Absolutely! Here's a sample Paid Time Off (PTO) Policy suitable for a U.S.-based company. You can customize this depending on your organization's size, industry, and local laws:
Sample Paid Time Off (PTO) Policy
1. Purpose
This Paid Time Off (PTO) policy is designed to provide employees with flexible paid time away from work that can be used for vacation, personal time, or illness. The policy supports work-life balance and overall well-being.
2. Eligibility
All full-time, regular employees are eligible to accrue and use PTO. Part-time employees working at least 20 hours per week may accrue PTO on a pro-rated basis. Temporary or contract employees are not eligible unless otherwise stated in their employment agreement.
3. PTO Accrual
PTO begins accruing on the employee’s first day of employment but cannot be used until after 90 days of continuous employment.
Accrual Rates
| Years of Service | Accrual Rate (per pay period)* | Annual Total (Based on 40 hrs/week) |
|---|---|---|
| 0 - 1 year | 1.54 hours per week | 80 hours (10 days) |
| 1 - 5 years | 2.31 hours per week | 120 hours (15 days) |
| 5+ years | 3.08 hours per week | 160 hours (20 days) |
*Accrual is based on a 40-hour workweek and may be pro-rated for part-time employees.
Maximum Accrual Cap
PTO accrual is capped at 1.5 times the annual allotment. Once the cap is reached, no further PTO will accrue until time is used.
4. PTO Usage
Employees are encouraged to request PTO in advance (at least 2 weeks when possible), using the company’s time-off management system. PTO for unplanned absences (e.g., illness) should be communicated to the supervisor as soon as possible.
5. Holidays and PTO
Company-recognized holidays are separate from PTO. If a recognized holiday falls during an employee’s PTO, it will not be deducted from the PTO balance.
6. PTO Payout Upon Termination
Upon separation from the company, unused accrued PTO will be paid out in the final paycheck, unless prohibited by state law or if the employee is terminated for cause.
7. PTO Abuse
PTO is a benefit provided by the company and must not be abused. Excessive unscheduled absences or patterns of misuse may result in disciplinary action, up to and including termination.
8. Other Leave Policies
This PTO policy is separate from other types of leave such as:
- Family and Medical Leave (FMLA)
- Bereavement Leave
- Jury Duty
- Military Leave
Please refer to the Employee Handbook for additional details.
9. Carry Over Days
An Employee has the ability to carry over 5 or less PTO days to the following calendar year that must be used by the last day of March or the day(s) will be forfeited.
10. Policy Review
This policy may be reviewed and amended at the company’s discretion. Employees will be notified of any changes.
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