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Unused Pto Payouts

Discuss Labor Laws

Unused Pto Payouts

Postby Esmund » Mon Jun 09, 2014 12:37 am

My co(in TN) has a policy that at the end of the year any unused PTO time that an employee has accrued over the year - the employee rolls 40 hours over to the next year and will be paid out any remaining time.  An email was sento out this year stating all PTO owed would be paid out by the end of the first quarter.  It is nearing that time and we have not been given a date or told what is going on - what are our repercussions if not paid by 3/31
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Unused Pto Payouts

Postby Chi » Thu Jun 12, 2014 9:31 am

That is a tough one. The state does not require the time be paid out. It is a fringe benefit and is give by the employer. It is not required by law to be given at all and not required to be paid out.

The employer should honor his policy and pay the time out. The problem is that because it is not a required payment I know of no repercussions if it is not paid by 3/31. There is no law that says it has to be paid at all and there is no law that says it has to be paid by 3/31.

Shirley
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