Tag: leave management

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Time Off Requests: 5 Tips + Free Template (2023)

Oil Painting of an Astronaut handing you a piece of paper

Summary:

  • Time off management is difficult when no company policy for leave requests and approvals exists. Confusion can result in overlooked requests, no-shows, and short staffing.

  • Use and customize this employee time off request template to track employee leave requests. It should serve as a formal request that outlines the number of days an employee will be away and the type of leave they will use.

  • Improve leave management with a time-off tracking app.

Managing leave requests can get complicated, especially when your business starts to scale. That’s probably why you are here, right?

Without structure or centralization, leave management can quickly become an administrative nightmare. Managing a flurry of different leave requests from emails, chats, SMS, or in-passing conversations is challenging. With no clear process or paper trail, you could end up with a disgruntled team and understaffed shifts.

Start documenting things better with the template below:

Employee Time Off Request Form

Keep in mind that using a paper template will only get you so far. Efficient time-off management is all about creating structure and sticking to it. Here are some tips to help you do this:

1. Have an HR policy in place

While federal law may not require you to offer time off, in most states, you are required to do so. Even if this is not the case for you, it is best practice to offer time off anyway – you’ll have a hard time hiring without this kind of benefit. 

Have your HR team create a written policy that is easy to follow. Without a policy guiding your business, things can quickly get tricky when multiple employees apply for time off on the same dates, for long periods, or during peak seasons.

A time off policy should include the following key areas:

  • A designated lead time/deadline for applying for leave credits or filing for leave of absence
  • Rules around unforeseen employee’s absence in case of emergencies
  • Clear steps on how employees can submit leave requests
  • Policies around high peak seasons or periods
  • Rules around various types of time off benefits such as sick leave benefits, vacation days, unpaid time off, and floating holidays. 
  • Policy around FMLA (Family and Medical Leave Act) and whether they will be accrued other paid time off.

Leave policies vary across organizations. Businesses in retail, hospitality, and healthcare typically have the most stringent policies in order to staff properly during periods of peak demand. That’s not to say that leave requests are less likely to be approved in these organizations; managers just need to have a more efficient system for facilitating them. 

The key here is looking at your data, such as labor forecasts, historical sales, and demand information. See the peaks and valleys in the demand-to-labor ratio so you can plan for employee schedules accordingly and allow employees to take time off.

2. Use software to streamline things.

Managing time off should be simple – using software is the best way to simplify things. The right leave tracking software should allow you to:

  • Let employees submit time off requests in a single place.
  • View and approve leave requests and ensure that all requests go through a single channel. 
  • Customize your own accrual rates and policies.
  • Review available versus current hours.
  • See projected PTO balances on future dates.
  • View leave requests filed in a specific period.
  • Sync leave management with employee scheduling and labor forecasting, ensuring you’re never over or understaffed.
  • Let staff update their availability or unavailability
  • Set blocked periods where employees are discouraged from taking leaves.
  • Access the leave management portal via mobile or desktop. 

Leave management software makes the most sense as it eliminates paperwork and missed leave requests. While having a time off request form helps, it should only be used temporarily to manage employee leave.

3. Allow for shift swapping and/or bidding. 

Unforeseen absences are inevitable. Emergencies happen all of the time, and there may be instances where staff may be unable to make it into their shift at the last minute. Shift swaps and bids are beneficial during such situations.

Workforce.com has a shift-swapping system that lets employees pick their replacement or offer their shift in a bidding process to all available team members. As a result, managers no longer need to scramble to find coverage. Everything occurs over a single mobile app, so nothing slips through the cracks.

4. Consider implementing a rotating time off schedule. 

A rotating time off schedule works by assigning a particular period when employees can take time off. Doing this helps you prevent overlapping leave requests. Remember that you’ll need to exercise discretion here in case of unavoidable, last-minute leave requests. Determine when it is okay for overlapping leave to occur, follow FMLA rules, and figure out how you will find replacements.

5. Incentivize employees not to take time off. 

Only do this during busy times of the year for your business. Rewards for working during peak demand can be higher pay rates, fixed bonuses, or additional PTO. Incentivizing your staff this way will increase the likelihood of leave being taken during slower periods, ensuring your shifts are fully staffed when facing high demand. 

Simplify leave management with Workforce.com

Workforce.com is an all-in-one solution for managing shift workers. While it covers everything from onboarding to payroll, leave management is one of its specialties. Its mobile PTO tracking app lets staff check their balances, view upcoming time off, and submit leave requests.

Requesting time off on the Workforce.com app

Best of all, every leave request is tied directly to Workforce.com’s employee scheduling system – meaning every approved request is automatically reflected on the schedule. 

Book a call today to learn more about Workforce.com’s leave management system.

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What does floating holiday mean? Guide + Template

Summary

  • A floating holiday is a paid day off that an employee can use at their discretion to substitute for a public holiday.

  • Employers have no legal obligation to offer floating holidays but do so to increase retention and make their benefits packages more attractive.

  • Carryover and encashment rules are usually up to employer discretion unless there’s state-based legislation that dictates how they should do so.

Aside from paid time off, some companies offer floating holidays to make their benefits package more competitive and appealing. But what is a floating holiday exactly, and how does it work?

A floating holiday is a paid day off from work that an employee can use at their discretion, typically serving as a substitute for a public holiday. There’s no set date to take one; hence these holidays “float.” Click the link below to see what a basic floating holiday policy looks like:

Floating Holiday Policy Template

Like paid time off, floating holidays are not legally mandated by law, so it’s up to the employers whether to offer them or not. And if they do, they also decide how to implement them unless state-based legislation tells them otherwise.

According to statistics, 48% of companies offer floating holidays, allowing employees to observe a holiday on any day of their choosing.

