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Nov26

PTO

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One of our employees insists that a paid holiday is paid by the company, not deducted from her PTO. How can I respond?

Well, in one sense your employee is right. PTO is paid by the company, so when an employee uses PTO for a paid holiday, the company is paying for it.

The problem also arises because employees think of PTO as the same as vacation. But it is not another word for vacation.

PTO or Paid Time Off is a combination of vacation, sick leave, personal days and paid holidays. When a company uses PTO, it lumps all those types of leave together in one group, and calls it PTO. So yes, under a PTO system, an employee who wants to be paid for a holiday must use a day of her PTO. Some companies offer the alternative of taking the holiday off unpaid, but not every employer has to offer that option.

Employees with more questions on this topic can post them on our sister site at www.laborlawtalk.com. HR pros with more questions on this topic, or any other, can post them here.

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This entry was posted on Wednesday, November 26th, 2008 at 8:36 am and is filed under
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