PTO Work Policy

[kevinreece]

What is the name of your state? South Carolina

My friend is a salaried employee (works 55+ hours EVERY week). His company lumps all time off/vacation/etc into one policy called PTO. Each employee receives 80 hours of PTO at the beginning of the year. If an employee doesn't work 80 hours in a pay period, the difference will be deducted from his PTO until he has no time left, and then it will be deducted from his paycheck. It doesn't sound right, but is this legal in SC?

Thanks!!

 

[Beth3]

Yes, it's legal in S.C. and would be legal in nearly every other State as well. They can't dock his PAY (in most circumstances) but they can dock his PTO bank.

 

[kevinreece]

And, if they dock his pay AFTER his PTO bank is empty, then they'll be in violation of labor laws?

 

[cbg]

That would depend on the reason for the absence and how long the absence is.

Once the PTO is exhausted they CANNOT dock his pay in partial day increments. If he works any part of the day, they must pay him for the entire day, even if he has no PTO to cover it. The ONLY exception to that would be if he were on intermittant FMLA - if that is the case, they only have to pay him for the time he actually works, PTO or no PTO.

If he is absent for an entire day, however, they CAN dock his pay after his PTO bank is exhausted. Labor laws PERMIT an exempt employee to be docked in the following situations:

1.) In the first or last week of employment, if the employee does not work the entire week
2.) When the employee is on FMLA
3.) When the employee takes a full day off for personal reasons
4.) When a bona fide sick day policy exists (this INCLUDES PTO plans) with a reasonable number of days (your friend's plan would certainly qualify); the employee has either used up all available time or does not yet qualify for any, and calls in sick
5.) When the employee has been suspended for either a major safety violation or violation of a written policy, applying to all employees, regarding workplace conduct rules (sexual harassment, drug or alcohol use, workplace violence, etc.)

 

[kevinreece]

Very interesting.

So, if a person is docked for a partial day when he/she is out of PTO under this policy, he/she would have a Labor Board claim against the company?

 

[cbg]

I get the feeling that you aren't going to be satisfied until someone says that the company is doing something illegal. So far they aren't. The best you're going to get is that AFTER his PTO is exhausted, IF they dock pay in PARTIAL day increments when no FMLA is involved, then yes, that would be a labor law violation. But there is no evidence in your post that they have any intention of doing that. So far, everything they have done is legal.

Of course, your friend could make the whole issue moot by making sure he works 80 hours in a pay period.

 

[kevinreece]

CBG - your deduction skills are amazing.
My friend isn't very happy with his current environment and is looking for something that the company is doing wrong. I agree with you, though, in that it isn't a problem at all if he just works a regular work week. I can see him setting the company up though, so I probably won't tell him that last part.

This information has been very helpful, though. Thank you very much!

 

[cbg]

Most employment lawyers, HR managers, regulatory agencies, etc., are pretty savvy about employees who are trying to "set up" their employer. Just like they can usually tell when an employer is trying to "set up" an employee. Believe it or not, in my experience the former happens more often than the latter.

You can tell him this or not, as you please. You know better than I whether he'd be likely to "hear" it. But if he's unhappy where he is, he'd do much better to try to put his energy into finding another job, than to expend it trying to find something his employer is doing illegally. Besides, even if it had been illegal, about the best he'd get would be his PTO back. If he was expecting a payout that would allow him quit and take his time about finding another job while he lived off his "win" over the employer, he'd have been doomed to certain disappointment.

Not all labor law complaints result in million, or even hundred-thousand, dollar rewards.