Bankers' Time Off

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Question:

Is there a requirment that bank employees take forty consecutive hours off each year? If so, can holidays be counted as part of the forty hours?

Answer:

The FDIC examination handbook recommends "...an uninterrupted period of not less than two consecutive weeks." It further recommends: "Where the bank's policy does not conform to the two-week recommended absence period, examiners should encourage the board of directors to annually review and approve the policy actually followed and the exceptions allowed."

Any interpretation that vacations must be at least 40 consecutive hours is internal. Based on the above, it would probably necessitate annual review by the board. A further interpretation that "holidays count" toward that 40 hours could reduce the vacation requirement to be no more than 2 working days if it was in connection with a holiday weekend.

That interpretation would pretty much indicate your bank blew off the whole idea that vacations are an internal control. The policy might be difficult to defend.

First published on BankersOnline.com 3/21/11