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Paid Time Off Benefits. Soraya Montgomery Daniel Thai Tri Phan Nick Ionashku. WHAT ARE PAID TIME OFF BENEFITS? Definition: Any time not worked by an employee in which the regular rate of pay is accrued and paid to the employee. ARE THEY MANDATED BENEFITS?.
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Paid Time Off Benefits Soraya Montgomery Daniel Thai Tri Phan Nick Ionashku
WHAT ARE PAID TIME OFF BENEFITS? Definition: Any time not worked by an employee in which the regular rate of pay is accrued and paid to the employee.
ARE THEY MANDATED BENEFITS? • Most paid time off benefits are not mandated • Employers offer them to be competitive and to attract and retain employees
WHO QUALIFIES TO RECEIVE PAID TIME OFF BENEFITS? • Varies by employer • May have to accrue a certain amount of time before exercising benefits • Full-time employees generally have more paid time off benefits than part- time employees
LEGAL PUBLIC HOLIDAYS • Nine or ten days per year • Recognized by Congress • NOT recognized by all employers
New Year’s Day President’s Day Independence Day Columbus Day Thanksgiving Day MLK, Jr. Day Memorial Day Labor Day Veterans Day Christmas Day LEGAL PUBLIC HOLIDAYS
States may have their own local and • state holidays! • For example: • *California celebrates Cesar Chavez Day on • March 31st.
WHO HAS TO WORK ? • Law Enforcement • Hospitals • Emergency Agencies *May receive ‘holiday’ pay rate
EFFECTS ON EMPLOYER • Boost employee morale • Employee’s need family time • Rest and Relaxation • Attract & Retain Employee’s
JURY DUTY • Your civic responsibility • Most employers allow paid time off • Courts provide some compensation • Most companies give regular pay
LENGTH OF TIME GRANTED • Varies depending on jurisdiction of case • A few hours, a day, a week, a month…….. • Employers may require verification • Done early? May have to report to work
BENEFIT TO EMPLOYER • Show’s support for the employee’s • Employee’s don’t have to worry about financial strain / stress • Gives employee’s stability
MATERNITY LEAVE Definition The period of time during which you’re disabled due to pregnancy and childbirth. *up to four months
PAID FAMILY LEAVE & CA SDI • September 23, 2002 • State of California enacted first-in-the-nation paid family leave.
July 1, 2004 • Nearly all non-governmental employees eligible to receive: -up to six weeks Family Temporary Disability Insurance (FTDI) over a twelve month period
Benefits will replace wages to cover period where a worker is unable to work due to: -care for an ill child, spouse, parent or domestic partner -birth, adoption, or foster care placement of a child
ELIGIBILITY • Upon hire • Begin to receive benefits after a seven- day waiting period
Employers must provide a brochure to: -employees who start after 1/01/04 -persons who request Paid Family Leave after July 1, 2004
FUNDING OF FTDI • Increased payroll deductions 01/2004 • Based on a payroll tax schedule • Average $27.00 per employee annually • Top contribution capped at $70.00* *those earning more than $72,000 annually
California workers will be able to collect: -as much as 55% of their salary -up to a maximum of $728.00 per week
Employers with fewer than 50 employees: - not subject to Family Medical Leave Act of the California Family Rights Act -therefore, no legal obligation to hold jobs open for employees receiving FTDI benefits.
AFFECTS ON EMPLOYERS • Additional costs: -overtime to cover absent co-workers -locating, hiring, and training replacement / temporary workers.
ADDITIONAL COSTS CONTINUED • Administering the program -verifying medical reasons -verifying if the person being cared for is a family member
BENEFITS TO THE EMPLOYER • Supports employees with financial and job stability • Recruitment & retention of personnel
Paid Vacation Time • Military Leave • Voting Leave • Leave Banks
Vacation Time • Paid vacation time • Length of service & level in the organization • Employment anniversary date
Years of service Less than 1 year 1 year of service 2 years of service 3 years of service 4 years of service 5 years of service 6 years of service 7 years of service 8 years of service 9 years of service 10 years of service 11 years of service 12 years of service 13 years of service 14 years of service 15 years of service More than 15 years of service Average days per year 9.7 9.9 10.8 11.4 11.7 13.7 14.5 15.0 15.3 15.5 16.8 17.5 17.6 17.7 17.8 18.8 20.2 Average number of vacation days in the United States
Effects on employees • Exempt employees • Unused vacation days • Leaving the company • Part-time workers
What is a military Leave? • A military leave of absence is granted to employees who are absent from work because of service in the U.S. uniformed services • USERRA-Uniformed Services Employment and Reemployment Rights Act
Military Leave • Requirements when returning to work • Less than 31 days • More than 30 days but less than 181 days • Longer than 180 days
Affected Benefits • Health Plans • Other health coverage • Charges
Voting Leave • States passing laws • Pay factors
Leave Bank • What is a Leave Bank? - Pooled fund of annual leave - Provides income protection - Used as though the individual had earned the leave - Substitute LWOP
Background • Voluntary Leave Transfer Program • Extensions • Federal Employees Leave Sharing Amendments Act of 1993 • Shared Leave Status instead of Transferred Leave Status • Applies to officers and employees of executive agency or military departments.
A Leave Bank Member • Contribute annual leave • Open enrollment period • Minimum amount of annual leave contributed • Apply to be a recipient
Applicants must provide the following information in writing • Name, position title, and grade or pay level • Reason why emergency leave is needed • Description of nature & severity • Certification from one or more physicians • And any addition information that may be required
Another Type Of Leave Bank • Leave Bank as an innovation • Established by the American Foundation for the Blind • Paid time off (Paid Leave Bank)
Paid Time Off • Short Term Disability • Floating Holidays • Extended Illness Leave
SHORT-TERM DISABILITY (STD) Definition What’s STD How does STD works
SHORT-TERM DISABILITY (STD) • Reasons for STD plans to deny • Benefit employees • Benefit employers CONTINUES
SHORT-TERM DISABILITY (STD) CONTINUES • Statistics • 40 percent of companies with 100 employees or more offer disability coverage • Less than 19 percent of companies with less than 100 employees provide this coverage • STD plan
FLOATING HOLIDAYS • What’s Floating Holidays • When can it be use
EXTENDED ILLNESS LEAVE • Qualification • Paid Rate
Sick Leave • Sick leave days are used for: • for personal medical needs • to take care of family member • adoption related purposes
Sick Leave • For personal medical needs • If an employee is unable to perform their regular tasks and procedures due to physical or mental illness, injury, pregnancy, or childbirth. • If an employee is receiving a medical, dental or optical examination or treatment. • If presence at work jeopardizes the health of others
Sick Leave • To take care of family member • A family member is considered: • spouse, child, adopted child, parents and parents of spouse, brother and brother of spouse, sister and sister of spouse and any individual related by blood to the employee.
Sick Leave • Who is eligible to accrue sick leave? • Regular full-time employees. • Regular part-time employees. • Often part-time employees accrue sick leave at a prorated rate.
Sick Leave • California employers don’t have to offer sick leave but if the do they must comply with laws like the new measure, A.B. 109. • The law applies to all private, state and municipal employers regardless of the number of people employed.
Sick Leave • Demonstration calculatorcan be found at: http://www.employeradvice.com/sick_leave_calc_intro.pl