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Our CEO established Unlimited Paid Time Off this past year…

Our CEO established Unlimited...

Our CEO established Unlimited Paid Time Off this past year for our small catering company which has 5 FT year round staff and up to 75 seasonal, part time staff. I am concerned with how, when a salaried person moves away or leaves us will feel fully compensated if, they depart right after a heavy, seasonal period.

Lawyer's Assistant: Have you discussed this with a manager or HR? Or with a lawyer?

I am the retiring HR person. Only part time while I am setting up training for my replacement. I have never felt entirely comfortable with the policy, but all has gone well this past year. I am set to turn over reins end of May '18 and do not wish to hand over a crippled system to young replacement.

Lawyer's Assistant: Are you an "at will" employee? Do you belong to a union?

We are "at will" in CO. No union. Small LLC in catering business.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

Only that there has been little or no problems to date.

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Answered in 11 minutes by:
3/17/2018
Law Educator, Esq.
Category: Employment Law
Satisfied Customers: 126,009
Experience: 20+ Years of Employment Law Experience
Verified

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

The biggest issue with unlimited paid time off is that Colorado law says that upon termination unused vacation time must be paid out. Thus, your policy must be explicit that employees do not earn or accrue paid time off, it is given at the discretion of the employer without limit on an as needed basis.

So, as long as your policy is clear regarding no accrual and the time is discretionary to the employer, the department of labor should allow this. The big problem is that unlimited time off has not been tested by the court so there is no court ruling or CO Department of Labor ruling to cite to guide employers.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.

Law Educator, Esq.
Category: Employment Law
Satisfied Customers: 126,009
Experience: 20+ Years of Employment Law Experience
Verified
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DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

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