Our company is in the middle of a transition to a new owner come 1/1/15. We have our existing PTO policy that has separate vacation, sick and personal balances. Currently, we 'gift' all time up front to employees on their anniversary date to use throughout the upcoming year. We do this right from hire so EEs never accrue time throughout the year, it is just given up front.
The new company has a lump sum PTO bucket from which all time is taken, and it is based on calendar year. They are proposing that they apply a formula based on anniversary date where only a pro-rated portion of their vacation and personal balance transfers to the new company. Then everyone begins a bi-weekly accrual process starting on 1/1/15 to start building their balances back.
No one is losing their job (shockingly), all pay remains equal, and in the end most employees will benefit from having more PTO time overall, more holidays and many more perks.
There are lots of questions around employees 'forfeiting' vacation time and they feel they have earned it and should be paid out for it. I'm having a hard time finding the documentation to show this is legal in IL.
Thank in advance for any assistance!
The new company has a lump sum PTO bucket from which all time is taken, and it is based on calendar year. They are proposing that they apply a formula based on anniversary date where only a pro-rated portion of their vacation and personal balance transfers to the new company. Then everyone begins a bi-weekly accrual process starting on 1/1/15 to start building their balances back.
No one is losing their job (shockingly), all pay remains equal, and in the end most employees will benefit from having more PTO time overall, more holidays and many more perks.
There are lots of questions around employees 'forfeiting' vacation time and they feel they have earned it and should be paid out for it. I'm having a hard time finding the documentation to show this is legal in IL.
Thank in advance for any assistance!
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