Does anyone use paid time off as an incentive for employees? We are not sure if there are labor laws that might come into play but would like to try and use it - for example if we had a contest for the new accounts person that sold the most additional services.
I could not locate anything in the federal law or state statutes but am not sure I am looking in the right place.

Thank You

This sounds like a legal question. You may need get counsel to opine on this.

I know that my employer will frequently offer an extra day of PTO to an employee for various reasons. Here are some examples:

1. A few eployees won a drawing for a free day of PTO at the holida party
2. We have an employee of the month program; one of the perks of being named employee of the month is a day of PTO
3. As an incentive to participate in the company's philathropic fundraising efforts, if a certain number of employees contributed to the United Way (no matter the amount), a drawing for a free day of PTO was held (all employees were eligible, regardless of whether they had donated.)

I have absolutely no idea whether federal or state law governs this or not. However, I think the way it's handled is that the employee works out with his/her manager which day will be that PTO day, and then the employee just doesn't show up. Nothing is officially changed with regards to how time and attendance is tracked - on paper, the employee still has the same amount of PTO as usual.

We run it similar to kw004h, we offer it and then they use it and get paid as if they showed up.

I can't see how any labor laws would be against a company giving someone extra days off of work.

I can't see how any labor laws would be against a company giving someone extra days off of work.

We would just assign a company day.

If you log them in and they do something stupid enough to get arrested they can claim that they were at work and if proven false and your system shows them at the bank when committing a crime there could be some issues for the bank.

We have done the same as others have described above. Employees like it

We also award extra PTO as an incentive in our health program.

I don't know of any issues with this. It's frequently used by banks I have worked for, you just give them an extra vacation hours, personal day or extra PTO hours. We've done it for staff appreciation, sometimes we've offered gift cards or paid day off and they got to choose. I've personally been awarded extra vacation time when I worked on a really long difficult project (core conversion), I was awarded an additional 2 weeks vacation.

You could have an issue if it is used as an incentive that is tied to terms and conditions of consumer mortgage loans (1026.36). PTO is considered compensation, so check the terms of how this would be awarded if you ever extended this incentive to a contest around consumer mortgage loans.