Can I offer unlimited vacation time to my employees in Wisconsin? What are the requirements?

Unlimited Vacation Time in Wisconsin

Wisconsin does not have any state laws that require employers to provide vacation time to their employees. Therefore, employers in Wisconsin are free to offer unlimited vacation time to their employees if they choose to do so. However, it is important to note that if an employer does offer vacation time, they must comply with any policies or agreements they have established regarding the accrual, use, and payment of vacation time.

Requirements for Vacation Time Policies

If an employer chooses to offer vacation time to their employees, they must comply with any policies or agreements they have established regarding the accrual, use, and payment of vacation time. Employers must also comply with any applicable federal laws, such as the Fair Labor Standards Act (FLSA), which regulates the payment of wages and overtime.

Under the FLSA, vacation time is considered a form of compensation and must be included in an employee’s regular rate of pay for the purpose of calculating overtime pay. Additionally, if an employer has a policy of paying out unused vacation time upon termination of employment, they must comply with any state laws regarding the payment of final wages.

It is recommended that employers consult with legal counsel to ensure that their vacation time policies comply with all applicable laws and regulations.

Catastrophic Leave

Wisconsin state law allows for a catastrophic leave program, which allows employees to donate leave credits to other employees who are experiencing a catastrophic need, such as a serious illness or injury. Catastrophic leave is defined as earned but unused termination leave, sabbatical leave, personal and legal holiday time, and anticipated and earned but unused annual leave, subject to s. 230.35 (1) (b), Stats. ^[2.1]

To be eligible for catastrophic leave, an employee must satisfy certain conditions, including completing the first 6 months of service as a permanent classified, project or unclassified employee, being absent from pay status due to a catastrophic need of the employee or an immediate family member, and anticipating an absence from pay status of at least 160 hours duration. ^[2.1]

If an employer chooses to establish a catastrophic leave program, they must comply with the requirements outlined in Wisconsin Administrative Code ER 18.15. ^[2.1]

It is recommended that employers consult with legal counsel to ensure that their catastrophic leave policies comply with all applicable laws and regulations.

Source(s):

• [2.1] Catastrophic leave.

Jurisdiction

Wisconsin

• Labor