Floating Holiday vs. PTO

A common question regarding floating holidays is how they differ from paid time off. The main difference lies in how they are given to employees. 

Floating holidays are typically awarded at the beginning of each calendar year or as soon as an employee joins a company. In contrast, PTO is usually accrued over a period of time. Furthermore, some paid time-off credits are carried over the next calendar year and encashed once an employee resigns. Floating holidays, on the other hand, are typically not rolled over the next year and are not paid out upon termination.

Floating holidays also take the place of public holidays, unlike traditional PTO. So, for example, a single floating holiday credit representing Easter could be used on a random day in February – this would mean, however, that the employee would then need to work on Easter. PTO, on the other hand, can be taken whenever without replacing a holiday. 

When are floating holidays used?

Floating holidays are typically provided to offer more flexibility. Therefore, they are usually taken whenever an employee wants. They can be used to observe a religious or cultural holiday that’s not typically part of regular federal holidays, celebrate a birthday or special occasion, or take a break or recharge. 

Can floating holidays be used for federal holidays? It depends. If your business also goes on break during regular federal holidays and you pay time off for your employees, there’s no need for your employees to take a floating holiday. 

If you’re open during holidays like Thanksgiving or Christmas, employees who choose to work on those days can take a floating holiday another time. Remember that not all employees observe these holidays and may opt to work and take time off on a date that’s more relevant to them instead. For instance, a Muslim employee may opt to work on Christmas and take a floating holiday to observe Eid Al-Fitr. 

Webinar: How to Drive Engagement for Hourly Employees

Setting parameters for floating holidays

The key to implementing a floating holiday policy is to set clear parameters. Here are vital parts it should include.

Eligibility

Will it apply to all employees, or will there be exemptions like contractual or part-time workers? Typically, floating holidays are given to all employees to help improve retention. 

Hiring date is also another thing to consider. It’s common for companies to offer two floating holidays at the beginning of the year. For instance, new hires joining from January to June can receive both days. However, employees hired in the middle of the year can be entitled to only one floating holiday for the remainder of the year. 

Number of days

How many floating holidays are you going to offer? It’s typical for most companies to give two floating holidays a year, but it’s vital to consider the nature of your business to come to an ideal number. 

Approval process

Define how employees should file for floating holidays. Include how many days in advance they must give notice and what system to use to log their request. Having these details specified allows employees enough room to plan. 

Carryover and encashment rules

Indicate what will happen to unused floating holidays. For example, can they be carried over the next calendar year? In case of resignation or termination, will unused floating holidays be encashed?

Whatever you decide, make sure that it’s clearly discussed in the policy. Unused floating holidays are typically not carried over to the next calendar year nor paid out upon employee resignation. However, in California, floating holidays are somewhat treated as paid vacation leaves. This means employers should encash unused floating holidays upon termination and allow unused leave credits to roll over the next year. 

Blackout dates

Blackout dates refer to periods or dates when employees are discouraged from taking time off or floating holidays due to high demand or extra busy operations. Again, make sure that it’s clearly stated in your policy if this is something you implement. 

Benefits of floating holiday

Employers are not mandated to offer floating holidays, but there are advantages to doing so. Here are some of the top reasons why companies choose to include them in their benefits package:

A way to give importance to diversity and inclusion

Giving floating holidays is a way to promote diversity and inclusion in the workplace. It helps to recognize that employees have different cultural and religious backgrounds and that you allow them to freely practice their beliefs.

Survey shows that employees who feel included are three times more likely to feel excited and committed to their organizations. Furthermore, a company’s inclusiveness is a primary factor that different respondents look at when considering career decisions or moves.  

Flexibility

Floating holidays offer flexibility to employees by allowing them more control over how and when they would like to spend a holiday. Aside from religious and cultural holidays, employees can use this to spend time on a hobby, attend to other important things, or have a restful day at home.

Less admin burden in managing holidays

If inclusion is a priority for you, that doesn’t mean you must create an exhaustive list of holidays to account for all religions and cultures in your workforce. Instead, you can choose a few major federal holidays to include in your paid holidays policy and supplement these with additional floating holidays, which employees can use as they see fit. Aside from giving your employees flexibility, you also free up your HR team from the burden of maintaining and updating that list.  

A more competitive benefits package 

To retain and attract top talent, you must have a competitive benefits package. Floating holidays help do that.

The US is one of the more advanced economies, but 1 in 4 US workers have no paid vacation benefits. Furthermore, there’s no law mandating organizations to provide PTO. Having a PTO policy gives you a more competitive edge, but offering floating holidays can improve your chances of employee retention. 

Best practices for implementing floating holidays

Floating holidays are only effective when implemented correctly. Here are some best practices you can apply to get the most results from this policy.

Be clear with your policy

We can’t stress this enough. You need to eliminate any inch of ambiguity so that your employees will be encouraged to use their floating holidays. Since floating holidays do not roll over into the following year, any unused hours will go to waste – make sure your employees understand this with constant reminders. In addition, make sure that the policy is readily available to your team. It’s best to use an employee self-service platform to make this policy accessible to your staff at all times. 

Use a PTO tracking app

The best way to stay on top of PTO and floating holidays is to use a comprehensive leave management system featuring mobile PTO tracking. 

PTO tracking software is vital for efficiently managing leave requests and approvals. It ensures managers don’t miss requests or accidentally schedule staff who are on leave. 

But it shouldn’t just be helpful for managers. PTO tracking apps should be user-friendly for frontline staff; otherwise, introducing one will create even more confusion. Make sure basic tasks like viewing leave balances and floating holiday credits, submitting PTO requests, and seeing time off on schedules is as straightforward as possible for your staff. 

Encourage employees to use their floating holidays

This actually extends to all leave types. Statistics show that of US workers who have paid time off, only 54% of Americans say that they use it for vacation or holiday. 

