I would like to start off with, long-time listener first-time caller. Yes, I know my account looks suspect as I have had it for quite a while with very little interaction. I like to read from the shadows. Please try not to judge me too harshly.
I have been seeing a lot of posts lately regarding companies asking employees to donate PTO to individuals who need pay but do not have the PTO to cover. I absolutely get the concept that a company can make a choice to just provide extra PTO or pay the employee, but I would like to maybe take this a step further.
Here is my thought….
The maximum amount of time that you can accrue for the most part is up to the company. Obviously, some states/countries have laws requiring a company to provide a specific minimum amount of time. However, outside of those laws, it is up to the company to decide how much PTO they will provide employees.
Now, PTO is paid out based on the hourly rate or salary rate broken down to the hourly of the employee who has accrued and is taking the time. What that means is that when I take PTO it is not going to pay the same as when you take PTO. There is an actual monetary value to that PTO time, and it is not the same value for me as it is for you. So, should this apply when donating PTO as well?
Here is an example for you:
The company sends out a request for PTO donations for Jane. She requires 8 hours of PTO. I am willing to donate 1 hour of my PTO to assist Jane. But I make $20 an hour and Jane only makes $10. Should that now mean that 1 hour of PTO specifically donated by me then turns into 2 hours for Jane? Then Karen the executive director or some department that no one knows what they do donates 1 hour of PTO. Karen makes $100 an hour, so then that would provide Jane with 10 hours of PTO.
Let’s turn this example around:
The company sends out a request for PTO donations for Joe. Joe requires 8 hours as well, but Joe is the CEO of the company. I say what the heck, I will help Joe buy his yacht and donate 1 hour of my PTO. I still make $20 per hour but Joe makes $40 (I know, I know so unrealistic for a CEO) so should that now only cover 30 minutes (1/2 hour) of PTO for Joe?
So where does the money go when my PTO has a greater value than yours but was only given the time and not the value?
I know that this logic isn’t foolproof and there are a lot of nuances to PTO varying by state, country, specific laws, etc. and this way of thinking may have so many holes in it. But I just can not help thinking that this horrible practice of donating PTO is even worse if you put it into this perspective.
Let the discussions commence. Enjoy!
Edit: For clarity on the examples.