Paid Time Off Benefits Soraya Montgomery Daniel Thai Tri Phan Nick Ionashku

WHAT ARE PAID TIME OFF BENEFITS? Definition: Any time not worked by an employee in which the regular rate of pay is accrued and paid to the employee.

ARE THEY MANDATED BENEFITS? Most paid time off benefits are not mandated Most paid time off benefits are not mandated Employers offer them to be competitive Employers offer them to be competitive and to attract and retain employees and to attract and retain employees

WHO QUALIFIES TO RECEIVE PAID TIME OFF BENEFITS? Varies by employer Varies by employer May have to accrue a certain amount of time before exercising benefits May have to accrue a certain amount of time before exercising benefits Full-time employees generally have more paid time off benefits than part- Full-time employees generally have more paid time off benefits than part- time employees time employees

LEGAL PUBLIC HOLIDAYS Nine or ten days per year Recognized by Congress NOT recognized by all employers

LEGAL PUBLIC HOLIDAYS New Year’s Day New Year’s Day President’s Day President’s Day Independence Day Independence Day Columbus Day Columbus Day Thanksgiving Day Thanksgiving Day MLK, Jr. Day Memorial Day Labor Day Veterans Day Christmas Day

States may have their own local and state holidays! For example: *California celebrates Cesar Chavez Day on March 31st.

WHO HAS TO WORK ? Law Enforcement Law Enforcement Hospitals Hospitals Emergency Agencies Emergency Agencies *May receive ‘holiday’ pay rate

EFFECTS ON EMPLOYER Boost employee morale Boost employee morale Employee’s need family time Employee’s need family time Rest and Relaxation Rest and Relaxation Attract & Retain Employee’s Attract & Retain Employee’s

JURY DUTY Your civic responsibility Your civic responsibility Most employers allow paid time off Most employers allow paid time off Courts provide some compensation Courts provide some compensation Most companies give regular pay Most companies give regular pay

LENGTH OF TIME GRANTED Varies depending on jurisdiction of case Varies depending on jurisdiction of case A few hours, a day, a week, a month…….. A few hours, a day, a week, a month…….. Employers may require verification Employers may require verification Done early? May have to report to work Done early? May have to report to work

BENEFIT TO EMPLOYER Show’s support for the employee’s Show’s support for the employee’s Employee’s don’t have to worry about financial strain / stress Employee’s don’t have to worry about financial strain / stress Gives employee’s stability Gives employee’s stability

MATERNITY LEAVE Definition The period of time during which you’re disabled due to pregnancy and childbirth. *up to four months

PAID FAMILY LEAVE & CA SDI September 23, 2002 September 23, 2002 State of California enacted first-in-the- nation paid family leave. State of California enacted first-in-the- nation paid family leave.

July 1, 2004 July 1, 2004 Nearly all non-governmental employees eligible to receive: Nearly all non-governmental employees eligible to receive: -up to six weeks Family Temporary Disability Insurance (FTDI) over a Disability Insurance (FTDI) over a twelve month period twelve month period

Benefits will replace wages to cover period Benefits will replace wages to cover period where a worker is unable to work due to: where a worker is unable to work due to: -care for an ill child, spouse, parent or -care for an ill child, spouse, parent or domestic partner domestic partner -birth, adoption, or foster care placement of -birth, adoption, or foster care placement of a child a child

ELIGIBILITY Upon hire Upon hire Begin to receive benefits after a seven- day waiting period Begin to receive benefits after a seven- day waiting period

Employers must provide a brochure to: Employers must provide a brochure to: -employees who start after 1/01/04 -employees who start after 1/01/04 -persons who request Paid Family -persons who request Paid Family Leave after July 1, 2004 Leave after July 1, 2004

FUNDING OF FTDI Increased payroll deductions 01/2004 Increased payroll deductions 01/2004 Based on a payroll tax schedule Based on a payroll tax schedule Average $27.00 per employee annually Average $27.00 per employee annually Top contribution capped at $70.00* Top contribution capped at $70.00* *those earning more than $72,000 annually *those earning more than $72,000 annually

California workers will be able to collect: California workers will be able to collect: -as much as 55% of their salary -as much as 55% of their salary -up to a maximum of $ per week -up to a maximum of $ per week

Employers with fewer than 50 employees: Employers with fewer than 50 employees: - not subject to Family Medical Leave Act - not subject to Family Medical Leave Act of the California Family Rights Act of the California Family Rights Act -therefore, no legal obligation to hold jobs -therefore, no legal obligation to hold jobs open for employees receiving FTDI open for employees receiving FTDI benefits. benefits.

