Elimination of PTO

[ZaheerKhan]

What is the name of your state (only U.S. law)? California and Other States

I am working with a tech company that is considering eliminating its PTO policy, essentially offering unlimited time off for sick, vacation, personal time, etc.

On its surface, this is a great deal for the employees. No time off tracking, no approvals for vacation, no worrying about being sick more than the three days you�re allotted.

However, there are a number of hidden disadvantages here. No accumulated PTO means no banking of that PTO. The employee can no longer sell unused balances periodically and no PTO payout is due when they leave the company.

So, for example, if an employee is laid off for some reason, they could expect a certain severance package + a payout of an accumulated PTO balance. The PTO payout could be significant depending on a company�s policy on PTO carry over. As severance policies are constrained by organizations to reduce the cost of restricting, this concern becomes material. The situation can be more significant in the event an employee is terminated involuntarily. A PTO balance payout can be that employee�s lifeline until they land a new role and/or stabilize their situation.

I would be curious to gather people�s thoughts and opinions on this topic.

 

[cbg]

In a great many states, there is already no legal expectation of a PTO payout when you leave. The number of states where any unused balance is due unconditionally by law, is a great deal smaller than the number of states where there is no such expectation, or where such expectation is only due if established by employer policy.

There are only 3 states where there is ever a legal expectation of a severance package and even in those three states, it is only required by law under certain limited circumstances. In the other 47 states, and under most circumstances in the remaining 3, severance is entirely at the opt of the employer unless required by union or other contract.

So I'm not sure that the argument of "but then we wouldn't get a payout at term" is one that's going to generate a whole lot of concern from the population as a whole.

 

[ShyCat]

I surmise that one reason for the policy change is to encourage sick people to actually stay home instead of coming into work and spreading their germs so they can "bank their PTO" for their later convenience. And then there are the people who never take time off to re-charge their batteries, dragging down productivity and making everyone else crazy when they get cranky and stressed, again just so they can "bank their PTO".