DRAFT TEMPLATE– [CLIENT NAME]
PTO POLICY
For HR Team Member:
1) To minimize Prism and SaaShr set up errors, we encourage client policies to be updated using this
template.
2) Once complete:
a. Use Process Document in G:Drive to open cases
b. Add the following to CS “Internal Notes:
i. Effective date
ii. Whether or not there will be any carryover balances from prior policies
iii. List of employees who are exceptions to the policy and whether any changes
will be needed for these.
c. Remove all policy drafts from CS so the Final Version and client’s prior policy are the
only attachments.
This policy addendum supersedes any and all PTO, Vacation, Paid Sick Leave, or Public Health
Emergency policies including those previously (or currently) contained in the Employee
Handbook effective [date].
PAID TIME OFF POLICY (PTO)
PTO provides a flexible system of managing time off requirements for either vacation, sick,
personal time, military leave, or the observance of religious holidays. It combines traditional
vacation and sick leave in one paid time off policy.
Effective Date:
This Paid Time Off (“PTO”) policy is [effective or [revised effective] [date].
Eligibility:
Regular full-time employees are eligible for PTO.
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Introductory Period:



Employees begin accruing vacation upon hire but may not request time off until the
completion of the [30, 60, 90 etc.]-day introductory period. OR
Employees do not begin accruing time off until the completion of the [30, 60, 90 etc.]-day
introductory period. OR
Employees begin accruing vacation upon hire.
Anniversary Year Accrual Tiers:
Length of
Service
(Tiers)
Upon hire
At [start /
completion] of
[define]
At [start /
completion] of
[define]
At [start /
completion] of
[define]
At [start /
completion] of
[define]
At [start /
completion] of
[define]
Hours Accrued per
[Weekly / Biweekly/Semi-Monthly /
Monthly] pay period]
OR
Hours Worked per pay
period including OR
excluding overtime
1.53846 hours
Total Accrual Maximum
per Year (not Carryover
including
per Year
carryover)*
Maximum
Accrual
Cap or
Maximum
Running
Cap per
year
40 hours
(5 days)
64 hours
(8 days)
40 hours
(5 days)
40 hours
(5 days)
80 hours
(10 days)
104 hours
(13 days)
x.xxxxx hours
80 hours
(10 days)
40 hours
(5 days)
120 hours
(15 days)
x.xxxxx hours
80 hours
(10 days)
40 hours
(5 days)
120 hours
(15 days)
x.xxxxx hours
* unless otherwise defined in an executed employment contract.



PTO is not accrued during unpaid leave of absence.
Accruals will calculate at the end of every pay period. OR
Accruals will calculate at the [beginning or end] of the month.
OR:
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Front Load / Grant:
Length of
Service
(Tiers)
Less than
one year
Hours
Days
Granted on the following date:*
Up to
80 hours
Up to
10 days
At [start /
completion]
of [define]
120 hours
10 days
** During the first year of employment, employees
will accrue PTO [[at a flat rate of 6.15385 hours per
[weekly/bi-weekly/semi-monthly/monthly pay
period] or [xx.xxx hours per hour worked
including/excluding xxx]], up to a maximum of
[define] hours per year. Accruals will calculate at the
end of every pay period.
[Each calendar year, anniversary year, or other
anchor date as defined, such as fiscal year].
At [start /
160 hours
15 days
[Each calendar year, anniversary year, or other
completion]
anchor date as defined, such as fiscal year].
of [define]
* Unless otherwise defined in an executed employment contract.

PTO is not accrued during unpaid leave of absence.
Carry-Over Balances:
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




No carryover: PTO will not carry over into the next [calendar year, anniversary year, fiscal year
or define other]. Unused balances will be forfeited. OR
No maximum: Employees will carry over all earned, unused PTO from each [calendar year,
anniversary year, fiscal year or define other] with no maximum balance. OR
Maximum annual accrual cap: Employees may carry-over up to [100% of the earned, unused
balance] OR [define # of hours] of PTO to the next [calendar year, anniversary year, fiscal year
or define other]. Carryover will be applied on [define date]. The total carryover plus accrual may
not exceed a maximum of [define # of hours such as carryover+accrual] per [calendar year,
anniversary year, fiscal year or define other] unless applicable state or local law define otherwise.
(Example 40 carryover + 40 hours accrued =80 hours available per year). OR
Maximum annual running cap available at any point in time: Employees may carry-over up to
[define # of hours] of PTO to the next [calendar year, anniversary year, fiscal year or define other].
Carryover will be applied on (Define date). Time stops accruing past a maximum of (define#)
hours until more time is taken) unless applicable state or local laws define otherwise.
(Example: If total annual accrual is 80 hours and 40 hours are carried over to the new year,
accruals plus carryover in the new year will stop at 80 hours until more vacation is taken. Once
employee takes additional vacation, accruals will continue again, up to the maximum annual
accrual of 80 hours.)
Allowed carryover balances must be used within [define timeline]. Any carryover hours not used
by this date will be forfeited.
Process:
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
Non-exempt employees may request available PTO in minimum increments of (define) hours.

Salaried Exempt employees may request available PTO in either 4 or 8-hour increments.

Employees are required to submit time off requests in WorkSight (Employee Portal) OR
[define client’s local process]. Employees may also review their earned, taken, and available
balances on this site OR [or define client’s local process].

PTO will be paid at the employee’s regular rate, exclusive of any overtime premiums, tips, or
commissions, but no less than the state minimum wage.

PTO is not counted toward an employee’s overtime hours of work or overtime premiums.

Employees are required to use earned, available PTO for all time off requests including during
Worker’s Compensation and Short-Term Disability wait periods.

So that the Company may schedule work and plan for business requirements, PTO requests
should be scheduled at least [define] in advance and have a manager’s approval, except in the
case of unplanned illness or emergency. PTO requests will be approved based on several
factors including but not limited to staffing and business needs, and timing of request (first
come, first serve).
Management of PTO:
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




Borrowing from future PTO accruals is not permitted unless required by state or local law.
OR
On very rare occasions, under special circumstances and pre-approved by [define job title
such as: owner/CEO/executive/manager/supervisor, etc.], an advance on future PTO may be
granted. However, any advanced but unaccrued PTO due upon separation will be deducted
from the employee’s final paycheck, to the extent permitted by federal, state or local law.
PTO holds no cash value; therefore, employees may not receive cash payouts in lieu of taking
time off. OR
If planned PTO must be canceled due to the needs of the business and you are unable to
reschedule the time off within the accrual year, the company reserves the option of providing
you the cash value in lieu of taking the canceled PTO. OR
Employees are permitted the option of taking the cash value of up to XX hours at the end of
each [calendar year/anniversary/define] rather than taking time off.
Separation of Employment:
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
PTO may not be used after the date of notice to extend a resignation date into the future. The
employee’s date of separation will be the last day he/she actually works. Should the company
wish to end the notice period early, payment in lieu of notice may be considered but is not
guaranteed.

Earned, unused PTO will be paid upon termination of employment if the employee provides
and completes two weeks’ advance notice and leaves in good standing per the sole discretion
of management; OR
Earned, unused PTO is paid upon separation of employment [unless terminated for cause];
OR
Earned, unused PTO is [paid/not paid] upon separation of employment.



Employees rehired within [define timeline], will have any unused, accrued balance reinstated
and will [begin accruing at their prior accrual tier] OR [be granted their prior grant amount]
without any introductory period.
OR
 Earned, unused accrual balances will not be reinstated upon rehire.
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