My company has transitioned to an unlimited PTO plan effective Jan 1. CA employees have been told we will not be compensated for PTO we accrued before the transition. Instead, we will be transitioned to the unlimited PTO policy after we use up the time we have banked. Have any other CA employees had a similar experience? I’ve heard Netflix transitioned to unlimited PTO and I’d love to know how management handled that transition. Thanks!
I take six weeks a year now, so I like the policy
What a scam
Unlimited PTO means you won’t get paid for any PTO when you leave because you technically have none. You only have what you already took. Scam.
We did. But we'll get paid for PTO accrued when we leave the company.
So helpful- thank you.
Same as above message at previous company.
You should be paid for the accrued PTO. The option they're suggesting is not fair, because you'll be more likely to be denied "unlimited" PTO requests after using up your accrued PTO in the same year.
I think you may be slightly missing a distinction your company made: you will no longer accrue vacation days, and when you take vacation you will first use your accrued vacation days until you have no more, but if you were to leave the company before you used all of your vacation days, they would be legally obligated to pay you for your accrued vacation. Obviously if you’re not planning on leaving in the very near term, just be sure to take more vacation than the 2 weeks you were accumulating or whatever it was. One of the reasons management favor unlimited PTO, besides not having to pay out when workers leave, is that people take less vacation on average with unlimited PTO than they do while accruing vacation days.
Is there actual data to back this up (the claim that people will take less PTO)? I've seen conflicting studies
Prior company tried something similar. I mentioned in the cafeteria that not talking 20 days of PTO was like getting like an extra 8% salary (1 month) each year. Some non-engineers overheard me with frowns on their faces. Within weeks, execs announced that after 3 months, unused PTO will be forfeited to reduce liabilities on balance sheet and they’ll be on unlimited vacation because they heard people don’t take vacation. People complained, especially since the company existed for many years and allowed many years of PTO to rollover. After complaints, they agreed to lock in PTO earnings at that point, paid when leaving company. I mentioned to the CEO at a gathering that it’s still unfair as people normally get paid out unused PTO at whatever their salary is when they leave, and nobody mentioned this. She said they hadn’t considered that and an email sent out spelling that it will be at their latest salary. So I think that’s how it should be. Still this was worse. I preferred getting paid out. With the switch to unlimited, you have to ask your boss for vacation each time. Previously, giving vacation notice was a formality: “I have 2-3 weeks I will lose so I am taking vacation”.
I suspect if one quit with a balance, it would have to be paid out. Where I’ve worked in the past, we got paid out when we switched to unlimited PTO. Unlimited PTO is never unlimited. I would submit my PTO requests 3+ months in advance and when they finally did the math, I had used 30 days of PTO. My defense was that the company had approved all of it months in advance.
We did. We got paid for all unused pto when this happened.
So helpful- thank you.