How Our Sick Bank Works
Ten years ago we combined our sick and vacation programs into a comprehensive Paid Time Off (PTO) bank. A couple of years ago we moved from a PTO-payout program to a use-it-or-lose-it program. This was in response to the Recession for financial reasons. It wasn't simply that paying out unused sick/vacation time was an expense. It was also that accrued but unused PTO has to be booked each month as a liability against company profits due to the fact that is a payable obligation under most states' Wage and Hour regulations. Even if you use that time to take a vacation, between the time that you accrue it and the time you actually take the vacation the value of that time is a financial liability. Moving to a use-it-or-lose-it program is a difficult move for employees. There are all manner of reasons why people forfeit unused time at year's end, from simple mismanagement all the way to work demands and won't allow for all time to be taken. For that reaso...