All that PTO and nowhere to go: Prepare for leave-payout crunch.

• Position: Nuts & Bolts

For many employees, the pandemic has disrupted or eliminated summer vacation plans. And employees who are just returning to the workplace may be reluctant to schedule time off, either because they have too much work or because they don't want to be seen as dispensable.

If your organization has a use-it-or-lose-it vacation policy, all of that unused vacation time could spark major HR and payroll trouble down the road.

One main reason: Some employees are probably sitting on huge pots of accrued time off. That could translate into staffing shortages at the end of the year as employees rush to use their leave instead of losing it.

But it's not just a staffing issue. Consider the money. Your organization could take a huge financial hit if it has to pay out the value of a large group of employees' accrued time off upon termination or if you cash out unused leave at the end of the year.

Paid leave possibilities

The best solution: Require employees to take time off. One of the negative aspects about working from home is you can always work. But that risks burnout. Remind staff that taking time off this year is essential. You have options.

You can encourage employees to take long weekends or work partial days. Urge them to take mental health days. Work with employees to develop personal PTO plans that help them use accrued leave while ensuring adequate staffing.

Those options notwithstanding, now may be the perfect time to take a critical look at your leave plan. Your choices:

* Roll over. You can allow employees to roll over their unused time into next year. The downside: Employees could build up a giant bank of time off.

* Set caps. You can cap the amount of time you let employees roll over. Excess time can be cashed out or forfeited. (Whether accrued time can be forfeited depends on state law. Find a state-by-state chart on vacation payout laws at www.theHRSpecialist.com/finalpay.)

* Forfeit leftover leave. Provided state law allows, you can require leave not used by the end of the year to be forfeited. But think twice before making this decision; it may not be the best employee-relations move, especially these days.

Encourage staff to take FFCRA paid leave; employers will be fully reimbursed

As you welcome employees back to the workplace, remember that some of them or their family members may still become sickened by coronavirus. In many cases, they are entitled to paid sick leave, and it won't cost you a penny to provide it.

Advice: Notify...