Employer takes away already accrued vacation days with new policy.

[Tickthokk]

What is the name of your state (only U.S. law)? Ohio

My wife’s employer enacted a policy that will place a cap on earned paid time off to 80 hours. The previous cap was much higher.

She had a bucket of around 210 hours already (it’s a lot, yeah), but they wiped every employee with over 80 hours down to 80 hours. She confirmed with me that they will not be compensating her for the hours she, and her co-workers, have lost.

They did this just this morning. Employees were given zero opportunity to “use it or lose it”; it was just simply cut.

Shady business ethics aside, is this legally wrong?

Other details:
Business Headquarters might be in Pennsylvania, if that matters.

Obviously she wants out, but that's another matter.

I appreciate any thoughts on the matter. I'm sure there's already a disclaimer, but I understand that nothing said will be taken as legal advice. I'm just looking for some direction.

Thanks everybody

Edit: She's a federal contractor, not sure how much that changes things.

 

[OHRoadwarrior]

The law does not mandate vacation time or paid vacation time. Absent a CBA, the company is free to change their policies across the board. Many companies have use it or lose it policies and caps.

 

[cbg]

There are states in which this policy would not be legal. Unfortunately, in both Ohio and Pennsylvania, it is. The only exception would be if a legally binding and enforceable contract or CBA expressly says otherwise.

 

[tranquility]

It is almost assuredly a breach of contract to eliminate accrued vacation time.

See:
Ebert v. Stark Cty. Bd. of Mental Retardation(1980), 63 Ohio St.2d 31

for the general policy and:
http://www.supremecourt.ohio.gov/rod/docs/pdf/11/2010/2010-Ohio-4560.pdf
for a more specific discussion.

(Although I agree with cbg. It's just that I think a contract would be found.)

 

[FlyingRon]

What contract?

 

[Mass_Shyster]

Hopefully, when she finds a new job, she will take her 80 hours of vacation and at the end call up and say "I'm giving you three weeks notice - but I'm using the three weeks vacation you owe me."

Of course, this is assuming she'll never need to use them as a reference.

 

[tranquility]

What contract?

The employment contract that she accrued the vacation time in the first place. Or, do you believe the employer and employee did not have an agreement to the amount of vacation and the OP's wife merely figured she deserved it at a certain rate?

Info edit:
I do accept the case law mentions "express" contract and uses an example of an employee manual and we may not have that here.

 

[You Are Guilty]

OT, but:

See:
Ebert v. Stark Cty. [highlight]Bd. of Mental Retardation[/highlight] (1980), 63 Ohio St.2d 31

Wow!

But I see they have since changed their name...






...to the Republican National Committee!



(I'll show myself out).

 

[Antigone*]

OT, but:

Wow!

But I see they have since changed their name...






...to the Republican National Committee!



(I'll show myself out).

Bullatics aside.. YAG makes me giggle!

 

[FlyingRon]

You mean the implied you work for and I'll pay you contract? The contract that's modifiable and even rescindable without notice? That's a pretty weak contract.

 

[tranquility]

You mean the implied you work for and I'll pay you contract? The contract that's modifiable and even rescindable without notice? That's a pretty weak contract.

Is it an express contract or not? I don't recall the "weak" contract exception in contracts class.

I agree it is "modifiable" in an at will state for all future work after the modification. But, you don't get me to work for a week at an agreed $10 an hour and then, at the end of the week you say, "no, I don't think the job was worth $10 after all, here's a breath mint for your trouble."

 

[Tickthokk]

Thanks for the replies everybody, I do appreciate it.

She's a federal contractor, if that changes anything.

 

[cbg]

I know nothing of Ohio contract law so I will not attempt to comment on that.

I will say this one thing; Ohio is not one of the few states that considers vacation time to be wages.

 

[TigerD]

I think I disagree. I think you could make an argument that the employee had a property right in accrued vacation days and relied on the policy. While the company can change the policy, when the company awarded the vacation days with a cap or use-it-or-lose-it program, the company awarded the employee a property right in those vacation days. The employee relied on the company's benefit plan in saving vacation days against a future vacation or serious illness. Taking those days away without compensation may constitute an improper taking of the employee's property.

It is definitely worth discussing with an attorney. But, be warned -- when you hire an attorney and make the argument, you will likely be looking for a new job.

DC

 

[OHRoadwarrior]

Here are wage standards for non governmental employees in Ohio.
http://codes.ohio.gov/orc/4111

They specifically ignore vacations, whereas this section of the code specifically outlines vacation policies for government workers at all levels.

http://codes.ohio.gov/orc/124