Cap on sick time accrual

I'm curious as to how many of your companies cap accruals of sick/personal time and what the impact of this is on both the business and employees. We are considering going from no cap to capping accrual at the point where STD would pick up if an employee were out for that long.

Comments

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  • We do not currently cap sick but are seriously thinking about it .the auditors hate it. We did cap vacation at 400 hours, which is a lot. One of the reasons we allowed such large accurals was that we had no STD and the waitng period of LTD was 6 months. . it allowed folks to get there. Our LTD period is now 90 days and I think it makes sense to move in the direction that you are thinking.
  • Our sick time is capped at 520 hours. This works out to three months, which (for eligible employees)is the waiting period for our LTD benefit.
  • We have LTD with a 180-day waiting period and no STD. We cap Sick Leave at 800 hours. We are shortening the LTD waiting period to 90 days and will reduce the cap to 560 hours, since it is intended to carry employees over until the LTD kicks in.
  • We have no cap and since we allow up to 50% payout at either ages 60-65 or with 20 or more years service, this is an important benefit to many of our long term employees. One suggestion would be to analyze the current balances of all your current employees and figure out how to address those whose balances exceed your new proposed cap (grandfather them, pay them now, etc.). Otherwise you will feel the wrath of those who truly have shown up every day even when feeling bad versus others who treat sick leave as paid time off.
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