{"id":23078,"date":"2020-07-08T09:00:24","date_gmt":"2020-07-08T07:00:24","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=23078"},"modified":"2025-10-06T16:45:32","modified_gmt":"2025-10-06T14:45:32","slug":"managing-paid-time-off","status":"publish","type":"post","link":"https:\/\/factorialhr.com\/blog\/managing-paid-time-off\/","title":{"rendered":"Employee Paid Time Off\u00a0&#8211; Everything an HR Manager Needs to Know"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">All HR managers will be familiar with <\/span><span style=\"font-weight: 400;\">paid time off (PTO) <\/span><span style=\"font-weight: 400;\">requests. Growing in popularity, offering this is becoming a crucial factor in clinching new hires. Everyone loves the freedom to take leave of absence, without having to worry about their salary at the end of the month. This post will cover all you need to know about <\/span><span style=\"font-weight: 400;\">paid time off policies <\/span><span style=\"font-weight: 400;\">and more.\u00a0<\/span><\/p>\n<ul>\n<li><a href=\"#whatis\">Paid time off holidays<\/a><\/li>\n<li><a href=\"#cali\">California paid time off policies<\/a><\/li>\n<li><a href=\"#average\">Average time off in the USA<\/a><\/li>\n<li><a href=\"#how\">Managing PTO<\/a><\/li>\n<li><a href=\"#practices\">Paid time off best practices<\/a><\/li>\n<li><a href=\"#tracking\">Tracking PTO<\/a><\/li>\n<\/ul>\n<div class=\"factorial-banner inline-banner banner-freebie category-legal-finance\"\n    data-banner-id=\"169115\"\n    data-banner-type=\"freebie\"\n    data-category=\"Legal &amp; Finance\">\n    <div class=\"banner-content\">\n        <div class=\"banner-text\">\n                            <h4>Get your free time &amp; attendance tracking template<\/h4>\n            \n                            <ul class=\"banner-checklist\">\n                                                                        <li class=\"not-prose\">Save time &amp; effort<\/li>\n                                                                                                <li class=\"not-prose\">Meet FLSA compliance<\/li>\n                                                                                                <li class=\"not-prose\">Accurate pay wages<\/li>\n                                                            <\/ul>\n            \n                            <a href=\"https:\/\/factorialhr.com\/templates\/download-time-attendance-excel\"\n                    class=\"factorial-cta-button not-prose freebie\" data-cta=\"freebie\" data-cta-position=\"inline-banner\">\n                    Download for free                <\/a>\n                    <\/div>\n\n        <div class=\"banner-image has-image\">\n            <img decoding=\"async\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/09\/23102327\/template-static-banner.png\" class=\"not-prose\" \/>\n        <\/div>\n    <\/div>\n<\/div>\n<h2><strong><a name=\"whatis\"><\/a>Definition: What is Paid Time off?<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">A basic PTO<\/span><span style=\"font-weight: 400;\">\u00a0definition<\/span><span style=\"font-weight: 400;\"> states that this is a benefit program that permits employees to take time off work for a specific number of days and still receive payment. Generally speaking, these absences include vacations, illnesses, or personal circumstances. European workers are typically guaranteed between 20 and 30 days off per year. However, the USA has no such rule. There are no <\/span><span style=\"font-weight: 400;\">paid time off laws<\/span><span style=\"font-weight: 400;\"> for paid holidays, vacation days, or paid sick days. Instead, businesses in the US create their own PTO<\/span><span style=\"font-weight: 400;\">\u00a0accrual <\/span><span style=\"font-weight: 400;\">policies.\u00a0<\/span><\/p>\n<p><iframe title=\"What is PTO? Difference between Vacation Time and PTO\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/r2l9OV-GmeU?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><span style=\"font-weight: 400;\">Let&#8217;s outline what a<\/span>\u00a0<a href=\"https:\/\/factorialhr.com\/blog\/leave-of-absence-policy\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">leave of absence policy<\/span><\/a> includes:<span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<h3><strong>Medical leave\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">If an employee is sick, or they\u2019re caring for a family member who\u2019s sick, they may need an <a href=\"https:\/\/factorialhr.com\/blog\/intermittent-leave\/\" target=\"_blank\" rel=\"noopener noreferrer\">intermittent leave of absence.