Earned PTO time resinded

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Earned PTO time resinded

I am presently employed in PA ALONG WITH 40 OTHERS HERE for a company in Indy. Indy has just announced in addition to 10% pay cut, manditory furlow, increase in med costs, they have taken 40 hrs previously earned PTOfrom all salaried employees in PA? Some one told me that in NY and Calif it is this illegal…..can you help

Asked on June 16, 2009 under Employment Labor Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Generally speaking, no. If it's earned paid time off, it's time you earned as part of your compensation and, at least in theory even if not in practice,accepted as compensation in lieu of being paid. Therefore, like back-wages, it's not something your company can simply take away--you earned it, it's yours. Certainly going forward they can change the rules, but not looking backward.

The question though is whether it was truly "earned" by working hours, or whether everyone simply is simply given a certain number of hours total or per year. If it was not in fact earned by labor, then it can be taken--it's a grant by the company that they can un-grant, so to speak.

Also, and the reason I say "generally" above, is you need to consult your employee handbook, and written work policies, any employment contracts, etc.--if there's something in writing saying that the company may rescind PTO or change the number of hours employees have at will, they can do it.

Since you're talking about 1 week salary each for 40 employees--or almost a year of pay in total--it's probably worth it to get together with as many other affected employees as possible and consult an employment attorney who can look into the specific facts of your case.


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