U.S. Federal Court Rules Paid Time Off is Not Part of Workers’ Salary

At the Romero Law Firm, our experienced Pasadena employment law attorneys know that wage and hour violations can occur in any California industry. When they do, our law firm tirelessly represents our clients to ensure their rights are protected and enforced from the start of their cases.

We also know that there is a lot of confusion regarding what qualifies as “pay” when vacation, sick leave, and paid time off (PTO) is part of the equation. This is important because, across the country, a three-judge panel of the Philadelphia-based 3rd U.S. Circuit Court of Appeals recently ruled that paid time off accumulated by workers is not a part of their salary under U.S. wage law.

What does this mean for California’s salaried workers?

Paid Time Off Can Be Taken Away When Salaried Workers Do Not Meet Productivity Quotas

Our California employment law attorneys know that many salaried workers depend on the accumulation of paid time off, so they are not left without their salaried wages when they take time off for any reason. That is exactly what PTO is for.

The recent ruling by the federal appeals court helps set the precedent that employers can take away paid leave when salaried workers do not meet productivity quotas or do not work their required weekly hours.

The case marked the first time that a U.S. appeals court was asked whether paid time off counts as part of an employee’s salary. The question is important because salaried workers can become eligible for overtime pay if employers make deductions from their wages.

The 3rd Circuit panel said that while a salary is a fixed amount of compensation paid out at regular intervals, paid time off is a fringe benefit that has no effect on a worker’s wages and can be paid irregularly, like when an employee leaves a company.

This ruling can impact California employees and their ability to pursue their employers for certain wage and hour claims. We can help you determine whether your employment rights have been violated, and whether you have a legitimate claim, starting with a free consultation today.

Contact Our Experienced California Employment Law Attorneys Today

If you believe your California employer is improperly paying you for the hours you have worked, contact our experienced Los Angeles County employment law attorneys to discuss your legal rights and options today. We will help you navigate the process and protect your rights from the start of your claim, so you can move forward with confidence.

Our employment law firm and bilingual staff offer services in both English and Spanish and are available now to discuss your case during a free consultation by calling 626-396-9900 or contacting us online.