Human Resource Blog

PTO Payout in Pennsylvania

	Compensation
Employee Payroll Action Form W-4 Employee Withholding Allowance Cert. Employee Payroll Status/Change Form Direct Deposit Form Total Compensation Summary

On March 1, 2008, a company in Pennsylvania transitions from a vacation/sick/personal policy to a PTO policy. Under the old policy, employees were entitled to be paid for unused vacation days upon termination. Upon transitioning to the new policy employees were permitted to “grandfather” vacation days to carry forward however, upon termination they are not permitted to be paid for any grandfathered vacation days; only accrued PTO days under the new PTO policy. An employee terminates his employment one month after the policy went into effect. Is he entitled to be paid for the his grandfathered vacation days even though it clearly states in the new policy that he is not?

You probably know the answer to this question, but we’re happy to confirm it. No, the employee is not entitled to payment for the “grandfathered” vacation days. He was specifically warned in writing that he would not be. Paying them to him will set a dangerous precedent that other employees are entitled to them, too. Companies have the right to change thier policies regarding PTO and vacation days, as long as they inform workers in advance, in writing. Your company certainly seems to have done that in this case.