Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
My gf's employer gives them 20 days of vacation and sick time per year. However, if you leave the company the employer keeps the PTO and there is no payout for the time. This starts the second you give a 2 week(or however long you want to give) notice. A girl just gave a 2 1/2 week notice that she was leaving, but wanted to use 3 days of her vacation (which is part of the reason for the 2 1/2 week notice) and they won't let her. I know there is no requirement to give a notice, it's just respectful. But, if you had all this PTO and you knew you were going to leave in the near future, wouldn't you use it if you knew you would be punished by not getting to use it by being respectful and leaving a notice? Another co-worker found out what happened to the other girl and has been calling out every day because she is about to leave and just isn't going to leave a notice. I can't say I blame her.
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Previous employer allowed vacation cash out, but not sick days.
Current employer allows vacation cash out upon leaving, and if you've accumulated more than 500 hours sick time and are retiring, you can cash that out at 25%, but not for just leaving for another job.
Current employer allows vacation cash out upon leaving, and if you've accumulated more than 500 hours sick time and are retiring, you can cash that out at 25%, but not for just leaving for another job.
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
California law requires a payout upon leaving. In many other states, this is not a requirement, unfortunately.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Check you state's laws. I know NY and Cal require PTO to be paid out.
Also, this is probably a good time to remind everyone to NOT tell your employer anything, no matter how nice your supervisor is to you, until you have everything figured out and in place. Too many young people (myself included) made this mistake.
Also, this is probably a good time to remind everyone to NOT tell your employer anything, no matter how nice your supervisor is to you, until you have everything figured out and in place. Too many young people (myself included) made this mistake.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
I have it good, really good. My employer allows PTO to accumulate over the years to a max of 1.5 years worth. They let you cash any of it out at the end of each year if you want cash rather than time off, and when you leave or retire, they pay it all out.
I'm actually shocked they keep doing this, the amount on the balance sheet has to be unreal.
I'm actually shocked they keep doing this, the amount on the balance sheet has to be unreal.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Depends on employer policy, and policies can change.
When DH was planning to leave his former employer, he researched policies thoroughly since he had tons of sick time and a bit of PTO (they limited how much PTO you could roll over, and cashed out the difference each year). Policy at the time was that sick time was paid at 50%. As we were talking 5 figures, he requested that it be paid out over the next 5 pay periods (to reduce withholding) and as much as possible was contributed to his 401k (left a little annual room to capture a match at his future employer). The remainder covered expenses for the rest of the year.
A few months later, he heard thru the grapevine that future sick time payouts would be capped at $2500. I don't think it was coincidence.
When DH was planning to leave his former employer, he researched policies thoroughly since he had tons of sick time and a bit of PTO (they limited how much PTO you could roll over, and cashed out the difference each year). Policy at the time was that sick time was paid at 50%. As we were talking 5 figures, he requested that it be paid out over the next 5 pay periods (to reduce withholding) and as much as possible was contributed to his 401k (left a little annual room to capture a match at his future employer). The remainder covered expenses for the rest of the year.
A few months later, he heard thru the grapevine that future sick time payouts would be capped at $2500. I don't think it was coincidence.
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
I doubt that you have it "really good", unless you are saying that you can accumulate over 78 weeks of PTO! There should be many employers out there who permit rollovers.Andyrunner wrote:I have it good, really good. My employer allows PTO to accumulate over the years to a max of 1.5 years worth.[...]
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
No cash out of accrued but untaken vacation, but they will subtract from the last pay check any vacation that was taken but not yet accrued.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
When I left my first job they cashed out vacation but not sick time. My second job only had PTO and didn't differentiate, but did cash that out.
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
I am allowed to cash out 80 hours of sick leave every December, provided I have at least 80 left. I do this and up my 401(k) contribution for that pay period. In regard to vacation time, that can be sold at retirement or one can simply take all their vacation time, and then retire. Same at separation of service...retired or not.
