Is This Legal Or Ethical

[aint2skeered]

What is the name of your state?What is the name of your state?What is the name of your state?

What is the name of your state? Tennessee
I work for a large not for profit hospital. We have 'earned time off' as opposed to sick time or vacation time. From time to time throughout the year, employees are allowed to 'cash in' some of their time, and receive money in lieu of days off. I have never participated in this because my time off is more important than the extra money.

This week all employees were notified of a federal law change concerning ETO selling practice and the change must be done during this 2005 tax year.As a result the hospital is paying employees for all accumulated ETO hours in excess of 40 hours and that beginning Jan 1, 2006 no one will have over 40 hours of ETO. We will however begin to accrue vacation time as before.

I have 4 weeks of time off which will be reduced to a week. The time away from work is 10 times more valuable to me than money in a stressful job, plus I have vacation planned for the end of February and it will not be covered by my ETO. I will of course save the pay from my employer, and cover my time off. I am just upset that I have to lose my time off. Is this a legal or ethical practice?​

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[Beth3]

Whether it's ethical is irrelevant, although I don't see anything unethical about it. It is legal for your employer to change their ETO/vacation policy. At least they're cashing out your ETO, which they don't have to do.

 

[aint2skeered]

Tennessee
I shortened my original post for the sake of people reading about this. This change affected about 4,000 employees. We received the letter after the rumors had run rampant. This hospital touts compassion, integrity, and other core values. Wouldn't you think that if an employer has made the mistake, the employees shouldn't be made to suffer for their error? Would it not be better to go back through and find which employees took advantage of the cash out of ETO should be notified and offered to pay the 10% back even over a year or two. The whole mess has all of the employees in an uproar.

 

[cbg]

I'm not sure where you see the employer as having made a mistake. It's not their fault if a new law has passed limiting the practice.

 

[pattytx]

What new law? Do you have a PTO purchase benefit under your cafeteria plan? And besides, law or not, the employer has the right to change benefits as they see fit.

 

[cbg]

This week all employees were notified of a federal law change concerning ETO selling practice and the change must be done during this 2005 tax year.

Patty, this is what I was referring to. The poster is suggesting that the employees should not be inconvenienced because of the employer's "mistake". My point is that if there has been a change in the law, that is not a mistake on the part of the employer and the employer is required to comply with the law.

I agree with you that law or no law, the employer is legally entitled to change their benefit policy.