Salary Vacation Increments

HR In NH · January 2007

We currently require salary employees to use vacation in 8-hour increments only. So, if they need to be out a half-day or partial day, we just pay them as normal and don't charge their vacation.

I'm wondering how other companies do this....how do you require salary employees to use vacation time?

Thanks!

marc · January 2007

We like a four hour increment, but have allowed less when an EE is out of sick leave and will also be paid less than 80 hours for the two week pay period.

We require them to use vacation time to get to the 80 hours. There are discipline features when this happens. So, if they are short 1/2 hour, that is what is used. For those times when they are putting in for approval of something, like seeing their childrens teacher, we want it to be a four hour minimum.

HR In NH · January 2007

I appreciate your response. However, I would be concerned about how you are treating your salary employees. Exempt employees normally must receive their full salary for any week in which they perform any work, without regard to the number of days or hours worked. If you are regularly tracking their hours, adding in vacation time in 1/2 hour increments and disciplining them for working less than 80 hours, it sounds like they should be considered hourly, not salary.

Our salary folks all regularly work over 40 hours, so I would never consider making them use vacation time to avoid discipline if they fell short of 40 hours in one particular week. I think that would unfair - they wouldn't receive overtime for all the weeks their hours exceed 40 hours, so why would you make them use vacation time if they fell a little short of 40 during one week?

However, I am considering allowing vacation to be used in 4 hour increments, so that our folks have more flexibility and can take a 1/2 day without feeling guilty (which is what some of them have stated). However, if they work at least half the day, they will not be required to use any of their time, because they already put in plenty of hours normally anyway.

marc · January 2007

It looks like I wasn't too clear - we do not require exempts to do this since they are never short less than a full day's absence. In that case, we will require the use of leave banks for missing any full day increments.

neveradull · January 2007

We do full day increments only. For exempt we follow a basic in for an hour in for a day, and have seldom had an abuse problem that a simple conversation didn't resolve. We require a lot from our exempts and appreciate them. Those that
don't measure up don't last long. Ok, I will step down from my bankwagon now TGIF.

ray a · January 2007

One hour increments making sure they have 8 hours per day total. So, if they are an hour late, work 7 hours, they can charge 1 hour of vacation.

HRQ · January 2007

Our policy states if a salaried employee works at lesat 5 hours in a day, we pay the full day's salary, with no deduction to their PTO.

If they work less than 5 hours, we charge the balance to their PTO.
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A new manager just told me today there is a rule for "Key Exempt Employees" salaried over $50k annually. Evidently these employees' PTO cannot be charged for partial day absences.

Is anyone aware of this? I'll check the DOL website too...

HRQ · January 2007

I searched the DOL site, and verified with a local HR consultant, and the partial day issue applies to all salary levels. There is no special rule for "key" exempt employees.

E Wart · January 2007

Vacation time can be taken in as little as 4 hour increments or multiple of those. (The only exception would be those employees who are on an alternate works schedule, of course.)
I really get upset with Supv/Mgrs who allow employees to use vacation time just so they can get overtime. However, this is theirs to call (but I think they are stupid to do this.)
Anyway, if we are talking about an exempt employee, if they do come in at all, they are paid for the full day. However, we can "charge" their vacation time, (the same thing as 1/2 days) if needed. If they don't have any time off remaining, they get paid for the entire day.
E Wart

marc · January 2007

E Wart, did I understand this right? You are paying OT on vacation usage?

In Nevada, OT is only paid on time worked, not on vacation or holidays or sick days.

E Wart · January 2007

Yep! Manufacturing is a strange dog. I don't agree with this, but it has been established a long time ago. We pay overtime on vacation and holiday pay (for all our 8 locations in 7 states.) More than generous, I think. I did get this removed from the 16 hours of personal time that non-exempt employees get every year. I can't talk Managers into removing it from vacation because they say they wouldn't get employees to work on weeks that they took time off. (I agree at first, but then eventually they would... when the memory of the old days goes away.)
E Wart

HR In NH · January 2007

We do the same...vacation and holiday pay (plus bereavement pay) for our hourly folks counts as time worked for incentive reasons - however, PTO does not count towards hours worked.

marc · January 2007

You have PTO and vacation and holiday pay? I thought PTO replaced those leave banks?

Salary Vacation Increments

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