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
The last job I left paid out my accrued vacation per the employee handbook. They did not cash out sick leave. It did create a temptation to get the flu a couple of weeks before leaving but I was just glad to be out of there.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
You're right I should have worded it better. 1.5yrs worth of my annual accrual level. So for me its about 10 weeks. Still really good, plus you can cash it out for full value.an_asker wrote:I doubt that you have it "really good", unless you are saying that you can accumulate over 78 weeks of PTO! There should be many employers out there who permit rollovers.Andyrunner wrote:I have it good, really good. My employer allows PTO to accumulate over the years to a max of 1.5 years worth.[...]
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Employer compensates for unused vacation, not for unused sick time.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
No. No cash out of any kind.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
I assume it's a legal requirement on companies in my state, but in any case every place I've worked has paid out unused vacation days when I left. The mechanism as it was explained to me essentially amounted to my last days of employment being paid vacation. That is, I didn't receive it as a lump sum in a special check the day I had the exit interview. Rather, I continued to be on the payroll and receive payroll checks on the regular cycle until the vacation days were exhausted. (In my case it was never more than a few days).
I've never worked at a job where I was formally entitled to any specific number of sick days.
I've never worked at a job where I was formally entitled to any specific number of sick days.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
When I retired a few years ago I received a payout for unused vacation days. The company never had formal "sick days" (it was up to your supervisor's discretion to pay you for sick days) so there was no such thing as unused sick days. After I left, the company switched to the flexible vacation model: take as many days as you want throughout the year as long as your supervisor approves. Hence, there is no longer such a thing as unused vacation days, and presumably no cash payout when someone leaves.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Employees received vacation days owed, but sick days for management totaled 26 weeks, use them or not, they didn't cash them out. Understandable since the number was so generous.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
My employer will pay out my accumulated vacation, but not my sick leave.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Over the decades, that was the way it worked for me as well.Tycoon wrote:My employer will pay out my accumulated vacation, but not my sick leave.
The latest trend is PTO (Paid time off - combination of sick and vacation).
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
My company changed to a flexible vacation policy a couple of years ago.tuningfork wrote:When I retired a few years ago I received a payout for unused vacation days. The company never had formal "sick days" (it was up to your supervisor's discretion to pay you for sick days) so there was no such thing as unused sick days. After I left, the company switched to the flexible vacation model: take as many days as you want throughout the year as long as your supervisor approves. Hence, there is no longer such a thing as unused vacation days, and presumably no cash payout when someone leaves.
I'm planning on taking 6 weeks off this year!
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
We get paid out for earned, but unused PTO, but it will never amount to much since we cannot carry it over from year to year. All unused PTO expires after December 31. (We accrue it prorata on a monthly basis. So at 4 weeks vacation, I accrue 13.33 hours per month.)
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Old company had PTO only (No sick days) and paid it out. Got the equivalent of a months pay when I left which was great. New company has both PTO and sick days and pays neither when an employee departs. I see it as encouragement to keep the balance low. Not a fan of that policy but still like current job much better. I feel like it encourages people to be sneaky about using up all their off time before abruptly leaving.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Wow, I never realized how tough it has gotten out there. Lots of brutal policies. Seems like my workplace is on the other end of the spectrum. I just retired from a public sector job, and will be paid for the maximum 60 vacation days I was allowed to carry, plus another 60 days of unused sick leave — altogether about 5.5 months of pay. (The sick leave accrued at 15 days/year, and they pay for 1/4 of the balance up to 60 days, maximum. However, when I checked a few years ago, I had only used an average of 2 sick days/year over more than a couple of decades. So I literally had several hundred days of sick leave piled up by the time I left.) What's more, the 60 unused vacation days get converted to calendar days (1.4 calendar days/work day) and added to service time for the pension calculation.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
when I retired the end of 2015, my employer paid me for all my unused accumulated vacation hours and my unused sick leave hours was paid at about 1/4 my salary equivalent hourly rate.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Have left two employers (one Big 4 consulting, one an academically-affiliated think tank and got about a months payout from each). Big 4 paid all PTO (no sick time), while the think tank paid vacation, but not sick leave). Both were quite generous with the amount of leave accumulated - although I clearly didn't have time to take it at either location!
