Can an employer force you to exhaust all of your PTO at the end of the year when it is accrued bi-weekly?

Asked on August 31, 2015 under Employment Labor Law, Arizona

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

PTO is not legally required to be provided by an employer. So to the extent that an employer chooses to give it, it is considered to be a discretionary benefit. Therefore, an employer can set the terms and conditions on how and why it is used. This is true unless an employer's action surrounding the use of PTO constitutes some form or employment retaliation or discrimination. Further, if the terms of a union contract or employment agreement provide otherwise, then an employer comply with their terms.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Yes, an employer may do this. There are no laws controlling PTO or, for that matter, even requiring employers to give employees PTO in the first place, so it's entirely up to employers employers have discretion to make rules governing PTO, and can require employees to use it up by the end of the year or lose it.


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