Human Resource Blog

Decrease of Accrued PTO in Pennsylvania

	Attendance Management
Vacation Request / Response Form Weekly Time Sheets Attendance Calendar for 2008, 2009, or 2010 Annual Attendance Tracker Vacation Request Form for 2008, 2009, 2010 (Calendar) Detailed Absence Report

	Benefits
Total Compensation Summary Performance Improvement Plan Performance Appraisal and Review Employee Payroll Status/Change Form Employee Change Form

Can an employer in PA go back two years to reclaim a portion of an employee’s PTO (vacation/sick time), claiming it to be excessive? The employee accured the same amount of time every paycheck for over 10 years, and there was no notification of change given by the employer.

There is no state or federal law that requires Pennsylvania employers to give paid vacations. In most cases, Pennsylvania employers are permitted to establish their own policies regarding vacation time.

It’s not clear from this question whether the employer is saying that the amount of accrued vacation was tabulated incorrectly, or whether the employer is simply saying “enough is enough” regarding accrued vacation time.

In either case, the employer is probably well within his or her rights here.

Many employers set limits on the amount of vacation time that an employee can accrue. In many companies, perhaps the majority, an employee who doesn’t use vacation time within one year loses it.

Other companies permit the accrual of vacation time but set limits on how much time can be accrued.

There is also ample legal precedent for companies to correct payroll errors. In nearly all states, an employer who overpays a worker can deduct the overpayment from a future check. Compared to that situation, this one is a minor inconvenience for the employee.

However, this issue is complicated because under Pennsylvania law, employers do have to honor any agreements made with the employee. According to the PA Department of Labor & Industry, “an employer only has to pay these benefits if the employer has a policy to pay such benefits or a contract with [the employee]u to pay these benefits. An employer must follow its own rules for these kinds of payments.”

If the amount of PTO or vacation/sick time accrued was in writing, and the employer never changed that policy or informed the employee of the change, it’s possible that the Dept. of Labor & Industry or a court would require the employer to live up to his or her promises.

If the employer was depriving workers of vacation/sick time in a way that discriminated against some employees in a protected group, based on religion, pregnancy, disability, age (over 40), race, color, or sex, then that would be illegal discrimination.