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Unpaid Earned Wages for All California Employees Of My Employer - Earned as PTO

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JohnErick

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

This case is growing older, and I've let it sit for a while, but I'm still so angry over the whole thing, I'm going to come here and ask for advice...

Our company was sold some time during 2012, and the new owners took over on Jan. 1, 2013. At the time, employees accrued vacation and were paid out on Jan 1st of the next year. The company did not allow anyone to borrow against PTO and you had to wait until the first of the next year to obtain your PTO to use. Per California law, as I have come to understand it, PTO and vacation are earned wages and must be paid out as such. Also, accrual of PTO for the next year's use always started on Jan 1 - Dec 31st.

SO! Anyway, in the last weeks of 2012, the previous owner announced he was paying everyone for unused PTO through the end of 2012. Keep in mind, this PTO was earned in 2011 and not provided to the employees to use until Jan 1, 2012. So he was paying off unused PTO time that had been earned in 2011 and in use through 2012. Of course, we were still accruing PTO through 2012 that we would get on 1/1/13. We earned 2 weeks per year worked. The previous owners also did not provide PTO as a percentage per hour worked, so even if you missed 3 weeks in that year, if you were there from 1/1 to 12/31 you got 2 weeks period.

The new owners took possession of our company on 1/1/13 and at that time, announced that everyone, including California, was starting Jan 1st at 0 hours of PTO. Since they were not the previous owners, they did not go by the PTO earning schedule of the previous owner, and we were not going to get our 2 weeks for working through 2012.

I had a hearing with a Deputy Labor Commissioner on Sept. 9, 2013 over this and before we even sat down, she said we did not have a case. The owners can change the PTO agreement at any time and ultimately get out of paying any accrued PTO. I said, so they can change it on Jan 1st and that throws out the whole year of accrued PTO time and just say we decided not to give it to you, and she said yes. She also kept telling me to be quiet, and that I wasn't making any sense which really irritated me. Even the letter my current employer's attorney sent in proved they shorted me, and ultimately everyone else a years accrued PTO. She didn't understand, became agitated, and ended the meeting saying I guess all 1500 employees of XX don't get their PTO. This was further evidence she didn't comprehend anything, because this was about the 2 California offices and about 100 employees only, not about the entire US employee body.

She could not comprehend one other detail, which is vital here. Even though the first employer gave a flat 2 weeks if you were there from 1/1 - 12/13 of each year and did NOT allow you to advance PTO use, the new employer started PTO accrual on 1/1 of each year, based on a percentage and how many hours you work each month, and allow PTO advances up to 40 hours. The attorney for them, in his letter, stated I used up all my vacation in "2012" and had none coming to me at the time of the payout, but that did not address the 80 hours of accrued time through 2012. I had used it all up in 2012, which was PTO I earned for working in 2011, not what I was accruing through 2012 for use on 1/1/13. We all worked from 1/1 - 12/31. One last note, the deputy stated that I had to prove who was liable at the time of the sale of the company for these wages. I tried to find out, but the new owners, nor their attorney would respond to any of my letters asking this, and I have no clue how to find out on my own. Would this kind of information in a contract even be publicly available?

So, I could not afford the $400+ to file an appeal in the Superior Court, nor afford to possibly lose to a slick lawyer, and of course the time frame to file gives you no time to find a labor law attorney. Are we done? Can anything else be done? Is there a statute on this? Did I misunderstand the laws? I can't believe they would not understand this relatively simple case. One other thing I remember from the deputy labor commissioner, she mumbled something about they don't even have to pay PTO wages until you leave their employment. Even if it turns out it was the other prior owner's responsibility? Does that mean I can file again when I leave their employment?

Sorry, very convoluted message, but any help would be appreciated.
 
Last edited:


Zigner

Senior Member, Non-Attorney
It seems to me that your complaint is with the old company, not the new company.
 

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