Accrued PTO position moving to unlimited PTO

I have a staff member who is moving from a position with limited PTO to a position with unlimited PTO.  He carried over 75 hours from 2016.  We are located in a state where you pay out accrued, but unused, PTO in the event of termination.  

My question is this - What do you do when it is not a termination but a change of status?

The employee says he should be paid for the accrued time in 2016.  If he were to  leave the company, he would be paid out.  TPTB don't want to pay anything because they say he isn't 'hurt' by losing the time he carried over since he now has unlimited PTO.

Thoughts?

Thanks - Nancy

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  • Was there a policy or procedure written to address this status change? I would agree that since he's not losing anything there would be no payout because he had access to that time and really still does. 

    Another question:  How would you handle it if he was going from unlimited to limited PTO? 

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  • I wouldn't pay it out and would pose the question of why the 75 hours weren't used. 

    The question is rhetorical, but might help to understand the employee's line of thinking.  If the employee pushes back, encourage them to take the 75 hours off "right now" if it matters that much to them. 

    If the intent was to sit on it and use it as an "exit bonus," then I would have a serious conversation about intent to stay.

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