Paid Time Off (PTO) Policy

Company: [Company Name] · Effective Date: [Date]

Purpose

This policy establishes a single, combined bank of paid time off that employees may use for vacation, illness, or personal reasons, without needing to categorize each absence.

Accrual

Employees accrue [Number] days/hours of PTO per year, [accruing per pay period], based on [tenure tier, if applicable — e.g. more accrual after 3 years].

Eligibility

[Any waiting period before new employees can use accrued PTO, e.g. "after 90 days of employment."]

Requesting PTO

Planned time off should be requested [Notice Period] in advance via [System], subject to manager approval based on business needs. Unplanned/sick use should be reported per the Attendance Policy.

Carryover

[ ] Unused PTO carries over up to [Number] days into the next year. [ ] Unused PTO does not carry over ("use it or lose it," where legally permitted).

Payout Upon Termination

[State whether unused accrued PTO is paid out upon termination — required by law in some states regardless of company policy.]

Interaction with Protected Leave

This PTO bank is separate from job-protected leave (FMLA, ADA accommodation, jury duty), which is governed by its own policies and may run concurrently with PTO use at the employee's option.

Adopted by: ______________________ Date: ____________

*This document is provided for informational and educational purposes only and does not constitute legal advice. Combining sick and vacation time into one PTO bank is popular for its flexibility, but several states and cities have separate mandatory paid-sick-leave laws with their own accrual and carryover rules — a combined PTO policy still needs to satisfy those specific sick-leave requirements, not just the general vacation rules.*