Ultimate Guide to a PTO Policy (With a PTO Template Policy)

Cody Cromwell
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The Different Types of PTO

S and How Do They Work?

In this post, you’ll find a thorough and easy to understand guide to the different types of PTOs (Personal Time Off) and how they all work. The PTO policy template and sample policy will help you implement a great PTO policy in your organization.

Benefits of PTO

PTO can help improve morale with an "employee first" policy. It can also make work life more balanced for both employee and their family.

PTO should be designed according to your needs and the type of work being performed by the employees. Some examples of PTO include paid vacation days with a reduction of wages as a replacement for health insurance, paid time off to attend a seminar or training program, and much more.

Important Point: In order to avoid any negative impact on the workforce/company, PTO policy should not be used as a means of control, but to keep employees happy and healthy.

Sick Time

Sick Time Minimum Requirements

Requirement 2: 2.5 hours paid sick time per 40 hour work week.

Requirement 3: Sick time may be used for necessity (i.e. injuries) or for diagnosis of the following illnesses or conditions to a point of a probable cure: bronchitis, influenza, pneumonia, or other respiratory illnesses, common cold, strep throat. Repetitive stress related disorders. We are a large retail store. Sick time may be used for diagnosis, not only to a point of a presumed cure.

Requirement 4: Sick Time must be used within 20 days of the incident.

Requirement 5: Employees shall be notified in writing of the amount of sick time they have available.

Requirement 6: Two weeks notice must be given to work and request to use sick leave.

Requirement 7: Sick time will not accrue if the employee does not use the minimum amount of sick time as set forth by the policy.

Requirement 8: If the employee does not take sick time for a consecutive 6 weeks and has not requested to use the sick time, their sick time shall be forfeited.

Vacation PTO Time

For many employees working on a PTO schedule, vacation time is the most important factor. Vacation PTO time is how much time off the employee is allowed to take without having to ask for approval.

This is usually paid time and usually is in the range of 4-6 weeks depending on the number of weeks worked a year.

Vacation time does not include annual, personal or floating holidays.

A common concern with vacation PTO policy is paying for the employee vacation time in the middle of the year (i.e. in March) when many people have accrued 8 week PTO already. Another issue with vacation PTO is that it is granted to employees based on their length of service. So for new hires, vacation may be hard to gain.

There are some questions you may want to discuss with your employees:

  • Are employees to be paid every week whether they take vacation or not?
  • Is this vacation paid time off policy to be used for all employees or for only some and for how long?

In some instances the company already has a vacation policy in place for full time employees that provides for vacation time compounding. Can there be a similar policy for part-time employees?

Once the vacation policy is in place, are existing part-time employees to be grandfathered in or will employees be given the opportunity to work under the new vacation policy?

Other Leaves That Intermingle With PTO

Personal Holidays

Take a look at the top 4 reasons companies opt for a PTO policy:

It’s Fair to all Employees

Important Fact:

When you offer a PTO Policy, you have a chance to attract and retain the best employees and avoid comparing different employees to each other.

Companies usually give full benefits to employees who are currently employed with them. This is especially true for maternity leave, vacation and insurance benefits. However, in the event an employee leaves the company, the company has no obligation to provide him/her with the same benefits as it provided for active employees.

Remember:

PTO is a bonus, not a benefit.

It Helps Build a Culture of Good Employees

Important Fact:

The PTO policy gives employees an opportunity to take a break or plan for personal activities without disrupting business. When asked to work extra hours or have to continue working, employees often voice out the fact that they have no time for themselves. Having a PTO Policy can improve the work-life balance of your employees.

Your Company Can now Build a Stronger Relationship with Your Employees

Important Fact:

National Holidays (Company Recognized Holidays)

The most obvious aspect of crafting a PTO policy involves creating a list of days that are considered business days. The first step towards this decision is assembling the class of the company you work for. This involves sorting out the calendars into as many classes as possible and mapping them onto the categories utilized for PTO. It isn’t a particularly complex endeavor, but it is nonetheless necessary.

