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Need to change work status - Full time employee to Part Time Emloyee- California

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  • Need to change work status - Full time employee to Part Time Emloyee- California

    Part time elegibility- PTO, National Holidays, 401K,how to reduce the wage , do we just cut in half?please advise
    Last edited by Sunshine82; 01-20-2012, 01:33 PM.

  • DAW
    replied
    There is no one-size-fits-all answer that effects all benefits. You need to look up each type of benefits seperately.
    - 401(k) is a function of a federal law called ERISA, which requires the employer to maintain a formal written benefit plan and to follow the exact wording of THEIR plan to the letter. Very bad things can happen to employers who fail to follow THEIR plan's requirements to the letter. You need to read YOUR plan. I generally keep a current copy of the 401(k) at my desk, check at least once a year to make sure that I have a current copy, and read it at least once a year.
    - PTO is not subject to any federal laws. CA has some rules, but none of them mention part time. The big CA is once vacation/PTO is earned, it cannot be forfeited. A well written PTO plan will spell out how much PTO is earned each pay period (or month) and maybe alter the earn rate based on part time status. But this has to be spelled out ahead of time and the employer must be able to show the state (if challenged) that the employee earned the correct accrual and that no forfeiture occured.
    - There are no federal or CA holiday rules per se. Still it is never a bad idea to spell out the rule prior to the event. No surprises. Also, a company policy on holiday cannot override (for example) the federal Exempt salaried rules on docking.

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