Landmark Ruling on PTO and Salary: What It Means for Salaried Workers and Employers Recently, a federal appeals court has made a ruling that has significant implications for salaried workers and their paid time off (PTO). According to the verdict, PTO is not a part of an employee's salary under U.S. wage law, meaning employers can take away PTO when salaried workers do not meet productivity quotas without violating federal wage law. (76 views)