Q: (CA,US) can an employer pay out PTO based on a full year instead of a work week x 52?
(California) employer swapped to unlimited PTO and is paying out the accrued vacation days. I had 15 days accrued, but when I received the payout they used 365 / yearly salary x 15 days = payout -- This includes weekends. But if I had taken the days off instead of receiving a payout I would have taken 3 weeks off as there are 5 days in the working week, but i only got paid out for 2 weeks and a day. Is this legal?
A:
The statute requiring the paying out of vacation/PTO does not address this issue. I believe a good argument could be made that you were not paid out your PTO properly. If you accrued 15 days, you should be paid out 15 days.
Given the amount in controversy, it seems your best approach is to either go to the Labor Commissioner's office, or if this same payout method was used for many of your co-workers, a class action attorney might be willing to assist and make a case that would apply to all employees.
Good luck to you.
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