Paid Vacation for Employees, does it pay to pay it?
If you are hiring employees for your business in Florida, then one of the things you’ll need to think about is whether or not you offer paid vacation. Federal law does not require businesses to offer paid vacation time off since the Fair Labor Standards Act does not require companies to pay their employees for any time not worked, whether it be vacation time, holidays or even sick days. However, you may still want to consider offering paid vacation for your employees.
Facts About Paid Vacation Days
Although you’re not legally required to provide paid vacation time off from work to your employees, many businesses still do as part of a company policy, employment contract or collective bargaining agreement. Around 73 percent of employees in private industry are provided with paid vacation days by their employers, according to the Bureau of Labor Statistics. Even 55 percent of employees in service occupations are given paid vacation leave.
While many employers do provide paid vacation time, the amount of time they offer varies. In many cases, employers provide paid vacation time based on how long an employee has worked for them. For example, employees who have worked for the employer for at least a year get an average of 11 days of paid vacation time. Employees who have worked for the same employer for five years get an average of 15 days of paid vacation time.
In some cases, employers will provide paid time off plans to their employees. These plans consist of the total number of days that they can take off with pay for a variety of reasons, whether they’re sick days, vacation days or holidays. It’s up to the employees to use those days how they see fit. The amount of paid time off in such plans also varies based on experience. For example, salaried employees who have worked for their employer for a whole year get an average of 17 days. After five years of service, they get an average of 22 days – and so on.
Should You Offer It?
Offering paid vacation days is a good idea. It rewards employees and ensures that they don’t get burned out, thereby helping them maintain their productivity. Additionally, it will make you more competitive when it comes to hiring new employees.
For more business advice or information about our accounting services, be sure to contact us at Valezar & Associates today.