Can a company deny accrued PTO hours upon termination without a written policy?
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Can a company deny accrued PTO hours upon termination without a written policy?
I was recent made aware that I had 75 hours of PTO. I spoke with 2 HR departments in different locations and was told I could not cash out or use PTO after a 2 weeks notice was given. They have no written policy to show me. Is this legal?
Asked on June 8, 2016 under Employment Labor Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
In your state, payment of accrued but unused PTO on termination requires a written agreement guarantying you the pay...that is, the default is that the employer does NOT have to pay, and they would only have to pay once if there was something in writing stating they would pay on termination. Also, employers have discretion in when employees may use PTO--it's not a guaranteed right to be able to take it whenever you like. An employer could reasonably say that once you give notice, you can't take PTO since that is equivalent to paying you out your PTO, which they do not have to do.
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