The only way that you’ll see floating holidays positively impact your culture is if they are used by staff. It all boils down to communication and culture. Sometimes, employees need a little nudge or reminder that it’s okay to take a break and go on holiday.

Use labor forecasting to identify necessary blackout dates

The appeal of floating holidays is that employees can take them whenever they want. But blackout dates take a little bit of that away. The key is identifying only necessary dates when employees are discouraged from utilizing their floating holiday. 

Accurate labor forecasting looks at seasonal trends, historical sales data, booked appointments, foot traffic, weather, and other relevant information that can affect demand during any shift. Labor forecasting software shows you which days and shifts you can expect to be the busiest. Based on this, you can make calculated staffing level projections and narrow down the periods that need to be blacked out for leaves and holidays.

Webinar: How to Forecast Your Schedule Based on Demand

Stay compliant

While floating holidays are not legally mandatory, consider state-based legislation. As discussed, California looks at floating holidays like vacation days. Therefore, employees are required to encash remaining credits upon termination. Be careful of these specific rules to avoid violations and penalties.

It can be challenging to stay on top of compliance and how labor rules come into play with your benefits and policies unless you have a robust compliance engine within your HCM platform.

A good compliance feature automates labor compliance in every stage of workforce management—from onboarding, scheduling, administering benefits such as floating holidays, calculating payroll, and offboarding.

Floating Holiday Policy Template

If you want to get started on drafting a floating holiday policy for your company, here is a standard template to get you started: 

All (type/s of employees) are entitled to two floating holidays per year aside from (Company Name)’s regular paid holidays and time off. These two floating holidays can be used for any reason the employee deems necessary. It may be used for reasons such as birthdays, religious holidays, cultural festivities, or state and federal holidays during which [Company] remains open. 

Employees must submit a request at least five (number) days before they intend to use their floating holiday. It must be logged through the leave management system and approved by the manager. 

Meanwhile, floating holidays may not be used during blackout periods of (date range) due to high demand and seasonal events. 

Floating holidays are given at the beginning of the calendar year. Employees hired during the first half of the year will be entitled to two floating holidays. Meanwhile, employees hired in the middle of the year will receive one floating holiday. Floating holidays cannot be carried over to the next calendar year and will not be compensated upon termination.

Perks like floating holidays are just one of the many facets of managing a workforce. Make sure to implement them well with a robust system like Workforce.com. 

Aside from demand-based scheduling, labor forecasting, and time tracking, Workforce.com has an extensive leave management system that automatically tracks PTO and holidays while keeping you compliant with local labor laws in your state. 

See Workforce.com in action. Book a call with us today.

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PTO vs Vacation Time: Best choice for your company (2023)

Summary

  • Under a PTO policy, all leave time is lumped together into a paid time off bank. Vacation, on the other hand, is simply a specific type of leave categorized under a traditional leave policy. 

  • The pros of a PTO policy include fewer administration/accruals to manage, more flexibility for employees, and a more transparent relationship between employers and employees.

  • The cons of a PTO policy are that it may turn out to be more expensive, employees may work when they’re sick, and they may take a fewer number of actual days off.

  • While no perfect policy exists, creating the best one for you means you’ll have to evaluate state laws, consider your work environment (remote or on-site), and assess your software solutions.

Do you need to know why your employees are taking time off, or are you fine with them having autonomy over it?

Evaluating which leave policy suits your business requires careful consideration. Scheduling managers need to weigh the pros and cons of each type of leave policy, consider the nature of the business, take employee preferences into account, and pay attention to current trends. Only then can they make a decision on a leave policy that boosts employee productivity and optimizes payroll costs.

PTO vs. vacation time: What’s the difference?

PTO is standardized leave that covers all types of paid time off (sick leave, personal time, etc.) with no labels. Vacation time is leave specifically for vacation purposes. So, vacation is a type of PTO, but PTO may not necessarily be for a vacation.

Employers can find ways to retain employees by offering more flexibility around their leave. With PTO, employees don’t need to explain how they’re using their time off. Along with vacation days, employers may decide to offer other types of leave, which means employees have to take different types of leave for certain purposes, which can be restrictive.

The trend is definitely moving toward PTO banks. 63% of employees said they’d turn down a job offer if it didn’t include PTO. So it’s clear that a majority of employees would rather work for a company where they’re free to take personal days without having to state the reason why. Pandemic stress resulting in job reshuffling has only served to further highlight the importance of effective company policies for paid time off, as the workforce is prioritizing mental health now more than ever.

Kerry Wekelo, managing director of HR at Actualize Consulting in Reston, Virginia, switched to the banked PTO policy. She says, “We made the switch because our people were not using their sick time and were complaining about not having enough time off. So we combined to a total of four weeks’ paid time off versus two weeks’ vacation and two weeks’ sick time. Our people love this, and, even as we hire new recruits, they rave about starting at a firm with four weeks’ vacation.”

The pros and cons of a PTO policy

HR managers must consider the pros and cons of a paid time off policy to determine whether or not their business should offer one. Each type of policy involves costs and benefits to the business and its employees, and a thorough analysis can be insightful in determining which one is right for your company. Here are some pros and cons of a PTO policy:

Pros:

  • Less administration required/accruals to manage: Under the traditional leave policy, the employer needs to manage different types of leave, which involves administration costs. Under the PTO policy, none of this admin is required since all of the leave is lumped together. A PTO policy is easier to manage.
  • Offers more flexibility to employees: Employees can use PTO however they want, without explaining how they’re using it. More flexibility could keep employees engaged, and also reduce unscheduled absences. 54 percent of employers that implemented a combined PTO program said unscheduled absences dropped by up to 10 percent when they started the new policy.
  • Creates a more transparent relationship between employers and employees: Employees need not lie about being sick under the PTO policy since they can just state they need time off. Under traditional leave policies, employees may feel forced to use their sick days, so they might lie.

