Post on 10-Feb-2016
description
Paid Time Off BenefitsPaid Time Off Benefits
Soraya MontgomerySoraya MontgomeryDaniel ThaiDaniel Thai
Tri PhanTri PhanNick IonashkuNick 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?ARE THEY MANDATED BENEFITS?
Most paid time off benefits are not Most paid time off benefits are not mandatedmandated
Employers offer them to be competitiveEmployers offer them to be competitive and to attract and retain employeesand to attract and retain employees
WHO QUALIFIES TO RECEIVE PAID WHO QUALIFIES TO RECEIVE PAID TIME OFF BENEFITS?TIME OFF BENEFITS?
Varies by employerVaries by employer
May have to accrue a certain amount of May have to accrue a certain amount of time before exercising benefitstime before exercising benefits
Full-time employees generally have more Full-time employees generally have more paid time off benefits than part-paid time off benefits than part-
time employeestime employees
LEGAL PUBLIC HOLIDAYS
• Nine or ten days per year
•Recognized by Congress
•NOT recognized by all employers
LEGAL PUBLIC HOLIDAYSLEGAL PUBLIC HOLIDAYS
New Year’s DayNew Year’s Day President’s DayPresident’s Day Independence Independence
DayDay Columbus DayColumbus Day Thanksgiving Thanksgiving
DayDay
MLK, Jr. DayMLK, Jr. Day Memorial DayMemorial Day Labor DayLabor Day Veterans DayVeterans Day Christmas DayChristmas Day
• States may have their own local and state holidays!
For example:
*California celebrates Cesar Chavez Day on March 31st.
WHO HAS TO WORK ?WHO HAS TO WORK ?
Law EnforcementLaw Enforcement
HospitalsHospitals
Emergency AgenciesEmergency Agencies
*May receive ‘holiday’ *May receive ‘holiday’ pay ratepay rate
EFFECTS ON EMPLOYEREFFECTS ON EMPLOYER
Boost employee moraleBoost employee morale
Employee’s need family timeEmployee’s need family time
Rest and RelaxationRest and Relaxation
Attract & Retain Employee’sAttract & Retain Employee’s
JURY DUTYJURY DUTY
Your civic responsibilityYour civic responsibility
Most employers allow paid time offMost employers allow paid time off
Courts provide some compensationCourts provide some compensation
Most companies give regular payMost companies give regular pay
LENGTH OF TIME GRANTEDLENGTH OF TIME GRANTED
Varies depending on jurisdiction of caseVaries 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 workDone early? May have to report to work
BENEFIT TO EMPLOYERBENEFIT TO EMPLOYER
Show’s support for the employee’sShow’s support for the employee’s
Employee’s don’t have to worry about Employee’s don’t have to worry about financial strain / stressfinancial strain / stress
Gives employee’s stabilityGives employee’s stability
MATERNITY LEAVEMATERNITY LEAVE
DefinitionDefinition
The period of time during which you’reThe period of time during which you’redisabled due to pregnancy and disabled due to pregnancy and
childbirth.childbirth.
*up to four months*up to four months
PAID FAMILY LEAVE & CA SDIPAID FAMILY LEAVE & CA SDI
September 23, 2002 September 23, 2002
State of California enacted first-in-the-State of California enacted first-in-the-nation paid family leave.nation paid family leave.
July 1, 2004July 1, 2004
Nearly all non-governmental Nearly all non-governmental employees eligible to receive:employees eligible to receive:
-up to six weeks Family Temporary -up to six weeks Family Temporary Disability Insurance (Disability Insurance (FTDIFTDI) )
over a over a twelve month periodtwelve 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 partnerdomestic partner
-birth, adoption, or foster care placement -birth, adoption, or foster care placement of of
a childa child
ELIGIBILITYELIGIBILITY
Upon hireUpon hire
Begin to receive benefits after a seven- Begin to receive benefits after a seven- day waiting periodday 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, 2004Leave after July 1, 2004
FUNDING OF FTDIFUNDING OF FTDI
Increased payroll deductions 01/2004Increased payroll deductions 01/2004
Based on a payroll tax scheduleBased on a payroll tax schedule
Average $27.00 per employee annuallyAverage $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 $728.00 per week-up to a maximum of $728.00 per week
Employers with fewer than 50 employees:Employers with fewer than 50 employees:
- not subject to - not subject to FFamily amily MMedical edical LLeave eave AAct ct
of the of the CCalifornia alifornia FFamily amily RRights ights AActct
-therefore, no legal obligation to hold -therefore, no legal obligation to hold jobs jobs
open for employees receiving FTDI open for employees receiving FTDI benefits.benefits.
