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I have worked at my place of employment for 30 years now. In the employee handbook given to me, it stated that after 25 years I would receive 4 weeks paid vacation. This year, they informed us that they are capping maximum vacation to 3 weeks and that for those of us that have already earned 4 weeks, we would be reduced to 3 weeks. Is there any law that prohibits them from doing this?
Asked on October 14, 2016 under Employment Labor Law, Pennsylvania
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
There are no federal laws and few state laws regarding paid time off (vacation/sick days, etc.). However, if an employer chooses it can provide PTO but it doesn't have to; it is a discretionary benefit. Consequently, a company can change its policy regarding the amount of PTO given to it's workers. The fact is that most employment is "at will" which means that a business can set the conditions of the workplace much as it sees fit. The exception would be in an employer's action contitutes some form of legally actionable discrimination or violated an employment contract or union agreement.