Assignment
Chelsea29440
Ch08_Martocchio_6e.pptxPart Three: Services
Chapter Eight: Paid Time-Off and Flexible Work Schedule Benefits
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Learning Objectives
In this chapter, you will gain an understanding of:
various types of paid time-off practices.
design elements of paid time-off practices.
leave under the Family and Medical Leave Act of 1993.
various types of flexible work arrangements.
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Overview
The chapter begins by discussing the fourteen types of common paid time-off practices.
The Family and Medical Leave Act of 1993 is then outlined, including:
key provisions, returning to work, and revisions.
The chapter concludes with the three most common flexible work arrangements.
flextime, compressed workweek, telecommuting.
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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Defining and Exploring Paid Time-Off Programs
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Private-sector companies offer most paid time-off benefits on a discretionary basis.
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Paid time-off policies
compensate employees when not performing primary work duties
Exhibit 8.1
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Percent of Workers with Access to Selected Leave Benefits, by Worker Characteristics: Private Industry National Compensation Survey, March 2015
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Defining and Exploring Paid Time-Off Programs
As of September 2015:
employer costs for paid leave averaged $2.17 per hour worked,
6.9% of total pay.
For management, costs were $4.69/hour, 8.4%.
For service workers, costs were 0.56, or 3.9%.
Vacation benefits cost $1.13/hour, 0.8%.
Personal leave costs were 0.12/hour, 0.4%.
For goods producing industries, costs were $2.46/hour, 6.5%.
For service producing industries, costs were $2.11/hour, 7%.
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Paid Time-Off Practices
The following practices are reviewed:
holidays,
vacation.
sick leave,
personal leave,
integrated paid time-off policies,
parental leave,
bereavement or funeral leave,
jury duty and witness duty leaves,
military leave,
non-production time,
on-call time,
sabbatical leave, and
volunteerism.
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Holidays
Private-sector employers usually follow federal government practices.
12 paid holidays a year.
Employees receive a work day off for each one.
Company-specific practices.
Many add floating holidays allowing time off to observe any holiday not on the list.
May or may not be limited to holidays.
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Holidays
Employers must pay attention to the treatment of religious holidays.
Title VII of the Civil Rights Act prohibits discrimination based on religious beliefs.
The EEOC established guidelines:
Allow employees to observe the day, unless it causes undue hardship.
Employers must treat observances uniformly as paid or unpaid time off.
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Holidays
If holidays occur during vacation or sick leave,
most companies recognize and pay for the holiday.
Companies may extend paid holidays with additional paid days before or after a holiday.
Christmas Eve or the Friday after Thanksgiving.
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Vacation
Employers may view paid vacation as a reward
or as vital to employee health and productivity.
Policies entail 5 considerations:
eligibility for vacation leave,
single or multiple policies for different groups,
rules for available vacation time per year,
avoiding conflicts between vacations and deadlines,
handling unused vacation time at year’s end.
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Vacation
Employees become eligible after working full-time for up to a year.
Companies may exclude part-time employees.
Some companies allot the same number of days per employee or they may use seniority.
Some companies determine nonexempt worker’s vacation by hours worked.
Employers must decide when to schedule vacation times during heavy business activity.
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Vacation
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Vacation policies should specify carryover and cash-out provisions.
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Carryover provision
Employees may take unused vacation time at a later time.
“use it or lose it” provision
Employees must use the days during the year or lose them.
Cash-out provision
Pays an amount equal to the unused vacation days based on regular pay.
Sick Leave
Sick leave benefits pay workers for a specified number of days absent due to personal illness.
Separate from disability leave policies.
May be granted for non-employee illnesses.
When unscheduled absences create hardship,
companies may require medical certification.
Unscheduled absences decrease productivity and increase costs.
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Sick Leave
Not all companies offer sick leave.
Half of small companies do not, while 70% of large companies do offer sick leave.
Paid sick leave is now required for all government contractors and subcontractors.
State laws also govern sick leave criteria.
Some cities are even passing laws on paid sick leave requirements.
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Personal Leave
Paid time-off for almost any reason.
Companies may limit acceptable reasons.
Common uses include: “mental health days.”
May be used to extend vacation or sick leave.
Companies either allot a fixed number of days per year, or award them based on seniority.
Annual allotment may range from 1-10 days.
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Integrated Paid Time-Off Policies, or Paid Time-Off Banks
Integrated paid time-off policies, or paid time-off banks are gaining in popularity.
Do not distinguish reasons for absence.
Provides freedom to schedule time-off.
Employers benefit as it means
managing one plan as opposed to separate plans, and
eliminates the need for medical certifications.
Bereavement leave is a stand-alone policy.
Sabbaticals are not included.
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Integrated Paid Time-Off Policies, or Paid Time-Off Banks
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Effective paid time-off bank policies:
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Slowly increase the number of days an employee may use.
Include a carry-over provision rather than a use-it-or-lose-it provision.
Parental Leave and Bereavement Leave
FMLA mandates 12 weeks unpaid leave for family reasons.
Traditionally benefitted females but paternity leave is on the increase.
Bereavement leave or funeral leave provides time off following the death of a relative.
Some companies designate allowable amounts depending on the relationship involved.
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Jury Duty and Witness Duty Leave
Federal and state law guide jury duty policy.
The Jury Systems Improvement Act of 1978 established this right.
FLSA prohibits employers from reducing employees’ salaries while participating on a jury.
Witness duty policies are guided by state laws in only half of all states.
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Military Leave
Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).
Reemployment rights extend to those absent due to voluntary or involuntary service, up to 5 years.
Offers protection against:
denial of initial employment,
reemployment,
retention,
or any benefits of employment.
