My employer has instituted a policy that requires Exempt employees to give one month's notice of resignation in order to be paid for accrued PTO. All PTO is forfeited if less than one month's notice is given or if an employee misses a single day's work during that one month resignation period. Also if notice has been given and that employee becomes sick during the resignation period, not only do they lose all accummulated PTO, but they will also not be paid for any time off (sick or PTO) because they have forfeited all PTO and sick leave by missing that one day - even if there is substantial sick and/or PTO time to cover any missed time off.

The same policy applies to non-exempts but only 2 weeks notice is required.

I have worked for and accurred a substantial amount of PTO and question the policy that they can refuse to pay me for my PTO for not giving what I consider is an excessive amount of notice. Also if I miss one single day's work during that one month resignation period, whether for illness, car wreck, death in the family or act of GOD - not to mention hurricane season on the Gulf Coast, I could lose over over 160 hours of PTO pay for missing a single day's work. Is this legal?

Please advise. Thanks

Is it legal? Probably. Texas law does not specifically prohibit such policies.

Is it wise or fair? Not in my opinion. In effect, it is a disincentive for employees to leave (especially exempt employees) since most prospective employers aren't going to be able to wait a month for you to start work after an offer is given, Although a 2-week notice period is standard courtesy. Plus, employees could be showing up to work sick as a dog and possibly jeopardizing the health of the entire office. Sheesh.

Agree with Dr. Patty--

Since paid time off is not required by federal or Texas law, the Texas Payday Law addresses the issue by saying that employers must follow written policy in paying for accrued time on termination. If an employer institutes a policy such as the one you describe, they'll live with the results. So will the employees who will, likely, keep their accrued time balances very low, so as to minimize the loss when they leave.