Limiting accrued vacation time

Paul in Cannon Beach

Our policy manual states:

"Vacation time may be accumulated up to a maximum of 24 days."

There has been some discussion about increasing the amount you can accrue to 30 days. Our employees earn between a half day and 2 days per month depending on length of service.

I have been asked to see how other organizations handle this. What's your policy?

Thanks!

Paul in Cannon Beach

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

So as you can see ours is very generous, but we are now concentrating on lowering the amount you may carryover. Having alot of Carryover for PTO shows a large liability on our financial statements.

Since you are only talking about VACATION time, I would think that 30 days carryover would definitely be enough.

HRQ

Our policy indicates maximum available PTO is equal to one year's earnings. The balance carries over year to year, the "bank" just can't exceed the maximum.

sonny

We are topped out at 400 hours. Obviously, very generous. It was only capped at all in the last few years cuz the auditors were having fits!!

NaeNae55

We have a PTO policy. We use the equivalent of 1 year and 11 months of total accrued leave. A long time employee who accrues 9.8464 hours per pay period (256 hours per year) maxes out at 490.67 hours. An employee with fewer years here may accrue 6.7696 hours per pay period (176 hours per year) and max out at 337.33 hours. This way even a new employee cannot work 2 years without being forced to take time off.

We also allow 2 floating holidays. Employees are eligible for these days on Feb 1st. The employee have the following 25 pay periods (we pay 26 times per year) to use or lose the time. No carryovers.

Good luck!

MrCreosote

Ours is limited to one and a half times the annual accrual, and that is the maximum carryover into a year, meaning that employees might go above the max in November or December but have to get under by year end.

Mentel

We also have vacation not PTO. We allow only a one week carry-over to the next year. It is our philosophy that employees must take their vacation. I am personally very much against carry-over. THEY NEED TO GET AWAY (FROM ME?). I just read an article about how American firms give less vacation than any other country. It is not uncommon for European firms to give six weeks off plus 14 holidays to all employees. I really feel that Americans do not enjoy life enough and spend too much time at work. Actually, I just want more time off!!!

neveradull

Ours reads maximum of 240 hours for vacation and sick leave is 1044.

WT

We do permit sick leave days to accumulate but vacation must be used up each year or it is deleted at the end of the year. Vacation may only be carried over by special permission from the General Manager and there must be some good reason (a big trip next year, sickness this year, special projects given by the employer that precluded taking time off, and so forth).

Accrued vacation is a liability that must eventually be paid and most likely at a higher rate of pay than when it was originally earned. If you do not mind the liability, then it is not a problem.

Leslie

Max hold for vacation is 30 days (240 hours)

Salary
0 - 3 years = 10 days
3 - 5 years = 15 days
5 - 8 years = 20 days
8 plus years= 25 days

Salary employees may sell 40 hours once per anniversary year, no matter how many hours they have in their bank. Additionally, they may do 40 hour administrative buydowns should they be in danger of hitting 240 hours.

Hourly
0 - 3 years = 5 days
3 - 5 years = 10 days
5 - 8 years = 15 days
8 plus years= 20 days

Hourly may sell 40 hours once per calendar year if they hit 230 hours.

Paul in Cannon Beach

Thanks to everyone who contributed. Our maximum is smaller than most but bigger than others. I will likely propose we raise ours slightly. Your responses were most helpful.

Paul in Cannon Beach