Changing over to a PTO plan from a front loaded plan (both on anniversary date)
We are changing over to a PTO plan from a front-loaded plan (both anniversary hire date based). What suggestion would you provide for the transition from previous balances to the new plan? Also, we are considering a more aggressive accrual rate based on a 6-month basis – any thoughts/concerns with this?
Thanks for your question. I’m not sure I have enough information to provide you with the best answer as I’m not sure whether your PTO plan includes paid sick leave, or what state or city you’re in (as some have specific requirements).
For instance, in California PTO (even vacation) can’t be set up as a use-it-or lose it plan. Here are some articles that may help you consider options.
What I can suggest is using the resources of a paid consultant like Bambee ($99/month) for HR best practices. What’s most important is that employees are treated fairly, understand what the changes are, and have enough time to use up their front-loaded PTO before you switch to an accrual-based calculation of sick and vacation pay. Adding days to your PTO plan will sweeten the communications!
Here are articles that may help.
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Product or company names, logos, and trademarks referred to on this site belong to their respective owners.