A benefit of creating schedules for employees is the opportunity to keep track of business. Some stores or restaurants may tie the PTO policy to an individual’s attendance record, i.e. you won’t get any days off if you didn’t turn up for work. Most companies that allow for PTO will keep track of every workday for each employee. This will, quite frankly, allow them to harass or discipline their workers more effectively. When building the PTO schedule, it is necessary to keep track of time each employee worked. The end result is a schedule that allows for the tracking of work times and PTO days.

Bereavement Leave

Bereavement leave is a special kind of leave. It is used to help people deal with a death in the family. It must be taken within one year of the death in order to be considered for benefits. The next of kin other than immediate family members will not be permitted to take bereavement leave. You must notify the company within 30 days after you believe you have used all of your available bereavement leave. The week may be paid because you take bereavement leave and the company is not required to pay you for it.

You must take bereavement leave when the following occurs:

  • When the death of a family member, whose name appears on your work identification or your eligibility for authorization is either listed on the work identification or is discussed with you in writing,
  • When the decedent is an immediate family member of a supervisor, a coworker or a customer,
  • When the death of a family member is a result of job-related injuries or illness, or
  • When you or the decedent’s parent dies.

You must also be scheduled to work in order to take bereavement leave. Bereavement leave cannot be used to replace regular vacation. Employers are not required to pay bereavement leave and employees are not required to be paid for it.

Jury Leave

Not many people leave their jobs to go on jury duty, but it’s a good idea for you to have a policy in place so that you know what to do if you’re called during the summer months. To make it easier for your small business or team, it’s a good idea to have a universal policy.

US employees can forego jury duty if they request to be excused, but finding out whether you qualify can be a hassle. To make it easier for you, we’ve developed a policy that will serve as a template for a jury leave policy. You can use this template for your own policy or adapt it to fit your needs.

Maternity Leave

While not every company provides maternity leave and salary continuation for their employees, many have one or both benefits. But what exactly is provided for company employees as maternity leave and/or PTO? How is it structured? More importantly, what is the difference between maternity leave, maternity pay, and PTO?

Well, here’s where things get tricky. There’s this common misconception that maternity leave is the same thing as maternity pay. However, these two terms refer to entirely different things. So, if you’re not quite sure what you’re talking about, here’s an explanation of what each is and what they mean.

PTO Requirements for Businesses

PTO–short for paid time off–is the amount of time off that a worker is allowed to take each year. Most commonly, PTO benefits are granted to employees as holiday or vacation time. As you grow your business, the benefits you offer your employees are likely to grow as well.

With these benefits, your employees can enjoy time with their families or on their vacations. However, as you grow your workforce…the number of people expecting a set amount of PTO benefits grows. At some point, your PTO policy can feel overwhelming and restrictive. Even worse, it can leave you without the staff coverage that you need while you’re out.

To ensure that your PTO policy is flexible and meets the needs of your business, you’ll need to make sure it includes all of your employees and all of their benefits. Check out this Ultimate Guide to a Pulled Tongue Sucker PTO–PayPal policy template. This policy template includes a PTO schedule that any company can use to be certain that their employees have the PTO packages that they need.

Continue reading this post if you’d like to learn about specific types of paid time off in business.

When Sick Leave Is Required

Sick Leave Policy is often overlooked by many employers. The reason for this is most people find the policies on their own website or a handbook that they didn’t pay much attention to or they missed it completely.

However, an employer should have a comprehensive sick leave policy. Without it, employees may or may not get paid for their time off.

Sick Leave Policy is a great way to let employees know what’s expected of them when they’re sick. If their employer doesn’t have a complete policy, it’s time to start developing one.

Sick leave policies (or absence and leave policy as we often call it) plays a pivotal role in the retention of your employee.

Without a thorough sick leave policy, you might not know what an employee has to do to secure their benefits. This lack of understanding might lead to the employee jumping ship for a better opportunity.

Not to mention, you could potentially become liable for punitive damages if they’re fired for taking too much time off, and it becomes a case.

So what are the elements of a sick leave policy?

General Information

The general information section of the policy should include basic information about the policy such as:

Definitions

Define what sickness means in the policy.

Federal Laws & PTO

Generally, employees are entitled to be paid for work performed, except for certain circumstances, such as when the employee is exempt from coverage, or if the employee does not work for a specified period of time. Thus, all employers are obligated to pay employees for all hours worked, regardless of the exemption status of the employee.

