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PTO Policy Issue

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Chipan

Member
This issue is related to the other thread I made but I don’t think it fits under the same. This issue is concerning what our company’s policy states vs what they actually do. It’s a little complicated but I’ll be as clear as possible.

The issue is specifically concerning their PTO carryover policy. When I started, a few months ago, I noticed a couple policies. They had a general policy which stated that team members are permitted to carry over up to 40 hours PTO usable by march 31st, and any unused PTO by then would be forfeited unless such forfeiture was prohibited by state law.

There is, however, another policy specific to California. One of the primary differences is sick leave because in other states they don’t provide that. But concerning carryover there they had a section called cap and carryover where we are permitted to carry over ANY unused PTO hours into the following year and the only restriction is a cap at 1.5 times the annual accrual rate.

I thought this was just fine, but talking to employees and my manager they all claimed the carryover policy resembles the general policy rather than the CA policy. They said the policy was modified such that the deadline was doubled so it ends on June 31st because of COVID. I thought I wouldn’t have any problems either way because I didn’t accrue more than 40 hours anyways. Turns out in the middle of January they deducted all the hours carried over. I contacted HR about it and they said it was deducted because of a pending payout. Confused, I asked why. They told me to contact my HR business partner. When I did, he told me that they had some sort of memo that was released which changed the policy to the opposite. They pay out hours at or below 40 and carry over the rest. I had not heard of the memo, but I was told they did something similar going into year 2019 from one of the other employees, and that the memo simply wasn’t communicated properly. I asked whether this is supposed to preside over the CA policy, and he said he didn’t know. It’s been a week since he said he’d get back to me.

What I found more troubling is the fact that the CA policy stated it was effective Jan 1, 2020. I asked around to see if carryover was ever enforced in the manner written in the policy (where any PTO is carried over) and all of them said it’s never been that way. As it seems, the policy was written but never enforced, and they said how they do it seems to change every year between carrying over up to 40 and just paying out below it.

It’s a bit frustrating how they’re doing it because I can’t count on any sort of consistency for how to carry over PTO. From what I can tell it doesn’t violate the law for them to do carryover like this since they are paying us for the PTO they deduct. The problem I see is that they aren’t following the policy and they have no consistent or transparent standard. They have a written policy on how carryover should work, but they’ve never done it that way. I was wondering if there is some sort of recourse available for this type of situation. A friend of mine suggested going to the department of labor and ask for their intervention. When I raised skepticism on whether they would be willing the get involved, she assured me that in CA they almost always take the employee’s side. My optimal solution is that they follow a consistent and transparent policy from now on, I just don’t know what I can do to make it happen.
 


cbg

I'm a Northern Girl
Before I comment, let me ask you a question. Does your company operate in other states as well as California, or do you operate solely in California?
 

Chipan

Member
Before I comment, let me ask you a question. Does your company operate in other states as well as California, or do you operate solely in California?
They operate nationally, hence both the general policy and CA policy.
 

cbg

I'm a Northern Girl
I've read through your post carefully, and I don't see anything for you to go to the DOL about. As long as they follow CA's law in CA, MA's law in MA, IL's law in IL, etc., there is no requirement that they follow their own policy or that there be any consistency in how it is applied. As long as they are not violating any state or Federal discrimination laws, and you have posted nothing to suggest that they are, they can treat each individual employee differently if they choose to. BTW, I strongly suspect that the issue in your other thread was triggered by the fact that in most states, the payout as they did it would be legal - it's only because you're in CA that it wasn't.
 

Chipan

Member
there is no requirement that they follow their own policy or that there be any consistency in how it is applied.
I do know this is technically true as even the fine print of the policy states it is not a legally binding contract. However, I know things can be complicated when the policy is regarding PTO. For example, they cannot agree to pay you a certain amount of PTO then just decide lower it. California considers PTO wages so this would be equivalent to a pay cut.

BTW, I strongly suspect that the issue in your other thread was triggered by the fact that in most states, the payout as they did it would be legal - it's only because you're in CA that it wasn't.
I suspect it was just an oversight. Perhaps many don’t catch it so they don’t have to change it. A similar thing happened with my sick time rollover. Policy states that at the end of the year any unused paid sick leave is rolled into your PTO account. It didn’t roll over, so I asked about it. They added it simultaneously to deducting the carried over time pending payout (they did this to everyone, so it wasn’t because I asked that they did the deduction).

It may be legal in other states but it is still clearly part of their general policy that they pay differential for all hours worked and paid, and they included PTO by name. The only reason they’re not following the carryover policy is because they have these annual memos which change how they’re going to do it, and they simply aren’t disseminated properly. I suspect this isn’t the case for their other policies.

I suspect that this issue concerning differential will get resolved by payroll without the need to escalate it. But if they try and push back, at least I know what I’m entitled to both by policy and law.

Update
Well, looks like I was wrong about that last part. They sent me a response that said “team members do not receive their shift differential on the PTO payout.” So I will have to escalate this.
 
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cbg

I'm a Northern Girl
My point is that neither the DOL nor any other agency is going to tell them that they have to do more than the law requires, as long as the law of each individual state is followed. For example, FL law does not require that PTO get paid out at all, let alone that it include a shift differential. The DOL is not going to require them to pay out PTO or a shift differential in FL just because they do so in CA. Regardless of what their general policy says. The Feds don't care, and the CA state DOL has no authority outside the state of CA.

Now, if there is a CA specific law that they are not following and refuse to follow even after it is brought to their attention, then by all means contact the appropriate authorities. But they're not required to follow "a consistent and transparent" pattern as long as the law is followed, and there isn't any agency you can invoke that will force them to.
 

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