Hello everyone, I’m from Colorado. My company gives us 10 days of paid time off (PTO) each year, and we’re all salaried employees. For two weeks during Christmas and New Year’s, the office closes. If we have PTO, we’re required to use it for this period. If not, we don’t get paid. Our CEO is notoriously cheap and even put me into negative PTO after I took two days off for my dad’s funeral. This whole situation just feels off. I couldn’t find any clear information about this scenario, so I’d love to hear your thoughts. Thank you.
Fun fact… if the company closes for their own needs, and you’re a salaried employee who is ready to work, they should pay your regular wages for that time. They can take your PTO, but they can’t make you go unpaid if you’re out of leave.
Check out this federal rule: 29 CFR § 541.602 - Salary basis. | Electronic Code of Federal Regulations (e-CFR) | US Law | LII / Legal Information Institute. It says if the employee is ready, willing, and able to work, they can’t cut pay if work isn’t available. But, bringing this up with your employer could be tricky. Some companies can retaliate.
@Jin
Just remember to look at paragraph (a)(1) too… ‘Exempt employees don’t have to be paid for any workweek they do no work at all.’
So if you don’t work at all during the workweek, they aren’t required to pay you.
@Eli
My employment lawyer explained it differently.
From (a)(2) it says that if the employee is ready, willing, and able, they shouldn’t get pay deducted if work isn’t there.
Jin said:
@Eli
My employment lawyer explained it differently.
From (a)(2) it says that if the employee is ready, willing, and able, they shouldn’t get pay deducted if work isn’t there.
Your lawyer isn’t right.
If you’re out for a whole week, they don’t have to pay you at all… but you might be able to apply for unemployment.
Jin said:
@Eli
My employment lawyer explained it differently.
From (a)(2) it says that if the employee is ready, willing, and able, they shouldn’t get pay deducted if work isn’t there.
Just because someone’s experienced doesn’t mean they’re right. Lawyers can sometimes make things more complex than they need to be.
The sections actually build on each other: if Section 1 applies, Section 2 doesn’t. It’s not hard to see that when you look at it.
@Eli
I’ll trust my lawyer and the advice from my company’s legal team over a random comment here. Let’s try to keep things respectful here – people come to learn, not to get talked down to.
@Eli
Yes, this is accurate. If the company closes for a full week, they aren’t required to pay exempt employees.
If you’re out of PTO and have two unpaid weeks, you might want to look into applying for unemployment benefits for that time.
They have the right to pay you from either your ‘wage’ or ‘PTO’ bank, and they chose PTO. It’s legal, and many companies do it.
I’m in Colorado too and think I know this company… but yeah, it’s within the law.
PTO isn’t a guaranteed benefit and companies make their own rules around it.
Jess said:
PTO isn’t a guaranteed benefit and companies make their own rules around it.
I think it’s unfair that companies get to decide when we use PTO.
Jess said:
PTO isn’t a guaranteed benefit and companies make their own rules around it.
I think it’s unfair that companies get to decide when we use PTO.
The laws around PTO are pretty vague, which lets companies control it however they want.