Less Time Off for Less Work
Reader Question: If an employee works fewer hours than selected, albeit with company approval, and therefore does not complete 40 hours a week, can you provide less time off to them?
– HR Director, Manufacturing Company
It all comes down to how your policy is stated. If you state in your time off policy that an employee receives .833 days per month of service, but do not specify how many hours worked constitutes a month of service, then generally the employee would earn the .833 days regardless of how many actual hours were worked that month. To better address the issue, you need to restate your policy. There are many companies that now actually award vacation based on a calculation tied to actual hours worked.
Be careful though. This approach is administratively challenging at best and may compromise your adherence to the Fair Labor Standards Act (FLSA).