If a employee who was just on maternity leave for 12 wks didn’t use all her PTO and now doesn’t want to return, do we still have to pay her for her PTO. Colorado law states that we do have to pay PTO.
Yes, you definitely have to abide by your state’s requirement. Many businesses write their maternity leave policy such that it requires the employee to use their PTO when they take leave (so they can get paid for some of that time off).
However, Colorado doesn’t allow use it or lose it policies for PTO. If she has ‘earned’ PTO on the books, it has to be paid out upon termination. Here’s a link from SHRM.org explaining the details.
You may want to tighten up your maternity leave policy going forward. Here’s a sample policy.
Laura, HR Staff Writer