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Have you ever heard of "PTO" working like this?
(hexbear.net)
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This is not massively different from PTO that expires regularly. It's not great but it's not a red flag any more than any other tyrant-run business.
Of course, you deserve better, but I'd say unless there are other issues, if you'd otherwise take the job, then take the job and then start looking for a better one, you know?