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Paying out unused accrued PTO to current employees in MN

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  • Paying out unused accrued PTO to current employees in MN

    I work for a small company in Minnesota. In the past, our employer stated that "I am changing my company policy to state that any unused PTO time on December 31 will be paid to you at your normal hourly rate." Since making that statement in 2004, my employer read somewhere that if an employer does that, they have to pay the time at an overtime rate. Is that true? I've spent a lot of time searching online trying to find a statute or information about paying current (not terminated) employees accrued unused PTO. Can anyone shed some light on this one?

    Thanks,
    Anne

  • #2
    I have never heard of such a law and find it very difficult to believe that it is true. Patty?
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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    • #3
      That's a bunch of hooey.

      But hey, if we wants to spend his money that way, it's his business. There just isn't any law that says he must.
      I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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      • #4
        Actually, she (my employer) verbally got rid of that policy once she read that OT would have to be paid. (We are in the process of making a written handbook.) One of the employees is asking about it again. Thanks for the information - she will be pleased to know that there is no law that substantiates this. Anne

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        • #5
          I don't know where she could have read that. Maybe a fairy tale book.
          I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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          • #6
            I think Pattymd has the case of the funnies today! But I agree. I've never heard of such a law either.

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            • #7


              Seriously, though, every time I've had an employee come to me and say "The law says you must..............", I've said, "Please bring me a copy of the law or provide a link to it so I can look it up. After I've read it, I would be more than happy to discuss it with you."

              They've NEVER been able to do it yet.
              I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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