Firms need to review PTO policies, as days pile up
An increasing number (42%) of employers are making changes to their PTO, vacation and sick day policies, as employees are reluctant to take days off during the unstable times of the pandemic.
As unused vacation days pile up, some employers (16%) are requiring employees to take time off to reduce the year-end build-up, according to a Willis Towers Watson survey.
‘Use it or lose it’ policies
The Insurance Market in Laurel, DE, is reminding workers of their “use it or lose it” policy, since it’s ruled out letting them carry over time.
But any policy needs to be clearly communicated to workers. In a recent court ruling, a California employer with a “use it or lose it” policy was forced to pay a laid-off employee for accrued vacation time. This is because the policy wasn’t in writing.
The court identified other factors to help firms draft an airtight policy:
• Identify the rights and obligations of both employer and employee, as well as the consequences of failing to schedule time off.
• Administer fairly, so it doesn’t result in one employee working many hours with minimal time off while another works fewer hours and takes more time off.
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