We are a small business that offers our 2 full time employees 10 vacation and 5 sick days each year. Because of the economy we are having to scale back what we offer. Is it legal to rework or take back the paid time off that we currently offer to our employees? Also, is it legal to reduce pay of these employees because of economic issues?
Absent a specific contractual agreement for a specific length of time (which is very unusual) terms of employment can be altered going forward. This means you can reduce pay or take away vacation or sick days. The employee can either accept the terms, quit, or try to negotiate other terms. But it is legal to do this.
You cannot, of course, take away days that have already vested or reduce pay for time already worked.
I hope this helps!
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Experienced attorney in discrimination, pay, hiring, termination and other employment matters.
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