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Maximum Accrual for Vacation Time and Sick Leave

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  • 07-28-2017, 05:35 PM
    concernedemployees
    Maximum Accrual for Vacation Time and Sick Leave
    My question involves labor and employment law for the state of: Oregon

    Is there any federal or Oregon state law that limits the amount of sick leave or vacation an employee can accrue?

    And, is there any law that addresses when a change in policy establishes a cap, how employees who are well over the cap are compensated (or not)?
  • 07-28-2017, 05:48 PM
    cbg
    Re: Maximum Accrual for Vacation/Sick Leave
    Yes and no. Federal law has made it quite clear that they have no interest in either vacation or sick time. Oregon law requires an employer to provide at least 40 hours of sick pay and permits, but does not require, the employer to cap the leave at 40 hours per year. An employer may cap it at a higher level, but may not cap it at less. A certain amount of pro-rating is permitted for employees who do not work the full year. With regards to vacation time, Oregon employers may legally cap vacation time but the only law regarding it is that they must adhere to their own policy, whatever it is. I could find nothing to suggest that employees are due compensation for either vacation or sick time that exceeds the cap, other than the same requirement that an employer follow their policy.
  • 07-29-2017, 02:18 PM
    concernedemployees
    Re: Maximum Accrual for Vacation/Sick Leave
    Thank you.
  • 07-29-2017, 03:17 PM
    jk
    Re: Maximum Accrual for Vacation/Sick Leave
    Quote:

    Quoting cbg
    View Post
    Yes and no. Federal law has made it quite clear that they have no interest in either vacation or sick time. Oregon law requires an employer to provide at least 40 hours of sick pay and permits, but does not require, the employer to cap the leave at 40 hours per year. An employer may cap it at a higher level, but may not cap it at less. A certain amount of pro-rating is permitted for employees who do not work the full year. With regards to vacation time, Oregon employers may legally cap vacation time but the only law regarding it is that they must adhere to their own policy, whatever it is. I could find nothing to suggest that employees are due compensation for either vacation or sick time that exceeds the cap, other than the same requirement that an employer follow their policy.

    I've often heard you speak of vacation time being considered an earned benefit that must be paid out at termination in some states. By chance does Oregon require payout of vacation benefits at termination? If so I would think if a cap on vacation time is imposed that is below accrued vacation time, the employer would have to pay out the lost accrued time. What do you think?

    regarding sick PTO: since it is a benefit available under limited circumstances (must be sick to be able to use it) I would think that could be cut below some accrued level without having to pay it out. Again; your thoughts?
  • 07-29-2017, 03:22 PM
    cbg
    Re: Maximum Accrual for Vacation Time and Sick Leave
    No, I checked that before I responded. Oregon does not require the unconditional payout of vacation time - Oregon requires that an employer follow his own policy on the subject.
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