Client issue
CRA’s Labor & Employment consultants were retained on behalf of a client in the healthcare and social assistance industry to conduct an audit of paid time off (PTO) accruals after errors were discovered in its PTO accrual system, and resolve a resulting dispute with union leadership.
CRA approach
The goal of the engagement was to use employee-level HRIS and payroll data to recalculate PTO accruals, deductions, and cash-outs, assess compliance with the collective bargaining agreement (CBA), and identify employees owed additional PTO due to historical errors.
Our team reviewed the applicable CBAs and worked closely with the client to understand PTO policies relevant to the affected workforce. The CBA included a highly complex PTO accrual structure, with PTO accrual rates varying based on job, work schedule, seniority, and other factors.
We integrated multiple data sources to recalculate PTO accruals, usage, and cash-outs over nearly four years for more than 1,000 employees covered by the CBA. We then compared these reconstructed amounts to actual PTO balances and cash-outs. The analysis showed that the majority of disputed historical calculations resulted in employees accruing more PTO than required under the agreement.
Outcome
CRA’s findings resulted in targeted PTO payouts for covered employees with underreported accruals or cash-outs and provided a clear resolution to a multi-year dispute between management and labor.
