Vacation Pay Advances

kirsti

We have recently changed our policy on vacation pay advances. We were previously allowing employees to receive their vacation pay in advance of their time off, but we have stopped this because we feel as though we are giving employees a "loan." With direct deposit, we do not see a need for employees to get their vacation pay in advance. Do you allow your employees to receive advance vacation pay?

Down_the_Middle

nope.

System

Unfortunately it is allowed, although I am dead set against it. Some would say here that if the employee "hits hard times" or has an "emergency" that this is a way to help. But then, who determines if it is an emergency? What if the employee is lying and just wants the money and plans to quit? Can anyone reading this chime in and give me reasons why advancing vacation money or paying the employee and allowing them to continue working at the same time is a bad idea? I could use some good arguments to present to management.

POPEYE

We only advance one pay period ahead if a vacation has been scheduled. That is if an EE has requested and been approved for vacation next week, they can request and receive that check this week. The vacation has been earned so even if they don't return, they would have been paid so there is not potential loss for the company. Our payroll software takes care of all the recording issues so it is not a big deal.

Leslie

We don't have vacation advances per se, but we have payroll advances - once per quarter per employee, to a maximum of 40 hours (our payroll is bi-weekly.) So basically they could do so once per quarter.

The only time they can get paid for it without taking a vacation would be if they max out, or in danger of maxing out (240 hours), 40 hours per calendar year.