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
My company is awful with this.
They pay out nothing. If you don't use by 12/31 you lose all PTO (sick, personal, and vacation).
You accrue all of your PTO days on the last day of the month starting March 31. You're allowed to take what you haven't yet accrued as long as it's in your "package".
For example:
Say you are entitled to 5 sick days, 5 personal days, and 10 vacation days. On March 31st you accrue 1/10th of each of those, 0.5 sick, 0.5 personal, and 1.0 vacation days. You can take a week off anytime you want but if you leave before 12/31 and haven't accrued enough they will dock you.
They pay out nothing. If you don't use by 12/31 you lose all PTO (sick, personal, and vacation).
You accrue all of your PTO days on the last day of the month starting March 31. You're allowed to take what you haven't yet accrued as long as it's in your "package".
For example:
Say you are entitled to 5 sick days, 5 personal days, and 10 vacation days. On March 31st you accrue 1/10th of each of those, 0.5 sick, 0.5 personal, and 1.0 vacation days. You can take a week off anytime you want but if you leave before 12/31 and haven't accrued enough they will dock you.
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Our PTO is use-it-or-lose-it so no one accumulates much, and a lot of us lose a few days most years on Dec. 31. People have to be careful not to use more PTO days than they've earned if they plan to leave, because they'll have to pay for days taken but not yet earned.
I second someone else's comment that no matter what your company's policy is, it can change any time. I had factored our company's severance payments into my if-I-get-laid-off financial planning/projections. A few months ago, the company cut the severance formula in half. Which also makes it much cheaper to lay off long-term employees like me. The company didn't announce this change; I heard about it on the grapevine and confirmed it with HR.
I second someone else's comment that no matter what your company's policy is, it can change any time. I had factored our company's severance payments into my if-I-get-laid-off financial planning/projections. A few months ago, the company cut the severance formula in half. Which also makes it much cheaper to lay off long-term employees like me. The company didn't announce this change; I heard about it on the grapevine and confirmed it with HR.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
I get 28 days of PTO. My company will pay out a max of 20 days minus however many days I have taken prior to the two weeks notice, and you can't take off any time during the two week notice period.
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Last company paid out vacation, that was a nice unexpected $1000.
Not sure about current company - only have vacation there are no set number of sick days allotted.
Not sure about current company - only have vacation there are no set number of sick days allotted.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Dang, that's a lot!Thrifty Femme wrote:I get 28 days of PTO. My company will pay out a max of 20 days minus however many days I have taken prior to the two weeks notice, and you can't take off any time during the two week notice period.
Chase the good life my whole life long, look back on my life and my life gone...where did I go wrong?
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
My employer cashes out vacation and personal time but not sick time.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
probably not bec they limit how much you are allowed to accrue. Mine is similar. You can accrue about 1.5 years worth of PTO (I am assuming that means the amount of PTO you would EARN in 1.5 years if you could accrue that much time off that is a different story.) so for me its about 240 hours max and then they start paying it out.Andyrunner wrote:I have it good, really good. My employer allows PTO to accumulate over the years to a max of 1.5 years worth. They let you cash any of it out at the end of each year if you want cash rather than time off, and when you leave or retire, they pay it all out.
I'm actually shocked they keep doing this, the amount on the balance sheet has to be unreal.
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
My last employer allowed unused PTO to be cashed out annually or rolled over. All employees (no matter the circumstances of their departure) were paid for any unused PTO when they left.
My husband has a very generous employer and he gets an annual allocation of sick and personal days (no cash out or rollover when unused) along with "unlimited" vacation time. Unlimited doesn't mean you could take half the year off, it means that vacation requests are negotiable and approved at the discretion of supervisors, but there is no specific cap on the number of days. No vacation or sick time could be cashed out upon leaving the company.
