Can my employer deduct PTO from my paycheck?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can my employer deduct PTO from my paycheck?
The company I am working for has never given me any information on their PTO policy. Now that I am leaving the company they have stated that sense I
am provided a lump some amount of PTO based on working the entire year I have used what would be my allowed amount of PTO up until my final date of
employment and that any hours I have used over the allowable amount will be
deducted from my final check. Can they legally take those funds since I was
never made aware of the company PTO policy and have never signed any
documents acknowledging that I was made aware?
Asked on June 5, 2018 under Employment Labor Law, Colorado
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
No, they cannot unilaterally (without you consent) deduct money for unused PTO from your paycheck even if you do owe them money for using more PTO than the amount to which you are entitled.
PTO *is* generally accrued over time and if you leave before "earning" all the PTO, you do typically have to repay it. If there were to sue you for leaving owing PTO, they would have a good chance of succeeding, since again, accrual over time is the norm. (E.g. the law doesn't let someone take, say, 2 weeks of vacation from Jan. 2 to Jan. 16, then quit on Jan. 17 after being paid for 11 work days while only working 1.) They would have a reasonable chane of convincing a court that they do things they way they say, and so you owe them money for excess days. But they would have to sue you you for the money and prevail in court--they cannot simply take it out of your check.
If they do wrongfully withhold money from your check, you could sue them for it; before doing so, bear in mind that if you did use more PTO than you had yet earned for the year, they could countersue for the money for the excess days you used with a reasonable chance of success. Even though they acted improperly, if you do owe them the money they took out, you may wish to leave matters alone.
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
No, they cannot unilaterally (without you consent) deduct money for unused PTO from your paycheck even if you do owe them money for using more PTO than the amount to which you are entitled.
PTO *is* generally accrued over time and if you leave before "earning" all the PTO, you do typically have to repay it. If there were to sue you for leaving owing PTO, they would have a good chance of succeeding, since again, accrual over time is the norm. (E.g. the law doesn't let someone take, say, 2 weeks of vacation from Jan. 2 to Jan. 16, then quit on Jan. 17 after being paid for 11 work days while only working 1.) They would have a reasonable chane of convincing a court that they do things they way they say, and so you owe them money for excess days. But they would have to sue you you for the money and prevail in court--they cannot simply take it out of your check.
If they do wrongfully withhold money from your check, you could sue them for it; before doing so, bear in mind that if you did use more PTO than you had yet earned for the year, they could countersue for the money for the excess days you used with a reasonable chance of success. Even though they acted improperly, if you do owe them the money they took out, you may wish to leave matters alone.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.