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Category: Accruals & Time Off

Should You Adjust Your Paid Time Off (PTO) Policy During COVID-19?

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If your employees are back to work, you’ve probably established new policies to comply with social distancing guidelines. You’ve most likely worked out new policies regarding how to handle documents, time tracking, customer service, and more. You have gotten this far, but have you considered taking a look at your current time off policy?

Most people can’t travel like they used to, which means that many employees aren’t using their PTO as they normally would. What are you going to do with those hours? Allow them to rollover their hours to the next year? Are you going to implement a use-it-or-lose-it policy? There’s a lot to consider now that the coronavirus has changed the way people work. What are you planning on doing with your PTO policy?

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Can You Require Employees to Use PTO?

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Paid time off (PTO) is a fantastic benefit that employers provide for their employees. In fact, recent studies show that 65% of business owners provide PTO benefits for their employees. Employees with time off benefits have higher morale and better work-life balances, which increases employee retention. So, it’s no wonder why employers choose to give their employees time off throughout the year.

Many employees enjoy the freedoms they get with time off benefits, but there are times when employers must manage time off consumption. For instance, it’s especially common for employers to restrict PTO during busy seasons or require employees to use their time off during slow periods. Although this might cause the employee inconveniences, an employer has the authority to dictate how and when PTO is used.

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Negative Leave Balance – Should You Allow It?

allow negative accrual balance?

Occasionally, employees need to take more time off than they have accrued. Early time off requests might come up for any number of reasons such as unexpected family visits or holidays soon after being hired. Whatever the reason, it often happens that employees want to take more time off than they have earned. Employers need to decide if negative leave is acceptable for their business.

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What To Do When Employees Don’t Show Up for Work – Make an Attendance Policy

Create an attendance policy for employees that don't show up for work, no call no show

The excuses employees give when they’re late or don’t show up for work can be a little hard to believe sometimes. Hearing them again and again can be tiresome too. Nevertheless, you should treat each case individually and with care because sometimes absences happen for good reason. Create an attendance policy that deals with tardies, excessive absences, and the dreaded no call no show.

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Accruals By Hours Worked – Satisfy Sick Time Requirements

sick time reqirements, accruals by hours worked

Many employers must use the by hours worked accrual rate to satisfy state and local sick time requirements. The laws that require employers to offer sick time also mandate the way in which that time accrues.

But that’s not its sole purpose. It is also a useful accrual rate for part time or temporary hourly employees because it helps keep employees from earning too much time off at times when they may not be working a regular schedule.

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Choosing Your Vacation Rate and Time Off Accruals

Vacation rate

When a company offers vacation time or PTO, they have to decide on a vacation rate for the accrual. There are a few options. Vacation time can accrue by hours worked, by the day, the week, or pay period. Alternatively, employers can choose to give out a lump sum at the beginning of the year. There are many rates to choose from and they are all suited for different needs and scenarios.

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Use It Or Lose It – A Good Time Off Policy?

use it or lose it time off policy

Not every company chooses to put a cap on time off  since not everyone considers rollover a problem. But for those companies that do, there are a couple of ways in which to cap it. One of those is by zeroing out time off balances at the end of the year. This is called a use it or lose it time off policy. Employers don’t always realize it but this type of policy can cause conflicts in work flow and employee engagement.

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5 Things to Consider When Creating a Paid Time Off Policy

Time off policies

Whether your paid time off plan is complex or pretty basic, you should take the time to lay out the details and create a policy. Besides the amount of time and the rate at which that time accrues, there are other important considerations to consider. For example, a policy helps companies cover their bases legally. It also helps prevent misunderstandings.

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