AFFECTS ON EMPLOYERSAFFECTS 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 CONTINUEDADDITIONAL COSTS CONTINUED
Administering the programAdministering 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 memberis a family member
BENEFITS TO THE EMPLOYERBENEFITS TO THE EMPLOYER
Supports employees with financial Supports employees with financial and joband job
stabilitystability
Recruitment & retention of personnelRecruitment & retention of personnel
Paid Vacation TimePaid Vacation Time
Military LeaveMilitary Leave
Voting LeaveVoting Leave
Leave BanksLeave Banks
Vacation TimeVacation Time
Paid vacation Paid vacation timetime
Length of Length of service & level in service & level in the organizationthe organization
Employment Employment anniversary dateanniversary date
Average number of vacation days in Average number of vacation days in the United Statesthe United States
Years of serviceYears of service Less than 1 yearLess than 1 year 1 year of service1 year of service 2 years of service2 years of service 3 years of service3 years of service 4 years of service4 years of service 5 years of service5 years of service 6 years of service6 years of service 7 years of service7 years of service 8 years of service8 years of service 9 years of service9 years of service 10 years of service10 years of service 11 years of service11 years of service 12 years of service12 years of service 13 years of service13 years of service 14 years of service14 years of service 15 years of service15 years of service More than 15 years of serviceMore than 15 years of service
Average days per yearAverage days per year9.79.79.99.910.810.811.411.411.711.713.713.714.514.515.015.015.315.315.515.516.816.817.517.517.617.617.717.717.817.818.818.820.220.2
Effects on employeesEffects on employees
Exempt employeesExempt employees Unused vacation daysUnused vacation days Leaving the companyLeaving the company Part-time workersPart-time workers
What is a military Leave?What is a military Leave?
A military leave of absence is A military leave of absence is granted to employees who are granted to employees who are absent from work because of service absent from work because of service in the U.S. uniformed servicesin the U.S. uniformed services
USERRA-Uniformed Services USERRA-Uniformed Services Employment and Reemployment Employment and Reemployment Rights ActRights Act
Military LeaveMilitary Leave
Requirements when returning to Requirements when returning to workwork
Less than 31 daysLess than 31 days More than 30 days but less than 181 More than 30 days but less than 181
daysdays Longer than 180 daysLonger than 180 days
Affected BenefitsAffected Benefits
Health PlansHealth Plans Other health Other health
coveragecoverage ChargesCharges
Voting LeaveVoting Leave
States passing lawsStates passing laws
Pay factorsPay factors
Leave BankLeave Bank
What is a Leave Bank?What is a Leave Bank?
- Pooled fund of annual leave- Pooled fund of annual leave- Provides income protection- Provides income protection- Used as though the individual - Used as though the individual
had had earned the leave earned the leave- Substitute LWOP- Substitute LWOP
BackgroundBackground Voluntary Leave Transfer ProgramVoluntary Leave Transfer Program ExtensionsExtensions Federal Employees Leave Sharing Federal Employees Leave Sharing
Amendments Act of 1993Amendments Act of 1993 Shared Leave Status instead of Shared Leave Status instead of Transferred Leave StatusTransferred Leave Status Applies to officers and employees of Applies to officers and employees of
executive agency or military departments.executive agency or military departments.
A Leave Bank MemberA Leave Bank Member Contribute annual leaveContribute annual leave Open enrollment periodOpen enrollment period Minimum amount of annual leave Minimum amount of annual leave
contributedcontributed Apply to be a recipientApply to be a recipient
Applicants must provide the Applicants must provide the following information in writingfollowing information in writing
1.1. Name, position title, and grade or pay Name, position title, and grade or pay levellevel
2.2. Reason why emergency leave is Reason why emergency leave is neededneeded
3.3. Description of nature & severityDescription of nature & severity4.4. Certification from one or more Certification from one or more
physiciansphysicians5.5. And any addition information that may And any addition information that may
be requiredbe required
Another Type Of Leave BankAnother Type Of Leave Bank Leave Bank as an innovationLeave Bank as an innovation Established by the American Established by the American
Foundation for the BlindFoundation for the Blind Paid time off (Paid Leave Bank)Paid time off (Paid Leave Bank)
Paid Time OffPaid Time Off Short Term DisabilityShort Term Disability
Floating HolidaysFloating Holidays
Extended Illness LeaveExtended Illness Leave
SHORT-TERM DISABILITY SHORT-TERM DISABILITY (STD)(STD)
DefinitionDefinition
What’s STDWhat’s STD
How does STD worksHow does STD works
SHORT-TERM DISABILITY SHORT-TERM DISABILITY (STD)(STD)
Reasons for STD plans to denyReasons for STD plans to deny
Benefit employeesBenefit employees
Benefit employersBenefit employers
CONTINUES
SHORT-TERM DISABILITY SHORT-TERM DISABILITY (STD)(STD)
StatisticsStatistics 40 percent of companies with 100 40 percent of companies with 100
employees or more offer disability employees or more offer disability coverage coverage
Less than 19 percent of companies Less than 19 percent of companies with less than 100 employees with less than 100 employees provide this coverage provide this coverage
STD planSTD plan
CONTINUES
FLOATING HOLIDAYSFLOATING HOLIDAYS
What’s Floating HolidaysWhat’s Floating Holidays
When can it be useWhen can it be use
EXTENDED ILLNESS LEAVEEXTENDED ILLNESS LEAVE
QualificationQualification
Paid Rate Paid Rate
Sick LeaveSick Leave..