Employees are not obligated to work overtime if they are not paid for it. In situations such as these, however, employees are entitled to receive overtime pay. The Fair Labor Standards Act (FLSA) requires employers to pay a minimum of time-and-one-half for all hours worked in excess of forty hours in a workweek.

Exempt Salaried Employees

Non-exempt salaried employees are required to be paid for all hours worked, and additional guaranteed compensation and or overtime compensation, if applicable. The exempt salaried employee is paid a salary that is a predetermined amount.

Salary – Guaranteed Weekly Payment

Salary is a fixed amount of pay intended to compensate employees for a given amount of work that they are expected to perform. Employers generally pay their salaried employees on a weekly basis. The weekly pay rate is generally called a salary.

State/City Laws & PTO

Policies:

  • 1 PTO policy for the City of Phoenix
  • 1 PTO policy for the City of Tempe
  • 26 state PTO laws
  • 1 PTO policy for California
  • 1 PTO policy for Washington State
  • 1 PTO policy for Colorado
  • 1 PTO policy for Georgia
  • 1 PTO policy for Michigan
  • 1 PTO policy for Oregon
  • 8 state PTO laws & policies: Alabama, Florida, Massachusetts, Nevada, New Jersey, Rhode Island, Tennessee, Washington (North Seattle only)
  • 1 PTO policy for New Hampshire
  • 1 PTO policy for Virginia
  • 1 PTO policy for Idaho
  • 3 local PTO policies (PTO policies for the cities of Maricopa and Apache Junction, Arizona)
  • 1 PTO policy for the community of Fountain Hills, AZ
  • 1 PTO policy for the City of Scottsdale, AZ
  • 1 PTO policy for the City of Tempe, AZ
  • 1 PTO policy for the City of Peoria, AZ
  • 1 PTO policy for the City of Chandler, AZ
  • 1 PTO policy for the City of Glendale, AZ
  • 2 PTO policies for the City of Gilbert, AZ

How to Track PTO

Time for Select Employees?

PTO (Personal Time Off) is working time, similar to FLSA (Federal Law Standard – time spent on paid vacation/holidays/sick days).

PTO policy can be a problem for many employers as it may be too big of a black box to be tracked accurately. It is a good idea for the start up company to adopt simple rules to start with, and build the tracking and management as the startup grows.

An optional PTO policy can be adopted by all companies. The policy can vary from company to company, but some common elements in both types of policies are:

The policy states that a tracking or form has to be provided to employees, so they can record or check their PTO. Employees have the choice to voluntarily track their PTO, but companies still have the right to replace the forms and track time across devices.

The policy states that all expenses should be approved through a given method, and should be tracked diligently to minimize mistakes.

Employees, by default, have the fair access to notice and approval of their requests to use PTO.

Companies can provide a slow route for approving PTO, where employees can submit a request to the boss for approval.

Companies, by default, book and record PTO clock-on time and clock-off time across devices, even when employees are using devices for their work during their PTO.

Common PTO Accrual Rates Others Provide

Blue collar workers usually accrue 6-15 hours a week of PTO. Workers in management (VPs/CEOs/CTOs) are usually accruing 25-50 hours/week, depending on the PTO policy of the company. Most C level jobs don’t have a PTO policy.

For example, 10% PTO is a common accrual rate for workers by law in the US. This applies to all states and to all employers, no matter if your company is a 5 person startup company or a multinational corporation. For some hardcore entrepreneurs it can be 20%, 25%, or even 30%. For example: If you work 6 hours a day, your PTO would be accruing a total of 180 hours per month. 20% means 72 hours, or 1 week, of PTO. 5 people in 5 days means 120 hours, or 2 weeks, of PTO. 25% means 90 hours, or 1.5 weeks, of PTO.

The majority of employers’ PTO policies are 10%, 25%, or even 30%, and there are some that give 1 day of PTO per week, which is usually not enough.

How to Implement and Calculate Accrual Rates:

There’s a method to calculate the accrual rates if you want to. It takes the following as inputs:

Additional Guidance for Supervisors on Paid Leaves

(PTO)

PTO policies have become even more common in recent years. Because companies can benefit from both financial and non-financial reasons in implementing this policy, supervisors must be trained on the benefits and functionality of this policy.

