Some of the most frequent calls we receive on the HRFix management hotline are about accrued vacation or PTO time. These questions include payment of accrued but unused vacation at the time of termination, buying back unused vacation or PTO time, or the implications of a “use it or lose it” policy.
Vacation and PTO time are a fringe benefit under federal law and employers are simply required to adhere to their own policy in most cases. However, some state laws are much more favorable to the employee and treat these benefits as “wages”. In these states, PTO must be paid at time of termination and cannot be forfeited if not used during the qualifying anniversary or fiscal year.
In working with thousands of employees over the past decade, we have learned that a large number of employees take every day off they can, be it sick pay, vacation time, PTO, personal days, etc.. There are also employees who never miss work. These employees actually feel stressed when away from work, even for vacation. Some label this group workaholics; others consider them dedicated employees. Whatever the label, the never-miss personalities are the employees who lose vacation or PTO time on a regular basis. How do employers ensure the never-miss employees are not punished for not using all of their PTO?
The FMLA Bank
A creative solution that works for several of our clients is what we refer to as an “FMLA Bank” policy. Our title may be confusing, because this policy is not just for companies whose employees qualify for protection under Family and Medical Leave Act (FMLA) and can be used by companies of any size. The way it works is simple: employers allow employees to “bank” their unused time off which can be used later for major events, with certain qualifications. Employers can limit the amount of “banked” time to two weeks, six weeks or twelve weeks.
Administration
The reason we call this the FMLA bank is because the banked time is not saved for vacation, but for those situations that would normally qualify for (unpaid) FMLA leave. Situations such as pregnancy, serious illness, deployment of a service member, and other causes which are clearly spelled out in the FMLA. Managers can then use the FMLA as a guide to determine if an employees situation qualifies for the use of ‘banked’ time off.
Benefit to Employee and Employer
With the FMLA bank system, a company can provide financial help to dedicated employees in a non-discriminatory manner, because those employees are more likely to have accrued time in this system. The benefit for the employee is obvious, it gives them some peace of mind knowing they’re still collecting a paycheck at a time of need, rather than having to rely solely on unpaid FMLA leave.
Sharing Programs
To really impact workforce unity, companies can allow their employees to donate saved time to other employees who have an emergency. This is done purely on a volunteer basis and can ONLY be requested by the employee who wishes to donate his or her time. We recently saw a company come together to support a fellow employee stricken with Parkinson’s disease. This became a rallying cry of sorts for the company and the employees who donated their time which had a lasting effect on morale and culture.
If you would like to review this policy and forms for your company, please give us a call and we will provide an electronic copy for you to review.
EEOC to Employers: Rethink What You Require of Your Applicants.
January 4, 2012In a recent “informal discussion letter”, the Equal Employment Opportunity Commission stated that the under the Americans with Disabilities Act, employer’s can only require a high school diploma for job opening if it is job-related and consistent with business necessity.
It won’t be long before a high school diploma can’t be considered a requirement for any position. Should it?
So What Does a High School Diploma Tell Us Anyway?
We’ve all met high school graduates that couldn’t spell, add, or structure a simple sentence. Was it because he was a sub-par student, or did he just receive a sub-par education? Not all students are created equal, but neither are the school systems. A high school diploma never guarantees any specific skill set, in fact about the only thing it guarantees is that its recipient graduated high school.
In 1970 Willie Griggs filed a class action lawsuit against his employer Duke Power Company. Griggs claimed that Duke’s “inside” transfer policy, which required employees who wished to transfer to higher paying positions register a minimum score on two separate aptitude tests and possess a high school diploma, discriminated against African-American employees in violation of Title VII of the 1964 Civil Rights Act.
After noting that Title VII of the Act intended to achieve equality of employment opportunities, the Court held that Duke’s standardized testing requirement prevented a disproportionate number of African-American employees from advancing to higher-paying departments within the company. Neither the high school graduation requirement nor the two aptitude tests was directed or intended to measure an employee’s ability to learn or perform a particular job or category of jobs within the company. The Court concluded that the purpose of these requirements was to safeguard Duke Power Company’s long-standing policy of promoting and increasing the pay of its white employees.
With this example, it’s easy to conclude that requiring a high school diploma has a disparate impact on protected groups and is not a bona fide occupational requirement. Much has changed since Willie Griggs won his case in 1970, unfortunately minority groups continue to disproportionately account for more than half of the annual 1.2 million students who fail to receive a high school diploma.
Do Your Positions REALLY Require a High School Diploma?
A recent Bureau of Labor Statistics survey shows the educational level Employers currently require for all their positions:
It’s a safe bet that 48% of the jobs in your company actually require a specific skill set more than they do a high school diploma. It’s time for employers to rethink their position on requiring high school diploma. The idea that 48% of all jobs in the United States require a high school diploma is a stretch at best. In addition, It’s only a matter of time before the EEOC begins to share the same view, especially when you factor in the disparate impact such a policy has on protected groups.
Job Specific Requirements are the Answer.
Many years ago when the American’s With Disability Act was enacted, HRFix created a position description template, which allowed employers to create a position description in minutes, that would define both the mental and physical requirements for any job.
Applicants now know in advance they must be able to verify they possess the various skills as defined in the job description, before they’re even interviewed. Utilizing this tool allows employers to zero in on the skill sets needed, expand their applicant base, and comply with the new position of the EEOC as well as negating a disparate impact claim that may be out there in your future!
The ADA Position Description Tool is located under the forms section of the HRFix website and can be found on HRFixOnDemand for non hrfix.com clients. For further information or questions please contact hrfix.com at (866) 240 6618.
Tags: Americans with Disabilities Act, duke power company, employment opportunity commission, equal employment opportunity, Equal Employment Opportunity Commission, high school diploma
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