Expert: Thomas R. Ballas - 6/30/2009

Question
My current employer's CTO policy is that we are allowed to "borrow" ahead on our CTO, as long as we do not go over what out total accrued CTO at the end of the year would be.  When an employee leaves, their CTO is "trued up".  If they have "borrowed" more CTO than they have accrued at the time they leave, the employer asks the employee to pay back the overage.  All employees are salaried exempt.  Is this the correct procedure?

Answer
Echo:

It is an acceptable procedure.  Paid time off is not legislated by the federal or state governments, so it is up to company policy.

The important thing is to administer it evenly across the board, to all employees in the same class.

There are many variations of vacation time, one is not necessarily more correct than the other.

Tom Ballas