Smart Employees Use Their Vacation Time: Third Circuit Holds PTO Is Not Part Of Exempt Employees’ Salaries Under the FLSA

In a boon for employers with exempt employees, the Third Circuit held earlier this year as an issue of first impression that paid time off (PTO) is not part of an exempt employee’s salary under the federal Fair Labor Standards Act (FLSA). Thus, although PTO arguably has a monetary value, employers will not be liable under the FLSA for deducting from a salaried employee’s PTO time. READ MORE