Your employer does not have to pay you if they do not have any work for you to perform. Pennslyvania is an at-will employment state. Absent a contract or collective bargaining agreement, your employer can end your employment for any non-protected reason at any time. Also, unless they have a policy of paying out PTO at the end of your employment, you don't necessarily get your PTO after your employment ends. You could apply for unemployment if they lay you off or reduce your hours and you meet the requirements for unemployment. There are other laws and issues that could affect the outcome but I don't have enough information. I would suggest you speak with an employment attorney in your area.

Your employer can make you take paid time off if you're out sick. But if he does not have work for you I do not believe he can make you take paid time off. What he or she is afraid of is that you're going to be out of work for more time and you will apply for unemployment. Actually it's financially to your advantage to use your paid time off because if he does lay you off then unless he has a policy saying that he will give you your accrued vacation he does not have to. So you've got to make a decision after you see a few more answers as to which one is the most economically viable for you. It also depends on the relationship you have with your employer. For you have a reliable answer, you really need to talk directly with an attorney so all the facts and nuances and politics involved can be resolved. Even though you're paid by the vendor the vendor does not want to tick the school district off if they like you. It also depends on what your non-compete contract looks like and I would be shocked if you didn't have one.