<\/a> This leave also covers doctor\u2019s appointments or hospital stays.\u00a0\u00a0<\/span><\/p>\n<h3><strong>Bereavement leave<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">This can be used when an employee\u2019s immediate family member passes away and is known as <a href=\"https:\/\/factorialhr.com\/blog\/california-bereavement-leave\/\" target=\"_blank\" rel=\"noopener noreferrer\">bereavement leave<\/a>.<\/span><\/p>\n<h3><strong>Annual leave<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">This time off work is granted to employees to be used for whatever the employee wishes. This can include religious holidays, birthdays, anniversaries, or emergencies.<\/span><\/p>\n<h3><strong>Parental leave\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">This includes any time a person needs to take off to care for children. This could be paternity, or <\/span><span style=\"font-weight: 400;\">maternity leave paid time off vacation<\/span><span style=\"font-weight: 400;\">, as well as adoption leave.\u00a0<\/span><\/p>\n<h3><strong>Vacation requests<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Vacation PTO<\/span><span style=\"font-weight: 400;\">\u00a0is one of the most common types of leave. It is the time an employee spends away on a trip or vacation.\u00a0<\/span><\/p>\n<h2><strong><a name=\"cali\"><\/a>California Paid Time Off Policy\u00a0<\/strong><\/h2>\n<p>Although there are no federal laws concerning policy for PTO, <a href=\"https:\/\/factorialhr.com\/blog\/paid-time-off-usa\/\" target=\"_blank\" rel=\"noopener noreferrer\">some states have their own regulations<\/a> restricting its accrual and usage. California is one example. Paid time off in California is regulated so that businesses can limit the number of hours accrued to 48. After this point, workers must use some of the hours they\u2019ve accrued before they start accruing again. Furthermore, California permits companies to limit PTO usage to 40 hours per year. Any remaining time is rolled over to the next working year.<\/p>\n<h2><strong><a name=\"average\"><\/a>Average Paid Time off in USA<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">So<\/span><span style=\"font-weight: 400;\"> how much PTO is normal<\/span><span style=\"font-weight: 400;\">? Countries like France, Germany, Spain and the UK see a total of more than 30 days <\/span><span style=\"font-weight: 400;\">holiday PTO <\/span><span style=\"font-weight: 400;\">per year. However, the average in the USA for workers is 10 vacation days per year, depending on the company policy, with sick and personal days on top of that. Yet, these are not guaranteed to be paid. In this sense, the US is the only advanced economy not to guarantee its workers PTO.\u00a0<\/span><\/p>\n<p><em>*Find out which states have the most <a href=\"https:\/\/factorialhr.com\/blog\/paid-time-off-usa\/\" target=\"_blank\" rel=\"noopener noreferrer\">paid time off USA<\/a> standards.<\/em><\/p>\n<p><span style=\"font-weight: 400;\">Although this is gaining momentum as a key factor to include in company policy, the amount of time that Americans are taking off work is not increasing. Due to rising levels of work-related pressure, employees are less likely to take time off work, even if they are entitled to PTO. What\u2019s more, a large proportion of workers have said that they often work during this time off<\/span><span style=\"font-weight: 400;\">. Yet, this is not good news for companies. Time off allows people to disconnect from work and recharge. As a result, their productivity levels increase, which is undoubtedly good for a company\u2019s long-term growth.\u00a0<\/span><\/p>\n<h2><strong><a name=\"how\"><\/a>How Does Paid Time off Work? &#8211; Using a Paid time off Tracker<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Due to the varying nature of work, a company\u2019s workforce could include salary, part-time and hourly workers. Therefore, it is crucial to know <\/span><span style=\"font-weight: 400;\">how to calculate paid time off benefits<\/span><span style=\"font-weight: 400;\"> for each.