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Use-It-Or-Lose-It policy for MN

Can an employer offer PTO and have a use-it-or-lose-it policy? Can an employer deny an employee’s request for paid time off and still not have to pay said employee the PTO that was earned in the state of MN?

There is neither Minnesota nor federal law that requires employers to provide employees with paid time off (PTO). Such a benefit is a matter of agreement between employers and employees. In most states, including Minnesota, employers are able to adopt PTO policies of their choosing. However, in Minnesota, an employer is obligated to comply with the terms of its PTO policy.

Use-it-or-lose-it policies or caps on accruals are permissible in Minnesota. It’s advised that such policies be in writing.

Additionally, an employer is able to deny PTO requests of its employees as long as such denials are not based on protected characteristics of an individual. Discrimination of employees based on protected characteristics such as gender, pregnancy, disability, age (over 40), national origin, race/color and religion is illegal.

Minnesota employers are not expressly required to pay out unused PTO at separation. However, as stated above, employers must comply with their established practice or policy. Thus, it’s important for employers to have clear PTO policies.

This entry was posted on Friday, April 17th, 2015 at 7:16 pm and is filed under
Benefits, Labor Laws.
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