Lawyer exposes sneaky 'PTO tricks' some companies use to steal money that's rightfully yours

A lawyer who's well-versed in labor law is discussing how some bosses sneakily take away their employees' vacation money. In a widely viewed TikTok video, Attorney Ryan (@attorneyryan), a lawyer, discusses two ways employers use this devious tactic. He warns employees to keep a watch.  "This is how bosses sneakily take your money. But don't worry, I'm a work expert, and I'll help you so you don't lose tons of cash," says Ryan. Ryan discusses the two ways that clever employers steal money from their employees.

First off, employers may not give employees as much money back as they would otherwise when they cash in their vacation days. Ryan notes that while vacation pay should typically match employee earnings, employers occasionally underpay. Secondly, employees may receive a lower salary when they take their vacation time than they would if they were working. Consequently, they receive a lower payment for their vacation time. Based on Ryan's analysis, it appears that employers are not treating their employees fairly when it comes to compensating them for time off.

Ryan reminds everyone that while it might not seem like much at first, over time, it can build up to be quite a bit. He advises speaking with a work specialist like himself if they believe their boss is abusing their money in this way. People discussed their personal experiences with vacation time and supervisors in the comments section. Some people questioned the fairness of their company's policies.

Many were upset about how their companies handled something called "shift differentials." This means getting extra pay for working shifts outside the usual 9-to-5 hours. But what bugs them is that when they take time off, they don't get this extra pay.

One person said it's especially unfair for night shifts. They explained how they earn extra for working at night, but when they use vacation time, they lose that extra pay.

Another person agreed, saying hospitals they've worked at also don't pay this extra when using vacation time. They pointed out how it can really add up, especially for longer vacations.

Some folks also talked about "unlimited PTO," where you can take as much time off as you want. Sounds cool, right? But some feel it's not as great as it sounds. They say because you don't earn a set amount of vacation time, you can't cash any out if you leave the job.

One person ( @Tim ) even said companies use unlimited PTO to benefit themselves more than their workers. Another agreed, saying it can be good only if the company lets you take the time off you need.

According to Indeed, the standard PTO plan allows you to build up unused days, so when you quit your work, it might be like receiving a little bonus. However, employers don't have to worry about compensating you for any unused time off when you have unlimited paid time off. Unrestricted PTO does have drawbacks, though. Some people may have strange feelings when they take time off because they fear their supervisor will find out. It can also be difficult if you don't know if your coworkers will still be there after you go.

Thus, even though unlimited paid time off initially appears fantastic, it's not always as good as it seems. Some people genuinely said positive things about their jobs and vacation arrangements in the comments. One individual said that when they cash out their vacation days, their employer pays them the same amount they would if they were working. They appear to be quite content with it and wonder who works for businesses that don't follow suit.

Follow Attorney Ryan (@attorneyryan) here for more such advice on law and how to handle money matters.

Editor's note: This article was originally published on June 17, 2024. It has since been updated.