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Difference in amount of vacation offered to different employees Pennsylvania

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  • Difference in amount of vacation offered to different employees Pennsylvania

    I handle the HR for my company. We recently hired an employee who was offered two weeks paid vacation, with an increase to three weeks paid vacation after 1 year of employment. In our employee handbook it states we offer one week of paid vacation upon the completion of one year of employment. My question is I was under the impression what we offer to one we must offer to all. I understand in PA vacation is considered compensation and not a benifit. Does this make it exempt as to the amount of vacation that is offered to different people in different positions. or must we go by the what we offer to one we must offer to all. Want to make sure we follow the law.

  • #2
    It is not even remotely true that what you offer to one you must offer to all.

    For ERISA based benefits (health insurance, 401k etc.) you must follow what is in your plan document, but your plan document can outline different classes of employee. For example, it is perfectly legal if your plan document says you offer health insurance benefits only to full time employees who work in the corporate office, and not to part time employees or any employees who work in the field office. You would have to offer the benefit to all full time employees in the corporate office without exception, but there would be nothing illegal, with that plan document provision, in excluding part time employees and field office employees.

    For non-ERISA based benefits such as vacation, you are free to offer whatever you like to any employee you like, as long as you do not violate Title VII and related laws.

    Caveat: PA is a follow-your-policy state, meaning that I would not advise you to offer less than your policy provides to any employee. However, few if any states will object to your offering an employee more than your policy states.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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    • #3
      Thank you for the reply, I just wanted to make sure that all employees are currently classified the same, and it is ok to offer different vacation amounts to different employees.

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