PTO Payout

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PTO Payout

I live in TN and have been employed with a company out of Texas over the past 3 months. They just informed me the position was changing and being redirected under the CFO in Texas. They let me go under with a no-fault termination and offered me 80 hours of severance. The termination letter did not address the 36 hours of PTO I had accrued. I was eligible to use the hours but they said they wouldn’t pay me for them. I never received any employee handbook that discussed the PTO policy. I’m afraid if I push for the PTO hours, they will just rescind the severance they offered me. I haven’t signed the final paperwork yet. Can they withhold my PTO payout from me?

Asked on July 18, 2018 under Employment Labor Law, Tennessee

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

In the listed state (Tennessee), PTO only has to be paid out if there is a written employment contract or firm, unequivocal employer policy to pay out such on termination of employment. Without an agreement or voluntarily adopted employer policy, they do not need to pay you for accrued but unused PTO.


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