<\/span> <span style=\"font-weight: 400;\">We\u2019ve included a breakdown of the differences for each type of employee below.\u00a0<\/span><\/p>\n<h3><strong>Paid time off for hourly employees\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Normally, <\/span><span style=\"font-weight: 400;\">paid time off policies<\/span><span style=\"font-weight: 400;\"> are based on an accrual of time. In this sense, it is calculated depending on the number of hours the hourly employee works. For example, if a worker accrues one hour of PTO for every 40 hours worked, this means that after working 50 weeks, they will have accumulated 50 hours of PTO, which would be 6.25 paid days off work. A <\/span><span style=\"font-weight: 400;\">paid time off accrual rate calculator<\/span><span style=\"font-weight: 400;\"> will help any HR manager in working out hourly employee time off.<\/span><\/p>\n<h3><strong>Paid time off salary employees\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">For fixed salary employees, most companies offer a predetermined amount of PTO which includes absences for vacations, as well as sick leave and other personal requests. This is becoming far more common in the US and helps attract new hires to a company. A <\/span><span style=\"font-weight: 400;\">paid time off calculator<\/span><span style=\"font-weight: 400;\"> can help you work out any additional PTO employees can accrue on top of their fixed amount.\u00a0\u00a0<\/span><\/p>\n<h3><strong>Paid time off for part time employees\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">If you\u2019re offering a set amount of PTO to your salary employees, it seems logical that you would simply halve this for part-time workers.<\/span><\/p>\n<p><b>If you\u2019re unsure of how to include this into your policy, check out a PTO <\/b><b>template<\/b><b> for ideas.\u00a0<\/b><\/p>\n<p><span id=\"hs-cta-wrapper-436ee982-67e7-49b4-bf2b-4fde27fc621a\" class=\"hs-cta-wrapper\"><div class=\"factorial-banner inline-banner banner-demo category-legal-finance\"\n    data-banner-id=\"169671\"\n    data-banner-type=\"demo\"\n    data-category=\"Legal &amp; Finance\">\n    <div class=\"banner-content\">\n        <div class=\"banner-text\">\n                            <h4>One platform for all your time &amp; attendance needs<\/h4>\n            \n                            <p>Ditch the spreadsheets and emails, manage your team&#039;s PTO, approvals, and time off in seconds with Factorial.<\/p>\n            \n                            <a href=\"https:\/\/factorialhr.com\/request-demo\"\n                    class=\"factorial-cta-button not-prose demo btn-brand\" data-cta=\"demo\" data-cta-position=\"inline-banner\">\n                    Get a demo                <\/a>\n                    <\/div>\n\n        <div class=\"banner-image has-image\">\n            <img decoding=\"async\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/07\/18103431\/Laptop_screen-3.png\" class=\"not-prose\" \/>\n        <\/div>\n    <\/div>\n<\/div><\/span><!-- end HubSpot Call-to-Action Code --><\/p>\n<h2><strong><a name=\"practices\"><\/a>Paid Time Off Laws, Policies, and Best Practices<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">A PTO<\/span><span style=\"font-weight: 400;\">\u00a0sample policy<\/span><span style=\"font-weight: 400;\"> is a good starting point for ensuring you are staying compliant with the paid time off laws. But of course, there are some best practices which should be taken into account before you begin.\u00a0<\/span><\/p>\n<h3><strong>Requesting time off\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">To make management easier, you may want to consider using a paid time off requests form when managing various <a href=\"https:\/\/factorialhr.com\/blog\/types-of-time-off-requests\/\" target=\"_blank\" rel=\"noopener noreferrer\">types of time off requests<\/a><\/span><span style=\"font-weight: 400;\">. This form allows an individual to ask formally for scheduled absence from work. Whether it&#8217;s a <\/span><span style=\"font-weight: 400;\">paid time off policy for small businesses<\/span><span style=\"font-weight: 400;\"> or large organizations, using this form will ensure that HR can keep track of when time off is taken and help with record-keeping.