In today’s society, more people realize the value in maintaining a manageable work-life balance. And with healthcare costs continually on the rise, now more than ever prospective employees are looking beyond a position’s salary when seeking employment. Because of this, employers realize they must provide a comprehensive and attractive benefits package to recruit and retain quality employees.
A major issue for many employees is an employer’s policy for personal time off (PTO). Paid time off, or personal time off, is generally accrued as an employee works. While employers often allow employees to use PTO for the year before they actually accrue it (to avoid everyone using their PTO at the end of the year) many employees accrue more PTO than they use. This often results in an employee having a surplus of PTO.
When it comes time to leave a job, many employees wonder whether they must be paid out for their remaining unused PTO. Given that many employees carry large balances of PTO, the payout an employee receives upon their termination can be considerable. Employers may try to limit the amount of PTO they pay an employee upon termination; however, this is not always allowed.
There are no federal or state laws that require employers to provide PTO to employees; however, PTO is very common. While Texas law does not require employers to payout employees for their accrued PTO, many employers will include some stipulation in their employee handbook. It is very important that employees refer to their agreements when they are terminated or voluntarily leave their place of employment because employers who make written assurances or promises regarding PTO payouts must adhere to these assurances. Additionally, while Texas law does not require any private employer provide PTO to employees, qualifying employers must still comply with the Family and Medical Leave Act.
In general, if a Texas employer chooses to provide their employees with PTO, their actions must comport with the company’s written policy or agreement. Employers may try to forgo their responsibility by relying on the fact that there is no federal or state requirement to provide leave. However, it’s not the state or federal law that’s important, it’s the employer’s own policies and practices.
Do You Have a Texas Employment Law Issue?
If you have questions about whether your employer is complying with the law or its own policies, contact the Dallas employment lawyers at Rob Wiley, P.C. At Rob Wiley, we have decades of collective experience representing the interests of employees. Contact our office at 214-528-6500 to schedule an initial consultation.