Roseville, CA asked in Employment Law for California

Q: Pto payout?

My company is based in Kentucky and doesn’t always follow or understand California labor laws. They operate locations in 26 states. In 2018 they switched to a company wide pto plan where they “gift” all pto hours on January 1 and believe by saying its a “gift” they don’t have to pay it or any portion out at separation or allow it to carry over. It’s use it or lose it. All research I’ve done says this isn’t legal in California and they’re trying to circumvent the law. I recently resigned and they didn’t pay what I would’ve earned or accrued in PTO (I haven’t used any time off this year). Is this legal?

Related Topics:
1 Lawyer Answer
Yitz Erik Weiss
Yitz Erik Weiss
PREMIUM
Answered
  • Los Angeles, CA
  • Licensed in California

A: Under California law, earned vacation time is considered a form of wages. Therefore, a "use it or lose it" policy for earned vacation time is not valid under California law. However, an employer may place certain reasonable limits on a vacation policy, such as a "cap" or "ceiling" on the number of vacation days an employee may accrue. If an employee has unused paid time off days when the employment relationship ends, the employee must be paid for these days.

You should consult with an experienced employment lawyer to further discuss your rights and options.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.