If so, they are working to reduce the amount of liability they have post-termination.

I'm speaking as one who, back when leave time was not paid out, left behind over 100 days of unused sick time. Yes, 100 days.
In a bit over ten years I used less than one day per year and got NOTHING back. I have eternal regret for that.

More recently, I had a job where we had a combined leave thing. You could use it if you were sick or just needed a day off for whatever. I wasn't sick in my relatively short time there, but I used a few days for what I'd have considered vacation days. When I left that job, I got paid for all of those days. How amazing is that? Especially when compared to leaving 100 unused sick days behind.

Vacation pay can cost a company more the longer you hold on to it. For example you have accrued a couple of months of vacation over many years. Then you retire and cash it in, it would cost the company more. I worked for a large company that changed policy some years ago to not let employees carry it over to the next year. Also, it might be how the company has to account for a future obligation. Could this apply?

for unemployment.

But you're right. Moving to part-time has consequences.

Sometimes it's insurance related, sometimes unemployment related.

If you had employees with accrued vacation time, why would you want them to use up that time instead of reducing their hours?

1. CARES Act. If they have a loan for payroll, then the loan requires that it be expensed as pay.

2. You want employees not to lose income.

3. You don't want to have a bunch of employees with reduced time who will all, later in the year, want to take vacation at the same time. Esp. if you expect to need their output later.

I might check back to see what people who know more say.


My parents worked for a steel mill. At some point during an economic downturn (which for the US steel industry lasted over a decade) they would shut down for a couple of weeks. They'd cool the blast furnaces and that meant they'd have to reline them with refractory brick. Instead of letting all the vacation time pile up and give them scheduling headaches later in the year, they scheduled the down-time for popular vacation times and required that those 2 or 3 weeks be mandatory vacation time. I mean, you can shut down for 3 weeks in July or in February, right?

They don't have to pay the loan back if people are getting paid. I don't know if they were specific about how they were getting paid.

We can use benefit time or not. Luckily the wife and I have over 6 weeks each. She is the same boat as I’m in. Then unemployment is our option. The company is covering 100% of our health insurance for a year.

Sucks. But could be worse.