Legal Question in Employment Law in California
Disproportionate Paid Time Off Policy
I know CA Employers are not legally required to provide employees with paid time off (''PTO'') or holiday pay. I also know that CA Employers may extend PTO and holiday pay disproportionately to full time employees and not to part-time or temp employees. However, can a CA Employer also disproportionately apply its PTO and paid holiday policy among full time employees? (e.g. Full time hourly and salaried employees can accrue PTO and are eligible for holiday pay, but outside sales employees paid on commission are not entitled to any PTO or holiday). Is this disproportionate application of a PTO and holiday pay policy permissible? Any supporting legal authority for your answer would also be appreciated. Thanks.
1 Answer from Attorneys
Re: Disproportionate Paid Time Off Policy
An employer's policy may discriminate on any legal basis. Thus discriminaiton on the basis of comission vs. hourly/salery is lawful. Since the sales employee's income is based on comissions, a PTO policy that excludes sales employees is clearly lawful. In fact, the reason many employer's have similar policies is because a comissioned sales employee's income is not based on hours worked and s/he may earn comissions even while not engaged in work such as on a holiday or during a vacaiton.
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