PTO Differential Payout

[Chipan]

What is the name of your state? California

So recently my company decided to pay out PTO instead of carrying it over for PTO going into this year specifically. I just saw it on my paystub for the amount equal to my base rate. The problem is I also have a $1 differential pay because I work second shift. According to the policy I receive the differential pay for all hours worked and paid, and specifically lists holidays, PTO and floating holidays as examples. Given that I receive this differential when I use PTO, am I entitled to this differential pay when I’m paid out PTO?

 

[cbg]

It is my understanding of the CA law on vacation payout that you are.

 

[PayrollHRGuy]

What is the name of your state? California

So recently my company decided to pay out PTO instead of carrying it over for PTO going into this year specifically. I just saw it on my paystub for the amount equal to my base rate. The problem is I also have a $1 differential pay because I work second shift. According to the policy I receive the differential pay for all hours worked and paid, and specifically lists holidays, PTO and floating holidays as examples. Given that I receive this differential when I use PTO, am I entitled to this differential pay when I’m paid out PTO?

You are entitled to the higher rate. Here's a link from the CA DIR which is an opinion letter on the subject. Print it out and give it to your payroll department.


https://www.dir.ca.gov/dlse/opinions/2003-01-21.pdf

 

[quincy]

Labor Code section 227.3:
https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=227.3

California Court of Appeal, April 2020:
https://www.jdsupra.com/legalnews/california-court-of-appeal-issues-first-50262/

On California Supreme Court, Ferra v. Loews Hollywood Hotel, LLC:
https://www.natlawreview.com/article/california-supreme-court-s-decision-premium-payments-meal-rest-and-recovery-break

These links are to point out that not all is as it was in 2003, the date of the Opinion letter linked to by PayrollHRGuy. California has enacted a slew of new laws in 2021 and 2022 that affect employees and employers, including how employees are paid.

 

[Chipan]

These links are to point out that not all is as it was in 2003, the date of the Opinion letter linked to by PayrollHRGuy. California has enacted a slew of new laws in 2021 and 2022 that affect employees and employers, including how employees are paid.

I read the articles, but I fail to see anything that would contradict the letter from 2003. Is there something I missed that would void my entitlement to differential pay upon payout of my PTO?

 

[Zigner]

I don't see anything that would change it in the links posted.

 

[PayrollHRGuy]

There is no newer DIR opinion letter on the topic.

 

[quincy]

I read the articles, but I fail to see anything that would contradict the letter from 2003. Is there something I missed that would void my entitlement to differential pay upon payout of my PTO?

Sorry. I was not necessarily disputing what you were told by cbg.

I was simply (or maybe not so simply ) trying to point out that what was true in 2003 may no longer be applicable in 2022. A lot has changed.

You, in other words, would be smart to consult with an employment law attorney in California to have your specific employment, employment contract, and specific facts regarding pay personally reviewed before approaching your employer.

 

[PayrollHRGuy]

Or the MUCH cheaper option. Contact the DIR.

https://dir.ca.gov/Contactus.html

P.S. It is highly unlikely that California reduced worker protections since 2003.

 

[quincy]

How it is to be paid depends on the language of the employment contract. Plus, we are looking back on a year where Covid-19 changed PTO.

 

[Zigner]

How it is to be paid depends on the language of the employment contract.

California frown upon that

 

[quincy]

California frown upon that

Not really. The language of the contract is still important. Read the links provided above.

 

[Zigner]

Not really. The language of the contract is still important. Read the links provided above.

As long as the contract complies with the law. I should have written the expanded version of my last post instead of stopping where I did. I originally planned to type "California frowns about clauses in employment contracts that violate state law".

 

[PayrollHRGuy]

Not really. The language of the contract is still important. Read the links provided above.

The contract other than some CBA can't override the law. And once again. California passed no law during COVID that reduced an employee's rights in this regard.

 

[cbg]

Just for clarification, it was still the law that vacation and PTO payout had to be at the current rate, and I include shift differentials in that specifically, as of when I did the research at 7:20 this morning. I doubt if it has been changed since then.