Cons:

  • It may turn out to be more expensive when the employee leaves: A company may have to pay more if the employee leaves, depending on state laws. This is because they may have to pay out all accrued paid time off if the state law mandates it, but under the traditional paid leave policy, they may not have to pay out sick leave to an outgoing employee.
  • Employees may show up to work while they’re sick: Since there’s no distinction made between the two types of leave, employees may show up to work when they’re sick in order to earn more PTO. This can infect other employees, which can ruin the overall productivity of the company.
  • Employees might get fewer days off: Depending on the accrual rate for PTO at your company, new employees may accumulate PTO more slowly than longer-term employees. Research also suggests that employers who adopt PTO may give employees fewer overall days than they had previously. According to SHRM, employers with PTO policies give employees an average of only 18 days, which is fewer than the number of days employees get under a traditional leave policy.

How to create a leave policy that works for you

If you pick the right leave policy, your employees will be happy and productive, and your company will optimize its resources. That’s why, for creating an effective leave policy, you need to take the following steps:

  • Review your state mandates regarding unused time off: Most states don’t require you to pay an employee for unused sick time when they leave the company, unlike PTO policies where payment is required for all time accrued. So, if your state requires you to pay unused PTO, a PTO policy may be more expensive. Review this, and evaluate if bearing the costs of a PTO policy is worthwhile for your business.
  • Consider whether you’re a remote company or an on-site company: A PTO policy is better suited to remote companies where employers cannot scrutinize the reasons behind every leave an employee takes. It’s impossible to know if someone is actually sick in a remotely distributed company, so there’s no point in having separate sick leave. Therefore, choose the leave policy depending on the type of company you are.
  • Evaluate your resources to see if you can administer your leave policy: Under the traditional leave policy, your company will have to maintain two accounting systems — one for sick leave and one for vacation time. Choose the traditional policy if you can make the time to administer the policy, and choose the PTO policy if you want lower administration costs and more efficiency. A good PTO policy should prioritize employee self-service, meaning it should be accessible via mobile app and should sync fluidly with your scheduling and time tracking systems. Requesting, viewing, and approving PTO should be seamless, quick, and integrated with your workforce management.
  • Ensure your policy covers the basics: Make sure you cover some basics in whichever leave policy you choose such as how an employee can request time off or how far in advance employees must request vacation time or planned PTO. Also, consider whether or not employees can carry over their PTO hours at the end of the year. Think about whether you’re going to send home employees who are sick under the PTO policy. Decide how much time off can be taken at one time and how the time off accrues. Finally, choose whether or not employees can carry over unused PTO at the end of the year.

Unlimited PTO: A possible solution

Another option is to switch to an ‘unlimited PTO’ policy. The unlimited PTO plan gives employees the freedom to take off as much time as they need, as long as it’s approved by their managers. But critics say that with unlimited PTO, employees actually take less time off since they rely on company culture to determine the right amount of time to take away. So clearly, there’s no one-size-fits-all leave policy, and you must decide the best policy based on your unique situation.

Making leave management easy

No matter the type of leave policy you choose, it needs to be easy to utilize. Luckily, recording things like PTO, vacation, and sick time on schedules and timesheets, is becoming easier thanks to recent advances in workforce management. Learn more about it by contacting us today – we’ll help make leave management a breeze for you and your staff.

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How to calculate PTO hours + accruals

Summary

  • Paid time off comes in many different types, including vacation, sick leave, personal leave, and bereavement time. – More

  • Your company can also choose to have workers accrue their time off, offer PTO up front, or even offer unlimited time off. – More

  • No matter your company’s specific time off policy, automatic PTO tracking software calculates leave for you and ensures proper coverage. – More

Workers are finally starting to take more time off for vacation and rest, a pretty significant shift in America’s always-hustling working culture. According to a Korn Ferry survey in 2021, 79% of workers said they planned to use more vacation days that year than in years past, and 82% said they would appreciate more vacation time in our post-pandemic world.

Paid time off (PTO) has always been valued by employees. 76% of American workers feel that it’s very important their company provides PTO. Paid sick time (74%) and paid holidays (74%) are also very important among workers. 

Also read: Paid Sick Leave Laws by State

Employers can retain more workers, lower stress levels, and improve productivity among their workforce by developing a clear and fair PTO policy. But there’s no “one size fits all” approach to adopting the perfect plan for your company — you’ll have to sort out the right policy based on your workforce needs, then make sure you’re calculating time off banks correctly to help each worker get the time they’re entitled to.

Breaking down the types of PTO

There are a few different reasons why an employee might use their PTO. Depending on your company policy, they might use any available PTO day for any of these reasons, or they might have an allotment of days for each category.

  • Vacation: This is your run-of-the-mill bank of time for employees to use for day trips, staycations, travel, weddings, or the like. If it’s something they’re planning for, they’ll likely use vacation days.
  • Sick time: If an employee isn’t feeling well enough to work, they can take a sick day to rest up. Well-being also includes mental health; according to a survey by Breeze, 63% of respondents said they had taken a mental health day in the last year.
  • Personal days: Personal time is for when things happen outside the worker’s control. Maybe they’re stuck in a blizzard coming home from their in-laws, or they have to say goodbye to the family pet. Personal leave is there for life’s curveballs.
  • Parental leave: Companies aren’t legally required to offer paid parental leave, but some still offer it as a benefit to their workers. More businesses than ever were paying maternity and paternity leave benefits after the pandemic, but that trend is curtailing again. According to SHRM, 35% of companies offered paid maternity leave in 2022, and 27% offered paid paternity leave.
  • Jury duty: If an employee gets called in for their civic duty, their employer may choose to offer them PTO for at least part of their service.
  • Bereavement: Bereavement time is meant for employees who lose a loved one. Some companies only allow bereavement leave for close relatives. Workers can use this time to attend the funeral or other memorial services, or just take time for themselves to grieve without thinking about work.

