Applying the value of personal time off to employee repayment obligations

Q: Our employee owes us money and has told us she wants the value of her paid time off (PTO) applied to her repayment obligations. Can we do this? What is required to pull the money from her paycheck?

The answer to the first question—whether an employer may apply PTO to an employee’s repayment obligations—is that no Idaho or federal law prohibits the practice. It is recommended, however, that any such repayment arrangement be memorialized in writing and all employees be given the same option to use PTO for any repayment obligations moving forward. Inconsistent application of this arrangement could form the basis for a disgruntled employee’s discrimination claim.