I work at a company that gives employees vacation leave at an accrual rate of 3.5 hours per month. The leave caps off at 42 hours (accrual stops once you have earned 42 hours if you do not use them); this is easy to understand, but here is where my confusion sets in - when does the accrual begin again once time is used? Just as an example:
I began work on 01/08/2013. It is now 07/08/2014, so I have worked here a total of 18 months. My vacation accrual stopped on 01/08/2014 when it reached 42 hours. If I take 8 hours of leave now and my accrued hours drops to 34, when will my leave begin accruing again? Will it begin on the day that I take my leave, almost like that is my new beginning employment date?
In an alternate situation, is it possible that it is better to use your vacation instead of letting it accrue? If I have worked here for 11 months and have 38.5 hours built up, should I use some time before I reach my 12th month of employment so that it will not cap out? It seems like I would benefit more by gradually using my time and not letting it max out.
I can't seem to wrap my brain around this, so any clarification from someone who knows how to handle this would be greatly appreciated!
Your accrual will start as soon as your bank is below the cap of 42 hours.
If you don't use your vacation you could go for two years with only 42 hours instead of 84 hours. Once you get to 42 you don't get anymore until you use it. So yes, by all means when you get to 40 take some time off.
I hope that your accrual rate and cap increases the longer you work there. A 42 hour per year cap and a 42 hour accrual seem a bit stingy to me after the first year.
P.S. Meghan is totally wrong. Your employer is not violating the law even if they are a bit stingy.
Your employer will be able to better answer the first question. It depends on how they do their processing.
If it is via a computer - then it's based on the processing time. It will begin again at the first time you are below the 42 hours.
- So if during the processing = they reduce the usage and add the accrual = it will be at that cycle.
- But if they add the accrual and then reduce the usage = it will be at the next cycle.
You are correct that is is better to always use time so you don't stop the accrual.
Since your vacation peaked in January = you have since lost 6 months of accrual which equals which is about 2 2/3rds days.
You don't need to actually go on vacation to use the time - take a day off when you are near the cap to go to lunch with a friend or spend time with dad, etc..
What happens to the time after it is maxed out? You should be paid for it. If you aren't, they are violating the law.
You can get clarification from your HR department/representative, since they have the exact details of your company's plan. They are your best resource for your questions.
That is too long to read. We may misunderstand it.
Ask your boss or payroll to explain it to you.