My husband has a very generous employer and he gets an annual allocation of sick and personal days (no cash out or rollover when unused) along with "unlimited" vacation time. Unlimited doesn't mean you could take half the year off, it means that vacation requests are negotiable and approved at the discretion of supervisors, but there is no specific cap on the number of days. No vacation or sick time could be cashed out upon leaving the company.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
I negotiated wellBW1985 wrote:Dang, that's a lot!Thrifty Femme wrote:I get 28 days of PTO. My company will pay out a max of 20 days minus however many days I have taken prior to the two weeks notice, and you can't take off any time during the two week notice period.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Interesting question. I hadn't thought about "banking" PTO in anticipation of cashing it out before leaving a company. I just might have to do that.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
I have to cash out vacation time each year when I exceed 90 days banked. I have exceeded it by a considerable amount the past few years and got large payments. I have to consider though that I pay 50% in taxes of this excess money so it is like I only got to take half of each vacation day so my goal is to take my vacation days this year and not get paid out for excess days accrued.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
I do not get sick time. Vacation time must be paid due to state law where I live, but employers can enact a cap.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
DH hadn't planned to bank PTO and sick time in anticipation of cashing it out. He was accruing it more as a disability insurance, of sorts. If he ever needed extended time off for surgery, or as paternity leave when I had babies, it was there.randomizer wrote:Interesting question. I hadn't thought about "banking" PTO in anticipation of cashing it out before leaving a company. I just might have to do that.
Of course, as a teacher, he rarely used sick time - it was just way too much trouble catching up when you got back. He also never got snow days off, either - his school was a residential alternative school, so he was considered "essential services" and had to report, even when there was a travel ban!
So, over a dozen years, lots of time accrued.
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
My current job cashes out vacation but not sick time. Actually we get 10 sick days per fiscal cycle...use or lose them. Funny how I always seem to use all of my sick time...5 years in a row.
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
My previous company had the same terrible policy. I wouldn't be surprised if these kinds of policies get challenged in court soon.gator1 wrote: My gf's employer gives them 20 days of vacation and sick time per year. However, if you leave the company the employer keeps the PTO and there is no payout for the time. This starts the second you give a 2 week(or however long you want to give) notice. A girl just gave a 2 1/2 week notice that she was leaving, but wanted to use 3 days of her vacation (which is part of the reason for the 2 1/2 week notice) and they won't let her. I know there is no requirement to give a notice, it's just respectful. But, if you had all this PTO and you knew you were going to leave in the near future, wouldn't you use it if you knew you would be punished by not getting to use it by being respectful and leaving a notice? Another co-worker found out what happened to the other girl and has been calling out every day because she is about to leave and just isn't going to leave a notice. I can't say I blame her.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Megacorp pays out all vacation time and 50% on sick leave (I have 722 hours there, so like an extra nine weeks of pay).
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Two weeks' notice is a courtesy. Courtesy works both ways. I'd do the same.gator1 wrote: My gf's employer gives them 20 days of vacation and sick time per year. However, if you leave the company the employer keeps the PTO and there is no payout for the time. This starts the second you give a 2 week(or however long you want to give) notice. A girl just gave a 2 1/2 week notice that she was leaving, but wanted to use 3 days of her vacation (which is part of the reason for the 2 1/2 week notice) and they won't let her. I know there is no requirement to give a notice, it's just respectful. But, if you had all this PTO and you knew you were going to leave in the near future, wouldn't you use it if you knew you would be punished by not getting to use it by being respectful and leaving a notice? Another co-worker found out what happened to the other girl and has been calling out every day because she is about to leave and just isn't going to leave a notice. I can't say I blame her
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Let's try to remember-there might be a difference between retiring and just quitting or getting "terminated"
Vacation leave could be accumulated up to a maximum yearly carryover,then the excess got converted to sick leave
sick leave could literally reach a balance of a year's worth or more
Upon retirement you got paid for your unused vacation leave-I believe all of it
Up to a certain number of sick leave hours were not paid,perhaps the first 100? First 300?