Sick LeaveSick 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 LeaveSick Leave
For personal medical needs For personal medical needs If an employee is unable to perform If an employee is unable to perform
their regular tasks and procedures due their regular tasks and procedures due to physical or mental illness, injury, to physical or mental illness, injury, pregnancy, or childbirth. pregnancy, or childbirth.
If an employee is receiving a medical, If an employee is receiving a medical, dental or optical examination or dental or optical examination or treatment. treatment.
If presence at work jeopardizes the If presence at work jeopardizes the health of others health of others
Sick LeaveSick 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, spouse, child, adopted child, parents and parents of spouse, parents and parents of spouse, brother and brother of spouse, brother and brother of spouse, sister and sister of spouse and sister and sister of spouse and any individual related by blood any individual related by blood to the employee. to the employee.
Sick LeaveSick 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 Often part-time employees accrue sick
leave at a prorated rate. leave at a prorated rate.
Sick LeaveSick Leave
California employers don’t have to offer California employers don’t have to offer sick leave but if the do they must sick leave but if the do they must comply with laws like the new measure, comply with laws like the new measure, A.B. 109.A.B. 109.
The law applies to all private, state and The law applies to all private, state and municipal employers regardless of the municipal employers regardless of the number of people employed. number of people employed.
Sick LeaveSick Leave
Demonstration calculatorDemonstration calculator can be can be found at: found at:
http://http://www.employeradvice.com/sick_leavewww.employeradvice.com/sick_leave_calc_intro.pl_calc_intro.pl
Utilization of Sick LeaveUtilization of Sick Leave
According to a survey done by ComPsych According to a survey done by ComPsych Corporation on March 9, 2004 Corporation on March 9, 2004
The average number of sick days used per The average number of sick days used per year by a salaried exempt employee was year by a salaried exempt employee was 3.8.3.8.
Union hourly employees used 5.5 days.Union hourly employees used 5.5 days.
Salaried nonexempt employees used 5.6 Salaried nonexempt employees used 5.6 days days
Utilization of Sick LeaveUtilization of Sick Leave
According to a survey done by According to a survey done by ComPsych Corporation on March 9, ComPsych Corporation on March 9, 2004 2004
77% of employees say they show up 77% of employees say they show up at work when ill. at work when ill.
Utilization of Sick LeaveUtilization of Sick Leave
Utilization of Sick LeaveUtilization of Sick LeaveReasons why some employees take their sick Reasons why some employees take their sick
leave days when ill, and others do not, are as leave days when ill, and others do not, are as follows: follows:
33% said they come to work sick because their 33% said they come to work sick because their workload does not permit them take a sick day. workload does not permit them take a sick day.
26% said they feel the risk of taking off in the 26% said they feel the risk of taking off in the current work environment. current work environment.
18% said they save their sick leave days for 18% said they save their sick leave days for children related activities. children related activities.
23% said they take their sick leave days 23% said they take their sick leave days because they treasure there health.because they treasure there health.
Funeral LeaveFuneral Leave
Funeral LeaveFuneral Leave
Employees may be approved for leave Employees may be approved for leave with pay in cases of death of the with pay in cases of death of the following a spouse, parent, parent-in-following a spouse, parent, parent-in-law, step-parent, child, step-child, law, step-parent, child, step-child, grandchild, brother, sister, son-in-grandchild, brother, sister, son-in-law, daughter-in-law, aunt, uncle, law, daughter-in-law, aunt, uncle, niece, nephew, grandparent or niece, nephew, grandparent or person regarded as member of person regarded as member of employee's immediate family. employee's immediate family.
Funeral LeaveFuneral Leave
Some employers will even cover Some employers will even cover traveling expenses, if funeral out of traveling expenses, if funeral out of town.town.
Typically a total of three days is Typically a total of three days is given to an employee, to arrange given to an employee, to arrange and attend the funeral.and attend the funeral.
Utilization of Funeral LeaveUtilization of Funeral Leave
In 1997, among full-time employees in In 1997, among full-time employees in medium and large private medium and large private establishments, “81 percent were establishments, “81 percent were eligible to participate in paid funeral eligible to participate in paid funeral leaveleave.”.”
My FavoriteMy Favorite
Wheel?Wheel?
The Benefit WheelThe Benefit Wheel
External FactorsExternal Factors InflationInflation Legal RequirementsLegal Requirements TaxationTaxation Benefit InnovationBenefit Innovation CompetitionCompetition
The Benefit WheelThe Benefit Wheel
Internal FactorsInternal Factors Cost IssueCost Issue Human Resources Management Human Resources Management
PhilosophyPhilosophy Business ObjectivesBusiness Objectives Total Compensation StrategyTotal Compensation Strategy