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Q.My employer has combined its vacation and sick leave plans into one program called "paid time off" (PTO). What is this?

A.No. A "paid time off" (PTO) plan is subject to the same rules and policies as a vacation plan. Where an employer replaces its separate arrangements for vacation time and sick leave with a program whereby employees are granted a certain number of "paid days off" each year that can be used for any purpose (vacation, personal days, sick days, etc.), the employee has an absolute right to take these days off. As with vacation time, the "paid time off" is earned and vested on a day-by-day basis. Paid Time Off, like vacation time, cannot be forfeited, but it can be capped such that after the employee has accrued a certain number of hours, no more will be earned until the employee's accrued paid time off hours drop below the employer's specified cap.




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