Payout of accrued/unused PTO on policy change ...

[Spider83M]

What is the name of your state? CA

My company has recently changed the vacation policy from a PTO (paid time off) policy to a simple Time Off policy. As such, we can no longer "use" the unused hours accrued under the PTO policy nor is the company paying us for those hours until our employment is terminated or at such time "they choose" to do so.

My question is: can they withhold payment of those hours until termination or a time of their choosing considering the fact that they are not allowing us to "use" those hours?What is the name of your state?

 

[cbg]

Yes, they can. Although CA prohibits use-it-or-lose-it policies, nothing in Federal law, California law, or the law of any other state requires an employer to allow you to take time off at any given time, or to use all the time you have available. No law in any state requires unconditional payout of time, ever, outside of termination. Under CA law, as long as the banked time is paid out at termination, they are legal.

 

[Spider83M]

Thanks!

Thank you for your response, cbg!