How Off-the-Record PTO Led to an $80 Million Verdict

This is vindication.” That’s how Sacramento attorney Lawrance Bohm described a recent victory for three former Zurich American Insurance Co. employees, awarded over $80 million in damages after a Sacramento jury found the insurance giant wrongfully fired them. The plaintiffs had taken “off-the-record” paid time off, known as “Omen Days,” which their supervisor had encouraged to reward high performance and exceptional work record. Yet in December 2017, the company terminated them just before Christmas, accusing them of “time theft” despite Omen’s approval of the extra earned PTO.

The jury found Zurich American’s investigation into these alleged time theft incidents hasty, lasting only 71 minutes before the employees were dismissed. Bohm explained that the so-called “Omen Days” were unofficial incentives known throughout Zurich’s Gold River office, where employees were rewarded with PTO for their dedication and hard work. Initially, Bohm offered Zurich settlements starting at $150,000 per plaintiff, increasing to $2 million each, but Zurich repeatedly declined. The jury’s verdict ultimately included $25 million in punitive damages for each plaintiff, a significant judgment against an insurer that prides itself on supporting Fortune 500 clients.

The complexity of tracking paid time off and overtime fairly is something many companies struggle with, but technology is offering solutions that Zurich could have used to avoid this situation altogether. Platforms like CloudApper AI are revolutionizing workforce management, enabling companies to maintain transparency and avoid “under-the-table” PTO practices that can lead to disputes. CloudApper’s AI TimeClock solution streamlines employee time tracking and makes it easy to document PTO requests, automate approvals, and accurately track each instance of time off. With such a platform, organizations can remove ambiguity from timekeeping, ensuring each PTO day is recorded, logged, and approved without any informal arrangements.

For Zurich, relying on an informal PTO system without adequate record-keeping led to misunderstandings and legal action. With a transparent, automated system like CloudApper AI, employees could have requested their PTO directly within the platform, notifying managers and receiving approval, eliminating confusion around “earned” versus official days off. CloudApper’s AI capabilities don’t just track time off—they can adjust to various business needs, helping organizations of all types avoid similar issues by making employee time management and compliance straightforward and clear.

CloudApper’s platform seamlessly integrates with major HR systems, ensuring that PTO, overtime, and work hours are synchronized and reported. With its intuitive automation, employees can confidently request days off or bid for shift swaps, with every action recorded transparently. Managers can then review, approve, or deny each request based on real-time data, freeing HR from manual tracking and minimizing the risk of legal complications down the line.

What happened to the plaintiffs is not unique in today’s corporate world. According to reports, companies are increasingly under pressure to ensure compliance with labor laws while also managing productivity. Yet issues can arise when manual, undocumented systems clash with formal policies. CloudApper’s platform solves this by automatically logging every PTO and attendance-related activity, so businesses are not caught off guard.

Organizations can’t afford to rely on manual systems in a world where $4.4 trillion is expected to be generated by the AI economy and where there could be a shortage of 85 million software engineers by 2030. CloudApper’s AI platform supports businesses in this transition, offering an end-to-end platform that goes beyond tracking PTO. With customizable workflows, automated data capture, and effortless integration, CloudApper simplifies employee time management, helping companies stay compliant while focusing on their goals.

The Zurich case serves as a cautionary tale: businesses today need reliable systems that remove subjectivity and prevent “off-the-record” practices. With CloudApper AI’s customizable platform, companies can empower their workforce, maintain transparency, and stay prepared for the future while supporting their teams with a solution that grows with their needs.

News: The Sacramento Bee