Vacation Pay

1945599

Our company recently had an across the board pay reduction. In some cases the reduction has been as much as $1.50 per hour.
Vacation hours are accrued based on the hours worked in the year and are available after one full year of service. After the first full year of service the vacation hours become available on the first of January.

We allow our employees to request pay, rather than days off, for up to 40 hours of vacation. If an employee has accumulated 80 hours of vacation time in 2009 and request payment for 40 hours at what rate should we calculate the vacation pay? The pay rate that was in effect when the hours were earned or the rate currently in place.

ACU Frank

Current rate... Same as when they actually take the vacation and you put the vacation pay on their paycheck. There should be no difference.

NaeNae55

Agree with Frank. If they got a pay increase they would expect to be receive the vacation or get a buyout at the higher rate.

joannie

Our handbook states vacation pay will be at the employee's pay rate when the vacation is taken or paid.

Dutch2

I agree with the others, their current rate of pay. If the ee had earned vacation in 2008 while making $9.00 per hour and then took vacation in 2009 after receiving an increase in pay to $9.50, would you pay their vacation time at $9.00 or $9.50 per hour?