Vacation Leave Policy for Exempt Employees

Purpose

[Company Name] recognizes the importance of employees’ having the opportunity to have leisure time and attend to nonwork matters. Therefore, the company will attempt to grant all exempt employees vacation leave at the time they desire to take it. However, the company must maintain adequate staffing at all times. Therefore, vacations must be scheduled in advance and with prior written approval of the employee’s supervisor.

Eligibility

All regular, full-time, exempt employees are eligible for vacation accrual on a weekly basis.

Procedures

Vacation is earned by the eligible employee each week and in the following hourly, or fraction thereof, amounts:

• At a rate of 1.69 hours per workweek from the date of hire to their fifth-year anniversary (equivalent to approximately 88 hours or 11 days per anniversary year).

• At a rate of 2.46 hours per workweek, from their fifth-year anniversary to their 15th anniversary (equivalent to approximately 128 hours or 16 days per anniversary year).

• At a rate of 3.23 hours per workweek, from their 15th anniversary (equivalent to 168 hours or 21 days per anniversary year).

Vacation scheduling conflicts
When conflicts develop, they will be resolved fairly, but as deemed appropriate by management. All other factors being equal, preference will generally be given to the employee who makes the earliest request, but other legitimate factors may be considered, including seniority and the amount of vacation time already taken by the employees involved.

Minimum vacation time increments
Employees must take vacation time in increments of at least one hour. It is each supervisor’s responsibility to monitor such absences and to ensure that they do not become excessive in relation to the hours worked by the employee.

Notice of absence
Generally, requests for vacation days must be submitted to the supervisor at least one week in advance. Employees may have the right in certain circumstances to make leave requests under the Family and Medical Leave Act (FMLA) or other laws on shorter notice. If the employee is requesting vacation leave for family or medical purpose, the employee should make sure that this purpose is made clear to management. The supervisor must approve any exceptions to this provision or any conflicts in scheduling. A department may impose additional guidelines as necessary to ensure efficiency and adequate staffing levels.

Unused vacation time
An employee may carry forward a total of up to 160 hours of unused vacation time. When employees accumulate 160 hours of vacation, they will cease accruing additional vacation until such time as the employee’s total accumulation of unused vacation is less than 160 hours.

Termination of employment
Upon termination of employment, all accrued but unused vacation time will be paid at the rate of pay applicable at the time of termination of employment.

Pay in lieu of vacation
The company will not pay employees for unused vacation except upon termination of employment.