Great Lakes Wire

If an employee runs out of paid time off (PTO), the employer's obligation to allow unpaid time off depends on various factors, including legal requirements and past practices.

Certain situations may legally entitle employees to unpaid leave. These include scenarios covered by the Family and Medical Leave Act (FMLA), Americans with Disabilities Act (ADA), Pregnant Workers Fairness Act, or similar state laws. In such cases, employers must approve unpaid leave at least to the extent required by applicable laws.

In the absence of legal obligations, historical practices play a crucial role. If an employer has previously granted unpaid time off to similarly situated employees, consistency is important to avoid discrimination claims. Employers can implement a permanent policy change to stop granting unpaid time off when not required by law, but this should be communicated widely and, if possible, with advance notice.

If neither legal requirements nor past practices apply, employers may deny requests for unpaid time off. However, transparency is key; explaining the reasons for denial can help maintain employee trust.

This Q&A does not constitute legal advice and does not address state or local law specifics.

Courtesy of Ahola.

###