What is an alternative to paying an employee for unused sick and personal days?
Hi Adam, I work with so many employers who struggle with this same question. Some carry over the days to the following year, some cash out the time at the end of the year – both of these alternatives often put them (especially the smaller businesses) in a real bind. There are logistical and financial reasons for this becoming a big headache in short order. A few thoughts… When I have seen time carry over year to year, it is very rarely sick or personal days. It is almost always vacation time. Usually sick and personal (sometimes called casual or floating days) are tied to the calendar year. Still, in some states, like California, these casual or floating days are considered wages and must be cashed out if not used. The best way to manage this is to cap the accrual of time. Of course, this should be done in accordance with state law, but here in California, it works very well. The key is that once the time is earned, it belongs to the employee (doesn’t apply to sick time, but does app
Related Questions
- An employee has not used any sick time this past fiscal year. Can he/she convert this unused sick time to vacation time?
- I am an employee hired prior to July 31, 2009, with the Sick Pay Plan accumulating 1 ½ days per month. What are my options?
- Does an employee receive payment for unused vacation or sick leave upon termination?
