What is the law regarding paying out PTO when an employee leaves?
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What is the law regarding paying out PTO when an employee leaves?
Hello, I recently left my company which had a PTO program. Per their written policy, I was only able to take 40 hours of my PTO. However for the past three years, we had a very large project in which blocks of the summer/fall we were told mandatory no PTO could be taken to ensure go-live was met and successful. Therefore, I have accrued a lot of PTO, namely I had 190 hours when I left. I feel that it is unethical for a company to tell me that I cannot take PTO yet now as I leave, I cannot get paid all of it out. Is there a legal path I can take regarding my PTO that was left unpaid?
Asked on July 21, 2016 under Employment Labor Law, Minnesota
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Under MN law, if an employer contracts to provide PTO, this benefit is considered to be wages and the employer may be subject to penalties if it does not pay the value of accrued but unused PTO/vacation upon termination or resignation of employment. That having been said, employers can limit the payout of earned but unused PTO upon termination; it is based on the terms set out in company policy (i.e. an employee handbook or the like), or possibly in a union agreement or employment contract. At this point, you can consult directly with an local employment law attorney or contact your state's department of labor for further information.
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