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I wonder how companies that are located in states where employers are forced to payout unused days at the end of the year, deal with the idea of "unlimited"? Ho

I wonder how companies that are located in states where employers are forced to payout unused days at the end of the year, deal with the idea of "unlimited"? How can they payout that out, but legally they are suppose to? I mostly feel like it (unlimited vacation) is a way for companies to save money.

phonon 8y ago
> How can they payout that out, but legally they are suppose to? They don't. https://hrdailyadvisor.blr.com/2017/05/24/permanent-vacation-use-lose-policies-payout-vacation-termination/ https://hrdailyadvisor.blr.com/2017/05/24/permanent-vacation... "For similar reasons, more employers are also experimenting with open or unlimited leave policies, which can offer the same benefit. The general idea of an open or unlimited vacation policy is that the employee doesn’t really accrue or earn a set amount of leave per pay period or year. Rather, leave is unlimited and may be subject to few, if any, restrictions beyond supervisor approval and a reasonable assurance that assigned duties, projects, clients, and other workload-related details are managed during the worker’s absence. Here, because employees are not accruing a set number of wage-equivalent hours per pay period, no compensation interest vests. After all, you can’t very well pay out “unlimited” vacation at termination."
- fuzz4lyfe 8y ago
  >and a reasonable assurance that assigned duties, projects, clients, and other workload-related details are managed during the worker’s absence. I read that as if you are in a role with no backup or reasonable cover for your duties you can never take vacation. As I often find myself in that position I'd shy away from "unlimited vacation" roles.
- baddox 8y ago
  This is literally the only reason that companies offer unlimited PTO. PTO accrual is a cash flow risk to employers.
ticmasta 8y ago
Unlimited in jurisdictions with legal minimums is set at the minimum in my experience. They usually say "You get unlimited vacation and are expected to take a minimum of X weeks per year". I've never seen a company the doesn't track time off regardless of their policy.
cosmie 8y ago
In unlimited PTO schemes, you don’t earn/accrue any vacation time, so there’s not technically (nor legally) any to pay out. In some HR systems you’re basically lazy-provisioned PTO time as it’s taken, so your amount of accrued PTO Time is always reconciled at the same amount of PTO time taken, leaving the available balance at zero. In other systems, you technically have zero days of PTO available, and when you use it your balance goes negative. Which gets zeroed out at the end of the year. In both cases, your PTO balance is never greater than zero, so you never have any unused days that would be subject to pay out.

phonon 8y ago

> How can they payout that out, but legally they are suppose to? They don't. https://hrdailyadvisor.blr.com/2017/05/24/permanent-vacation-use-lose-policies-payout-vacation-termination/ https://hrdailyadvisor.blr.com/2017/05/24/permanent-vacation... "For similar reasons, more employers are also experimenting with open or unlimited leave policies, which can offer the same benefit. The general idea of an open or unlimited vacation policy is that the employee doesn’t really accrue or earn a set amount of leave per pay period or year. Rather, leave is unlimited and may be subject to few, if any, restrictions beyond supervisor approval and a reasonable assurance that assigned duties, projects, clients, and other workload-related details are managed during the worker’s absence. Here, because employees are not accruing a set number of wage-equivalent hours per pay period, no compensation interest vests. After all, you can’t very well pay out “unlimited” vacation at termination."

fuzz4lyfe 8y ago
>and a reasonable assurance that assigned duties, projects, clients, and other workload-related details are managed during the worker’s absence. I read that as if you are in a role with no backup or reasonable cover for your duties you can never take vacation. As I often find myself in that position I'd shy away from "unlimited vacation" roles.
baddox 8y ago
This is literally the only reason that companies offer unlimited PTO. PTO accrual is a cash flow risk to employers.

ticmasta 8y ago

Unlimited in jurisdictions with legal minimums is set at the minimum in my experience. They usually say "You get unlimited vacation and are expected to take a minimum of X weeks per year". I've never seen a company the doesn't track time off regardless of their policy.

cosmie 8y ago

In unlimited PTO schemes, you don’t earn/accrue any vacation time, so there’s not technically (nor legally) any to pay out. In some HR systems you’re basically lazy-provisioned PTO time as it’s taken, so your amount of accrued PTO Time is always reconciled at the same amount of PTO time taken, leaving the available balance at zero. In other systems, you technically have zero days of PTO available, and when you use it your balance goes negative. Which gets zeroed out at the end of the year. In both cases, your PTO balance is never greater than zero, so you never have any unused days that would be subject to pay out.