Summer Loving Had Me a Blast!

June is the month when the summer really starts to heat up. The days are longer, the weather is warmer, and there's a sense of excitement in the air. For many people, June is the perfect time to get outside and enjoy all that nature has to offer. It's also a popular month for vacations, as families take advantage of the kids' summer break from school. In addition, June is home to several special days, including Father's Day, Flag Day, and Juneteenth. Whether you're looking to enjoy the outdoors or celebrate with your loved ones, June is a great time to do it.

Summer Vacation – Employers Guide to Paid Time Off

By David C. Dagle, Esq

Summer is just around the corner and many people are starting to think about upcoming trips to the beach and time away from the office. As employees are starting to use their vacation time, employers may find that this is the best time to review their policy for use of vacation time or paid time off (PTO).

There is no law in Pennsylvania that requires employers to provide employees with paid or unpaid vacation time. Instead, Pennsylvania follows a more contractual approach to the application of paid time off (PTO). Therefore, it is important for employers to ensure that their PTO policies are clearly written and comprehensive as once the policy is implemented it must be followed. The adoption of a policy creates a contractual obligation between the employer and employee.

An issue that employers and employees often face regarding PTO is an employee’s entitlement to payment for any accrued but unused PTO upon termination of the employment relationship. This could be a voluntary termination or resignation by the employee or an involuntary termination, firing, by the employer.

Just as there is no law requiring employers to provide PTO to its employees, there is no law regarding the payment of unused PTO. The payment thereof will be dictated by the employers adopted policy. Absent a policy, an employer is not required to pay an employee for unused PTO when the employment relationship is terminated.

Despite the lack of obligation to pay for unused PTO absent a policy, if the employer does not wish to make such payments, it is recommended that any policy explicitly state that employees are not entitled to such payments upon termination of the employment relationship. Furthermore, it should indicate that the termination of employment covers voluntary or involuntary termination of employment.

If, however, an employer wishes to compensate employees for unused PTO upon separation from employment, the policy should include any requirements that must be met before such payments are made. For example, if an employer agrees to pay for unused PTO only if employee resigns and provides two weeks-notice, the policy should specifically state as such. If no PTO is to be paid if an employee is fired, the policy should state that as well.

A thoroughly written policy, and adherence thereto, can help reduce the risk of claims for breach of contract or by a former employee as well as potential liability under the Pennsylvania Wage Payment Collection Law.

Contact David C. Dagle at ddagle@pjrlaw.com or 717-591-1755 for further guidance.

Family Businesses: The Benefits & Traps

By Mark Y. Sussman

How an iconic Chicago deli handled the onset of the pandemic offers an important Lesson Found about family businesses. And that is the subject of this week’s Lessons Found, a weekly series presented by Strategic Business Group.

A recent radio story made me crave a visit to Manny’s Cafeteria & Delicatessen to enjoy mouthwatering sandwiches as well as to support a family business doing the right thing. Manny’s kept their full staff of 43 on the payroll through the shutdown (and before PPP). When asked why, owner Dan Raskin explained “They’re our families, too.” To keep his workers busy, Raskin took this good deed one step further by having them prepare meals both for the employees’ families and health care workers.

The story’s reporter aptly summed up this Lesson Found: “One of the benefits of a family business is that they can run it more like a family than a business.” All the family businesses I’ve ever worked with have one thing in common: They treat their employees like family. Personally, I can’t remember a family celebration while growing up without our extended family from the business. And this trait is almost universal among U.S. family businesses. A 2017 survey of owners revealed that “taking care of employees”, along with the company’s long-run viability, was selected most often as the owners’ most important goal when planning for the future. “Taking care of employees” was even cited more often than the owner’s own “financial security”.

Showing emotions through caring for your employees is what makes family businesses strong. What gets family businesses in trouble is bringing the emotion of long-standing familial conflicts into the business.

As I’ve noted previously, most family businesses “just” happen. One or more family member has a good idea and then others pitch in. Or, a child joins the business out of convenience or expectation. This “natural” progression of the family business leaves out one very important step: Structure creation. Structure, such as governance policies, defines everyone’s role, compensation and the decision-making process. Not only does this structure forestall familial conflicts but it also sets the stage for growth and the company’s long-term success.

Back to Manny’s for a moment. Manny’s, like most restaurants, has suffered substantial losses due to this pandemic. Here are links to where you can support this family business by ordering Manny’s famous Corn Beef Sandwich or Corn Beef cufflinks.

To learn more about Strategic Business Group’s weekly series of “Business Lessons Found” please visit our website strategicbizgroup.com or email Mark at mark@strategicbizgroup.com.

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Staying Healthy this June

Here are some things you can do to stay healthy this June:

Get outside and enjoy the warmer weather. Go for a walk, run, or bike ride, or simply spend time in your backyard or at a nearby park. Getting some vitamin D from the sun is good for your bones and can help improve your mood. Just be sure to wear sunscreen and stay hydrated.
Eat seasonal fruits and vegetables. June is a great time of year for fresh produce like strawberries, cherries, peas, and greens. Eating lots of fruits and veggies is good for your heart, your waistline, and your overall health.
Stay hydrated. Make sure to drink plenty of water, especially if you are spending time outdoors in the warmer weather. You can also stay hydrated by eating foods with high water content, such as watermelon and cucumber.