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We have an employee treating for cancer. Other employees want to donate their vacation hours.
What is your policy and what do you recommend?
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If you decide to allow employees to donate vacation time, ensure that there is a limit to how much they can spend down their accruals -- e.g., no spending-down below 1.5 times the annual accrual.
I consider the vacation benefit as necessary to the welfare of the earner.
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We had this come up, too. Ultimately, we decided not to because of the sticky areas we didn't care to dabble in, i.e. "in what case is it ok for people to donate their pto to another employee"? You never know what people will want to do once that becomes available - maybe saving their friend from not having unpaid time when they're the type of person that always takes a lot of time off. If you relegate it to "for serious health conditions", then it can become an awkward popularity contest, i.e. how to people know that someone is "going through something" if they don't have a lot of friends in the workplace? Is it announced that there's an opportunity to "donate pto"? Also, even if you were willing to wade through those issues, I would think you'd need some waiver to indicate that the person is foregoing their right to earned wages and that they will not be receiving those when they exit (since it was donated). What if the person receiving the gift leaves the company right after receiving it? You will then pay that out to them & the other employees may get upset. Since PTO is really "wages", I nixed this idea when it came to me and said that if they knew of something and wanted to help, they could always donate cash to help with the time off of their own accord.
Best of luck! I know it is with the best intentions-
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