Considering Changing PTO/Vacation Payout?
Changing PTO/vacation payout can be complicated especially if the new policy will result in a decreased benefit for employees. What does the original policy state about paying out accrued time? If the original policy pays out accrued PTO/vacation and the proposed policy is either not going to payout accrued PTO/vacation or will pay out less than allowed under the original policy, employees in North Carolina are entitled to a pro-rata share of the benefits earned under the original policy through when the change takes place. For example,
The company can't take away what the person has already accrued
BUT you can have them not accrue more if the new policy caps it at a lower rate under new policy.
Paid leave is one of the TRICKIEST parts of HR. This is something where thinking strategically, utilizing your HR resources and leaning on proper employment legal counsel is key.
