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Changing PTO plan and want to grandfather "old" people in...

If I change our PTO plan, can I grandfather in the employees who have been with the company over 15 years, but not anyone who has less time than that? We have employees who have been here 16 years, and some who have 6-7, and everyone gets the same amount of time off. We want to change this but I want to be "legal." Thanks.

Answers

Ross Anderson, CPA, MBA
Title: Controller
Company: TFS Capital
(Controller, TFS Capital) |

It doesn't sound like you are really grandfathering (allowing someone to stay on an old plan of sorts that was there when they started, but not on those start after a set date), you are just increasing the vacation based on experience. It should be fine so far as it doesn't discriminate. However if you cut down the amount of vacation of those that have been there less time you could be facing an uproar. But as always, check with your general counsel.

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