PTO Policy Template
Comprehensive paid time off policy with accrual and approval guidelines
PTO Policy Template
PAID TIME OFF (PTO) POLICY
Effective Date: [Date]
1. PURPOSE
[Company Name] recognizes the importance of work-life balance and provides paid time off (PTO) to eligible employees for rest, relaxation, personal business, and family needs.
2. ELIGIBILITY
- All full-time employees are eligible for PTO after completing [X] days of employment
- Part-time employees working [X] hours or more per week are eligible for pro-rated PTO
- PTO accrual begins on the first day of employment
3. PTO ACCRUAL
Accrual Schedule:
- 0-1 years: [X] hours per pay period ([X] days annually)
- 1-3 years: [X] hours per pay period ([X] days annually)
- 3-5 years: [X] hours per pay period ([X] days annually)
- 5+ years: [X] hours per pay period ([X] days annually)
*Accrual rates may vary by state law requirements
4. REQUESTING PTO
- PTO requests must be submitted through [HR system/email] at least [X] business days in advance
- Emergency situations may be approved with less notice at manager discretion
- Requests for [X] or more consecutive days require [X] weeks advance notice
- All requests are subject to manager approval based on business needs
5. APPROVAL PROCESS
- Managers will respond to PTO requests within [X] business days
- Approval is based on business needs, staffing requirements, and fairness
- Conflicts will be resolved by seniority or first-come, first-served basis
- Denied requests will include explanation and alternative dates when possible
6. COMPANY HOLIDAYS
The following holidays are observed by [Company Name]:
- New Year's Day
- Martin Luther King Jr. Day
- Presidents' Day
- Memorial Day
- Independence Day
- Labor Day
- Thanksgiving Day
- Day after Thanksgiving
- Christmas Day
- [Additional company-specific holidays]
7. CARRYOVER AND CAPS
- Maximum carryover: [X] hours from year to year
- Maximum PTO balance: [X] hours
- Excess PTO above the cap will be forfeited on [Date]
- Employees may request payout of excess PTO before forfeiture
8. TERMINATION
- Upon voluntary termination: Unused PTO will be paid out according to state law
- Upon involuntary termination: PTO payout subject to company policy and state law
- Final PTO payout will be included in the final paycheck
9. SICK LEAVE
PTO may be used for illness, medical appointments, and family care. For extended medical leave, employees should refer to our FMLA policy and consider short-term disability benefits.
10. POLICY CHANGES
[Company Name] reserves the right to modify this policy at any time. Employees will be notified of changes in writing with at least [X] days notice.
This policy is subject to applicable federal, state, and local laws. In case of conflict, applicable law will take precedence.
Implementation Guide
Customization Checklist
- • Update company name and effective date
- • Set accrual rates based on your needs
- • Define advance notice requirements
- • List your company's specific holidays
- • Set carryover limits and caps
- • Review state-specific requirements
Legal Considerations
- • Check state laws on PTO payout requirements
- • Ensure compliance with sick leave laws
- • Review FMLA and ADA requirements
- • Consider union contract obligations
- • Update employee handbook accordingly
- • Train managers on policy application