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PTO Policy

PTO Policy

PTO Policy

We are in the process of re-writing our policy regarding PTO.  Currently our policy has a system where people accrue PTO at different rates based on years of service.  At the end of the year, employees are allowed to carry-over a maximum of 120 hours.  If an employee leaves, for whatever reason, an employee is paid for up to 40 hours of PTO, and forfeits the rest.  

What do other companies do?  We want to encourage employees to take the vacation time, however, we do not want the employees using this as a way to get and extra paycheck at the end of the year.  (Since we will be changing the system, we are going to give a one-time cashout if we set the limit lower than our current 120 hour carryover)

RE: PTO Policy

I believe every company I've ever worked out has paid whatever PTO has been accrued with no artificial cap.  In some states, I would wonder about the legality of such a cap... they earned it, just like salary, and therefore should be entitled to it.

Dan - Owner

RE: PTO Policy

Not true.  I recently had an episode where the company I left refused to pay me for a substantial amount of accrued vacation.  I investigated the legalality of this.  I found that the law is clearly on the side of the employer to do whatever they want.  The only way around this is with a formal employment contract stating otherwise.

Blue Technik LLC
Advanced Robotics & Automation Engineering

RE: PTO Policy

In the U.S. military (c. 1988), we got 1.5 days/month, with a cap at 60 days.  Once you reached the cap, the extra days were automatically turned to cash in your pay.

RE: PTO Policy

If you truly want people to use their time off, I would reduce the carryover allowed.  Does the PTO include sick time and vacation time?  I have never been allowed to carryover sick time, only vacation days.  I usually see the sick carry in represented positions.
I think 40 hrs carry is fairly generous.  After all, it's like carrying an unpaid debt on the books, and you don't know when it might be called in.

RE: PTO Policy

Our company limits the carryover to four times whatever you would get that year.  Sick and vacation time are lumped and just called pto so it all carries over.  There are cash-out options for pto and pto exceeding the limit.  PTO can also be in deficit if you have to borrow against your future pto for some reason.

RE: PTO Policy

If you are worried about the liability then cash it out when it exceeds a preset maximum.

If you want people to take the leave that is owed them then don't allow them to cash it out or carry it over.

Seems pretty straightforward to me.


Greg Locock

Please see FAQ731-376: Eng-Tips.com Forum Policies for tips on how to make the best use of Eng-Tips.

RE: PTO Policy

Another view on employees taking leave, don't bury them to the point they don't have time to take leave.

RE: PTO Policy

Our company policy - "Use it or lose it" year to year.  Vacation, sick time, etc.

RE: PTO Policy

I had a boss once that explained the company's policy (zero carryover, EVER) by saying "if you can't take 4 weeks this year what makes you think you can find time to take 5 weeks next year?".  The end result was the his admin assistant checked everyone's vacation in August and "encouraged" everyone to schedule their unsued vacation.  If you still had any by early November she'd turn it over to the boss who would call you into a meeting with your daytimer and "help" you schedule it all (and your performance review would reflect your inability to follow instructions).

Vacation is part of your pay.  If you don't take it you are giving your pay away.


RE: PTO Policy

Most larger companies limit carryover to 40 hours.

"Wildfires are dangerous, hard to control, and economically catastrophic."

Ben Loosli

RE: PTO Policy


Judging by experience in Europe and Australia that would be illegal in most jurisdictions worldwide that have an opinion on the matter.


Greg Locock

Please see FAQ731-376: Eng-Tips.com Forum Policies for tips on how to make the best use of Eng-Tips.

RE: PTO Policy

Greg, not so long ago in the UK I dont' think I was allowed to carry any over.  Yes this did tend to mean the place was empty at the end of the year.

Although of course we got given it as a bank at the start of the year, we didn't 'earn it' as we went along.

KENAT, probably the least qualified checker you'll ever meet...

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