The Shelly Company recognizes that everyone benefits from time off for rest and relaxation. Therefore, the Company grants annual vacation time to regular full-time and part-time employees. Vacation leave will not count towards the calculation of overtime pay for nonexempt employees. Vacation pay for nonexempt employees shall be calculated based on the employee’s regular base rate at the time the employee takes vacation.
The amount of vacation employees receive is dependent on length of continuous service during the previous calendar year which runs from January 1 to December 31. Vacation is accrued throughout the year on a weekly basis. Increases to vacation benefit will occur the first of the year following the anniversary. Vacation must be used in the year in which it is accrued and cannot be rolled over into the following year. Any accrued, but unused vacation will be paid out upon termination in a pro-rated amount based on how many full weeks the employee had worked during the year prior to their termination. If an employee leaves employment and then returns during the same calendar year, their eligibility for vacation benefits will be prorated based on the number of weeks actually worked during the year, less any vacation time already paid out.
The following chart sets forth the amount of vacation pay and time off employees earn. Any earned, but unused vacation will be paid out upon termination.
| Length of Continuous Employment as of the beginning of the calendar year (January 1) | Benefit: Amount of Pay (Full-time employees) | Benefit: Amount of Pay (Part–time employees who are projected to work at least 1,000 hours in the current calendar year) |
| Less than 5 years | 80 hours | 40 hours |
| 5 – 9 years | 120 hours | 60 hours |
| 10 or more years | 160 hours | 80 hours |
So, for example, an employee hired on April 1, 2013 will arrive at their 5th anniversary on April 1, 2018. They will be eligible for the increase to 120 hours of vacation on the first of the year following that anniversary, or on January 1, 2019.
New employees in their first year of employment will be eligible for a pro-rated amount of vacation for the calendar year in which their employment began. Employees do not begin accruing vacation and will not be eligible to take vacation during their first 90 days of employment. However, after their 90th day, new employees in their first calendar year of employment will be eligible for vacation as follows:
| Month of hire | Benefit: Amount of Pay (Full-time employees) | Benefit: Amount of Pay (Part–time employees who are projected to work at least 1,000 hours in the current calendar year) |
| January | 60 hours | 30 hours |
| February | 52 hours | 26 hours |
| March | 48 hours | 24 hours |
| April | 40 hours | 20 hours |
| May | 32 hours | 16 hours |
| June | 28 hours | 14 hours |
| July | 20 hours | 10 hours |
| August | 16 hours | 8 hours |
| September | 8 hours | 4 hours |
Vacations must be scheduled in such a way that allows each department to meet its needs. Consequently, managers or supervisors must approve all requests for vacation time. Vacation leave must be coordinated with co-workers and with management to allow work to progress without undue disruption. Employees should submit vacation requests to their supervisor with as much advanced notice as possible. Vacation that will be earned in the current year may be taken prior to being accrued with management approval. Vacation time is paid at the employee’s base pay rate at the time of vacation. It does not include overtime or any special forms of compensation such as incentives, commissions, bonuses, or shift differentials. Paid time off for vacation will not be counted as hours worked for the purposes of determining overtime. Seasonal construction employees who do not work year-round (52 weeks) will continue to receive 5 days of vacation during the season. Company employees that are members of a union will follow the vacation schedule, if any, stated in the employee’s collective bargaining agreement.
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