12 Answers to Common Paid Time Off Questions
When it comes to workers and the amount of time they are allowed off, there are plenty of different questions that come up. However, what are the actual answers to these questions? Here are 12 of the most common questions an employer is going to hear about paid time off and the answers to each question.
1. Average Number of Paid Holidays
Every place of business is going to have different paid holiday numbers. However, the average inside of the United States is between 9 and 10. Some do provide as high as 15 and most also have at least one floating holiday.
2. Are Employees Required to Provide PTO
There is no federal requirement to offer up paid time off, although there are many holidays that most employers observe and pay their workers. In general though, it is desirable to offer PTO in order to attract the top workers around.
3. PTO Plans vs. Vacation and Sick Time
The PTO plan lumps everything into a single offering instead of separating it. This way, individuals who are not sick as often can use the days for vacation time. It also becomes easier to forecast vacation days instead of random sick time.
4. Credit Paid Holidays That Occur Over Vacation?
In order words, if someone is taking vacation during a holiday (such as Christmas) should you credit it? While there is no rule, it is good practice to credit it. Otherwise, an individual is just missing out on one of the PTO days, which isn’t a good look for the company.
5. What Should Be Done About Workers Who Take Off Unscheduled Days Before/After Holidays?
This is in reference to someone taking off the day before Labor Day, 4th of July or another typically paid holiday without any warning. This is something that happens a lot but can cause problems within the office. That is why it is necessary to consider discipline measures for individuals. It is better to have employees schedule this.
6. What is the Most Common Number of PTO Days Given?
The standard number of vacation days is 10 after a full year of work. This goes up to 15 after five ears, 18 days after 10 years and 20 days after 15 years of service. Generally, the highest number of PTO days is 20 to 25. Some companies base this off of either the first of the year or the anniversary of when someone is hired.
7. What About Unlimited Vacation Time?
This is becoming more and more popular with new companies. This is something that is possible with salaried workers, although when it comes to hourly workers, it is a rather difficult thing to administer. Unlimited vacation does make it easier to avoid tracking time on the job, plus it is a very attractive aspect to offer when bringing in the very best workers.
8. What to Consider When Creating PTO Donation Program?
There are a few different ideas someone needs to follow through with and consider when creating a PTO donation program. This is where some employees donate time to other employees in order to help cover medical time off, family problems or other unavoidable issues. Some points to think about is who is eligible for the donations and how to figure out administrative details.
9. What Should New Hires Receive?
How much paid time off should new employees receive? This is often a tricky question as it needs to be enough to entice someone to apply for the job, but longer tenured workers should receive more. Generally, it ranges between five and 10 days. Some companies bulk sick days into this offering and it comes out to 10 to 15. There is also an accrual program that can be included, where these days continue to accumulate.
10. Carry Over Days
This comes down to what you think is right. Some employers offer a use it or lose it policy, so days are unable to carry over. The downside to this is if someone doesn’t use their time, it might result in a large number of employees not coming into work for the final several weeks of the year. Allowing carry over days may prove beneficial, but there is no rule behind it.
11. Cash Out?
Perhaps instead of allowing days to carry over, you can think about cashing in unused time. Maybe you pay out 50 to 70 percent of the allotted amount for the PTO. Many employees might actually take this, especially if they need the extra money. It also keeps employees on the job and can reduce productivity loses.
12. Pay Vacation Days When Firing?
If someone is fired, do they receive compensation for the days they have left? This is something that varies from state to state. Check your state laws to see if it is required.
Article provided by Neches FCU, with locations in Port Neches, Nederland, Beaumont, Lumberton and Bridge City.
Neches FCU is one of the most trusted Texas Credit Unions. It has 9 convenient service locations, with a superior team of professionals ready to service their 45,000+ members. Daily, their core mission of “Ultimate Member Satisfaction” becomes the sole focus for every employee.