Human Resource Blog

Exclusion of Class of Employees from PTO

We would like to know if we can exclude a group of part time employees that all work in the same department from receiving PTO. All of these individuals work in the same department and have the same employment classification. So basically we are saying if you work part time in this department you will be excluded from earning PTO.

However, other part time employees that work in different departments are entitled to PTO.

Does Michigan or Federal law allow the above situation?

If so, should it be addressed in an employee policy/manual or only at the time of hire? Thank you

An employer contemplating this action should be very careful to avoid illegal discrimination. (For one thing, consider your motives in doing this. Why are certain part-time employees entitled to PTO, and others not entitled to PTO?)

Any employment policy or action that has a disparate impact on workers in a protected group is illegal discrimination — even if it was not the employers intention to commit illegal discrimination. Examples: Suppose you decide that part-time office workers are entitled to benefits including PTO, while part-time warehouse workers are not. Also suppose that almost all of the part-time office workers are female, while almost all of the part-time warehouse workers are male. This is illegal discrimination based on sex, because you are giving women more benefits than men.(If most of the part-time office workers were Caucasian, while most of the part-time warehouse workers were Hispanic, that would be illegal discrimination based on national ancestry because you are giving Caucasian employees more benefits than Hispanic ones.)

Before you take this step, look at the demographic profile of the employees who will be affected. If it is not the same as the demographic profile of your employees in general, this move is probably illegal discrimination. Even if you take this step now, and the demographics of the affected group change over time, it could still be illegal discrimination.

Our suggestion would be to offer all part-time employees the same benefits. Otherwise, managing this policy simply becomes too unwieldy.

If you decide to take this step, you will want a blanket statement in the employee handbook along the lines of: Part-time employees may or may not be entitled to benefits, including PTO (Paid Time Off) depending upon their position.

Then the supervisor could explain the particular benefits offered for that position, after a part-time employee was hired.