If a company uses a PTO policy, Paid Time Off-which combines Sick, Vacation, and other days, how are overtime rules applied to using these days. If an employee uses PTO days during a work week, should these hours be counted towards overtime ?

Also, if a company has 100 employees in a California location, split 50/50 on different PTO policies. Can one policy NOT pay overtime when using PTO time, while the other does pay overtime for PTO ?

Thanks!

An employer is only required to pay overtime on hours worked. They are not required to include sick, vacation and PTO hours in the determination to verify an employee is over 40 hours worked for the week.

I have seen employers on both sides of the fence is this issue. Generally speaking, I have found that employee moral was a little better when employers did include the non-worked hours with the worked hours to determine if overtime is owed.

An employer is allowed to have more than one PTO policy; however, I do not know if they can apply overtime determination differently for each policy. If I had to hedge a guess I would lean towards no, but hopefully someone else can provide more input.

As long as who does and who does not get OT based on PTO time is not determined by a characteristic protected by law, it is legal to have different groups treated differently.

A California employee earns 19 PTO days during a calendar year. A company policy states that only 10 PTO days can be carried over to the next calendar year. Is this legal ?

We are aware that "caps" are allowed, but carryover is earned time, our interpretation of this is that any PTO time must be carried over, the 10 day limit is not correct. We also interpret the carry over has no limit on usage. Yet "cap" time has a maximum usage policy of nine months ?

Are we correct in our interpretations ? Can a company in California limit carry over on PTO time earned ? Is there a usage limit on carry over time ?

Thank you!

Why did you post your question again? What didn't get answered? :confused: