Eliminating PTO
 |
||||||||||||||||||||||||||||||||
 |
Benefits |
 |
||||||||||||||||||||||||||||||
 |
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
 |
||||||||||||||||||||||||||||||||
What process needs to be followed to eliminate a PTO policy? Must the company pay the employee for any accrued, unused PTO? Can the company simply add the accrued, unused time to the unrestricted time allotted for in the new policy?
In every state it is lawful for you to simply rollover accrued, unused PTO into the new leave program. This is true, whether the new leave program is vacation, sick days or another type of leave. It is even better if you can allow employees to carry over this time as unrestricted leave.
The situation becomes more problematic if the new policy requires that employees lose accrued PTO. In a number of states, you would be required to pay employees the full value of all or part of the PTO lost during the transition. Especially in California, there is no way to deprive an employee of earned, unused PTO without paying the employee for it. Several other states have similar restrictions. In addition, several states would require you to pay employees for the portion of the PTO lost that corresponds to vacation time (but not for any portion that corresponds to sick leave.)
However, again, the new policy you propose is lawful in every state.
Tags: California, carry over, carryover, eliminate PTO, elmininate pto, lose pto, loss, payment, PTO, PTO policy, roll over, rollover, vacation, vacation policy
This entry was posted
on Thursday, January 12th, 2012 at 7:34 am and is filed under
Benefits.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
2 Responses to “Eliminating PTO”
Leave a Reply
-
Ask a Question
Categories
- Attendance Management (1435)
- Benefits (2003)
- Compensation (2322)
- Employment Training (329)
- Hiring and Staffing (1017)
- Human Resources Management (4191)
- Labor Laws (1552)
- Management / Leadership Development (357)
- Performance Management (244)
- Structural Development (41)
- Termination (744)
- Workplace Health & Safety (345)
- Workplace Management (498)
Blogroll
Archives
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
Recent Posts
-
salary employees
May 16th, 2012 -
FMLA Notification Days Allowed
May 16th, 2012 -
Transition from PT to FT vacation accrual
May 16th, 2012 -
california family rights act
May 15th, 2012 -
Maternity leave
May 15th, 2012 -
Travel Time pay for Madantory Training
May 15th, 2012 -
FMLA FOR GRANDPARENT
May 15th, 2012
Pages
January 12th, 2012 at 11:14 am
And if this happened in a Nevada-based company at a Utah location? I think that the Utah laws do not permit any recourse for the employee. Is this correct?
January 12th, 2012 at 11:43 am
Hi Al! The original question asks, “Can we allow employees to carry over PTO into the next year?” The answer is yes — this policy is lawful in Nevada, Utah or any other state, because the employee does not lose any earned, accrued PTO or vacation time.
However, we intuit that your question is actually, “Can a Utah employee lose earned, unused PTO at the end of the year, if it is not used?” The answer to this question is also yes. Utah law requires only that employers follow their written policy on paid vacations. If the current policy states that vacation or PTO not used by a certain date will be lost, that is lawful in Utah. This “use it or lose it” policy is unlawful in several other states. HTH, and thanks for reading the blogs!~ Caitlin