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is it lawful to mandate a "carry-over" for unused PTOs? Must

Resolved Question:

is it lawful to mandate a "carry-over" for unused PTOs? Must the employer provide a cash-out option for unused PTOs at the end of the year?
Submitted: 2 years ago.
Category: California Employment Law
Expert:  Joseph replied 2 years ago.
Yes, it is lawful for an employer to carry-over unused PTO.

An employer isn't obligated to provide a cash-out option for unused PTO at the end of the year.
Customer: replied 2 years ago.


Hmm...sorry, I thought my follow-up question went through but maybe not.


 


I just want to make sure that it's legal to mandate an employee to carry over an unused PTOs rather than getting a cash-out during his/her employment. I already know that there's no "use it or lose it" policy so the employee must get paid for unused PTOs upon separation. Please confirm whether my understanding is true.


 


Also, it would be helpful to have some legal backing or resources to support the above statement. Can you please direct me? Thank you very much.

Expert:  Joseph replied 2 years ago.
Yes, an employee must be paid for unused PTO at the time of separation, but unused PTO can be carried over from a previous year, so it's not necessary for an employer to cash out an employee's PTO during the course of the employment.

This is one area of the law where it matters what the law doesn't say, as opposed to waht it says. In this case, there's no labor code provision or case law that requires an employer to pay out an employee's PTO except at the time of termination.
Joseph, Lawyer
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Experience: Extensive experience representing employees and management
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Joseph
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