Leave of Absence Policy
Establish clear guidelines for how leaves of absence (LOAs) affect incentive compensation to ensure compliance with federal and state leave laws, fair and consistent treatment of employees on leave, clear communication to affected employees, and proper calculation and payment procedures.
1Purpose & Objectives
Establish clear guidelines for how leaves of absence (LOAs) affect incentive compensation to ensure compliance with federal and state leave laws, fair and consistent treatment of employees on leave, clear communication to affected employees, and proper calculation and payment procedures.
- •Compliance with federal and state leave laws
- •Fair and consistent treatment of employees on leave
- •Clear communication to affected employees
- •Proper calculation and payment procedures
2Scope
Applies To
- •All employees eligible for incentive compensation who take a leave of absence
- •FMLA (Family and Medical Leave Act) leave
- •Military leave
- •Disability leave (short-term and long-term)
- •Personal leave
- •Parental leave (maternity, paternity, adoption)
- •Other company-approved leaves
3Definitions
Protected Leaves
Leaves protected by federal or state law including FMLA (up to 12 weeks), Military leave (USERRA), State-specific leave laws, and Disability leave (may be protected under ADA). Generally receive more favorable compensation treatment.
Company-Approved Non-Protected Leaves
Leaves approved by the company that are not legally protected. Generally less favorable treatment than protected leaves; subject to company discretion.
Intermittent Leave
Leave taken intermittently (e.g., 1 day per week for medical treatment). Quota adjusted based on total leave days.
4Key Provisions
Compensation treatment varies based on the duration of the leave of absence.
Short-Term Leave (<30 Days)
Remains eligible for incentive plan, continues to accrue performance credit. No adjustment to quota or goals. Paid on normal schedule based on performance.
- •No adjustment to quota or goals
- •Performance measured based on actual results
- •Paid on normal schedule based on performance
- •No reduction or pro-ration for leave period
Medium-Term Leave (30-90 Days)
Remains eligible for incentive plan during leave. Quota pro-rated based on active days. Adjusted Quota = Annual Quota x (Active Days / Total Days in Period).
- •Performance credit may be paused during leave; resumes upon return
- •Credit for in-flight deals closed during leave (if applicable to role)
- •Paid on normal schedule based on pro-rated quota
- •Attainment calculated: Actual Performance / Pro-Rated Quota
Long-Term Leave (>90 Days)
Suspended from incentive plan during leave period. Reinstated upon return to active status.
- •Quota suspended during leave
- •New quota assigned upon return (pro-rated for remaining period)
- •No credit for performance during leave period
- •Territory reassigned to interim coverage (if applicable)
- •No incentive payments during leave
- •Upon return: Participate in plan for remaining period with pro-rated quota
- •Earned incentive for periods worked prior to leave paid out per plan terms
5Compliance References
Federal Laws
- •FMLA (Family & Medical Leave Act) - 12 weeks unpaid leave for qualifying reasons
- •USERRA (Uniformed Services Employment and Reemployment Rights Act)
- •ADA (Americans with Disabilities Act)
State Laws
- •California: CFRA, PDL, SDI
- •New York: Paid Family Leave
- •State-specific leave laws (vary by state)
- •State law may be more generous than federal; follow most generous