2. Paid Time-Off From Work and Flexible Work Schedules
Chapter 8
Paid Time-Off From Work and Flexible Work Schedules
McGraw-Hill/Irwin
Copyright © The McGraw-Hill Companies, Inc. All rights reserved.

3. LEARNING OBJECTIVES Various types of paid time-off practices
Design elements of paid time-off practices
Federal and state regulation of paid time-off practices
Leave under the Family and Medical Leave Act of 1993

4. DISCRETIONARY PAID TIME OFF PROGRAMS
Holidays
Vacation
Sick leave
Personal days
Integrated paid time-off policies
Bereavement or funeral leave

5. PAID TIME-OFF TOPICS IN UNION BARGAINING
Jury Duty
Funeral Leave
Military Leave
Clean-Up Time
Preparation Time
Travel Time
Rest Periods

6. PAID TIME - OFF BENEFITS
In September 2006
$1.91 Per Hour / Per Employee
7.0% of Total Compensation
Military Leave, Least Common
12 Federal Holidays

7. FEDERAL HOLIDAYS New Years Day M. L. King Jr. Birthday
Washington’s Birthday
Memorial Day
Independence Day
Labor Day
Columbus Day
Veterans Day
Thanksgiving
Christmas

8. VACATION POLICY CONSIDERATIONS
Investment or Expense ?
Who is Eligible ?
How Many Days Per Service Time ?
One - Plan - Fits - All or Separate ?
Use Calendar or Fiscal Year ?
How Many at Once, and When?

9. UNUSED VACATION Carryover Provision Cashout Provision
Unused Days Added to Following Year
or “Use It or Lose It Provision”
Cashout Provision
Cash for Unused Days

10. VACATION REGULATIONS Private Sector Not Regulated
Benefits Taxed when Used
Employers Pay FICA and FUTA
Benefits Deducted as Business
Expenses
Multiemployer Plans Subject to ERISA

11. PERSONAL LEAVE Reasons for Time - Off Vary Usually Short - Term
Can Extend Vacations, Sick Leave
May be Subject to Carryover, Cashout
Benefits Taxed as Income
Employers Pay FICA and FUTA
Usually Days

12. BEREAVEMENT / FUNERAL LEAVE
Specifies Whose Death Qualifies
Generally for Immediate Family
Employers Set Number of Days
IRS Treats Benefits as Income
Employers Pay FICA and FUTA
Can be Deducted as Business Expense

13. JURY DUTY AND WITNESS DUTY LEAVE
Jury Duty Guided by Government Regulations
Unfavorable Treatment Prohibited
Violations Subject to Fines
FLSA Guidelines
IRS Treats Benefits as Income
Employers Pay FICA and FUTA

14. MILITARY LEAVE RETURN TO WORK POLICIES
Governed by USERRA of 1994
Service of Days: Report Following Day
Service OF Days: Report within 10 Working Days
Service 181 Days - 5 Years: Report within 90 Days
Disability: Report within 2 Years

15. MILITARY LEAVE EMPLOYERS’ OBLIGATIONS
Service of Days: Employee
Reinstated to Same or Similar Job
Service of 90 + Days: Employee
Reinstated to Same or Similar Job with Seniority and Pay Grade as if Leave not Granted

16. ON - CALL TIME
Time Spent During Off - Duty Time when Employee Might be Called
Personal Activities Restricted
Can be Mandated to Nonexempt Employees
Governed by FLSA Regulations
Paid if not Called?

17. SABBATICAL LEAVE
According to the Society for Human Resource Management, approximately 11 percent of large companies offer paid sabbaticals to employees and another 29 percent offer unpaid sabbaticals
Previously, only large companies were known for offering employees sabbatical leaves
Nowadays, about 16 percent of small companies and 21 percent of mid-size companies today do offer unpaid sabbaticals

18. VOLUNTEERISM Reasons companies offer leave:
Volunteer opportunities allow employees to balance work and life demands
Giving employees the opportunity to contribute to charitable causes on company time represents positive corporate social responsibility, enhancing the company’s overall image in the public eye
Paid-time off to volunteer is believed to help promote retention

19. FAMILY AND MEDICAL LEAVE ACT
Leave Generally Unpaid
Employed at Least 20 Weeks
Allowed 12 Workweeks within 12 Months
Both Spouses in Same Company Get Combined 12 Weeks
Health Coverage Still Effective

20. FLEXTIME SCHEDULES
Flextime schedules lead to lower tardiness and absenteeism
Flexible work schedules should lead to higher work productivity
Flexible work schedules benefit employers by creating longer business hours and better service

21. COMPRESSED WORKWEEK SCHEDULES
Reducing the number of times employees must commute between home and work.
Providing more time together for dual-career couples who live in different cities

22. TELECOMMUTING Increased productivity
Lower overhead costs for office space and supplies
Effective recruiting and retention practice for employees who strongly desire to perform their jobs away from the office
Employers may also increase the retention of valued employees who choose not to move when their companies relocate