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Jun28

PTO

This question applies to WV, OH, NY, PA.

The Service Wage Act indicates 80 hours of PTO, after the first year, is required in addition to 10 holidays. However when the payroll department set up the PTO system, it set the PTO at 120 hours. After two years the error was discovered. Can we change it back to the 80 hours and not owe the 40 hours to each individual.

Yes, it is really not changing it back since that was the policy to begin with. You would not owe the 40 hours to any individual.

Vacation or sick time (PTO), is a matter of agreement between employer and employee. The policy or agreement can be changed at any time. If your policy (agreement) had said 120 hours of PTO you would still be able to lower the amount by changing the policy.

May I suggest doing an internal audit to check on the individuals who did take over 80 hours. This way you will be prepared to answer any questions should the matter come up. Remember you are granting PTO time per your original policy (agreement).

This entry was posted on Thursday, June 28th, 2012 at 10:31 am and is filed under
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