By Staff Report
Nov. 13, 2015
Dear Counting the Hours:
Unless your plan subject to vesting has a specific term — which I assume it doesn’t since you are asking this question — we suggest that you analogize your situation to one under the Family and Medical Leave Act. Under the Family and Medical Leave Act, only time an employee actually works for an employer counts toward meeting the 1,250 hours in a year — however defined in your policy — eligibility requirement. Using that same rationale, time on a leave of absence, especially one nonwork related, should not count toward meeting the vesting requirement. This would be consistent with a vesting requirement, which is designed to reward employees who have shown a degree of loyalty to the company and to provide an incentive to perform for the company.
SOURCE: Cary E. Donham, Taft Stettinius & Hollister, Chicago, Sept. 22, 2015.
We build robust scheduling & attendance software for businesses with 500+ frontline workers. With custom BI reporting and demand-driven scheduling, we help our customers reduce labor spend and increase profitability across their business. It's as simple as that.
ComplianceMinimum Wage by State in 2022 – All You Need to Know
Summary The federal minimum wage rate is $7.25, but the rate is higher in 30 states, along with Washing...
federal law, minimum wage, pay rates, state law, wage law compliance
LegalCalifornia’s push for a 32-hour workweek explained, and how to prepare
Summary: California is considering a 32-hour workweek bill for businesses with over 500 staff 4 day wee...
32 hour workweek, 4 day workweek, california, legislature, overtime
LegalA business owner’s guide to restaurant tipping law
Business owners in the restaurant industry are in a unique position when it comes to employee tips. As ...
restaurants, tip laws, tipping