PTO policy

hawaiibound · October 2002

We have have an employee how has been here 7 years and has worked full time exempt. She now is working 20 hr/wk which is below our current 30 hr/wk PTO eligibility. We would like to continue having her accrue PTO but at a 50% of the full time rate. Can we rewrite our policy to reflect this and allow any employee who works benefits eligible for 7 years and then goes below our 30 hr/wk eligibility to accrue PTO? I need to know if this is legal. Our company just had our 7th anniversary so this never came up before.

Thank you!

Don D · October 2002

In my opinion the company is at liberty to construct such a rule regarding the proration of benefits; and you are wise to foresee the necessity to follow it going forward since it sets a precedent. You may, however, hit a snag with your insurance carrier if the plan defines eligible employees in a different manner.

hawaiibound · October 2002

Our policy classifies PTO eligible employees as regular full-time and regular part-time. Our policy classifies Health Insurance eligible employees as regular full-time and regular part-time (at least 30 hrs/wk). Is this classification discriptive enough to keep us from hitting snags?

Don D · October 2002

I don't think you'll hit a snag with insurance because the way your policy is written, she will not qualify, when she works only 20 hours per week. Then, you can do what you choose with establishing and following a policy regarding company provided, non required things like, vacation and sick leave and PTO and other perks that you can prorate. I suggest the policy be very clear and followed moving forward.

hawaiibound · October 2002

Thank you very much for your time.

PTO policy

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