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1.  PTO Time and Holiday Pay

Posted 12 days ago
​We are doing some comparative analysis to see how other construction companies in the SouthCentral area handle PTO time and Holiday pay for hourly employees.

Specifically the following:

1.) How long do hourly employees have to wait before earning PTO time?  Is it immediate, after one year, etc?
2.) How much PTO time is earned per year and does that change after a certain length of service?
3.) Once eligible for PTO time are you giving this all upfront or accruing over the course of the year?  Accruing per month, per hour worked, per year?
4.) As a general rule are employees allowed to go negative on PTO time?
5.) Do you differ this policy for office, shop and field employees if applicable?
6.) At what point do hourly employees become eligible for holiday pay?
6.)  Is holiday time paid at 8 hours per day or at the normal shift that the employee would work (example - 4 10 shift, holiday paid for 10 hours).

Thanks in advance for your input!  Just trying to ensure our policy is in line with others in this area.


Andi Kirkpatrick
Trade Construction




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Andrynn Kirkpatrick CPA
Chief Financial Officer
Trade Construction Company
Zachary LA
(225) 654-7763
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2.  RE: PTO Time and Holiday Pay

Posted 10 days ago

Andy,

 

While we are not a construction company, our leave time policy is on a PTO basis.  Our policies are as follows to answer your questions:

 

  1. PTO time is available immediately upon hiring.
  2. We matched PTO time with our old vacation/sick day policy.  So if you give 2 weeks vacation and 1 week sick in their first year, then they get 15 days PTO.  Our policy is to add 1 week after 5 years of service and another after 10 years.  I looked up "PTO" on Google, and Wikipedia has a nice chart from SHRM which shows the average US PTO hours per year of service.
  3. We are giving it all "up front" instead of accruing.  It's easy for me because I have little or no turnover.  Higher turnover would push me to accrue.  I would do it monthly to make it easier.
  4. There is no negative PTO for us.  If they go over, we would "have a talk", then they get it deducted from their check.
  5. N/A for us.
  6. I only pay salaried employees holiday pay.  But, our hourly employees are part time.  If they were full time, 40 hr/week employees, I would not penalize them just because they were paid on an hourly basis vs. a salary.   It's always a struggle if it causes them to go into overtime though!!
  7. My philosophy is that the worker would get paid the same amount of time as if it were a regular day.  If you only do 8 hours, when they normally work 10, you are technically penalizing them 2 hours of pay "just because" its Memorial Day!   They may not care to take that day off but they "have to" because the company takes off.

 

Hope this helps.

 

Paperless Environments

SETH DAWSON

PRESIDENT | CEO

225-218-4768
9191 Seigen Ln. | Bldg. 2
Baton Rouge, LA 70809

 

 






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