Summer Vacation Season: How to Prepare

How Can Employers Prepare for Summer Vacation Season and PTO Requests?

Summer is on the calendar in a few short weeks, and across the Country employers can expect to see an increase in paid time off (PTO) requests. There are some important ‘Dos and Don’ts’ when it comes to managing employee time off requests.
While ‘vacation time’ is largely at an employer’s discretion, there are presently 3 states that actually mandate general use paid time off- Illinois, Maine, and Nevada. Additionally, there are 15 states that require employers to pay out unused, accrued paid time off to terminating employees while the majority of states permit forfeiture of unused PTO.

Employers should have a clearly documented time off policy, that is uniformly applied to all employee requests. Notice requirements, manager approval processes and any supporting documentation procedures must be communicated to all employees.
For employers subject to FMLA, it’s a best practice to include PTO policy in the same place as FMLA procedures so employees can easily reference the different requirements. If an employer is ‘on notice’ or has reason to know that an employees has a FMLA-eligible reason for leave, even if the employee does not mention FMLA, the employer is required to inform the employee of their FMLA rights. In Fact Sheet #28D, the DOL states “when an employee first takes time off for a reason that may qualify for FMLA leave, the employer must notify the employee whether he or she is eligible for FMLA leave.”

The intersection of Summer vacation plans and FMLA can be tricky. The law does permit employers to require a second (or even third) opinion when they have “good faith reason” to doubt the validity of an employee’s FMLA certification. But an employer that suspects an employee’s FMLA request is a smokescreen for a tropical beach vacation should tread carefully. The Departments would generally resolve questions of veracity in favor of the employee.

The regulatory landscape changes fast. Connect with our in-house ERISA attorneys and compliance team to protect your business today. Email [email protected] to talk to our team.