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This is an unusual situation, however under the law, PTO is not regulated by the State, and can be administered in any way the employer wishes, if the employer wants to create such a policy or is administrating PTO this way, it would be allowed, however it clearly is unprofessional.
The law does enforce discrimination of benefits, and if the employer is denying some employees PTO due to their race, gender, age or other protected civil right, those employees can bring a discrimination lawsuit
Regardless of ownership, if these are two different corporations,
PTO should not be shared,
and Corporate shareholders or the HR offices should be aware of the matter, if the owners or shareholder do allow such a system that is on them, and may hurt them in the future, as the two can be considered as one common business,
which would make them liable to provide employees FMLA, ADA protection due to the employee sizes, even Obamacare, if the two together have 50 or more employees
Thanks for the response. If the owner of one company is not the owner of another, can he make that call at all? How do you process that on the financial side to make sure it is accounted for legally?
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