Donating PTO/EIT hours to other employees

njs · October 2003

Is there a wage and labor issue with employees donating PTO to other employees to be used for emergencies, i.e. accident, sick, etc. What are the implications if a $18/hr person donates to a $7/hr person?

HRQ · October 2003

To solve my problem described on another post, we ended up donating PTO to an employee. All of us earn more on an hourly equivalent, so for example,
wage X # hours donated = $ value of the PTO
$ value of PTO / "donatee's" hourly wage = # of hours she would get paid.

I ran the solution by my controller to make sure the books would balance and they do. By reducing the available PTO hours on my bank and paying out the same dollar value to the recipient of the donation, the books balance. PTO liability was reduced by $X and payroll expense was increased by the same amount.

The Forum experts may have something to say about whether or not this is "legal". It felt right though. x0:)

marc · October 2003

HRQ did a good job describing our program. If you do the ratios described, the books indeed balance. Administering the donation program is the tough part. How do you determine who qualifies? How do you make the pitch for the donations. Remember, these are often medical situations with HIPAA overtones. Also, do you let one ee corner another and talk them into the donation? Just know there are some issue like this to solve up front so everyone is treated reasonably.

moneyman · October 2003

Since we do not accrue salaries and PTO, it was easy for us. We just manually reduced one bank and increased the other. We made a "day for a day" trade no matter what wage the person donating or receiving made. If we had to go into an equivalent trade, we would not have done it for the fact that because of this calculation, the employee receiving could determine the donor's wages (that was management's decision). Personally I did not see a problem with it because whenever we came across that situation, we had many employees donating from 1-3 days, so that if we aggregated the days, the donee would have no clue that wages of the donors. But, I suspect that management just did not want to deal with the issue. They grudgingly allow donations on a straight trade.

Tony Kessler · October 2003

njs, there have been some interesting Forum discussions on donating vacation time to co-workers. In the search function to the bottom left of this screen, do a search for "donate." Hope this helps. tk

Tony Kessler, director of editorial
M. Lee Smith Publishers LLC
(615) 661-0249 ext. 8068

njs · October 2003

>njs, there have been some interesting Forum discussions on donating
>vacation time to co-workers. In the search function to the bottom left
>of this screen, do a search for "donate." Hope this helps. tk
>
>Tony Kessler, director of editorial
>M. Lee Smith Publishers LLC
>(615) 661-0249 ext. 8068

Thanks for your help! I am somewhat inexperienced at navigating through the maze of helpful information, so your directive helped. I appreciate that!

njs

Donating PTO/EIT hours to other employees

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