Here’s a brief outline of the types of policies:

Paid Leaves Options

There are two main types of PTO policies … leave allocation or leave accrual. In the leave allocation method, an employee earns a certain number of vacation days for work years completed.

In the leave accrual method, vacation days are built up and can be taken at any time.

Leave Allocation

Employees earn vacation days over a period of years and can take vacation only when the total hours in a future multi-year leave year total at least 1,000. For example, if a worker’s regular hours are 40 a week next year and then 50 for the next two years, the employee would be entitled to 72 vacation days in total but would only be able to use those vacation days for a period of two years.

Sick Time

Sick Time Minimum Requirements

Requirement 2: 2.5 hours paid sick time per 40 hour work week.

Requirement 3: Sick time may be used for necessity (i.e. injuries) or for diagnosis of the following illnesses or conditions to a point of a probable cure: bronchitis, influenza, pneumonia, or other respiratory illnesses, common cold, strep throat. Repetitive stress related disorders. We are a large retail store. Sick time may be used for diagnosis, not only to a point of a presumed cure.

Requirement 4: Sick Time must be used within 20 days of the incident.

Requirement 5: Employees shall be notified in writing of the amount of sick time they have available.

Requirement 6: Two weeks notice must be given to work and request to use sick leave.

Requirement 7: Sick time will not accrue if the employee does not use the minimum amount of sick time as set forth by the policy.

Requirement 8: If the employee does not take sick time for a consecutive 6 weeks and has not requested to use the sick time, their sick time shall be forfeited.

Vacation Time

Personal Holidays

Take a look at the top 4 reasons companies opt for a PTO policy:

It’s Fair to all Employees

Important Fact:

When you offer a PTO Policy, you have a chance to attract and retain the best employees and avoid comparing different employees to each other.

Companies usually give full benefits to employees who are currently employed with them. This is especially true for maternity leave, vacation and insurance benefits. However, in the event an employee leaves the company, the company has no obligation to provide him/her with the same benefits as it provided for active employees.

Remember:

PTO is a bonus, not a benefit.

It Helps Build a Culture of Good Employees

Important Fact:

The PTO policy gives employees an opportunity to take a break or plan for personal activities without disrupting business. When asked to work extra hours or have to continue working, employees often voice out the fact that they have no time for themselves. Having a PTO Policy can improve the work-life balance of your employees.

Your Company Can now Build a Stronger Relationship with Your Employees

Important Fact:

National Holidays

Bereavement Leave

Bereavement leave is a special kind of leave. It is used to help people deal with a death in the family. It must be taken within one year of the death in order to be considered for benefits. The next of kin other than immediate family members will not be permitted to take bereavement leave. You must notify the company within 30 days after you believe you have used all of your available bereavement leave. The week may be paid because you take bereavement leave and the company is not required to pay you for it.

You must take bereavement leave when the following occurs:

  • When the death of a family member, whose name appears on your work identification or your eligibility for authorization is either listed on the work identification or is discussed with you in writing,
  • When the decedent is an immediate family member of a supervisor, a coworker or a customer,
  • When the death of a family member is a result of job-related injuries or illness, or
  • When you or the decedent’s parent dies.

You must also be scheduled to work in order to take bereavement leave. Bereavement leave cannot be used to replace regular vacation. Employers are not required to pay bereavement leave and employees are not required to be paid for it.

Accrual vs Flat Rate PTO

An Accrual PTO policy refers to policies that reimburse accrued paid time off when it is taken. An Accrual PTO policy does not break it down by certain days or weeks off. It takes off accrued time off automatically as it is taken. For Accrual PTO policies, you usually have to take a certain amount of time off before you can’t get paid for your next period. One of the biggest benefits of an Accrual PTO policy is that it is often the most flexible.

A Flat Rate PTO policy refers to policies that reimburse an amount of time off, regardless of how long you take. For Flat Rate PTO policies, you usually don’t have to take a certain amount of time off before you can get paid. This means that you…re free to take the time off you need whenever it is required. As Flat Rate PTO policies are often much more expensive, they are not the ideal choice for most business owners.

