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PTO Year End rules - Illinois
One of the hats I wear in our small non-profit agency is HR Manager.
I am trying to update our HR policies and am running into some problems.
Our current policy is stated in our employee handbook & agency operating manual as follows:
A. For FT employees, PTO time is accrued each pay-period based on the number of hours worked to a max of 152 per year.
B. At the end of the year - exempt employees can carry over up to 40 hours into the next calendar year, and any over 40 are forfeited.
C. For non-exempt FT employees, at the end of the year, they have 2 choices:
1. Carry over up to 40 hours, forfeiting the rest
or
2. Elect to have half their remaining PTO hours paid out at their regular hourly rate & forfeit the remaining half.
Legal or no?
I have read through the Administrative codes & Vacation FAQ on the Illinois DOL website, and it seems to only address separated employees being entitled to 'earned' PTO upon final paycheck - which is our policy already.
I can see that 'use it or lose it' is permitted, with conditions. But I feel like our policy is an odd combination.
Our agency lawyer (Board Member) that previously reviewed & approved the policy specializes in family law arbitration, not labor law, and so I do not know that I entirely rely on what direction we received from her.
Any insight??
TIA!
I am trying to update our HR policies and am running into some problems.
Our current policy is stated in our employee handbook & agency operating manual as follows:
A. For FT employees, PTO time is accrued each pay-period based on the number of hours worked to a max of 152 per year.
B. At the end of the year - exempt employees can carry over up to 40 hours into the next calendar year, and any over 40 are forfeited.
C. For non-exempt FT employees, at the end of the year, they have 2 choices:
1. Carry over up to 40 hours, forfeiting the rest
or
2. Elect to have half their remaining PTO hours paid out at their regular hourly rate & forfeit the remaining half.
Legal or no?
I have read through the Administrative codes & Vacation FAQ on the Illinois DOL website, and it seems to only address separated employees being entitled to 'earned' PTO upon final paycheck - which is our policy already.
I can see that 'use it or lose it' is permitted, with conditions. But I feel like our policy is an odd combination.
Our agency lawyer (Board Member) that previously reviewed & approved the policy specializes in family law arbitration, not labor law, and so I do not know that I entirely rely on what direction we received from her.
Any insight??
TIA!
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