then remaining hours of sick leave were paid at I believe one third
that total could reach as much as $20,000 or $30,000
you could roll much or all of that final payment into the 457 deferred comp. plan,it might have helped your Social Security "FRA" number. (Social Security tax was paid but not regular income tax on the amount rolled into the 457)
Vacation leave could be accumulated up to a maximum yearly carryover,then the excess got converted to sick leave
sick leave could literally reach a balance of a year's worth or more
Upon retirement you got paid for your unused vacation leave-I believe all of it
Up to a certain number of sick leave hours were not paid,perhaps the first 100? First 300?
then remaining hours of sick leave were paid at I believe one third
that total could reach as much as $20,000 or $30,000
you could roll much or all of that final payment into the 457 deferred comp. plan,it might have helped your Social Security "FRA" number. (Social Security tax was paid but not regular income tax on the amount rolled into the 457)
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
At Megacorp, as long as you weren't terminated for cause, then the same rules apply.Wakefield1 wrote:Let's try to remember-there might be a difference between retiring and just quitting or getting "terminated"
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Back to your original question: your girlfriend should be very careful who she talks to and what she shares. Even if her boss is quote "cool" and understands, bosses are still company folks - their loyalty is with the firm. Don't be fooled by cool bosses. She doesn't want to learn the hard way. That said, if she isn't paid out her remaining PTO, take a two week vacation and have her submit the notice upon her return. Of course, this is assuming she has obtained AND accepted (aka signed) an offer somewhere else. Until she has signed the offer, she doesn't have full acceptance.
Good luck and keep us posted!
Good luck and keep us posted!
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
I'd rather take the time off.Andyrunner wrote:You're right I should have worded it better. 1.5yrs worth of my annual accrual level. So for me its about 10 weeks. Still really good, plus you can cash it out for full value.an_asker wrote:I doubt that you have it "really good", unless you are saying that you can accumulate over 78 weeks of PTO! There should be many employers out there who permit rollovers.Andyrunner wrote:I have it good, really good. My employer allows PTO to accumulate over the years to a max of 1.5 years worth.[...]
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
Depends on how the vacation is eraned. If it's given the it can be taken away. If it's earned(accrued) then it's usually paid out.keq1381 wrote:My previous company had the same terrible policy. I wouldn't be surprised if these kinds of policies get challenged in court soon.gator1 wrote: My gf's employer gives them 20 days of vacation and sick time per year. However, if you leave the company the employer keeps the PTO and there is no payout for the time. This starts the second you give a 2 week(or however long you want to give) notice. A girl just gave a 2 1/2 week notice that she was leaving, but wanted to use 3 days of her vacation (which is part of the reason for the 2 1/2 week notice) and they won't let her. I know there is no requirement to give a notice, it's just respectful. But, if you had all this PTO and you knew you were going to leave in the near future, wouldn't you use it if you knew you would be punished by not getting to use it by being respectful and leaving a notice? Another co-worker found out what happened to the other girl and has been calling out every day because she is about to leave and just isn't going to leave a notice. I can't say I blame her.
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
My megacorp company's policy is different for a formal retirement vs just leaving. If I leave, I believe they do not pay out the PTO days so I would make sure to use those five days prior to giving notice. They do pay out accrued vacation days. We don't have sick days (just don't go to work if you're sick, doesn't count against PTO or vacation days) so that's not an issue.
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Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
At my megacorp they recently gave unlimited PTO with manager approval. Everyone thinks this is a great benefit but the reason they did this was exactly to eliminate the accrued balances off of the books so they don't have to pay when you leave the company or retire.
Re: Does your employer let you cash out your Vacation and/or Sick time upon leaving the company?
I can see how this is a downgrade for folks who love to accumulate across years. But for those who are in the "use it or lose it" hierarchy with limited vacation, it is a big upgrade!niners9088 wrote:At my megacorp they recently gave unlimited PTO with manager approval. Everyone thinks this is a great benefit but the reason they did this was exactly to eliminate the accrued balances off of the books so they don't have to pay when you leave the company or retire.
Needless to say, management probably expects everyone to be using less vacation by comparing with teammates and trying to one up them - typical human mentality - or will let go those who take too many vacations, or both!