Paying accrued PTO upon termination

[MRF0722]

What is the name of your state? NJ &FL

When paying out accrued PTO upon an employee's termination, should the current rate of pay be applied to the total accrued hours to be paid? For example, if an employee accrued a certain number of hours while earning a higher rate of pay and then was demoted and his base salary reduced but carried over the accrued hours and earned additional PTO hours before termination, how should the hours be paid out? at his current rate of pay or the hours earned prior to his reduction in pay at his higher rate of pay? Thanks.What is the name of your state?

 

[cbg]

Since neither FL nor NJ requires that PTO be paid out at termination in the first place, it can be done at any rate the employer wishes. It is, however, customary to pay it at the current rate.

That does not mean that it would be illegal to pay it at a lower rate or to split the rate. It would not. That it is being paid at all (in the two named states) means the employer is giving more than is required by law.

It would, in my opinion, just be cheap.