These types of policies are not present, widely, in the private sector - for a reason. PTO, when used in place of scheduled work time does not cost money beyond the employee’s salary - it merely exchanges accounting classifications for the business. At the end of the year, the business has not paid out more than the employee’s salary, even though the employee may have used 3 sick days and 5 to 10 days of vacation.
To allow PTO to be accrues and cashed out costs a huge amount of money, that otherwise was not allocated for compensation. To view sick days and vacation time as separate from salary is wrong. It is time for the use it or lose it, on an annual basis, policies that we use in the private sector.
You can kinda figure this out. If a guy gets 14 work-days a year for sick-leave, and generally only uses four days, then he’s got ten days a year for the next thirty-five years building up on a state program. The state might be stupid enough to have a door open and just agree to pay the guy for the whole 350 days, which opens up a hornets nest for your pension planning strategy. That’s way over a year’s pay that you give a guy for not being sick.
I do agree...being reasonable about it...it ought to cap off at roughly 60 days, and never go beyond that point.
At the time when I worked at Lockheed Martin until Jan 2008, we had a very generous carryover vacation policy. At the time, at the end of the year, whatever hours you had over 400 hours was paid to you and your vacation time was truncated down to 400. At the time I got laid off, they got rid of that policy and implemented a step down policy. In 2008, you could have a max of 560 hours but once you hit the max, you didn’t get anymore vacation hours. They also took 40 hours away each year from the max to where in 2012, the max you can have is 400 hours. It was suppose to stop there but from what I heard from several people, they are continue to step down and this year, you can have 360 hours max.
I still keep in touch with quite a few LM folks and from what they mentioned, they are getting squeezed and fearful of their jobs, taking vacation is more difficult now especailly with the amount of work expected and they are hitting the max, therefore indirectly losing time. The division that I worked for had an unwritten policy that you were expected to give free time to the company back for the vacation pay. This is on top of the expected 5 hours of free time per week you were expected to give each week. Work 45 but get paid for 40. This division is under Linda Gooden. Furthermore, managers have been told as a part of their performance assessment that they are required to get 100 hours of free time from each direct report employee and also discourage employees from taking more than a week off at a time for vacation. Top performing employees are given more flexibility to take time off like take 2 weeks at once and those employees who are considered sub-par are discouraged from even taking a week off and directed to take a day or two here and there.
I do remember one manager I worked for at LM, liberal democrat of course called me into his office and I got chewed out for wanting to take two weeks off in July and I was literally screamed at. He told me that vacation was one benefit that required management approval before being taken and when and how I got to take vacation was considered a privilege. He also required contact information before leaving and added the caveat that I could be recalled at anytime during vacation. Right after my @$$ chewing, a week later, he took vacation to Cape Cod for two weeks.
One company I worked for in Indiana had a very stingy vacation policy. You had to wait a minimum of 1 year before even taking vacation and then the next 3 years, you only got 1 week’s vacation. On your 5th year, you got 2 weeks. Vacation time was not allowed to be carried over and due to the company’s setting up of the fiscal year where the new year started on July 1, they very much frowned on taking time off during the Summer and the accounting department, it was forbidden to take time off during June, July and August. We also had the day of and day before Christmas and New Year’s Day. We were forbidden from taking time off between Christmas and New Year’s as well. You were also forbidden from taking off more than a week at a time for vacation.
> These types of policies are not present, widely, in the private sector -
> It is time for the use it or lose it, on an annual basis, policies that we use in the private sector.