OOO Forever: Weighing in on unlimited leave policies

The more startups that we come in contact with, the more we see using an unlimited leave policy to manage employee time off.  Some do it better than others, and the spectrum usually ranges from a loosey goosey scenario where employees can come and go as they please, all the way up to structured unlimited leave policies.

Based on this very unscientific Yahoo Poll, 75% of U.S. internet users think unlimited leave is a "Good idea".  This makes sense since the U.S. has some of the most vacation-deprived workers on the planet.  The chatter surrounding unlimited leave has also been increasing recently as well due to companies like Virgin and Netflix publicly touting the benefits of making unlimited leave available to their employees.  If I were a pilot for Virgin I'd probably take my unlimited leave right when I reached someplace like Bali or Bora Bora, but I digress.  

We decided to take a look at some of the pros and cons of having an unlimited leave policy:

Pros:

• You're sending the message that you trust your employees;
• You convey that you're not like other companies (e.g. you're not stodgy and you don't play by the "corporate" rules);
• Your employees don't have to track their leave, ask for permission, request time off, or fill out any HR forms;
• Your HR person doesn't have to play "bad cop" when employees are taking too much leave;
• You don't have to pay the extra $2500 for your HRIS system's Employee Leave Tracking Module;
• Your company doesn't have to book leave accruals, make leave payouts, or pay out accrued leave balances;
• Your employees don't have to lie to you and pull a Ferris Bueller when they stay home sick.   

Cons:

• Companies may believe that having an unlimited leave policy will magically solve all of their issues related to absenteeism, tardiness, over/under working employees, and work/life balance; 
• The legal ramifications of having an unlimited leave policy is still a relatively grey area still since the notion of unlimited leave has yet to become mainstream (think required payouts in California, the interplay with state and local paid leave laws, discrimination claims, etc.);
• By not tracking leave you won't have a clear picture of who is or is not taking leave, when employees are taking leave, or why they are taking leave.;  
• If you ever want to change your unlimited leave policy, expect this:

We would like to offer a few recommendations if your company decides to implement an unlimited leave policy or if you already have one in place:  1) Make sure that your unlimited leave policy is written down somewhere;  2) Make sure that your unlimited leave policy is communicated to your employees; 3) Make sure that your policy contains processes and procedures in it relating to calendaring, tracking, requesting, and timing - and maybe even some guidelines; and 4) Make sure that you understand how your unlimited leave integrates with statutory leave such as state/local paid sick leave, FMLA, USERRA, and other types of required leave.  

Legal Weed and the Workplace

With Prop 71 going from pot legalization movement to D.C. law, Cannabis could soon be coming to a DC office near you.  On November 4th voters turned out and overwhelmingly supported the initiative (68% approved) to legalize it.  Residents and non-residents will now be able to possess up to two ounces of marijuana and they will be able to grow up to 3 THC-producing Cannabis Sativa plants in their house.  But what does this mean for the workforce and businesses that hire D.C. residents?  Unlike other states where marijuana is legal (Washington State and Colorado) Washington D.C. is situated in a major metropolitan area next to two states that definitely still consider Marijuana illegal.  But not so fast, says Congress, who may end up being the ones to "pass" after others have "puff, puffed".  Additionally, without corresponding legislation and ordinances on how marijuana will  be taxed and sold, there's still a huge grey area in terms of legal weed in DC.

But there are some valid concerns from a business and employer perspective. What happens to an employee who talks about growing Cannabis at their DC home while they're at their Maryland office?  What about individuals who live in DC, and legally consume marijuana, but are given a surprise drug test by their Virginia-based employer?  Or what if you're a Virginia or Maryland employer who has an event or happy hour in DC, only to see pictures of your employees smoking joints or holding (up to two ounces of) marijuana. Also, do the drug policies in your Employee Handbook now conflict with DC law? These are issues that HR departments, legal departments, and risk management departments will have the benefit of unpacking in the very near future.

Is Washington DC Really Business Friendly?

There are plenty of reasons to do business in Washington, D.C. The growing populace, The federal government, lobbyists, the vast number of associations, and the burgeoning startup scene.  But is DC really business friendly? When it comes to laws and regulations in the District, some would argue that it is not. Or at least not as business-friendly as other states and cities.  The most recent example of a local law that will have an impact on the business landscape is the Wage Theft Prevention Amendment Act of 2014.  This law is similar to Wage Theft laws in other cities, but the administrative burden that it imposes on small businesses can be challenging.  With the law set to go into effect in Mid-December, employers will be expected to comply with the law within 90 days of its effective date.  What does compliance entail, you ask? Here's a brief overview of notice requirements:

• That a notice be provided to your employees;
• The notice be in English AND the employee's primary language;
• The notice must include Company's Name, Address, and Phone Number;
• The notice must contain the employee's rate of pay and the basis in which it is paid;
• The notice also has to include when the regular pay day is for employees;
• Anything else the Mayor deems should be provided to employees;

Sound like a herculean task? Not really, if you have the resources to: a) know about the law, and b) comply with the law administratively.  Not only that, but this notice must be provided any time you have new employees or if an employee receives a pay change. The fine for not complying? $500 per employee. So get ready to comply or be prepared to break out the checkbook.