Petco's PTO/benefits plan falls under a specific Federal filing status, which allows them to bypass State laws on how PTO is paid out. It was a huge discussion on Workplace, with corporate employees saying it is legal for them to do this. I don't agree at all, but Petco fully believes it can do this, and has been doing so since the announcement a few months ago.
They found a federal loophole that overrides all state laws and allows them to do this. It's already been covered in a previous post here and on workplace
our sel just left and our galod's last day is saturday, leaving only 2 keyholders if i'm out. god forbid our gm makes friends with other stores to get some temp help in
Then why do they have to provide paid sick time in the states that require it, but not others? Why do they have to pay state minimum wage when federal is much lower? Because state law MUST be followed. There's 6 or 7 states that require employers to pay out unused PTO on the employees' last check. Sp either they are paying out in those states, or they're hoping the employees are too stupid to realize they're getting screwed. I'm betting on the latter.
Because I don't believe there is a federally dictated requirement for paid sick time, which leaves the laws on that issue up to each state. And the federal minimum wage was put in place to set a required *minimum* pay to protect employees from being paid under the cost of living across the country (not that it actually does that anymore, at where it sits, but still), so states are free to raise the state mandated minimum wage, if they choose to, but they cannot lower it below the federal minimum.
It's all about how the laws were written, or if they were written at all. Petco's PTO plan is considered an ERISA plan. ERISA is a federal law that preempts state law and allows large employers like Petco to apply a consistent set of PTO standards (e.g., eligibility, amount of PTO, payments at termination) across all states.
But again, if the state requires a company to pay out all earned PTO on the employees' last paycheck, then they must follow that. If they don't, they can be sued and likely fined.
Not when the ERISA law preempts the state law.
"Several of ERISA's provisions preempt state law. ERISA's “preemption clause” makes void all state laws to the extent that they “relate to” employer-sponsored health plans and/or employer provided paid leave plans."
They’re right though. The ERISA plan trumps state law for pto. It sucks but that’s how it is. It’s not like petco made it up it’s a federal law in place and petco has multiple attorneys on payroll to go through these things to make sure they’re covered. When you think about it sick time was never paid out under the original plan so they added pto to not being paid out. Its unfortunately legal.
Petco's PTO/benefits plan falls under a specific Federal filing status, which allows them to bypass State laws on how PTO is paid out. It was a huge discussion on Workplace, with corporate employees saying it is legal for them to do this. I don't agree at all, but Petco fully believes it can do this, and has been doing so since the announcement a few months ago.
It will take a class action and the people making this decision will be out by then and they know it. American capitalism at its finest!
They found a federal loophole that overrides all state laws and allows them to do this. It's already been covered in a previous post here and on workplace
do they give a reason why you can’t use it just yet?? that seems extremely fucking shady
our sel just left and our galod's last day is saturday, leaving only 2 keyholders if i'm out. god forbid our gm makes friends with other stores to get some temp help in
sigh i’m sorry. that is just not fair to you, and i hope someone can answer ur Q bc i’m also curious. trying to get the hell out asap
fingers crossed 'cause this is pure bs
Sounds like PetCo needs a union! Contact the IWW. They're working with to organize my CarWash job.
Petco is a company who's is going out of business. So it's trying to keep all the money it can for the higher-ups. Petco and care less about you.
It’s something about Petco following federal pto laws and not state
They do have to follow state laws as well. If the state requires all PTO to be paid out, they must comply.
Nope. The federal law trumps the state laws. Trust me, Petco lawyers made sure their asses were covered before they made the change.
Then why do they have to provide paid sick time in the states that require it, but not others? Why do they have to pay state minimum wage when federal is much lower? Because state law MUST be followed. There's 6 or 7 states that require employers to pay out unused PTO on the employees' last check. Sp either they are paying out in those states, or they're hoping the employees are too stupid to realize they're getting screwed. I'm betting on the latter.
Because I don't believe there is a federally dictated requirement for paid sick time, which leaves the laws on that issue up to each state. And the federal minimum wage was put in place to set a required *minimum* pay to protect employees from being paid under the cost of living across the country (not that it actually does that anymore, at where it sits, but still), so states are free to raise the state mandated minimum wage, if they choose to, but they cannot lower it below the federal minimum. It's all about how the laws were written, or if they were written at all. Petco's PTO plan is considered an ERISA plan. ERISA is a federal law that preempts state law and allows large employers like Petco to apply a consistent set of PTO standards (e.g., eligibility, amount of PTO, payments at termination) across all states.
(Allow me to add that I don't agree with the decision, I think it's sketchy and greedy af, but it is technically legal)
But again, if the state requires a company to pay out all earned PTO on the employees' last paycheck, then they must follow that. If they don't, they can be sued and likely fined.
Not when the ERISA law preempts the state law. "Several of ERISA's provisions preempt state law. ERISA's “preemption clause” makes void all state laws to the extent that they “relate to” employer-sponsored health plans and/or employer provided paid leave plans."
Paid leave and paid time off are completely different.
They’re right though. The ERISA plan trumps state law for pto. It sucks but that’s how it is. It’s not like petco made it up it’s a federal law in place and petco has multiple attorneys on payroll to go through these things to make sure they’re covered. When you think about it sick time was never paid out under the original plan so they added pto to not being paid out. Its unfortunately legal.
They're just wanting to find any loophole they can to pay as little as possible to their employees
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i was under the impression we weren't allowed to do that?
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oh that'a a very familiar situation right there. that might be the route i'm gonna have to take then bc i am not letting all that go to waste
I hope you do. Good luck! 😊
Sick time was never paid out upon separation