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I would expect that paying people for unused vacation would incentivize employees overworking themselves leading to reduced quality of output. In a sense, I ex

by nick_g 8y ago

I would expect that paying people for unused vacation would incentivize employees overworking themselves leading to reduced quality of output. In a sense, I expect that it would magnify the existing issues with unlimited PTO. It seems like this would be neither good for employee or employer.

acomjean 8y ago
Most companies only let you bank so many pto (Paid Time Off) hours and carry them over year to year. I think this came about because of accounting change where employee hours are considered a liability (Hours/Money owed for nothing in return), but I might be wrong on that. As a result employees can't just bank their vacation hours and get a big payday when they leave. It tends to only take a couple years to get up to the max, and you end up with "use it or loose it" pto.
- NullPrefix 8y ago
  >Hours/Money owed for nothing in return From the business perspectice services rendered previously is "nothing", because you can't get any more value from that
- ghaff 8y ago
  It's been accounting rules for a very long time. It's pretty much Accounting 101. If you accrue liabilities that you're obligated to provide (either in the form of employee time off or pay-out upon departure), that's a textbook liability. Which is why employers almost always cap in some form or another; the exact mechanism is partially determined by state law. I worked for a company once that, during a bad spell, eliminated an accrual cap to encourage people to bank vacation. The result was that a not small number of people who weren't really into taking vacation just let their balances balloon. The company eventually forced people to work down their balances.
miranda_rights 8y ago
People are technically already paid for their unused PTO when they leave a company with an allocated PTO/year (although this may vary between states). That was one of the reasons why I chose my current company, because I figured I'd make a little 'extra' money leaving after a year without taking any PTO. Personally, I did end up feeling a little burned out so I opted to actually start using my PTO, but it's nice to have the freedom either way.

by nick_g 8y ago

acomjean 8y ago

Most companies only let you bank so many pto (Paid Time Off) hours and carry them over year to year. I think this came about because of accounting change where employee hours are considered a liability (Hours/Money owed for nothing in return), but I might be wrong on that. As a result employees can't just bank their vacation hours and get a big payday when they leave. It tends to only take a couple years to get up to the max, and you end up with "use it or loose it" pto.

NullPrefix 8y ago
>Hours/Money owed for nothing in return From the business perspectice services rendered previously is "nothing", because you can't get any more value from that
ghaff 8y ago
It's been accounting rules for a very long time. It's pretty much Accounting 101. If you accrue liabilities that you're obligated to provide (either in the form of employee time off or pay-out upon departure), that's a textbook liability. Which is why employers almost always cap in some form or another; the exact mechanism is partially determined by state law. I worked for a company once that, during a bad spell, eliminated an accrual cap to encourage people to bank vacation. The result was that a not small number of people who weren't really into taking vacation just let their balances balloon. The company eventually forced people to work down their balances.

miranda_rights 8y ago

People are technically already paid for their unused PTO when they leave a company with an allocated PTO/year (although this may vary between states). That was one of the reasons why I chose my current company, because I figured I'd make a little 'extra' money leaving after a year without taking any PTO. Personally, I did end up feeling a little burned out so I opted to actually start using my PTO, but it's nice to have the freedom either way.