We are a FL based construction company, about to do some lay offs. Some of the employees have unused lump sum PTO. Is the employer obligated to pay out the unused PTO?

Florida law does not require you to pay PTO to employees upon termination of employment for any reason. If you have employees working in other states, however, you need to check the laws of that state.

An exception in Florida would be if you have a written policy (for example, in an employee handbook) that says you will pay out unused, accrued PTO upon termination. Also, you could be required to pay this out if you have previously established a practice of doing so - for example, if in the past when an employee was let go without cause you did pay them their accrued, unused PTO.

So, in general, if you have no policy or practice in place, then you are not required to pay out the PTO. If any of the other factors mentioned above apply, then you should consult with an employment law attorney regarding your company's specific circumstances.

posted by Phyllis Towzey  |  Jul 12, 2018 08:44 AM [EST]