Decreasing Vacation/Sick time alottment
protecheyewear
1 Post
My company's president is considering decreasing paid sick time and vacation time. As it is, we only get 3 sick days per year and he wants to reduce it to 2 for everyone. That isn't my dilemma, however. Our current policy calls for 1 week paid vacation after 1 year and 2 weeks after 2 years (it maxes out at 2 weeks). He wants to change the policy so any new hires from now on would not be entitled to that second week of vacation until after their 3rd year. Anyone currently employeed but not at the 3-year mark would still get the two weeks on their second anniversary. Would this be legal in FL? Different benefits for different employees based on hire date? Does seniority apply here?
Comments
If nobody loses something they already earned, there should be no problem. The way you describe it, it sounds like people who are already on board will get their second week after their second year and only new hires will be stretched out to the third year for their second week. That shouldn't cause any problems. On the sick pay issue, I would not take accrued third days away, but I would not let anybody accrue past 2 going forward. I doubt you'd have a problem with that in any state.
I agree. I would "grandfather" those that are already at the limits or who started under the knowledge that they would get two weeks after their second year and start the new vacation accrual with new hires. You can definitely discriminate based on hire date/service. And as long as you are not taking away a benefit that has already been earned, you can change it going forward.
However, I would also try to consider what if any this change will have on recruiting and/or retention. And also whether you have a good policy for unpaid timeoff.
[quote user="HRforME"] However, I would also try to consider what if any this change will have on recruiting and/or retention.[/quote]
Bingo.
What sector/industry/business is your company in? What employee types will be affected?
[quote user="hr_gmc"]From a legal standpoint, this is fine to do. Taking away the third day of sick leave raises an eyebrow on this side of the keyboard, but technically speaking, it's still ok.[/quote]
There may be state issues here, so I wouldn't be quick to jump on certifying that. A review of how it is couched in the handbook, at the very least, would be in order. One wrong sentence and your sick time becomes de facto vacation time and, in some states, you can't simply whisk that away.
Sorry, I didn't take note of the state.
There also could be tort issues although I admit the ones that come immediately to my mind are probably not worth pursuing because there's only one day of pay on the table to squabble over. Finally, the lack of a statute does not mean that the status of sick pay is not settled in some ways under case law. I don't know Florida, so I can't say if there is an issue there or not.