Paid Time-Off From Work and Flexible Work Schedules Chapter 8 Paid Time-Off From Work and Flexible Work Schedules McGraw-Hill/Irwin Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved.

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

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

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

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

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

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?

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

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

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 1 - 10 Days

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

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

MILITARY LEAVE RETURN TO WORK POLICIES Governed by USERRA of 1994 Service of 1 - 30 Days: Report Following Day Service OF 31 - 180 Days: Report within 10 Working Days Service 181 Days - 5 Years: Report within 90 Days Disability: Report within 2 Years

MILITARY LEAVE EMPLOYERS’ OBLIGATIONS Service of 1 - 90 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

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?

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

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

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

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

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

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