How does PTO work?

You can allocate time off to your employees using a few different systems. In a traditional PTO format, workers accrue time off based on their hours or days worked. But more employers these days are leaning towards more flexible time off policies.

Accruing Time Off

With this type of policy, your workers will accrue time off based on every hour or day they work. The accrued time off will be added to their PTO bank, and they can take time off when they have enough hours banked. You can choose to lump all types of PTO together or distinguish between vacation and other types of PTO.

Usually, employees accrue different types of PTO at different rates. For example, for the year, your policy might grant ten days of vacation, five sick days, five bereavement days, and three personal days. Then, for each 40-hour workweek, employees will accrue their vacation time faster than their sick time, bereavement leave, or personal time. Employees with more years of service might also accrue more paid days of leave per year.

With an accrued time off policy, employees have to wait until enough time is banked to use their PTO. That means that you can’t just look at scheduling needs when weighing PTO requests — you’ll also have to track each worker’s banked PTO to ensure they have enough balance.

Unlimited Time Off

In an unlimited time off system, there’s much more flexibility for employees to take days off as they wish. There is no set number of days in an unlimited PTO system. Instead, employees can take off as many days as they’d like, for any reason, as long as the time off is approved by the company and they’re still fulfilling their individual responsibilities.

This flexibility can be a benefit to employees. There’s usually a level of trust that workers will take the time they need to stay rested and attend to personal matters while remaining productive at work.

However, an unlimited PTO policy also comes with some severe drawbacks. Studies show that employees, on average, take less time off under an unlimited policy than those who operate under a traditional policy. This is most likely due to a sense of guilt and other unspoken, toxic workplace stigmas around taking leave. 

Just like in a traditional accrued time off structure, managers and company leadership still have to approve time off in an unlimited policy. If you opt for this type of format, the difference is you won’t be looking at the hours available in an employee’s time off bank. Before you approve any leave, you’ll still typically review factors like workforce coverage, scheduling needs, and productivity.

Under an unlimited PTO policy, you also don’t have to pay employees for the time off they’ve accrued when they exit your company. In a traditional PTO system, you do owe workers for any unused PTO time that they’ve banked during their tenure. When an employee leaves, they’re usually entitled to a payout of the days of PTO they accumulated.

How to calculate PTO

Small-business and startup consultancy Bizfluent notes that calculating PTO by pay period allows organizations to evenly distribute an employee’s time off accumulation throughout the year.  Organizations with hourly or part-time employees should consider providing PTO based on the number of hours worked. When an organization calculates PTO hourly, it allows employers to award less PTO for hourly employees who do not report to work (for whatever reason) or for part-time employees who do not always work the same number of hours in a pay period.

One metric employers can follow to calculate PTO is dividing the annual PTO hours by annual work hours. For example, if an hourly employee earns 80 hours of PTO each year and works 40 hours a week, or 2,080 hours per year, divide 80 by 2,080. That works out to an employee earning 0.038 hours of PTO for each hour worked.

The PTO formula is:

Hours of PTO / hours worked each year = hours of PTO earned per hour worked

So in our above example, the organization’s PTO formula for this employee would be:

80 hours / 2,080 hours = 0.038 hours of PTO earned per hour worked

How to navigate common PTO challenges

Even if you set a clear PTO policy, there are bound to be situations or employee requests that fall outside of the policy that you’ll still have to balance. The key is to treat all employees fairly and accurately track PTO balances so you know exactly where you stand.

A sick employee has already used all their days.

Combining sick leave and vacation into one PTO category can lead to unplanned consequences for employees. If a sick employee has used all their PTO days, they might feel compelled to show up ill and risk infecting co-workers.

Help employees plan for this by offering guidance during onboarding or in posts throughout the year via internal communications about the importance of banking some PTO for sick days. For example, advise employees to consider paid time off as five days of vacation, four sick days or an unplanned emergency, and one day for a special occasion.

A new employee needs to use PTO days before accruing them.

Companies often hire employees with previous personal commitments for which they need time off after being hired. Prospective candidates often are honest and upfront about this as the hiring process progresses. 

Since most policies establishing how to calculate PTO makes it hard for employees to take time off in the early months of their employment, many employers will allow employees to “borrow” their PTO. Allowing 40 hours of borrowed time gives an employee a full week off. To avoid lump accumulations and to calculate PTO more accurately, companies can implement earning PTO incrementally with each pay period.

If you allow your employees to borrow ahead on their PTO plan, you’ll need to track the borrowed hours accurately. You’ll also need visibility into the rest of your attendance and scheduling to quickly identify and resolve any coverage issues, especially for unplanned absences like a death in the family.

Tracking PTO doesn’t need to be difficult

Effective leave management is crucial for shift-based workforces. For one, it promotes employee well-being and reduces burnout. It also keeps you compliant with various wage and hour laws in your state. But most importantly, handling PTO properly keeps shifts organized and lowers the chance of scheduling mistakes. 

You could manually approve, calculate, and track PTO across your workforce – this is fine enough for a small business. But one slight misstep can wreak havoc on timesheets and schedules. To save yourself the headache, utilizing an automated PTO tracker is a good idea. For shift workers, it is important that something like this be mobile-first and optimized for self-service; this way, the admin work is as non-intrusive as possible.

Mobile app that employees can use to request PTO

An app like this can do things like:

  • Automatically track leave balances
  • Calculate and apply PTO to timesheets
  • Prevent employees on leave from accidentally being scheduled
  • Allow employees to request leave and check their balances
  • Let managers review past and upcoming time off on a calendar
  • Allow managers to create custom accrual rates

Pretty sweet, right? If you want to learn more about how this all works, contact us today. 

