Employee Ignites Controversy by Ignoring Crisis, Blaming HR Guidelines for Inaction
Paid time off encompasses a variety of paid leave types offered by employers and can include vacation time, sick leave, personal leave and holidays, notes career platform Indeed. When employees don’t use all of their allotted PTO within a certain timeframe, it can result in accrued time off.
“Accrued time off is a type of PTO policy where employees earn their paid time off based on how many working hours they’ve put in,” explains Indeed, adding that employees can accrue PTO on an hourly, weekly, biweekly, monthly or per pay period basis. “Accrued time off differs from lump sum PTO in that a company calculates how much time an employee can take off per year by the amount of time they work.”
Employees can either use their PTO throughout the year, carry it over to the next year, or receive a payout, depending on company policy. “In some states, when PTO accrues, it is considered part of an employee’s wages, and you cannot legally deny them this compensation by failing to pay out or roll over the PTO to another year if it’s unused,” warns Indeed.
While some companies prefer a “use it or lose it” PTO policy, this isn’t always effective. It might motivat employees to take their time off before the end of the year, notes Indeed, but it can be demoralizing in some cases. “If employees are too busy working hard to take their time off and then lose out on that accrued leave at the end of the year, they are likely to feel overworked,” reads the site.
One way for companies to deal with unused PTO is to convert accrual to benefits or incentives at the end of a calendar year. This gives staff a way to benefit from the paid time off, even if they are too busy to take a vacation. “Allowing employees to take their accrued PTO on a year-end paycheck or put it toward debt such as student loans ensures nobody misses out on the perks of a PTO accrual program,” Indeed suggests.
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