Understanding a benefit accrual policy

Before applying Benefit Accrual work rules, you need to know what types of employees work at the property and how accrual policies apply to each group. A benefit accrual policy, sometimes referred to as a Paid Time Off (PTO) policy, contains the information needed to accomplish this task. When analyzing the policy, ask the following questions:

  • What types of employees work at the property (hourly, salary, full time, part time)?

  • What determines the accrual rate (hire date, seniority date, day of month, day of year)?

  • How many types of accruals are there (vacation, sick, personal)?

  • Is there a capped limit an employee can earn per year? Does the limit change based on the type of employee?

  • Is there a minimum number of hours an employee has to take when requesting? For example, does the employee have to request time off in 4 hour increments?

  • Which accruals are eligible to rollover each year? Which accruals expire or payout? Does this change based on the type of employee?

Below is an example of a property's benefit accrual policy.

Legend

The sections of the policy highlighted in different colors contain important information for employees:

  • Text highlighted in green—Information for full-time employees.

  • Text highlighted in blue—Information for part-time employees.

  • Text highlighted in orange—Information for both full time and part time employees. 

Below, the policy is broken down into smaller sections with explanations of key information.

Introductory paragraphs

In this example, the introductory paragraphs provide several critical statements about accruals for both part time and full time employees.

Introductory paragraphs

This section provides several important facts about the policy:

  • Benefits begin accruing on the hire date.

  • Accruals cannot be used until after 90 days of employment.

  • Accruals cap out when the employee has reached 1.5x their annual earnings limit.

  • Full time employees can roll over 1.5x their annual earnings limit for Vacation and Sick.

Accrual tables

Accrual tables show how policies change based on an employee's hire date or seniority date.

Accrual tables for full time employees

Accrual policy for full time employees

Full time employees fit into the following seniority groups:

  • Employees hired less than 90 days ago.

  • Employees hired 90 days to 1 year ago.

  • Employees hired 1 to 5 years ago.

  • Employees hired 5 to 10 years ago

  • Employees hired 10 or more years ago.

Full time employees receive the following types of accruals:

  • Vacation

  • Sick

  • Personal

Accrual tables for part time employees

Accrual policy for part time employees

Part time employees fit into the following seniority groups:

  • Employees hired less than 90 days ago.

  • Employees hired 90 days to 1 year ago.

  • Employees hired 1 to 5 years ago.

  • Employees hired 5 to 10 years ago

  • Employees hired 10 or more years ago.

Part time employees receive the following types of accruals:

  • Vacation

  • Sick

Closing paragraphs

The closing paragraphs might contain additional information about employee benefits, such as when they are permitted to use paid time off to cover extended or short term leave.