Donating Hours - Endangering Exempt Status

Chuck Clarey · June 2001

We have a program that allows employees to donate vacation time to another employee in the event of a long term emergency. Typically hourly employees can donate hours.

A question was raised on exempt associates. They were limited to donating time in units of days rather than hours.

My question - would allowing exempt associates to donate half or partial rather than full days in any way endanger their exempt status?

Mike Maslanka · June 2001

i don't see why it would,but i think doing this has all sorts of other issues...first, a tax one---if it's paid vaction,as it most surely is,who pays the tax,the one donating or the one receiving?...second,everyone needs vacation time---what seems like a nice,generous idea now,may strike the donor as unwise when she wants to get out of the texas heat this summer and finds she's out of vaction time...third,if you do this set a cap on *how* juch time the employee can donate...good luck and best regards from texas,mike maslanka

System · June 2001

Here are links to a couple of other Employers Forum threads on the topic of donating vacation time. They don't directly address your question, but you might glean some good information from them:

[url]http://www.hrhero.com/employersforum/DCForumID14/8.html[/url]

[url]http://www.hrhero.com/employersforum/DCForumID18/5.html[/url]

Christy Reeder
Website Managing Editor
[url]www.HRhero.com[/url]

Donating Hours - Endangering Exempt Status

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