PTO payout at Termination

pattyo

I can't seem to locate information on whether we must pay an employee for accrued but unused paid time off at time of termination. Does someone know what the policy or rule is for Arizona or where I can go to locate this information? Thank you.

jthomsen

Our company policy is that an employee who is terminated for cause or who resigns without a full two working week notice will not be paid for any accumulation of granted PTO.

hjones

[font size="1" color="#FF0000"]LAST EDITED ON 12-17-08 AT 09:57AM (CST)[/font][br][br]Our newly-updated for 2009 resource Fifty Employment Laws in Fifty States has this information (and much more) for Arizona, the other 49 states, and Canada. According to the relevant entry in the Fifty Employment Laws book, the Arizona statute with regard to "use it or lose it" policies on PTO is as follows:

"Employers who have a policy or practice of paying employees for vacation or sick days upon separation must treat the days as wages. A.R.S. § 23-350."

Holly Jones
Managing Attorney Editor
M. Lee Smith Publishers, LLC

ACU Frank

Correct me if I'm wrong, Holly, but I think that just indicates that PTO payout is subject to mandatory withholdings, etc. I would guess by the wording, that payout itself is not required.

pattyo

So it sounds like we are not breaking the law by not paying out accrued PTO when terminating someone with cause? I agree with you Frank that it sounds like that policy pertains to withholdings but just want to make sure. Thank you all.