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Inside the DOL’s changes to the final rule interpreting the FFCRA

COVID-19, coronavirus, public health crisis

The United States District Court for the Southern District of New York issued a decision in August holding that several provisions of the Department of Labor’s final rule interpreting the Families First Coronavirus Response Act are invalid. 

As explained previously, the FFCRA provides eligible workers of covered employers with Emergency Paid Sick Leave and Emergency Family and Medical Leave for various reasons related to the COVID-19 pandemic. 

Calling into question the DOL’s interpretation of these laws, the court found that the final rule’s (1) “Work Availability” requirement, (2) definition of “Health Care Provider” for purposes of determining who may be excluded from eligibility, (3) employer consent for intermittent leave requirement, and (4) documentation requirements — to the extent that they were a precondition to leave entitlement — were invalid. 

Also read: Leave management should be as simple as submit, approve and hit the beach

On Sept. 11, the DOL announced changes to its final rule in light of the decision, effective Sept. 16. The following is an overview of the changes to the Final Rule.

The “Work Availability” Requirement 

Under both the EPSL and EFML provisions of the FFCRA, eligible employees of covered employers are entitled to paid leave if they are “unable to work (or telework) due to a need for leave” for various COVID-19 related reasons. In implementing these provisions, however, the DOL has generally excluded from eligibility those employees whose employers do not have work for them.  

While the court determined that the language of the FFCRA itself did not allow this, the DOL disagreed, and expanded and clarified its position in the revised Final Rule. Among its reasons for maintaining its position, the DOL explained that removing the work-availability requirement would not serve the FFCRA’s purpose of discouraging employees who may be infected with COVID-19 from going to work (if there is no work to go to, an infected employee would not need leave). It could also lead to perverse results in that furloughed employees with a qualifying reason (who were not working) could be paid FFCRA benefits while their colleagues without a qualifying reason (who also were not working) would not. 

The DOL noted that EPSL and EFML are forms of “leave” and that employees who had no work to perform — i.e., were on furlough — do not require “leave,” as that word is commonly understood. 

Noting the FFCRA’s anti-retaliation provisions, the DOL emphasized that employers may not make work unavailable in an effort to deny leave. The DOL also pointed out that other COVID-19 relief measures — including the Paycheck Protection Program and expanded unemployment provisions of the Coronavirus Relief, Aid, and Economic Security Act — more appropriately address the needs of employees for whom no work is available. To address specific failings noted by the court, the DOL clarified that “work availability” is a requirement for all forms of leave under the FFCRA.

Also read: Time off policies promote convenience while enhancing engagement

The Definition of ‘Health Care Provider’

Under the FFCRA, employers may exclude from EPSL and EFML eligibility “health care providers” and/or “emergency responders,” the DOL definitions of which were expansive. While the definition of “emergency responders” was not addressed in its decision, the court held that the FFCRA’s unambiguous terms did not allow for the broad definition of “health care provider.” 

In light of the decision, the DOL has revised the definition of “health care provider” to match the definition in the FMLA, and include other employees who provide diagnostic services, treatment services, or other services that are integrated with and necessary to the provision of patient care. The DOL has updated its answer to Q&A #56, clarifying that “health care providers” who may be excluded by their employer from FFCRA eligibility include: 

  1. “Anyone who is a licensed doctor of medicine, nurse practitioner, or other health care provider permitted to issue a certification for purposes of the FMLA.” 
  2. “Any other person who is employed to provide diagnostic services, preventive services, treatment services, or other services that are integrated with and necessary to the provision of patient care and, if not provided, would adversely impact patient care.” 
  3. Employees who do not provide direct heath care services to a patient but “are otherwise integrated into and necessary to the provision those services — for example, a laboratory technician who processes medical test results to aid in the diagnosis and treatment of a health condition — are health care providers.”

This second group includes nurses, nurse assistants, and medical technicians.” It also includes “employees who directly assist or are supervised by a direct provider of diagnostic, preventive, treatment, or other patient care services.” 

The Q&A further clarifies that a person is not a health care provider merely because their employer provides health care services — i.e., IT professionals, building maintenance staff, cooks, or food service workers. 

Notably, the revised “health care provider” definition no longer permits the highest official of a state (i.e., the governor) to expand the definition to include any individual they determine is a health care provider necessary for that state. 

The definition of “emergency responders” — including the highest official’s ability to expand it — has not changed.  

Provisions Relating to Intermittent Leave

The DOL’s final rule allows employees to take EPSL and EFML intermittently “only if the Employer and Employee agree,” and even then, only under certain circumstances — i.e., when the employee’s use of intermittent leave will not risk the employee transmitting the virus to others. While the court recognized that the final rule’s restrictions on when an employee may use leave intermittently are consistent with Congress’s public health objectives, it rejected the blanket requirement of employer consent. The DOL disagreed, however, and reaffirmed its position that employer approval is needed to take intermittent FFCRA leave. 

While the FFCRA did not expressly permit or prohibit intermittent leave (in contrast to the FMLA, which expressly authorizes employees to take leave intermittently, but only under certain circumstances), the DOL reasoned that the employer-approval condition is consistent with the longstanding FMLA principle that intermittent leave, where foreseeable, should avoid “unduly disrupting the employer’s operations,” particularly when it is not medically necessary (e.g., bonding leave). 

Notably, the DOL clarified that the employer-approval condition would not apply to employees who take FFCRA leave in full-day increments to care for their children whose schools are operating on an alternate day (or other hybrid-attendance) basis, because such leave would not be intermittent. In an alternate day or hybrid-attendance schedule, the school is physically closed with respect to certain students on particular days as determined by the school, not the employee. For the purposes of FFCRA, each day of school closure constitutes a separate reason for FFCRA leave that ends when the school opens the next day, and thus intermittent leave is not needed because the school literally closes and opens repeatedly. 