AFFECTS ON EMPLOYERS Additional costs: Additional costs: -overtime to cover absent co-workers -overtime to cover absent co-workers -locating, hiring, and training -locating, hiring, and training replacement / temporary workers. replacement / temporary workers.

ADDITIONAL COSTS CONTINUED Administering the program Administering the program -verifying medical reasons -verifying medical reasons -verifying if the person being cared for -verifying if the person being cared for is a family member is a family member

BENEFITS TO THE EMPLOYER Supports employees with financial and job Supports employees with financial and job stability stability Recruitment & retention of personnel Recruitment & retention of personnel

Paid Vacation Time Paid Vacation Time Military Leave Military Leave Voting Leave Voting Leave Leave Banks Leave Banks

Vacation Time Paid vacation time Paid vacation time Length of service & level in the organization Length of service & level in the organization Employment anniversary date Employment anniversary date

Average number of vacation days in the United States Years of service Years of service Less than 1 year Less than 1 year 1 year of service 1 year of service 2 years of service 2 years of service 3 years of service 3 years of service 4 years of service 4 years of service 5 years of service 5 years of service 6 years of service 6 years of service 7 years of service 7 years of service 8 years of service 8 years of service 9 years of service 9 years of service 10 years of service 10 years of service 11 years of service 11 years of service 12 years of service 12 years of service 13 years of service 13 years of service 14 years of service 14 years of service 15 years of service 15 years of service More than 15 years of service More than 15 years of service Average days per year

Effects on employees Exempt employees Exempt employees Unused vacation days Unused vacation days Leaving the company Leaving the company Part-time workers Part-time workers

What is a military Leave? A military leave of absence is granted to employees who are absent from work because of service in the U.S. uniformed services A military leave of absence is granted to employees who are absent from work because of service in the U.S. uniformed services USERRA-Uniformed Services Employment and Reemployment Rights Act USERRA-Uniformed Services Employment and Reemployment Rights Act

Military Leave Requirements when returning to work Requirements when returning to work Less than 31 days Less than 31 days More than 30 days but less than 181 days More than 30 days but less than 181 days Longer than 180 days Longer than 180 days

Affected Benefits Health Plans Health Plans Other health coverage Other health coverage Charges Charges

Voting Leave States passing laws States passing laws Pay factors Pay factors

Leave Bank What is a Leave Bank? What is a Leave Bank? - Pooled fund of annual leave - Provides income protection - Used as though the individual had earned the leave - Substitute LWOP

Background Voluntary Leave Transfer Program Voluntary Leave Transfer Program Extensions Extensions Federal Employees Leave Sharing Amendments Act of 1993 Federal Employees Leave Sharing Amendments Act of 1993 Shared Leave Status instead of Shared Leave Status instead of Transferred Leave Status Transferred Leave Status Applies to officers and employees of executive agency or military departments. Applies to officers and employees of executive agency or military departments.

A Leave Bank Member Contribute annual leave Contribute annual leave Open enrollment period Open enrollment period Minimum amount of annual leave contributed Minimum amount of annual leave contributed Apply to be a recipient Apply to be a recipient

Applicants must provide the following information in writing 1. Name, position title, and grade or pay level 2. Reason why emergency leave is needed 3. Description of nature & severity 4. Certification from one or more physicians 5. And any addition information that may be required

Another Type Of Leave Bank Leave Bank as an innovation Leave Bank as an innovation Established by the American Foundation for the Blind Established by the American Foundation for the Blind Paid time off (Paid Leave Bank) Paid time off (Paid Leave Bank)

Paid Time Off Short Term Disability Short Term Disability Floating Holidays Floating Holidays Extended Illness Leave Extended Illness Leave

SHORT-TERM DISABILITY (STD) Definition Definition What’s STD What’s STD How does STD works How does STD works

SHORT-TERM DISABILITY (STD) Reasons for STD plans to deny Reasons for STD plans to deny Benefit employees Benefit employees Benefit employers Benefit employers CONTINUES