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Nonproduction Time
Nonproduction time:
refers to time uses related to, but not in actual performance of, the main job duties.
Such as: cleanup, preparation, and travel time between job locations.
or it can refer to non-work times during a shift.
Rest periods, breaks, and meal breaks.
Employers must pay for time devoted to principle work activities and for those duties indispensable to performing principle activities.
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On-Call Time
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The U.S. Department of Labor requires pay for nonexempt employees’ on-call time.
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On-call time
requires employees be close to the employer’s premises so they cannot use the time effectively for their own purposes
According to FSLA
employers can require exempt employees to be on-call without additional compensation
Sabbatical Leave
Sabbatical leave practices are common in university settings, applying to faculty.
Must meet service requirements each time.
Other employers have begun offering sabbaticals to further professional development.
Companies establish guidelines regarding qualification, length of leave, and level of pay.
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Sabbatical Leave
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Not all sabbaticals are alike.
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Traditional Sabbaticals
Personal Growth Leaves
Social Service Leaves
Extended Personal Leaves
Voluntary Leaves to Meet Business Needs
Volunteerism
Volunteerism refers to giving one’s time to support charitable causes.
Companies favor this for three reasons.
Allows employees to balance work and life demands.
Allowing employees the time reflects positively on the company’s image.
It is believed to help promote retention.
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Leave under the FMLA
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Societal changes have strengthened protections under the act.
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The Family and Medical Leave Act (FMLA)
provides employees with job protection in cases of family or medical emergencies
Leave under the FMLA
Key provisions.
Guaranteed unpaid leave with the right to return
to the same job (or equivalent) with the same benefits.
Does not require employers to pay for the leave.
Does require they maintain the same health coverage.
Employees may choose to substitute paid leave for unpaid FMLA leave.
Applies to all government employers and private-sector companies with 50 or more workers.
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Leave under the FMLA
Key provisions.
FMLA applies to all public and private schools.
Employees qualify for FMLA leave when they
have worked at least 1,250 hours over 12 months, and
live within 75 miles of the place of employment.
Qualifying employees may take leave for:
birth and care of a newborn child,
placement of an adopted child or foster child, or
care for themselves or an immediate family member with a serious health condition.
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Leave under the FMLA
Key provisions.
Spouses employed by the same employer are jointly entitled to a combined total of 12 workweeks of family leave.
Circumstances may warrant the 12-week leave on a consecutive basis or intermittently.
Employees must give employers a minimum 30-day advance notice of expected leave.
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Returning from FMLA Leave
Upon return, employees must:
be restored to the same, or equal job,
retain all benefits, such as seniority.
Employers may deny these rights to the highest paid 10% of employees, if they:
Notify ineligible workers when applying for FMLA.
Notify employee as soon as decision is made.
Offers employee opportunity to return after notice.
Makes a final determination at the end of the leave.
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Revisions to the FMLA
Three major revisions to the FMLA.
Military caregiver leave.
May take up to 26 weeks off.
Qualifying exigency leave.
Nine broad categories of qualifying exigencies.
All revolve around members of the National Guard or reserves members called to active duty.
Makes eligible same-sex marriages.
Effective March 27, 2015.
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State and Local Family Leave Laws
Some states and local governments have instituted laws mandating paid family leave.
California, New Jersey, and Rhode Island possess paid family leave laws.
New Jersey permits up to six weeks paid leave.
Rhode Island provides four weeks of paid leave for family member care and up to 30 weeks for their own personal care.
A New York City law gives six weeks of paid family leave for nonunion workers employed by the city.
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Flexible Work Arrangements
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More than 80% of companies offer some type of flexibility.
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Flexible work arrangements
create the flexibility for employees to balance work and nonwork demands or interests
Flexible Work Arrangements
Numerous benefits:
Enhanced recruitment and retention.
Job satisfaction.
Employee engagement.
Lower stress.
Lower unscheduled absenteeism.
Lower voluntary turnover.
One downside.
May harm collaboration when work schedules do not align.
Three most common:
flextime schedules,
compressed workweek,
telecommuting.
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Flextime Schedules
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Employees adjust when they start and leave work.
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Flextime schedules
allow workers to modify work schedules within specified limits
Core hours
are certain workday hours when business activity is regularly high
Banking hours
workers may vary daily work hours, maintaining weekly work hours
Flextime Schedules
Employers can expect three possible benefits:
Lower tardiness and absenteeism.
Higher work productivity.
Creating longer business hours and better service.
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Compressed Workweek Schedules
With compressed workweek schedules workers perform their work in less than 5 days.
Maybe four 10-hour days, or three 12-hour days.
Promotes recruitment and retention by:
reducing commute time and increasing down time.
The FLAS does not regulate flexible work schedules.
An agreement between employer and employee.
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Telecommuting
Telecommuting happens when employees perform work at home or some other location.
Appropriate for work not requiring interpersonal interactions, such as accounting.
Potential employer benefits include:
increased productivity, lower overhead costs, effective recruiting and increased retention.
Employees like telecommuting because it
increases family time and decreases commuting time and expense.
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Telecommuting
Provides tax benefits to employees when:
Employer-provided property or services qualify as working condition fringe benefits.
Copier machines and express mail service.
Specifically, employers exclude these costs from a telecommuter’s gross income.
Employer-provided equipments does not qualify as a working condition fringe benefit outside a formal telecommuting arrangement.
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Summary
The chapter began by discussing the fourteen types of common paid time-off practices.
The Family and Medical Leave Act of 1993 was then outlined, including:
key provisions, returning to work, and revisions.
The chapter concluded with the three most common flexible work arrangements.
flextime, compressed workweek, telecommuting.
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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