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Paid Time Off

No. Well, ‘on paper’ I suppose you could say as it’s tracked in the payroll system. But it’s not something I’d get paid out for, it’s not that kind of arrangement.

It’s tricky in California, as at least one court ruled that an unofficial “unlimited” system might still come with an obligation to pay out PTO at the end of an exempt employee's employment. The general idea was that it wasn’t really unlimited in practice due to managers’ requests, but could also be used in order to get around accrued PTO as a financial liability in opposition to state employment law.

The record thus supports a finding that EF's paid time off policy had an implied "cap" and was by no means "unlimited." As the trial court said, an employer cannot avoid section 227.3 by leaving the amount of vacation time undefined in its policy while impliedly limiting the time actually available for approval.​

The reference is the the California Labor Code section that says accrued vacation time must be paid out upon termination of employment,

https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=227.3.&lawCode=LAB
 


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