Practice Management Alert

Use leave policies to balance staffing needs with morale and compliance.

As COVID-19 infections remain on the rise in much of the country, businesses — including medical practices — are trying to figure out how to stay open, or whether staying open even makes sense right now. Employees are stressed, employers are stressed, and everyone could probably use a vacation. Except there’s nowhere to go and no place that offers true escape.

Hopefully, the pandemic will end at some point and some semblance of “normal” life will return. At that point, employees may be beyond ready for a proper vacation. Take steps now to ensure that you can maintain minimum staffing needs once we’re all in the clear, say David J. Baron, JD, senior associate; Tao Leung, JD, counsel; and Zachary Siegel, JD, associate, at Hogan Lovells, in online analysis.

Protect Staff Through Flexibility

Keeping your staff healthy while also maintaining enough staff to effectively and safely see patients is a formidable balancing act. One of the CDC’s top recommendations for protecting your workforce is encouraging flexibility: “Ensure that your sick leave policies are flexible and consistent with public health guidance and that employees are aware of these policies.”

Check with your state or local laws to make sure you’re abiding by any legislation enacted since the pandemic started. Some states, like Colorado, have enacted paid sick leave laws that may be more generous than what your practice offers. Others, like Virginia, have enacted workplace safety requirements, including mandatory documentation and training, that may seem burdensome as an employer. Not all laws apply to healthcare personnel, including the federal pandemic leave laws, but you may find that increasing leave is a good move for your practice right now.

Consider allowing or encouraging leave donation between staff, too, if you’re worried about maintaining critical mass but know some need a break. See Practice Management Alert reader question “Look to PTO and Leave-Sharing in Natural Disasters” in Volume 18, Number 11; since all of the U.S. is under a public health emergency, the disaster declaration applies.

Check tax guidelines and leave laws to make sure your organization remains compliant with IRS guidance, say Benjamin J. Conley; Paul, S. Drizner; Diane V. Dygert; and Jennifer A. Kraft, at Seyfarth Shaw LLP, in online analysis. State or municipal leave ordinances may also come into play in terms of donating leave, because doing so may reduce a staff member’s accrual below what is legally permitted locally, so tread carefully and with full awareness.

Keep an Eye on PTO Policies

Employers should keep an eye on paid time off (PTO) leave policies, generally, as the pandemic progresses, Baron, Leung, and Siegel say. Employers who are concerned about a glut of vacation-taking by burned out employees once the pandemic is finally under control should act now to make sure they’ll be able to maintain adequate staffing.

Adjust PTO policies now to make them more flexible for necessary caregiving. But also consider adjusting policies so PTO carryover hours are capped heading into 2021, while being mindful of state or local laws, Baron, Leung, and Siegel say. You can also offer to buy employees out of accrued but unused PTO before 2021. In most jurisdictions, it’s illegal to take away PTO already accrued but unused, as such time is considered wages earned, they say.

You can enact stricter policies too, like blacking out certain dates or temporarily or permanently doing away with unlimited PTO or PTO accrual beyond what is legally required. However, be careful to balance busines needs with employee morale, especially at a time when employees are already more stressed than perhaps ever before, especially healthcare personnel.