Paid time off policy (US)

[Company name] Paid Time Off Policy

Effective [date]. Applies to [all employees / full-time employees in the United States].

Purpose

Paid time off (PTO) lets you rest, take care of personal matters and recover from illness while still being paid.

Before you adopt this policy

Many states and cities require paid sick leave with their own accrual, use and notice rules, and some treat unused vacation as earned wages. Check each state where you have employees and adjust this policy to meet or exceed those rules. Where a law is more generous than this policy, the law applies.

Eligibility

[All employees / Employees scheduled for [number] or more hours a week] are eligible from [their first day / after [number] days].

Accrual

• Employees accrue [number] hours of PTO per [pay period / hour worked], up to [number] hours a year.
• PTO accrues on hours paid, [including / not including] overtime.
• The maximum balance is [number] hours. Once you reach it, you stop accruing until you use some.

Requesting PTO

• Request planned time off at least [number] days in advance in [Birch / your HR system], with the dates and hours.
• Your manager approves or declines within [number] business days. Requests are approved first come, first served where coverage allows.
• For unplanned absences such as illness, tell your manager as soon as you can, ideally before your shift starts.
• We will not ask for a doctor's note for absences of [three] consecutive days or fewer, unless the law allows and the policy says otherwise.

Carryover

Up to [number] hours of unused PTO carry over to the next year. [Any hours above that are forfeited at year end, where the law allows. Some states, including California, do not allow "use it or lose it".]

Holidays

[Company name] observes the following paid holidays: [list]. Holidays are separate from PTO.

When employment ends

[Accrued, unused PTO is paid out in your final paycheck. / Accrued, unused PTO is paid out where state law requires it.] Some states require payout of all accrued vacation.

Other leave

This policy does not limit your rights to job-protected leave under the Family and Medical Leave Act, state family leave, jury duty, military leave or other laws.

Questions go to [HR contact].