Ask HR: Can We Make Employees Use Their Accumulated Vacation Hours?
Ask HR: Can We Make Employees Use Their Accumulated Vacation Hours?

Ask HR: Can We Make Employees Use Their Accumulated Vacation Hours?

Summer is upon us and over the next three months, there's a good chance your organization will be affected by an increase in employee vacations. But what if an employee decides against using their allotment of vacation time? The pros at HR Support Center receive these types of employee management questions on a daily basis and offer expert advice and feedback. Here's a look at how they recommend managing vacation time.

Q: Can an employer legally make their employees use their accumulated vacation hours?

A: Yes. An employer can tell an employee that they need to take time off. However, that rarely bodes well for the morale of the employee if they don't want to take time off.

Some employers have a “use-it-or-lose-it” policy where any remaining vacation time is lost if unused by a certain date. But these kinds of policies are not legal in all states. If your state doesn’t allow use-it-or-lose-it, or the employee isn’t willing or able to take off as much time as you would like, you could instead pay them for the hours they’re unable to use. This option is acceptable in every state and reduces the potential for low morale.

If you’d prefer that employees use up the time, it’s best to give them at least three months’ notice (even more is better) so they can plan for what they’ll do with their free time and coordinate with friends and family.

Be sure that you’re applying these policies and practices consistently across the organization. And if you’re introducing a new standard like use-it-or-lose-it, or payout on December 31st, make sure that employees are made aware of the policy in writing.

*This information is not intended for legal advice; if you have legal questions concerning a particular situation, you should consult with a licensed attorney. *

More to Discover

2019 Compliance Changes

2019 Compliance Changes

It’s critical that you’re aware of all the tax changes that could affect your organization in 2019. This session will include frequently asked questions, an overview of federal and state withholding updates and trends we are seeing in areas of Tax and ACA compliance. Speakers: Arlene Baker and James Schwantes Arlene Baker is a Senior Compliance Analyst with over 40 years of payroll and tax experience. She’s a member of the National Payroll Reporting Consortium focusing on IRS compliance, and she’s been a member of the national and local APA for 25 years. In 2003, Arlene was awarded the Ohio Payroll Professional of the Year award. James Schwantes is a Compliance Analyst with a legal and tax background. Prior to working at Paycor in the...

Proposed Department of Labor Rule to Update Regular Rate Requirements

Proposed Department of Labor Rule to Update Regular Rate Requirements

In late March, the Department of Labor (DOL) announced a proposed rule to clarify and update the regulations governing the regular rate requirements under the Fair Labor Standards Act (FLSA). Unless exempt, an employee’s regular rate of pay is used to determine how much he or she should be paid for working overtime. The FLSA generally requires overtime pay of at least 1.5 times the regular rate for hours worked past 40 hours per week. The proposed rule details what forms of payment employers can exclude when determining an employee’s regular rate of pay. The cost of the following items would no longer apply: Tuition programs Discretionary bonuses Payment for unused paid leave Wellness programs, fitness classes, gym access, onsite...

FLSA Law Update

FLSA Law Update

What new cases and issues are arising regarding FLSA? We’ll discuss the change from a narrow interpretation to a fair interpretation of exemptions by the U.S. Supreme Court and what other courts and the DOL think of it. We’ll also discuss the recently reintroduced opinion letters and the possible increase in the salary level threshold. Speaker: Brian Dershaw BRIAN G. DERSHAW is a partner in Taft Stettinius & Hollister’s Labor & Employment practice group. Brian has broad experience serving as counsel for companies of all sizes. He has appeared in state and federal trial and appellate courts in discrimination, harassment, retaliation, wrongful discharge, non-compete, trade secret and contract litigation. Brian works closely with...

Taking the Guesswork out of Employee Pay - Part 1

Taking the Guesswork out of Employee Pay - Part 1

Deep Dive - External Equity and Market Pricing Feel more comfortable with how you determine employee pay at your company by learning how to align market pricing with your business strategy, understanding survey data and market pricing steps. Speakers: Christine Ippolito & Joanna Hall Christine Ippolito, SPHR, SHRM-SCP - Christine is the Founder and Principal of Compass Workforce Solutions, LLC, a consulting firm providing strategic human resource expertise to small businesses to reduce exposure and increase profitability. She has served clients in a leadership capacity for 25 years in multiple industries and environments within Fortune 250, venture capital and equity-backed companies, as well as privately held and family-owned...