a short-term illness (that disability probably wouldn't have picked up yet anyway) and most could not go one month without pay. Their answer came later, they allowed donations of PTO between employees, however only for serious conditions.

Back to your situation, since it appears that you plan on paying it out, advance notice will allow those employees to decide if they will take the pay out, or just schedule a little more time and I think that they can feel like they are taking part of the plan vs. having is shoved down their throats.