Legal Question in Employment Law in California
Personal Time Off Accrual
Company policy allows each employee to accrue personal time off to use as vacation and/or sick time. the policy is 10 hours per month for all employees. Can we offer more personal time off accrual as a bargaining tool when recruiting new employees? Also, can we give employees more accrued time off if they have been with the company for a certain period of time. i.e. 1-3 years: 10 hrs per pay; 4-6 years: 15 hours per pay? Thank you!
1 Answer from Attorneys
Re: Personal Time Off Accrual
There is no law or rule that prohibits providing different benefits to different classes of employees, so long as the distincton is not based upon a legally protected status. For example a different benefit for males and females would violate state and federal gender discrination laws. I would however counsel you to step carefully when favoring new employees over existing employees. I have seen adverse reactions to such policies ranging from poor morale to full blown union organizing campaigns.
There may be other options such as a signing bonus or accellerated eligibility for benefits. When coupled with finders fees for existing employees you may be able to both attract new employees as well as reward existing employees.
Providing additional benefits to longer term employees is legally acceptable, and is the more common practice.
If I can help you in formulating legal and practcal employee polices, feel free to call.