My company just announced that they will no longer award paid time off, effective 15 days before the announcement. I’m concerned that such a change may not be legal.
I am paid monthly. My job is at-will. My offer specified a certain wage and certain benefits, including X paid days off per month which may accumulate to a certain limit and Y paid sick days per month which may accumulate without limit. Upon separation, my unused paid time off is paid out to me and sick leave is forfeited. The retroactive application date is the start of the current pay period.
I haven’t used the time off that is being retroactively removed. (I couldn’t without special permission, in the same way that I couldn’t spend the pay period’s wages until they are paid into my bank account.) I understand that no law requires granting paid time off (with a few exceptions).
Intuitively, it seems like it would be illegal for a company to say they decided to pay only 50% of the promised wages for time already worked. But I’m not sure whether the same intuition applies to paid time off awards.
Is it legal for a company to retroactively reduce or eliminate non-wage compensation for time already worked?
