The U.S. Court of Appeals of the Third Circuit, in a matter of first impression, concluded paid time off was not part of an employee’s salary.

In a March 15 opinion, the appeals court affirmed a ruling by the U.S. District Court for the Middle District of Pennsylvania, holding that defendant Bayada hadn’t made improper deductions from the plaintiffs’ salaries, as paid time off (PTO) was not part of an employee’s salary under the Department of Labor’s salary basis regulations.

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