Federal Law > Handbooks - Policies > Paid Time Off (PTO) Policy (Sample 1)

Paid Time Off (PTO) Policy (Sample 1)


Paid Time Off (PTO) provides a bank of time that is accrued based on hours worked and is used when employees have a need to be off work such as for vacation, religious holidays, physician appointments or personal emergencies.


PTO is accrued upon hire or transfer into a benefit-eligible position. Employees scheduled to work less than half time per week on a regular basis, faculty and temporary employees are not eligible to accrue PTO. Benefit eligible faculty remain under the vacation and income protection plans which are supervised by each Dean.

Accrual and Payment of PTO

Accruals are based upon paid hours up to full time hours per year, excluding overtime. Employees working less than full time hours per week and at least half time hours per week will earn PTO hours on a pro-rated basis.  Length of service determines the rate at which the employee will accrue PTO. PTO does not accrue on short or long term disability pay or during unpaid leaves of absence. Employees become eligible for the new higher accrual rate on the first day of the pay period in which the employee’s anniversary date falls.

Years of Service     Accrual Rate/ Hour   Annual PTO Accrual*    Maximum Accrual**

Less than one year     .0770                 140 hours (20 days)        140 hours CA: 70 hours
One to Three years     .0885                 161 hours (23 days)        140 hours  CA: 70 hours
More than 3 years     .1                       182 hours (26 days)        140 hours  CA: 70 hours

*Annual PTO Accrual examples are based on an employee having 1820 paid hours per year, 35 hours per week, 7 hours per day.
**No PTO hours will accrue beyond the maximum accruals listed.

Use and Scheduling of PTO

PTO is used for any time off from work whether scheduled or unscheduled. The first three days of any absence due to the employee’s illness will be paid from PTO. Whenever possible, PTO should be scheduled in advance such as for vacations and personal appointments. Scheduled time off is subject to supervisory approval based on department staffing needs.

PTO is paid at the employee’s straight time rate and is not part of any overtime calculation.

PTO time may not be used until accrued and banks will not be permitted to go into a negative balance.

An employee must request use of PTO hours according to his/her regularly scheduled workday. For example, if an employee works a seven hour day, he/she would request seven hours of PTO when taking that day off.

Non-exempt (hourly) employees may use PTO in any partial hour increment up to their regularly scheduled hours. Exempt (salaried) employees must use PTO in full day increments up to 35 hours per week.

Payment upon Termination

PTO hours have no cash value except to California employees and may not be cashed out at any time such as upon termination. California employees only will be paid out any bank balance at termination in accordance with California state law.

PTO is available for use only by the employee who earned it and may not be transferred to another employee.

PTO may not be used to augment any other type of pay such as worker’s compensation or disability.

Accumulated PTO may not be used in lieu of notice by the employee or UI&U.
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