This is distinguished from a scenario where the school is closed for some period, and the employee wishes to take leave only for certain portions of that period for reasons other than the school’s in-person instruction schedule (in which case the use of leave would be intermittent and would require employer approval).

The Documentation Requirements 

The DOL’s final rule required that employees submit documentation to their employer prior to taking leave. The text of the FFCRA, however, requires only that employees give notice “as is practicable” for foreseeable EFML, and that they follow reasonable notice procedures for EPSL after the first workday or portion thereof that they receive paid sick leave.  

Recognizing these inconsistencies, the court held that the documentation requirements, to the extent they are a precondition to leave, are invalid. The DOL agreed with the court, and has thus revised the final rule to clarify that the documentation need not be given “prior to” taking EPSL or EFML. Thus, employers may require an employee to furnish as soon as practicable the required information and/or documentation discussed here.

In light of the foregoing, employers of health care providers in particular should familiarize themselves with the revised definition in order to ensure accuracy in determining which of its employees may be excluded from eligibility for EPSL and EFML. Employers who have relied on the previous “health care provider” definition to exclude employees from eligibility may wish to contact their attorney with questions about the revised definition and/or its impact on excluding such employees from FFCRA entitlements going forward. 

Additionally, to the extent employers were requiring documentation to support a request for EPSL and EFML prior to the leave, such processes must be revised to allow employees to provide such documentation “as soon as practicable.” 

Employers may continue to deny EPSL and EFML if there is no work available for the employee, and may continue requiring approval for use of EPSL and EFML on an intermittent basis, pursuant to the requirements of the revised final rule (and only if such intermittent use is for a permissible qualifying reason).

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Why an absence program is vital for any organization

software, compliance

Absence management programs and policies are increasingly significant for organizations, especially as more leave laws pass on a local, state and federal level. Managers dealing with absences from their staff must know what their company’s absence program means for their own role and responsibilities. 

Creating an absence program or policy can be complicated, and there are several types of leave that must work with each other. For example, how does a company’s paid time off policy align with paid family leave laws, short-term disability plans or the Family and Medical Leave Act? What if employees are using PTO when they should be using short-term disability?

Here is some guidance for employers who want to put something more formal in place and stay up-to-date on changing leave laws.

Creating a strong foundation

The foundation of any absence management program is that it takes into account all the local, state and federal leave laws that an organization must follow. Before a company decides what it wants to do, it must understand what it has to do, said Maura McLaughlin, partner with law firm Morgan, Brown & Joy, LLP. Different laws may have different employee count thresholds, for example. 

There are many types of leave, and as new leave laws come into effect, organizations should look at their current policies in case an update is necessary, McLaughlin said. 

Staying up to date with new laws can be done a few different ways, said Simon Camaj, absence and disability practice leader at Mercer. A company can outsource management to a carrier/vendor whose job it is to stay informed on the leave law landscape. A company could potentially rely on three parties together — a vendor partner, a consultant partner and in-house counsel — to make the best decisions. Meanwhile, if a company keeps decisions internal and relies on its in-house counsel, that’s more burden on the attorneys.  

It’s up to a company to make the best decision for themselves, but there are costs and benefits either way. 

From must-haves to nice-to-haves 

The next step is deciding how your company wants to address those areas where the law offers organizations some discretion or flexibility, McLaughlin said. How will the company decide on accruals for paid sick leave — lump sum or hours worked? Does the company want to make a certain type of leave paid rather than unpaid? What else does the company want to offer? 

These decisions depend on the culture of the organization and what resources it has, McLaughlin said. What is common to see in the absence program or policy of many companies, though, is longer bereavement leave than the law requires and paid parental leave in states where it is not required. 

Documentation and communication 

What an organization also must consider is how it will document the necessary information for its records and communicate to employees what forms or notices they must fill out for different types of leave.

The onboarding process is one area where employees may be informed about their company’s absence management policies, McLaughlin said. Here they can learn who they go to when they must take time off or some type of leave — their manager, HR or someone else? They can also learn the correct modes of communication to reach out to that person, whether that’s a phone call, email or something else. 

Manager training

Finally, McLaughlin said, organizations can train managers and HR professionals to make sure they know what signs to take notice of that may signal a potential upcoming absence. Is an employee exhibiting some behavior that may predict that this person may be eligible for FMLA leave? For example, an employee may say something along the lines of, “I was in the hospital overnight” or “I need to be on bedrest for just a few days.” While these might not lead to any prolonged absence, if they do managers can be prepared, having considered the employee’s absence or potential reasonable accommodations beforehand. 

This training can also stress that managers cannot retaliate against employees and teach managers how to handle an absence in a non-discriminatory way. A major absence management challenge is managers being able to manage employees consistently so it doesn’t look like discrimination, McLaughlin said. 

How this type of training is conducted depends on what internal resources an organization has, McLaughlin said. It can come from an internal training function or from external training. Either way, there can be a baseline training session along with refreshers as laws or company policies evolve. 

The significance of absence management 

An absence program is vital to an organization. Managers don’t want to fall into the mistake of not managing this until it’s too late, McLaughlin said.

“You may have [an employee] who has not been held accountable, and now you’re at a point of it just being a real problem from an operations and business perspective. But you have no documentation of the fact that it’s been a problem or that you’ve given them all the leave they’re entitled to. And now you have a problem that could have been [avoided,]” she said. 

 

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Leave management should be as simple as submit, approve and hit the beach

Submitting a request for time off should be a simple, positive experience.

In most cases an employee seeking leave is looking forward to time away from the workplace. Their request to take time to relax and unwind shouldn’t get bogged down in a bureaucratic morass of an overly complicated process, further slowed by multiple approvals and unnecessary paperwork.