There are situations where both an Accrual and a Flat Rate PTO plan make sense. Whether used as a standalone pay model or a hybrid plan, learning more about the issues surrounding Accrual and Flat Rate PTO has become a very hot topic.

Waiting Period for New Employees

A waiting period can benefit your business, as well as your employees. As soon as they begin work, there are too many details to be learned, too many things to be done. It is easier to get a new employee up to speed when there’s a period of time during which he is on his own. What should your business do to prepare their employees for their first day of work?

Number of Days

In many workplaces, a waiting period is given for the new employee to decide if he wants to accept the job offer. The period is usually set between two and six days. The longer the waiting period, the more experienced the employee. If the employee fails to show to work within the period, the company is allowed to terminate this former employee. This measure is taken to avoid the hassle of having two people on one position.

In other companies, the employee may decide to work without the waiting period to see if he wants the position. If the employee decides to refuse the job offer, the employment contract is considered breached.

Minimum Qualifications

A period is usually given to the new employee to update his qualification to the desired position. It isn’t necessary for the employee to complete the entire process in this period. However, the employee should be able to get some training from his manager. The number of days varies from company to company.

Rollover vs Use It or Lose It

How one handles their own personal time of need can have a lasting effect on their job.

And how one handles it can speak volumes about how good or bad the rest of the company and career is for the dedicated employee.

By having a Professional Time-Off (PTO) Policy in place, it can help companies:

{1}. Understand the employee’s mindset towards the job and how to better manage it.
{2}. Keep their employee happy by knowing they have the time to make sure they get it done.
{3}. Create a good reputation through the dedication and commitment of their employees.

A good PTO policy will help an employer and employers like you understand best ways to deal with the time of need.

The same benefits can also be appreciated by a employee who uses the time wisely as a bonus system.

Whereas a poor PTO policy will do the opposite.

But a PTO policy, whether good or bad, takes some time to get right.

As proper management of the fatigue levels of employees can either make or break the effectiveness of the PTO.

So if you want to learn more about your employee’s mentality towards the job and how to help them better manage it, a PTO policy will help.

Best Practices in PTO Policies and Their Administration

Put it in Writing

The very first step in creating a PTO policy is to write an agreement that explicitly lists all the terms of the PTO, what it covers, how it works and what penalties are.

Make sure the PTO – the employee’s return date, how the employee is allowed to use the PTO, whether or not it pays out per hour or per week or per month.

If an employee is paid money for unused PTO, then it is also important to have a policy that defines the maximum number of days of PTO that the employee can earn.

Or the maximum number of hours that the employee can use in a month. If the PTO policy is unlimited in nature, make sure that it has a maximum total amount of days or hours that can be claimed in a given year.

Another reason why it’s a good idea to put the PTO policy out in writing is because an employee may want to expand the scope of the PTO policy and the employer wants something different.

Consider the following scenarios:

Be Specific

It’s a major misconception that vacation time is a vacation. Many of employees think that once they indicate that they are taking vacation, they have all the free time in the world and can do whatever they want. Unfortunately, many of employees do not realize that their boss might get their vacation time paid, but it does not mean that they are free.

Vacation time is paid time, which means this is a great opportunity to get some time off. But, employers should not forget that employees are still working for them and that employees are not taking a one week vacation every year. Here’s what you must do if you are about to offer your staff a vacation period.

Check the policy of your company with regard to vacation time and understand the regulations. The policy should clearly have the policy in writing and should be readily available and clearly understood. Give staff enough time to take the time off with your organization. The policy should clearly show that you understand the need for employees to take vacation time. Inform staff members about the policy of your company and mention that vacation time is paid time. Make it very clear that employees have to use their vacation time within the policy they have been given.

Have a Process

Good, thorough, and consistent evaluation of PTO is vital to the success of your PTO policy that ultimately lead to ease of management and positive employee relationship.

The evaluation process should include several of the following steps:

A common approach to evaluate PTO is to have a 3 to 6 month cycle, periodically evaluating each employee. You can also evaluate based on a designated time or date in the cycle (e.g. 1 month after the anniversary date of an employee’s hire date). Whichever method you choose, it is important that the cycle for evaluation has designated dates. This ensures that employees take their PTO at those particular times, and they do not take it later than the due dates.

