Unused Vacation Pay and 401(k)
Hi--I just read an article from the Baltimore Sun about a supposed emerging trend I'd never heard about.
Some employers are now allowing employees to put the cash equivalent of unused vacation time into their 401(k)s. Some employers allow employees to put pay from unused vacation at the end of each year into 401(k)s. Others employers with "use it or lose it" policies take the otherwise "lost" pay for these days into the employee's 401(k). It's apparently being used as a recruitment tool, particularly in the health care industry.
Is anyone else familiar with this practice?