Pennsylvania Paid Time Off Policy - PTO
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How to fill out Paid Time Off Policy - PTO?
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FAQ
Pennsylvania law considers accrued but unused vacation to be wages, and depending on the agreement between the employer and the employees, employers may be required to pay out accrued vacation on termination (43 P.S. § 260.2a; Harding, 882 F.
Pennsylvania has no law requiring employers to provide employees with PTO. However, local laws may impose additional or different employer obligations for paid time off.
The state of Pennsylvania has no statute governing vacation, sick, safe, PTO leave. It applies to employers with 10 or more employees and employees who work at least 40 hours a year in Philadelphia. Employers are required to give 1 hour for every 40 hours worked. The annual accrual cap is 40 hours.
In general, yes, employers may require the use of vacation/paid time off (PTO) and restrict its use. When there are no legal requirements, such as state and local paid sick leave laws, restrictions on the amount of notice required and the increments in which PTO may be used, are common.
The state of Pennsylvania has no statute governing vacation, sick, safe, PTO leave. It applies to employers with 10 or more employees and employees who work at least 40 hours a year in Philadelphia. Employers are required to give 1 hour for every 40 hours worked. The annual accrual cap is 40 hours.
Payout of vacation at termination. In such circumstances, earned vacation will generally be treated as wages pursuant to state wage payment and collection laws. Pennsylvania statutes define wages as including all earnings of an employee including fringe benefits and defines promised vacation time as a fringe benefit.
Yes, in Pennsylvania, unlike some other states, employees do not have a vested right to vacation days that they accrue. If your policy is clear that unused vacation is not paid out on termination (i.e., a use-it-or-lose-it policy), then you are not required to pay terminating employees their accrued, unused vacation.
An employer that has agreed to pay for vacation must pay for earned, unused time within 10 days of the person's termination or within 60 days of when the employee makes a claim for the pay. (PA Stat.
If you have a policy, employment contract or a practice of doing so, you're required to pay accrued PTO to every employee who leaves the company. That means, you can't arbitrarily pay banked PTO to salaried employees and not to hourly employees; the practice and policy must equally apply to all employees.
The short answer is maybe. Surrendering accrued and unused vacation time to an employee who separates from your company, whether by choice or not, isn't a federal requirement, so there's no federal law that your company has to comply with.
