Company shutdown and PTO (CA)

HollyG · December 2001

[font size="1" color="#FF0000"]LAST EDITED ON 12-18-01 AT 09:37PM (CST)[/font][p]Due to financial reasons, my company is shutting down for the period between Christmas and New Years. Employees have been asked to use their PTO time; if they do not have PTO, then they can go negative or take the time off unpaid. A few of our exempt employees have been asked to work part-time (2-5 hour days for three days). Is the company allowed to pay for hours worked only? At how many hours does work constitute a full day? And is the company allowed to take off PTO time for hours not worked in this situation? I do know what would be an appropriate solution in this situation, but I'm interested in hearing the legal aspects.

Thanks in advance for your help.

Cathie · December 2001

As far as I know, if an exempt employee works any part of the week he has to be paid for the full week. You cannot pay an exempt employee for partial days worked (although you can apply PTO to the unworked time to keep the salary whole) but if the idea is to avoid paying for the time, your exempt employees would not be able to work at all that week.

Gillian · December 2001

I am also in California. Cathie is correct - deductions of wages from exempt employees for absenses occasioned by the employer or by operating requirements of the business cannot be made if the employee is ready, willing and able to work. There are a few exceptions but none fit your circumstance. A full day of work would be the hours that the employee is normally scheduled to work - probably eight hours a day. Yes, you can go negative on PTO, however, if the employee quits while still negative, the balance functions as a loan and you cannot deduct it as a balloon payment from their final check.

Company shutdown and PTO (CA)

Comments