Let employees know their vacation is approved before they even book their travel plans through an intuitive online time management solution. Managers and supervisors also will appreciate the solution’s ease of use and rapid response so they can plan for that employee’s absence weeks or even months in advance.

Clear the confusion

Too often employees don’t know how much time off they have accrued or the amount they have left. Worse, managers are often in the dark about such employee basics as paid time off.

The employee approaches the manager to ask, “How much time off do I have left?” only to discover that the boss has no idea, either.

Frustrated, both begin to search for an answer. Naturally, it is either on a paper form tucked deep inside a hulking gray filing cabinet, or it is squirreled away among a previous manager’s archived spreadsheets, which of course is in a folder on an inaccessible server.

A mobile leave management solution makes such confusion and aggravation a thing of the past. Employers and employees enjoy ease of use and spend their time on tasks much more important than digging through a bank of filing cabinets.

Time off at their fingertips

A fully integrated leave management system literally fits in their pockets. Managers will always know who is available to work any shift with a quick glance at their mobile phone.

Innovative leave management software supports both mobile and desktop applications and implements approved requests directly into an employee shift schedule.

Online leave management benefits

Employers can customize leave management for multiple industries and global locations. Through quick implementation to the cloud, supervisors and employees also have a fair, transparent leave approval solution. Employers also increase their efficiency by shedding burdensome paperwork and save time and money by avoiding costly compliance complications.

Fair, transparent leave approval

Whether your organization uses paid time off or traditional vacation/sick leave, employees submit leave requests using their mobile devices. Managers can then review, approve or modify the requests. With ongoing, updated tracking, employee and supervisor both have access to records, balances and proof of compliance. Tracking time off helps optimize labor management for all employees.

Ease scheduling hassles

Every employee deserves time away from work, whether it is a weeklong vacation or a half-day doctor’s appointment. But when that worker’s time-off request is mismanaged it causes problems for the business, managers and fellow employees.

A simple, user-friendly mobile leave management solution is accurate, immediate and rebuilds the trust between employees and their managers that may have been damaged by a sloppy paper-based system. 

Managers can see pending leave requests and check on employee availability, then make informed decisions on whether to grant or deny the time off.

Remain in compliance

Lax adherence to tracking employee leave and ignoring federal and state Family and Medical Leave Act compliance is the fast track to a lawsuit. A user-friendly, effective leave management system helps clarify FMLA and other regulations with intermittent or continuous employee-leave tracking to avoid litigation and costly fines that typically come with noncompliance.

 Efficient records of absentee, sick leave, annual leave and timekeeping translates into accurate compensation and an engaged workforce secure in the knowledge that their leave requests will not fall through the cracks. A mobile leave management solution benefits the employer as well as the employee.

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You can still clock in: Technology offers ways to overcome COVID-19 disruption

workforce management, time and attendance, HR technology

time and attendance, HR technologyThe coronavirus outbreak has prompted enterprising businesses to use their existing workforce management technology in new ways.

The unprecedented impact on people’s daily work and personal habits has been the catalyst for the businesses we work with to find new functions for our technology.

Innovative organizations are using the platform to help communicate with their employees about safety measures, shift changes and team morale during this difficult time.

The following are issues that businesses should be prepared for over the coming days, weeks and months and how workforce management technology can assist.

Health and safety issues are top of mind. Employers can use workforce management software to enter and monitor safety processes such as their staff’s COVID-19 test results and to monitor the staff’s self-isolation dates so they know when it is safe to allow them to return to the workplace.

This is an innovative use of a function that was originally created to ensure workforce compliance with industry regulations, certifications and visa working restrictions.

Leave management is another important issue. As a large number of people are required to self-isolate, businesses will see a dramatic increase in requests for all types of leave. They will need systems in place to handle this influx of applications.

Workforce management technology allows for easier approval of shifts and timesheets, along with the power to add and edit staff leave and add manual allowances.

Shift equity is something many employers will want to focus on. A platform can be used to equitably share shifts among staff as a fairer alternative to dropping staff members off the schedule.

Facing unprecedented economic conditions, businesses will be keeping a close eye on profitability. Workforce.com has introduced a live wage tracker that allows employers to make early cost-saving decisions based on reduced demand.

Our live wage tracker provides an update on wage costs every 15 minutes. If this data is connected to point-of-sale technology, businesses can track exactly how they are performing throughout the day and use the data to make staffing decisions. Especially when government directives are being made frequently, it’s vital that businesses are able to make rapid cost-saving decisions based on demand.

Employees working from home can still clock in via Workforce.com’s remote clock in, which allows staff to clock in via their mobile devices, to clock in and out multiple times to account for the distractions of working from home, and to list their activities performed.

This pandemic will speed up the adoption of remote work technology and employers are on notice that the workplace may be permanently impacted.

Once the virus is contained and it is business as usual, employees may be asking, “Why do I have to come into the office every day, I’m just as efficient from home?”

Can your business keep up if people want to continue to work from home? Some businesses are using this time of reduced demand to ensure they have the right processes in place for a flexible workforce.

Maintaining team unity is more important than ever. A chat function is a good way to check in on staff morale, set up reminders about sanitizing frequently touched surfaces, and even report on interactions with potentially unwell customers so that good records are kept.

Employers also can easily communicate changes to the business by messaging individuals or entire teams, sharing key updates and important documents like training files, new health and safety policies, and opening hours.

Because chat messages are easy for all team members to see in the app, employers and managers can also use this platform for important things like saying happy birthday to a team member or reminding them to clock out if they’ve forgotten to do so.

The COVID-19 pandemic has forced upon employers and employees a new way of operating, at the very least in the short term. But technology that already exists can help businesses keep on top of the new normal of managing a workforce.