7 PTO Types That Can Be Included in Your Policy
Updated: Sep 16
The type of PTO included in a policy can vary from company to company, as well as within state laws.
There’s a lot more to Paid Time Off (PTO) than meets the eye.
If you’ve ever switched jobs, you know that no two PTO policies are the same. PTO is certainly not a ‘one-size-fits-all’ benefit, and there are so many different ways for companies to customize it to best fit their needs.
So, if you’re looking to better understand what ingredients go into cooking up a company’s PTO policy, you’ve come to the right place!
No matter what type of policy your current employer offers, here are 7 different types of PTO that can be included:
PTO plans can allow paid time off to be used for holidays. According to the Bureau of Labor Statistics, employees with PTO policies that cover holidays receive an average of eight paid holidays per year.
#2 Vacation Days
Paid time off policies can also cover vacation days. A 2021 study shows that 77% of employees receive vacation days as a part of their paid time off policy.
#3 Paid Sick Leave
A paid time off policy can cover sick leave, which covers days absent from work for an illness or injury.
However, some states may require a stand-alone paid sick leave policy. Some states that require paid sick leave include:
#4 Paid Personal Time
A PTO policy can cover personal time, which covers non-specific personal activities such as doctor’s appointments, school events, etc.
#5 Paid Bereavement Leave
Bereavement leave can be covered under a paid time off policy, which allows employees to take paid time off to grieve losses, make funeral arrangements, and attend funeral services.
#6 Parental Leave
A PTO policy may be used to cover parental leave.
However, some companies may be required to offer unpaid parental leave under federal law depending on the size of the company. States also have their own separate laws on parental leave, which may be restrictive.
#7 Jury Duty
A paid time off policy may be used for jury duty.
However, some states have jury duty pay laws that require a company to specifically offer paid time off for employees with jury duty. In this case, an employer can request their employees to show proof of a written notice for jury duty summoning.
3 Different Types of PTO Policies
There are a few different types of PTO policies that a company may offer. Let’s go through the three main types of PTO policies generally offered.
#1: Set Number of Days
This type of policy means that employers earn a set number of PTO days per year.
This policy typically has a contingency for new employees, such as a probationary period. For example, your employer may award you 10 days PTO per year, but will not allow you to take any paid time off within the first 90 days of your employment.
#2: Accrued Time Off
This PTO policy allows you to accrue a certain amount of time off at a given period, such as a pay period. To calculate the amount of PTO that you can accrue at a given period:
Multiply the number of days within the specific time period by the time you work on those days.
Here an example: If you receive 15 days off per year and work 8-hour days, you will accrue 120 hours off PTO per year. Divide 120 hours by 52 weeks to determine the number of PTO hours you would accumulate within a week. In this scenario, the answer would be 2.3 hours per week.
#3: Rollover Allowances
Your employer’s PTO policy may allow you to roll over your earned PTO from one year to the next.
Here’s an example of how a policy like this could work:
Let’s say you only used 15 of your 20 days banked PTO for this year. The extra 5 days of PTO that you didn’t use would be rolled over into the next year.
With this policy, some employers impose limits on how much PTO can be accrued before you start to lose hours.
We hope this article helped you gain a better understanding of the different types of PTO policies and what they can include.
Even though every policy and company is different, the idea behind PTO is the same—employees need to take time off from work to rest and recharge.
Don’t let your PTO melt away!
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