Can company take away a paid vacation because of re-classification?

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 1, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can company take away a paid vacation because of re-classification?

I’m an exempt employee in CA with unlimited PTO. I was granted 2 weeks of vacation in May. My status is now changing to non-exempt with 3 weeks of PTO. The company is now saying I no longer get the paid vacation and will be docked pay. Is this legal since the request and approval was given months

ago when I was Exempt?

Asked on February 28, 2018 under Employment Labor Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

1) Exempt and non-exempt refer to eligibility for overtime; in the law, they have no relationship to benefits or vacation time, though a given employer could voluntarily choose to reference them in regards to determining eligibility for PTO or other benefits.
2) If you had "unlimited PTO," you did not in fact earn or accrue any: you simply had the right to take time off, subject to employer approval (using PTO is always subject to employer approval as to when, under what circumstances, etc.). Because you did not earn or accrue any specfic amount of PTO as part of your employment, you did not in fact lose anything when they said you could not go on vacation then--i.e. there were no days of compensation you'd earned through working which were taken away. Therefore, yes--in this case, because you did not lose accrued time or compensation, they can do this.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption