KB01-022

Several mandatory sick leave policies are designed to give the employee 1 hour of vacation time for every certain number of hours worked. Although employers can exceed this, they cannot provide less. If you want to exceed this requirement or, your state law enables other types of accruals, there may be other setup options that would work better for you. Most mandatory sick leave laws require the employer provide 1 hour of accrued vacation time for every 30 hours worked; thus, our example will focus on earning 1 hour for every 30 hours worked.

The accrual schedule can be setup to use Every X hours/Calendar Year or Every X hours/Accrual year to determine the accrual. The accrual year can be either Hire, Adjusted Hire or Other date.  The system will use the Accrual Based on Date to determine the year.  We define X as 30 hours in the To Range. When using Every X hours/Calendar Year the Calculation Factor is now how many hours should I earn when I reach the To range amount. We defined this as 1 hour.

We have setup a Calendar year maximum of 24. You could use an Accrual year (Per Year – Variable) for the maximum as well. This maximum is different from an anytime maximum. The system will stop the accrual once the employee meets this maximum. In our example, if an employee met the accrual maximum of 24 hours in October the system would not accrue again until January, because we used a calendar year maximum in the setup.

Calendar Year Example

Accrual Year Example

Now that we have the accrual schedule setup, we can begin the Leave Code Setup. When picking the Leave Code name, keep in mind this name can be displayed on the check. The Leave Type is Accrual. We can assign the Accrual Schedule we created above to this leave code.

Accrual Based On can be hire date, adjusted hire date, other date or seniority date. If you use Every X hours/Accrual year and/or a maximum of per year-variable on the accrual schedule, the system will use the Accrual Based On date to determine a year. You can change this setting for specific employees at the Employee Leave Maintenance window. You could setup all existing employees with an accrual based on date of other and 7/1. Then, new hire employees can be set to adjusted hire date and the year would be defined from a hire date. This field does affect the years of service calculation on the Employee Leave Maintenance window. If you use Hire or Adjusted Hire date, the system will use the dates assigned at the Employee Leave Maintenance window.