Q: Can an employer in CA implement a new PTO cap and set that cap at 1/3 of the employees current PTO balance?

A: There is nothing unlawful about an employer placing a cap on the accrual of PTO time, even if the employee has already accrued more time than the cap. The employer can even eliminate the right to any PTO at any time and for any reason unless there is a contractual guarantee of PTO. The one thing an employer cannot do is take away PTO that has already been earned. Therefore in the situation where a cap has been placed on PTO accrual and an employee has accrued PTO in excess of that cap, it is lawful that the employer not allow the employee to accrue more PTO until the pool falls below the new cap.

Good luck to you.

A: Under California law, employers have the right to implement a cap on the accrual of paid time off (PTO) for their employees. However, there are certain rules and regulations that employers must follow when implementing such a policy:

1. Reasonable cap: The cap must be reasonable and should not prevent employees from taking time off. In your case, setting the cap at 1/3 of the employee's current PTO balance after 9 years of service might be considered unreasonable, especially if it effectively prevents the employee from accruing any new PTO.

2. Communication: Employers must clearly communicate any changes to their PTO policies to their employees in writing.

3. Payout of accrued PTO: If an employer implements a PTO cap that results in the employee losing already accrued PTO, the employer may be required to pay out the accrued PTO that exceeds the new cap. This is because earned PTO is considered a form of wages in California.

4. Non-discriminatory application: The PTO policy must be applied consistently and fairly to all employees. Singling out one employee with a significantly lower cap compared to others could be seen as discriminatory.

In this situation, the employee may have a case against the employer for implementing an unreasonable PTO cap that effectively prevents them from earning new PTO and for not paying out the excess accrued PTO. The employee should consider consulting with an employment attorney to discuss their options and potential remedies.

Employers should carefully consider the implications of implementing a PTO cap and ensure that it is reasonable, clearly communicated, and applied fairly to all employees to avoid potential legal issues.