How to Handle Time Off Requests the Right Way: For Employers

With summer in full swing and the holidays soon approaching, now is a perfect time for both employers and employees to coordinate time off requests. Handling time off appropriately enables everyone to benefit from needed rest and family time without causing undue stress for the company. 

Of course, time off requests have some pitfalls to avoid as well as several advantages to leverage. Here are some tips to help employers establish a solid time off policy that keeps their business running smoothly. 

(See part 2 of this article for time off from the employee’s perspective.)

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Remember, all the information in this blog post is published in good faith and for general information purpose only.  I am not an attorney, nor do I provide legal advice. The information provided is my personal opinion and not that of any organization, business, company, agency or other individuals.  The author is not liable for any losses or damages related to actions or failure to act related to the content of this article. If you need specific legal advice, consult with an attorney who specializes in your subject matter.  Any action you take upon the information you find on this website (www.hrraw.com), is strictly at your own risk.

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Penny Horton | July 15, 2019

1. Offer time off as a benefit for employees.

Under Oklahoma law, there is no formal requirement that private employers must provide employees with paid time off. This means that the vacation, sick, and personal time you provide fits squarely under your benefits package. Developing a generous time off policy is one way your company can be competitive in attracting and retaining good employees.

• Create a formal, written time off policy.

Because there is no specific legislation governing time off, the responsibility falls upon business owners to create their own policy. Employers should develop clear, written time off guidelines that are available for everyone to refer to. 

• Apply time off policies fairly to everyone.

With time off requests, the key is to be sure your employees are treated the same. This helps mitigate the risk of potential discrimination claims if a time off request is denied.

Example: Companies often offer time off for religious holidays such as Christmas, yet they may not automatically offer time off for holidays such as Diwali or Ramadan. If your company is required to comply with Title VII requirements, this may open up the company to religious discrimination claims if an employee requests time off and is denied without a justifiable business need. A clear, fair policy that addresses time off for religious observations can help companies ensure they handle time off requests appropriately, preventing a serious legal problem.

• Make sure your time off policy covers all the bases.

An effective policy for time off is one that addresses all the issues that may come up around time off requests. Be sure to cover questions like these:

• Will your company set aside separate banks for vacation, sick time, and other time off? Or will you cover it all under “personal time off” (PTO)?
• How does an employee accrue vacation, and how much do they accrue per pay period?
• How long must an employee be employed before they qualify for paid time off?
• Do you allow requests for unpaid time off?
• How should employees notify you of their request — by email, through a written request form, etc.?
• How many days in advance should employees submit a request? 
• What are the criteria for having a request approved?

• Establish how you’ll handle payouts for unused vacation time.

One of the most common issues around time off is how to deal with accrued time when an employee leaves. Your company’s time off policy should clearly define what happens to vacation time, sick time, and personal time if an employee quits, retires, switches to part-time, or is let go. And every employee should be treated the same under this policy.

• Put a mechanism in place to track time off.

No matter how much time off you provide or how it is accrued, companies should establish a secure, reliable way to track it for each employee, especially hourly employees. Your payroll specialist can assist you with capturing that information accurately for each pay period and should be responsible for paying it out properly.

Tip: There are compliance issues related to payroll processing, such as how you calculate hours worked and how that translates to earned time off. Hire a trustworthy payroll company that is knowledgeable about these issues.

• Ensure clear communication with your employees.

Consistent and effective communication with your employees is essential to a successful time off policy. Be sure to:

• Provide employees with your written time off policy, either in an employee manual or an offer letter. Tip: Give everyone you hire an offer letter, and keep the wording about time off consistent, so everyone is treated fairly and understands what they are entitled to.

• Communicate any changes to policies in writing, and set a firm change date for the new policy to take effect, so there is no confusion and no chance for discrimination claims issues later on.

Creating time off policies can be straightforward and simple.

Establishing a time off policy doesn’t have to be complex and time-consuming. Who’s Your HR is here to help you establish a time off policy that benefits both your company and your employees, avoiding confusion, frustration and potential legal claims. Contact me anytime for a consultation on creating a policy that works well for your organization, or hire me to educate staff on ways to make time off a pleasant, effective part of your company benefits.