Employees should be notified of the PTO due dates before the cycle begins (make sure you have a calendar that gets sent out to the employees to remind them). If they are not notified, they will not be able to know when they can take PTO. When employees are notified, give employees the following information, all of which should be available to them: 1) a due date, 2) an average duration of the policy, and 3) the policy’s earnings average. Prepare the notifications as part of the pre-cycle documentation.

Use a Tracking System

Have you ever noticed the time and number of vacation days employees have accrued over a period of time? Well a PTO policy not only can help an employee use his or her time off, but it also can help your company stay motivated, especially if employees know they have more vacation days available to them, as well how many vacation days they have accrued over a period of time.

All of this can be possible with a policy that uses a tracking system. The policy should be easy to put into place and use at any time so employees can implement it quickly. In order for this to work, you need some type of system that can manage the information of employee vacation and PTO.

Save Time

Time management is essential in any business. Tracking vacation and PTO time with a tracking system can save you and your employees a lot of time. This time reduction will keep your employees more motivated and running smoothly.

Increased Personal Security

Knowing how much vacation time you have and when it is going to expire is a safety net if you plan on traveling. In order for a travel policy to work effectively, you need to have a system and a way to track vacation and PTO so that each employee can know when he or she needs to call to initiate a leave of absence while on travel.

Build Motivation in Employees

PTO Policy Frequently Asked Questions (FAQs)

Although many people are familiar with the service benefits that PTO’s give to employees, few companies have a formal policy on how to handle PTO.

In most companies, PTO is usually only used at the end of the project and occasionally used to prevent burnout.

It’s very rarely used during the creation of a new product, like a software application, books or music that’s created over a longer period of time.

Since there is very little formalized policy when it comes to PTO, many people still manage their PTO at the end of every month. This can lead to a large amount of unused PTO at the end of the year.

In addition, if a company has a PTO policy, employees may be less likely to go to their managers with requests for PTO.

This is because they’re fearful of losing PTO for fear of retaliation or compensation. This can jeopardize their relationship with their manager and the company as a whole.

When someone has good intentions, they often fail to voice them due to fear of reprisal. Observing PTO usage can be a way to determine how well the company is being run and show whether leaders are truly committed to educating people on good PTO practices.

What are the benefits of having PTO? Will it cost me a fortune?

The health and financial benefits of encouraging PTO are many. PTO not only helps employees enjoy time off, it also provides an enormous boost to an employer’s bottom line. Employers who offer their employees PTO are more likely to retain valuable employees, keep a friendly, relaxed and productive work environment, and reduce turnover. Simply put, the ROI makes PTO a must have for employers of all types and sizes.

Developing a policy for Paid Time Off is easy when there’s a template waiting for you. Having a PTO policy provides a guideline employees can use to request time off. A template for PTO is available for employers to download on our site.

Employers can use a policy template to assess an employee’s eligibility for PTO based on length of service, position, etc. They can create conditions for certain requests, such as requiring the request for PTO be submitted at least1 month before the request date. The template for our PTO policy has all the necessary information you need to request time off. This policy has an open-ended request, which allows employees to request any amount of days.

Are there any cons to having a PTO policy?

Companies that have generous PTO policies typically have annual meetings where a PTO Policy is reviewed and possibly changed. These annual meetings are often held during the time of year when you can collect for potential sick days.

If you attend a company meeting where a PTO policy is discussed, consider what you can do to represent yourself as well as your co-workers well. In order to be taken seriously, it may be necessary to add language to the PTO Policy stating "that to-be date of the policy is an estimate and not a guarantee of being used."

Think of this phrase as your "neutral" saying something like, "The dates I am requesting for this policy are an estimate for start of service, and is not guaranteed, and I understand that these dates are subject to change. I request that my PTO start at this date."

Another pro to having a PTO policy is that sometimes your vacation (if you have one) is not applicable. So if you take vacation, it may be possible that you will be allowed to stay at work until the correct date. The PTO policy would then clarify whether you could work past your vacation date.

By having a PTO policy, your payroll department can more easily track your vacation usage and keep an accurate record of your time. Again, having the PTO policy is beneficial to your payroll department as well as yourself.

What about freelancers or contract 1099 employees? Do they get sick leave and vacation time as well if I provide it?

