Can a company revoke PTO benefits from employees 2 1/2 months after takeover having promised to leave benefits in place for said employees?
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Can a company revoke PTO benefits from employees 2 1/2 months after takeover having promised to leave benefits in place for said employees?
Asked on October 18, 2015 under Employment Labor Law, Pennsylvania
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
If the company was an LLC or corporation and the employees are still employeed by the same LLC or corporation, then the employees are entitled to all PTO benefits earned or accrued to date up to the announcement of a change in policy, but the company may change the policy at will going forward so long as there are no written employment contracts still in effect which lock-in the benefits. Benefits that have already been earned are part of compensation earned for work previously/already done, and the company can't change that retroactively.
If the employees are no longer employeed by the same LLC or corporation they were previously employed, then, however, the new person or LLC or corporation the employees are working for and if it's not the same LLC or corporation, it is a new one, even using the same name, same staff, working out of the same location, etc. is not obligated by the PTO earned previously, under the old company, and does not have to honor it, even if they had promised they would.
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