Paid Time Off (PTO) Policy

1. Purpose

[Company Name] provides paid time off (PTO) to support employee health, wellbeing, and work-life balance. This policy applies to all eligible employees and describes how PTO is earned, used, and treated upon separation.

2. Eligibility

Full-time employees (regularly scheduled to work 30 or more hours per week) are eligible for PTO as described in Section 3.

Part-time employees working fewer than 30 hours per week [are eligible for PTO on a prorated basis / are not eligible for PTO under this policy].

PTO begins accruing on your first day of employment. New hires may [use / not use] accrued PTO during the first [30 / 60 / 90] days of employment.

3. PTO Accrual

Choose one option below and delete the other before distributing this policy.

Option A: Accrual-Based PTO

PTO accrues based on years of service as follows:

Accrual caps: Employees may accrue a maximum of [X] days at any one time. Once the cap is reached, accrual stops until PTO is used.

Option B: Unlimited / Flexible PTO

Employees are not subject to a set number of PTO days per year. Instead, employees are encouraged to take time off as needed, subject to manager approval and business needs. There is no accrual of PTO under this option, and no PTO balance is carried or paid out upon separation.

4. Requesting PTO

• Submit PTO requests to your manager at least [5] business days in advance for planned absences of [1 to 3] days.
• For absences of [4 or more] consecutive days, submit requests at least [2] weeks in advance.
• Unplanned absences (illness, emergency) should be communicated to your manager as early as possible on the day of absence.
• PTO requests are subject to manager approval and business needs. Requests may be denied during high-demand periods.

5. Carryover and Forfeiture

(Applicable to accrual-based PTO only. Delete this section if using unlimited PTO.)

Employees may carry over a maximum of [X] days of unused PTO from one calendar year to the next. PTO in excess of the carryover cap at year-end will be [forfeited / paid out at the employee's regular hourly rate].

6. PTO Payout Upon Separation

Choose one of the following and delete the other:

Option 1 (Payout): Upon separation from employment for any reason, the Company will pay out any unused, accrued PTO at the employee's current base rate of pay.

Option 2 (No Payout): Unused PTO is not considered earned wages and will not be paid out upon separation. This applies to all separations regardless of the reason.

7. Holidays

In addition to PTO, [Company Name] observes the following paid company holidays:

When a holiday falls on a weekend, the Company will observe it on the nearest weekday.

8. Policy Administration

Questions about this policy should be directed to [HR Contact / Manager]. The Company reserves the right to modify or discontinue this policy at any time with reasonable notice to employees.