Question for HR People

My company has a policy where we are paid out for unused sick days at the end the year. There are some people that have scheduled vacation days for Christmas week that have unused sick days. One of the officers wants to convert their vacation days to sick days so we don't have to pay employees for the sick days and leave their vacation time on the books.

Is this allowed? Does it violate anything with the dept of labor rulings?

Thanks!

Re: Question for HR People

Sounds wrong to me!!

Re: Question for HR People

I'm not in HR, but that IMO is wrong!!!!!

unless your company has a PTO (paid time off) policy - meaning that your vaca and sick time is in one "bucket", that is wrong

Re: Question for HR People

I think it's wrong also - especially since it's a new thing this guy wants to do on the next check. People consider this as additional income and it's a perk for coming in on every scheduled day.

We don't have a bucket of paid time - scheduled days are charged as vacation days and unscheduled days are charged as sick days. If an employee runs out of one or the other they are given the option to trade it off but they are earned different ways.


Thanks for the feedback.

Message edited 12/19/2007 10:52:34 AM.

Re: Question for HR People

Bad idea from an employee relations perspective on many levels. I'm not sure if it violates anything, but the cash savings can't be worth the ajada that would follow.

A better idea would be to formally change the policy for 2008 and communicate the new policy ASAP.

Re: Question for HR People

Re: Question for HR People

and how "nice" of them to wait until the last few weeks of the year to implement this new policy. that is such BS.

Re: Question for HR People

Because vacation & sick time are benefits & not part of wages, they can change the policy on accrual, etc at any time (not retro if you are a California based employee).

Doing it retroactively is a horrible idea. Do you have an employee handbook that states vacation payouts? I believe an employee handbook can be considered a contract between employee & employer.

If you want I can fax you Dec 10th National Law Journal article on the litigation over vacation pay policies - citing law suits in Nebraska, Minnesota & California. It's more based on employees getting paid when they leave their jobs but it may scare your executive into not doing it for 2007. He can do whatever he wants if he issues a handbook update for 2008.

Re: Question for HR People

Barb, thanks for the offer but I don't think it will make a difference.

The handbook just states when you can be paid out for unused sick or vacation time. There's nothing in there that specifically says it's at the company's discretion to charge sick or vacation days when an employee is out (nor does it say they can't do this either). Traditionally and by definition, PTO was applied as I stated above.

I think it's just a bad move in terms of employee relations but if there's technically/legally nothing wrong with changing the policy like that there's nothing I can really do or say to stop them.


Thank you for all the input!!!!!