Company PTO Question

[Reborn_Horn]

Looking for a little feedback on this situation....

I talked to a friend of mine at dinner this evening and he said his company was struggling a bit. So, one of things they did was revamp the Paid Time Off policy. Seems that previously, employees were allowed to carry over time from year to year but only up to a maximum. As of today, there is no more carry over and those hours that folks had coming into 2009 are no more...totally gone. No notice...just gone, policy changed overnight.

Besides morally wrong, is this even legal? Anyone have any knowledge of such changes?

- Reborn

 

[EuroHorn]

I believe the rules are dependent on the state that he works in. I think some states require advance notification of the policy change, e.g., 3 months prior. He could check with the Dept. of Labor in his state to see if they did anything wrong.

 

[iamtigerwoods]

Changing the carry over policy is not that unusual. Many companies have made this change over the last few years, as those accrued hours weight down a company's balance sheet.

That said, I have never heard of a company that did not pay their employees the cash value of the accumulated hours that were no longer allowed to be carried over. From an accounting perspective, I am not really sure how the company can simply make the liability disappear.

 

[HornBud]

Our company did something similar, except that 08 were allowed to roll into 09. Going forward, this is no longer done...until the next change of course. Are you sure his 08 PTO time was actually lost and that your friend entirely understands the policy?

 

[Reborn_Horn]

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