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May16

Vacation: Exempt/Non-Exempt

Do most companies create a different vacation accrual rate for exempt vs. non-exempt employees?

An informal survey shows that 70% of companies offer the same vacation benefits to salaried exempt and hourly workers – although executives at the highest levels, such as CEOs, may receive additional vacation.

 

And, it is usually accrued the same way. The only exception is, salaried employees normally accrue vacation based on 40 hours per week, even if they actually work 50 or more hours per week. Most payroll software programs will figure this automatically.

 

According to this interesting article at http://www.salary.com/personal/layoutscripts/psnl_articles.asp?tab=psn&cat=cat011&ser=ser031&part=par088, years with the company has more impact on annual vacation than salaried or hourly status.

Of course, you as an employer are free to set whatever vacation policy you like, as long as it’s consistent. Many employers feel that they expect more of salaried workers, who are under greater stress, and should have more time off.

This entry was posted on Friday, May 16th, 2008 at 11:16 am and is filed under
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