PTO and shutdown

HollyG

I have a feeling I know the answer to this question already, but I'm doing research to present to my boss.

Due to the poor economy and the need to save money wherever possible, my company is thinking of shutting down the period between Christmas and New Years. In the past, employees were able to use their PTO hours to get paid during the shutdown. Those who had no PTO time had to take the time off unpaid. This year, the company is thinking of not allowing employees to use their PTO during the shutdown. I understand that once PTO has been accrued, then it should be treated like money, but in this situation, the company is not taking away the PTO, but in a sense just postponing it - I'm sure in the interest of spreading out the payments instead of having to pay them all at once.

So, my question is: Is it legally possible to not allow employees to use their PTO hours during shutdown?

Thanks in advance for your help!

bsa

Holly --you are in Calif country and I'm sure that your guesses are much closer to the right answer than anything this Texian could come up with! EEyHaa!

HollyG

Boy this is a much more complex question than I thought! Our outside counsel adviced us to call our labor commissioners. I've talked to several deputy attorneys and have received different answers. On the one hand, two have told me that accrued PTO is a right that employees have and the company cannot take that right away. However, another deputy attorney stated that PTO is a benefit and if the employees do not work any hour during shutdown, then the company has a right to not pay that benefit at that time. Hmmm. Any attorneys out there who can direct me to any case studies or articles regarding this issue?

Ruskanen

I see you posted this message almost a month ago so this may be too late. One thing you can point out to your boss is that if employees are using their PTO during times when they are not actually working in the plant, that means less absenteeism when the plant IS open. Our supervisors love that.

Have you decided how to handle the situation?