Paying PTO Upon Termination

Rockie · July 2002

I guess this is an ethical vs. "the law" type of question. In South Carolina, if an employee does not give proper notice of termination of employment and....the company has in place a policy that states that employees will not be paid out their PTO banks if they do not give proper notice, this is perfectly legal. I know in some states, you do have to pay this regardless.

My problem is that management has the discretion to overide this, ie, if an employee has planned vacation, days off, etc during this time, it is not counted. I believe this can be a cause for discrimination because of not being administered fairly and consistently, especially if it affects protected classes.

I propose that we just pay out what's in employee's PTO banks regardless. Employers in this state get "heartburn" over this because they "feel" it entices the employee to stay during their notice. I believe employees will just burn their PTO before they resign if they know this is the case. Most employees do not keep an appreciable amount in their banks.

I just feel if employees bank this, it is something they have "earned".

Those of you who live in states that can legally do this, how do you feel about these type policies?

JEBtrois · July 2002

We give them the PTO...less the amount necessary to cover the appropriate notice that the EE should have given. The employee may be leaving, and may even be disgruntled, but I believe that it is best for us as an employer to maintain the high ground and have departing employees leave feeling as if they were treated fairly.

Paying PTO Upon Termination

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