Paid Time Off

The heath care company with over 100 employees currently offers PTO for non-contract employees on a month to month basis. After the first year of employment the non-contract employees earn 6.5 hours of PTO per month. However, the contract employees (administrators and doctors) receive annual PTO of 15 days on January 1st of each year. Is it legal to have a different PTO policy for exempt and non-exempt employees?

Comments

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  • Yes. There are no federal laws that govern PTO, no nondiscrimination tests, etc because it is not covered under ERISA and is not a (tax) qualified plan.  There are very few state laws that say much other than whatever is accrued must be/doesn't have to be paid out at termination.  I dont' know of any that state how it has to be accrued (except for a few that require accrual of sick time, like San Francisco).

    It would be legal to have a different plan for every employee..an admin nightmare, but legal.

    The only thing you would need to consider is whether you unintentionally have disparate impact -- i.e. all the doctors are mail, but all the non-contract are female.

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