2018 Vacation Payout and 2018 Vacation Donation Programs for Hurricane Recovery
September 14, 2017
As part of these efforts, together we’ve worked to create two options through a program that will enable employees to turn their vacation days into funds that will go toward recovery. Option one is for employees living in the impacted areas directly affected by Harvey or Irma who will be allowed to cash in a portion of their 2018 vacation and receive the funds for recovery efforts.. Option two provides an opportunity for employees looking to help to contribute their vacation toward the overall recovery efforts.
Option One – Employees Directly Impacted by Hurricane Harvey or Irma
Any active United employee whose home address of record (as listed in Flying Together > My Info > Personal Details) is in an area impacted by either Harvey or Irma can apply to have a portion of their 2018 vacation paid out at their current rate of pay as listed in their employee profile as of the time of the distribution. (Rate of pay does not include any premiums, overrides, etc.).
Eligible Flight Attendants* and pilots can request a payout of up to 10 days of vacation. Requests must be made in full-day increments. (No partial days.)
All other eligible employees can request a payout of up to two weeks of vacation. Requests must be made in 1-hour increments. (Part-time employees should see below for additional details regarding their payout calculation.)
All payout requests will be validated by the payroll team against current time banks or leadership records. If an employee requests a payout for more time than they are eligible to cash in, the payroll team will adjust the requested amount down to ensure that the employee does not receive more than allowed.
Employees who submit requests and are eligible for this program will be notified within five business days after the request is submitted, informing them about when they will receive payment. The payment will be distributed via direct deposit or check, based on the employee’s current payroll selection.
Payments are subject to applicable income taxes and 401(k) deductions, and apply to Profit Sharing/Annual Incentive Plan (AIP) eligibility and garnishments (if applicable), but no arrears will be taken. Payouts include the value and the time. Employees will not be entitled to take the paid-out time as AUTO.
Option Two – Employees Contributing To Employee Relief Fund
U.S.-based United employees who wish to contribute can donate a portion of their 2018 vacation to the Employee Relief Fund. Eligible Flight Attendants and pilots can donate up to 10 days of vacation.* Donations must be made in full-day increments. (No partial days.)
All other eligible employees can donate up to two weeks of vacation. Donations must be made in 1-hour increments. (Part-time employees should see below for additional detail regarding their donation calculation.)
The cash value of donated time will be given to the Employee Relief Fund.
All donations submitted will be validated by the payroll team against current time banks or leadership records. If an employee attempts to donate more time than they are eligible to donate, the payroll team will adjust the requested amount down to ensure that the employee does not donate more than allowed.
Employees who donate vacation will not be taxed on the cash value of the donated time, and based on IRS guidelines, they will not be able to deduct the value of the vacation as part of their annual tax filing, as there will be no taxable income paid to the employee for the donated vacation hours.
Donated vacation time is not considered as eligible earnings or eligible wages for the purposes of contributions or otherwise determining benefits under any other benefit plan or program, including but not limited to Profit Sharing, the Annual Incentive Plan (AIP), 401(k), the Pilot Retirement Account Plan (PRAP), and the Continental Airlines Retirement Plan (CARP). Donations include the value and the time. Employees will not be entitled to take the donated time as AUTO. The donating employee’s revised 2018 vacation balance will be updated within 2-3 weeks after submitting the request. Special rules apply for Part-time employees.
All vacation payout requests and vacation time donations must be submitted by September 24, 2017. This will ensure all vacation balances are properly updated before the 2018 Vacation Bidding process begins.
If you have questions on either of these options, please contact the Employee Service Center via United ServiceAnywhere and select "Vacation Donation" or "Vacation Payout" from the dropdown menu.
*NOTE: GUM-based Flight Attendants are not currently eligible, but we are working to find a way for them to participate in the future.