Forest Grove, OR asked in Employment Law for Oregon

Q: My company deducts the cost of used PTO from an employee’s last paycheck upon termination of employment. Is this legal?

Though PTO hours are given up front at the start of the year, according to my company’s policy, those hours still have to be accrued in order to be legitimate. When an employee terminates, if they have used more PTO hours from their bank than they have technically accrued by that point in the year, they deduct the amount from the last paycheck. For instance, my last week I worked a regular 40 hour week but my final check was $84 because the PTO I had used was deducted. I can find nothing online about a policy like this and was wondering if anyone can tell me if this is a legal practice in Oregon.

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1 Lawyer Answer
TeAnna Rice
TeAnna Rice
  • Hillsboro, OR
  • Licensed in Oregon

A: Most likely not - reach out to a wage and hour attorney with your employer's policies to evaluate your case.

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