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PTO - there is a ton to think through before implementing

basketballmombasketballmom 6 Posts
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We are contemplating the implementation of a PTO policy to replace our current vacation, sick, and personal time policies. The biggest obstacles we are encountering are:
(1) Should we try to equalize the amount of time off the employee would have received under the old method? If not, why not? It seems there would be immediate resistance to the new PTO method if an employee thinks they are being shorted time.

(2) We are throwing into the PTO pot time off we normally would not pay out at termination (sick and personal). Can we write into our policy that only 75% of accrued PTO will be paid out at termination? Perhaps it depends on state law. This is for a company in Indiana.
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  • NaeNae55NaeNae55 3,243 Posts
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    We included all sick time to make sure the employees got with the plan as soon as possible. It worked. One thing they were not happy about is our decision to only pay balances at 35% at termination. This figure ties to the first year of employment when only 35% of PTO is really vacation and the balance is sick leave. When you have been here awhile and are at the equivalent of 4 weeks vacation plus the sick leave for PTO, 35% doesn't quite seem right. However, we pointed out that these same employees would probably have a PTO bank made up of mostly sick leave if we went back and figured it out (PTO has resulted in a lot fewer early morning sick call-ins). BTW, we are in Kansas.

    Hope this helps. Good luck!
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  • basketballmombasketballmom 6 Posts
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    Thanks for the response NaeNae55.
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