Can a company replace overtime wages with regular wage if you have used PTO in the same cycle?
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Can a company replace overtime wages with regular wage if you have used PTO in the same cycle?
My company will pay you at your normal rate after 40 hours if you have used paid time off in the same pay cycle. Is this something that is okay? For example, you work Monday, Tuesday, Thursday and Friday but use approved PTO on Wednesday and get called in to work
Asked on October 6, 2016 under Employment Labor Law, Michigan
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
If an employer provides PTO, it does not have to count the paid hours as hours worked for purposes of determining whether an employee is entitled to overtime compensation. They same holds true for paid holidays. In other words, while an employee is entitled to be paid for approvedtime off, such time is not counted as hours actually worked for the purposes of computing overtime.
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