Question: Can we give employees different amounts of vacation or PTO time?
If the differing amounts of vacation or PTO are based on a clearly-defined employee groupings, such as seniority, department, or exempt versus non-exempt status, then yes. It’s a common practice, for example, for employers to offer more vacation time to employees who have been with the organization for longer.
Where you can run into trouble is offering different amounts of vacation on an individual basis or without clearly-defined criteria, either of which can lead to discrimination claims. For instance, if Rafik and Anita are hired at the same time for similar jobs in the accounting department at the same rate of pay, but the organization offers Rafik more vacation, Anita could potentially bring a claim under federal or state discrimination or pay equity laws.
Content provided by TPC HR Support Center.