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wallstreetfighter
wallstreetfighter, Employment Lawyer
Category: Employment Law
Satisfied Customers: 17080
Experience:  14 years exp, General counsel for National Corp. firms, Hostos College instructor, Represented employees in discrimination lawsuits
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I work for a consulting group that consults with a hospice

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I work for a consulting group that consults with a hospice company. There is common ownership between the companies, so one of the owners is allowing the hospice company to use his PTO as a bank when he wants to help some employees. I have stated to him that we cannot share PTO between two separate companies, but he says that since he is an owner in one company and his wife is the owner in the other company, this can be shared. I want to know is this legal? I am also concerned that there is partiality in when he allows employees to us the PTO so i feel we are at risk in giving it to some employees and not offering it to all of them.

wallstreetfighter :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification

wallstreetfighter :

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.

wallstreetfighter :

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

wallstreetfighter :

Regardless of ownership, if these are two different corporations,

wallstreetfighter :

PTO should not be shared,

wallstreetfighter :

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,

wallstreetfighter :

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

wallstreetfighter : Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification
wallstreetfighter : 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.
wallstreetfighter : 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
wallstreetfighter : Regardless of ownership, if these are two different corporations,
wallstreetfighter : PTO should not be shared,
wallstreetfighter : 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,
wallstreetfighter : 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
Customer: replied 3 years ago.

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?

If he is doing this without the other owners permission, in terms of corporate governance and internal policy I do not see how it happens, PTO is an employer program, and can be regulated by the employer, however, I do not see how this would be valid if the owner of the other company does not agree, unless they are making a claim that the two are working together and are one entity.

By doing that, other employees may have a PTO claim as well, if the actions are allowed.
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