Is this legal for my employer to constantly change my PTO amount/rate?
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Is this legal for my employer to constantly change my PTO amount/rate?
I was hired as salary but after a lawsuit we were all switched to hourly employees. We accrue PTO time the same way, as 1 day, not as hours. I used several of my PTO days in 1 month and each time the payout gross amount varied. From $125 one day to $87 another. I questioned how PTO is paid out and was told it equals 1/5th of my weeks pay. My PTO pay is always an even number. No change. My hourly rate is $13.30. And most of my PTO time was earned when I was salary working 55 hours a week making more money.
Asked on September 24, 2016 under Employment Labor Law, Ohio
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
PTO is paid out based on what you are earning when it is *used*, not when you earned it--often this helps employees, if they get raises or promotions, since PTO earned at lower income levels is paid out at the new, higher level. Of course, it can also hurt employees.
PTO for hourly employers is generally calculated by multiplying a regular work day's number of hours (typically 7 or 8, if the workweek is based on either 35 or 40 hours per week) by the hourly wage. Therefore, at $13.30 per hour, your PTO pay for a day should be $93.10 or $106.40, depending on your base workweek and hours per day. If you are receiving between $87 and $125, the average is $106, so you're actually on average apparently coming out just about where you should be.
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