Vacation pay in Indiana
always curious
4 Posts
Hello all,
I know that in California, use it or lose it vacation policies are not legal, especially if the vacation is not earned on an accrual basis and has no cap. I am not sure what is allowable in Indiana.
We currently have an accrued vacation policy that includes a use it or lose it provision. I am currently in a situation where one of our employees has 4 weeks of vacation left for this year, and business is such that we cannot cover this kind of absence, even if it is spread out 1 day per week over the rest of the year plus 1 full week vacation. The employee is not requesting to take the time off, but I want to be fair. As I see it, I have some choices...
1. I can make an exception, and carry over the vacation, but then we are stuck with 8 weeks vacation next year, and we cannot support this either! (no good.)
2. I can force the "lose it" provision which is unfair, demotivating, and wrong from an employee relations standpoint.
3. I can try to buy out the vacation time, but then what kind of precedent am I setting, and we cannot buy out all employees!
4. I can provide a discretionary bonus (through a reward and recognition program) that in effect buys out the vacation, but our recognition program has clear provisions that state the reward/award is for going beyond your job, and this employee is not doing that. This creates other employee relations issues.
Does Indiana employment law have any sort of provision like California does when it comes to paying out vacation time? Is there anything else I need to be aware of?
I look forward to hearing any feedback you may have!
Thanks!
Comments
I am not aware whether Indiana has a "use it or lose it". I know they go by employer policy at termination...which can be forfeited at that point.
Part of my response would depend on a couple of factors...that is (1) why does the employee get 4 weeks in the first place if the employer can not afford to allow the time or pay for the time? and (2) whose fault is it that it is September and it has not been used? You could implement a policy in future years that at least x% of vacation time must be used before July 1st....or something to that effect.
As to how you deal with it, we have a use it or lose it and our employees know it. The ONLY exception we have made is when business needs have cancelled a year end vacation (we moved locations at the end of 06 not of our own accord).
I have seen a middle of the road solution where the employer pays out a percent of leftover unused time. Because you don't want the employees to not use the time just because they want the $s. We don't pay out because we WANT our employees to use their time for their benefit, stress level, etc. This year we have really made a point of having those individuals unavailable even by cell during vacation time (at least one of their vacation weeks a year!)