As legislation stirs that might impact the way employers give paid leave, more companies are making changes to the structure of their benefits program to account for paid time off.
Data shows that 99 percent of U.S. employers with more than 50 employees offer some type of paid time off for their full-time workers. These numbers came from the Families and Work Institute and the Society for Human Resource Management. These numbers indicate that an overwhelming majority of employees have access to some sort of paid time off. Employers, however, have the option to structure their program(s) and benefit(s) as they see fit.
More employers still utilize differentiated time for vacation and sick days as opposed to a total paid time-off bank for employees to use as they need or see fit. Of those who don’t have the PTO bank method, nearly 90 percent of companies said they offer both vacation time and sick time to employees. Just over 10 percent offered only vacation time and less than one percent only offered employees sick days. One percent do not offer any kind of paid time off for illness or vacation.
Different organizations offer various amounts of time to employees, but on average, employers give 10 vacation days and 5 sick days, or 15 days in a PTO bank for employees to utilize as needed.
Fewer employees are giving their employees the opportunity to take smaller paid leaves to attend to illness in their family (such as a small child with a relatively minor illness or injury.) Employees in these situations are being directed to their vacation and sick days in most cases.
Recently-introduced legislation would require companies with more than 15 employees to give each worker a minimum of one hour of paid sick time for every 30 hours they work, with a maximum of 56 hours per year. There will be more to come on this legislation as it moves forward.
Modern Business Associates is an HR company that focuses on payroll and HR outsourcing. We routinely work with clients on payment and employee benefit issues. As a Professional Payroll and HR outsource organization, our clients rely on us to help them effectively deal with these kinds of topics.