SHORT-TERM DISABILITY (STD) Statistics Statistics 40 percent of companies with 100 employees or more offer disability coverage 40 percent of companies with 100 employees or more offer disability coverage Less than 19 percent of companies with less than 100 employees provide this coverage Less than 19 percent of companies with less than 100 employees provide this coverage STD plan STD plan CONTINUES

FLOATING HOLIDAYS What’s Floating Holidays What’s Floating Holidays When can it be use When can it be use

EXTENDED ILLNESS LEAVE Qualification Qualification Paid Rate Paid Rate

Sick Leave.

Sick leave days are used for: Sick leave days are used for: for personal medical needs for personal medical needs to take care of family member to take care of family member adoption related purposes adoption related purposes

Sick Leave For personal medical needs For personal medical needs If an employee is unable to perform their regular tasks and procedures due to physical or mental illness, injury, pregnancy, or childbirth. If an employee is unable to perform their regular tasks and procedures due to physical or mental illness, injury, pregnancy, or childbirth. If an employee is receiving a medical, dental or optical examination or treatment. If an employee is receiving a medical, dental or optical examination or treatment. If presence at work jeopardizes the health of others If presence at work jeopardizes the health of others

Sick Leave To take care of family member To take care of family member A family member is considered: A family member is considered: spouse, child, adopted child, parents and parents of spouse, brother and brother of spouse, sister and sister of spouse and any individual related by blood to the employee. spouse, child, adopted child, parents and parents of spouse, brother and brother of spouse, sister and sister of spouse and any individual related by blood to the employee.

Sick Leave Who is eligible to accrue sick leave? Who is eligible to accrue sick leave? Regular full-time employees. Regular full-time employees. Regular part-time employees. Regular part-time employees. Often part-time employees accrue sick leave at a prorated rate. Often part-time employees accrue sick leave at a prorated rate.

Sick Leave California employers don’t have to offer sick leave but if the do they must comply with laws like the new measure, A.B California employers don’t have to offer sick leave but if the do they must comply with laws like the new measure, A.B The law applies to all private, state and municipal employers regardless of the number of people employed. The law applies to all private, state and municipal employers regardless of the number of people employed.

Sick Leave Demonstration calculator can be found at: Demonstration calculator can be found at: k_leave_calc_intro.pl k_leave_calc_intro.pl k_leave_calc_intro.pl k_leave_calc_intro.pl

Utilization of Sick Leave According to a survey done by ComPsych Corporation on March 9, 2004 The average number of sick days used per year by a salaried exempt employee was 3.8. The average number of sick days used per year by a salaried exempt employee was 3.8. Union hourly employees used 5.5 days. Union hourly employees used 5.5 days. Salaried nonexempt employees used 5.6 days Salaried nonexempt employees used 5.6 days

Utilization of Sick Leave According to a survey done by ComPsych Corporation on March 9, % of employees say they show up at work when ill. 77% of employees say they show up at work when ill.

Utilization of Sick Leave

Reasons why some employees take their sick leave days when ill, and others do not, are as follows: 33% said they come to work sick because their workload does not permit them take a sick day. 33% said they come to work sick because their workload does not permit them take a sick day. 26% said they feel the risk of taking off in the current work environment. 26% said they feel the risk of taking off in the current work environment. 18% said they save their sick leave days for children related activities. 18% said they save their sick leave days for children related activities. 23% said they take their sick leave days because they treasure there health. 23% said they take their sick leave days because they treasure there health.

Funeral Leave

Employees may be approved for leave with pay in cases of death of the following a spouse, parent, parent-in-law, step- parent, child, step-child, grandchild, brother, sister, son-in-law, daughter-in- law, aunt, uncle, niece, nephew, grandparent or person regarded as member of employee's immediate family.

Funeral Leave Some employers will even cover traveling expenses, if funeral out of town. Some employers will even cover traveling expenses, if funeral out of town. Typically a total of three days is given to an employee, to arrange and attend the funeral. Typically a total of three days is given to an employee, to arrange and attend the funeral.

Utilization of Funeral Leave In 1997, among full-time employees in medium and large private establishments, “81 percent were eligible to participate in paid funeral leave.”

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