Elimination of PTO carryover?

lashefHR · September 2009

Has anyone eliminated their PTO carryover policy? If so, what did you tell the employees? How was it perceived? Did you make any other changes to your PTO policy?

Thanks

TXHRGuy · September 2009

What state are you in? Are you certain you can eliminate saccrued PTO time without paying it?

lashefHR · September 2009

Good question. We are in GA. If our policy is 40 hours can be carried over, can I create a policy that eliminates the PTO carry-over for 2010 and encourage everyone to take their PTO in 2009?

TXHRGuy · September 2009

I don't think Georgia is a state in which Vacation time is considered to be earned compensation. However, based on some other things I read, it looks to me like you must pay what has been accrued in Georgia to your continuing, active employees but you needn't allow future carryover beyond that.

If you want to do something more aggressive than that, I advise you seek counsel. I couldn't find a statute on it directly.

LauLan · September 2009

Our company once reduced our PTO carryover amount. We gave the employees notice (about 6-8 weeks if I remember correctly) and encouraged those who would be immediately affected to take the appropriate amount of time, or request a payout of excess hours.

lashefHR · September 2009

Thanks for the help!

pfranklin · September 2009

We used to allow our employees to carry over two years of accural. We changed that policy to one year in July. However, we are giving employees with more than one year of accural until December of 2010 to use up their accrued time. In addition, we allow them to cash in up to two weeks per year. I was well received. Only about 10% of our employees had more than one year accural anyway. Most people understand changes if you give valid reasons for making the change. It's all about good communication; not only that there is a change, but why,

LHSsoccer13 · September 2009

pfranklin, I am just curious, what reason did your company give the employees?

Elimination of PTO carryover?

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