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Forced into debt - Paid Time Off

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bdunn33

Junior Member
What is the name of your state?What is the name of your state? North Dakota

Apologies if this has already been asked -- I am not having success in
searching for it.

I was hired at the end of March of this year (2005). It was agreed by both
myself and the Human Resources representative (the company is international) that I would take the 2-week vacation that I and my husband had already paid for coming up in May without pay.

The company had at that time an option for employees to request that they could borrow up to 40 hours of paid time off after which they are not allowed to take any more time off, paid or not, until at least some of this time is paid off. There is no other way (at least not published in the Employee materials or on the Web) to pay this back to the company other than to work it off. Also, overtime hours do not contribute to the accrual of paid time off.

I took the vacation, came back, got paid, and had been working for a few days when I got called in by the Human Resources person who told me that the company had decided that if anyone didn't have accrued paid time off, they would be required to receive borrowed paid time off and would owe the money back to the company. I was informed that this decision was in effect retroactive to the the time before my vacation and I would be required to accept the loan of the money in my _next_ check and would also be required to work it off. No other rules were changed as far as I can find out so, it seems I have been forced into debt to the company I work for, they won't accept payment of money in any form to pay off that debt, and the debt was forced on me retroactively to the time I went on vacation. I understand that the Employee materials are not legally binding and they have absolutely no obiligation to pay me anything to be on vacation even if they promised it (as far as I can tell from the other information I've seen on this forum) but is retroactively forcing me to owe them money, when the time
has passed that I could decide not to take the vacation, legal too? Thanks for your time.
 


cbg

I'm a Northern Girl
If I am understanding you correctly, yes it is. If they have decided they will no longer going to allow borrowed vacation without repayment, they are not obligated to exempt you from the new policy. It would be nice of them to grandfather you onto the old policy, but nothing in the law says they have to.
 

bdunn33

Junior Member
Thanks -- I was afraid as much was true. No wonder very few people are lucky enough to have employment contracts. Cheers. :cool:
 

cbg

I'm a Northern Girl
Well, employment contracts aren't always all they're cracked up to be, either. If you have an employment contract and suddenly a plum new job falls into your lap, you're stuck.

For the record, I disagree with the way your employers are handling it, but it's not illegal.
 

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