Brian M. Foley, Co-Chair of the Schenck Price Health Care Law Practice Group,  successfully defended an employer’s right to limit the payout of accrued but unused Paid Time Off (PTO) to a departing employee.  Our client, the employer, has a policy which allows an employee to carryover unused PTO from year to year, but upon termination of employment, there are limits on the amount of the payout of unused PTO.  The employee filed a complaint with the New Jersey Department of Labor, seeking payout of the entire amount of accrued PTO.  After a hearing, the Department of Labor upheld the limitations in the policy, and ruled in favor of the employer.

*Results may vary depending on your particular facts and legal circumstances.