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Jun30

FMLA and PTO Accruals

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

Our company stops PTO acruals when an employee goes out on FMLA. Their reasoning is the employee cannot give to the company so the company should not be giving to the the employee during this timeframe.Is this legal and is it standard practice for companies to do so?

We do not necessarily agree with your reasoning, but yes, at most companies an employee who is on unpaid FMLA leave, for whatever reason, stops accruing additional PTO or vacation. Most accrual programs are based on the number of hours the employee works in the week. An employee on unpaid leave works 0 hours, and therefore accrues 0 additional PTO.

Note that it would be illegal to reduce the PTO balance of an employee on FMLA — but they need not earn more while they are away from work. Once the employee returns to work, he or she must be reinstated to the previous level of benefits. However, there is no law that they employee must earn PTO while on leave.

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This entry was posted on Tuesday, June 30th, 2009 at 5:27 pm and is filed under
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