Let’s talk about the policy for salaried employees.

The following is a basic template policy for the Pacific Time Zone. It’s a good structure for salaried employees and is the kind we’d recommend.

Please note that the policy below is not all-inclusive and is meant for the Pacific Time Zone. If you’d like to have a policy for another time zone…or are changing your employees’ exempt status because of a status change, this policy isn’t meant for you.

Also, although this includes salary requirements, the salary requirements may vary depending on the state, your industry, or even the local market in which you operate. If you have a planned change, be sure to check your state laws, industry standards, and local market if you’re not sure if you need to bring on more employees or change your policy.

On the other hand, if you are a rural carrier (e.g., traveling by Backhoe and bucket), you can utilize the Agency Approach or the Independent Contractor Approach to provide PTO and vacation pay.

What if I have remote employees in several states? In other countries?

A policy that covers employees, whether they work in your own business or for divisions in different states or other countries, is called a –PTO” policy.

The hourly employee who receives his PTO pay is usually required to return to work for the company on an agreed-upon date or time … and only on an agreed-upon date or time. A PTO policy is a written agreement reached between the PTO holder and the employer.

There are generally three variations of PTO and PTO policies.

First, the standard PTO policy is the basic policy that specifies fixed dates for its use. This is considered the minimum policy which the employee may or may not meets based on his scheduling of appointments that you as the employer may not control.

Second, is the … flex-PTO policy ‬ the PMC Group’s most popular format. This type of policy allows greater flexibility for the employee to attend any functions the PTO holder may have a need for. This type of PTO policy may be more popular for employees who travel or have similar scheduling and may want to have greater flexibility to attend those functions.

What if someone uses more than the provided PTO amount?

This question often comes up when people are discussing the various ways to manage parental leave, because in most of the discussions there is a setting that only allows someone to use a set amount of PTO, and doesn’t allow them to leave more.

Indeed, policies that do not allow people to use more than the set amount often are perceived as not allowing people to leave more than they are paid, often called amount-washed policies. Supporting people to use more than what they are paid, however, can lead to better retention of mothers in the workplace, because it reduces the impact of it being an unaffordable option to leave.

Can different employees receive different amounts of PTO (based on tenure or hard work, etc.)?

Typically, most policies are designed to allow employees to take a certain amount of PTO each year. The amount of PTO that can be accrued may be based on the employee’s tenure, title, or other criteria, although some policies simply allow for accrual of PTO at a certain rate.

For example, a policy might require employees to accrue 1.5 hours of PTO per day, in which case someone with twenty years of service should accrue approximately 100 hours of PTO each year.

There may also be a mechanism for employees to carry over some days or hours or an allowance to purchase additional days or hours of PTO.

It is important that any provision allowing the accrual of PTO or granular amounts of PTO’s accrual is clearly indicated within the PTO policy. Not only does the employee rely on this information when they’re planning their vacations, it is important in the event your organization downsized or the organization files for bankruptcy.

The policy must be clearly stated and employees must be made aware of the policy in their handbook or company policies manual.

A policy is an important part of organizational culture and is authority for employees to understand the company’s expectations of them. Below is an example of a policy which can keep your organization compliant while remaining flexible for your employees.

Bottom Line

While deciding on employee benefits that an employer should provide, such as paid vacations or paid maternity/paternity leave, employers get overwhelming. The formality of offering paid vacation, paid maternity and paternity leaves allow companies to stand out from other employers and get more employees.

On a similar note, many employers are now providing other employee benefits: paid vacation, paid family leave, paid sick leave, employee bonus plans, paid holidays, and health care benefits. Some of these employee benefits are mandatory and others are not; however, all of these benefits provide competitive benefits that employers can use to attract and retain great employees.

In order to help pTO implement a successful employee benefits program, we recommend that you take care of your employees first:

{1}. Be sure your employees are happy.
{2}. Provide competitive employee benefits that will help the employees focus on their work rather than on their work-life balance.

To ensure you can properly implement a comprehensive employee benefits program, the following is a list of employee benefits that you can go over and use as a template. Please keep in mind that this is a guide for you to help you understand the basics of employee benefits and isn’t a complete list of all employee benefits.

PTO