Legal Question in Employment Law in California

Re: PTO (paid time off) vs. Vacation and Sick Pay

As you probably have learned, no law requires employers to pay for time off, such as vacation or holidays. This means that if an employee receives a paid vacation, it's because of custom, not law.

And just as vacation benefits are discretionary with each employer, so is the policy of how and when they accrue. For example, it is perfectly legal for an employer to require a certain length of employment -- six months to a year is common -- before an employee is entitled to any vacation time. It is also legal for employers to prorate vacations for part-time employees, or to deny them the benefit completely. Employers are also free to set limits on how much paid time off employees may store up before it must be lost or taken.

One thing about paid time off is that you cannot discriminate in offering it; all employees must be subject to the same rules.

You can check into wage and payment policies by calling the local U.S. Labor Department, Wage and Hour Division office, listed in the federal government section of your telephone directory.

Most of the exemptions to FLSA coverage are listed in a federal statute, 29 U.S.C. �213. The most direct way to become familiar with these exemptions is to read about them in an annotated edition of the U.S. Code, which is what your local law library (or even a large public library) is most likely to have.

The United States Department of Labor, 200 Constitution Avenue, NW, Washington, DC 20210, 202-693-4650, offers pamphlets describing federal wage and hours laws and the Family Medical Leave Act. You can also visit its Internet site at http://www.dol.gov.

Re: PTO (paid time off) vs. Vacation and Sick Pay

Its really more of a business decision rather than a legal issue. I would consult with other companies that have a PTO system and see what their experience is.