\u00a0<\/span><\/p>\n<h3><strong>Set company holidays for paid time off requests<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">A good practice for any policy would be to establish a set list of company paid<\/span><span style=\"font-weight: 400;\"> time off\u00a0 pto holidays <\/span><span style=\"font-weight: 400;\">when the office will be closed. These could include federal holidays like Christmas Day or Independence Day.\u00a0<\/span><\/p>\n<h3><strong>Time limitations\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">One thing to make clear would be to set time boundaries on accrued PTO. Will there be a PTO expiry date or will it roll over to be used during the following year? This must be included in the policy.\u00a0<\/span><\/p>\n<h3><strong>PTO vs vacation\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Whereas vacation leave refers only to paid time off for vacation, PTO in general covers any paid time away from work. Some companies even offer <a href=\"https:\/\/factorialhr.com\/blog\/unlimited-pto\/\">unlimited PTO<\/a>! So, what absences will you include in your policy? Will you offer paid medical leave and bereavement time off as well as vacations? These are crucial factors that you need to decide before moving forward.\u00a0<\/span><\/p>\n<p><b>Paid time off policy examples <\/b><b>are available to help any HR manager or employer when developing their<\/b><b>\u00a0policy<\/b><b>.\u00a0<\/b><\/p>\n<h2><strong><a name=\"tracking\"><\/a>Paid Time Off California Tracking<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Another best practice that can be included in company policy is to<\/span><span style=\"font-weight: 400;\"> track PTO.<\/span> A <a href=\"https:\/\/factorialhr.com\/blog\/pto-tracking-software\/\">PTO tracker<\/a><span style=\"font-weight: 400;\">\u00a0can help HR managers keep on top of the number of hours employees are accruing, as well as when they are taking time off and what the reasons for it are. Typically, PTO software<\/span> <span style=\"font-weight: 400;\">comes with a simple <\/span><span style=\"font-weight: 400;\">PTO tracking tool<\/span><span style=\"font-weight: 400;\"> that can be used for this purpose. Ultimately, this software is an automated <a href=\"https:\/\/factorialhr.com\/blog\/leave-management-system\/\">HR leave management system<\/a> that is aimed at helping employees make leave requests and helping managers approve and manage them.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A time off <\/span><span style=\"font-weight: 400;\">tracker<\/span><span style=\"font-weight: 400;\"> provides HR departments with a <\/span><span style=\"font-weight: 400;\">request form template <\/span><span style=\"font-weight: 400;\">and <\/span><span style=\"font-weight: 400;\">excel template <\/span><span style=\"font-weight: 400;\">for which to input and store information. This can ease HR managers with the approval of paid leave requests. Furthermore, these can also be used to track the employee <\/span><span style=\"font-weight: 400;\">accrual rate<\/span><span style=\"font-weight: 400;\"> and keep a log of the employee<\/span><span style=\"font-weight: 400;\"> paid time off plans. <\/span><span style=\"font-weight: 400;\">Using this software is a much more streamlined and efficient way of managing PTO. It not only saves time and costs but also increases productivity as employees will be able to take time off safely in the knowledge that it has been approved.<\/span><\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/factorialhr.com\/holidays-leaves-software\" target=\"_blank\" rel=\"noopener noreferrer\">Managing Paid Time off is simple with Factorial&#8217;s time-off software.<\/a><\/p>\n<p><em>Written by <\/em>Charlotte Stace<\/p>\n","protected":false},"excerpt":{"rendered":"<p>All HR managers will be familiar with paid time off (PTO) requests. Growing in popularity, offering this is becoming a crucial factor in clinching new hires. Everyone loves the freedom to take leave of absence, without having to worry about their salary at the end of the month. This post will cover all you need<a href=\"https:\/\/factorialhr.com\/blog\/managing-paid-time-off\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":136,"featured_media":47980,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[146],"tags":[],"class_list":["post-23078","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-hr"],"acf":{"topics":"time-off"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Employee Paid Time Off\u00a0- Everything an HR Manager Needs to Know<\/title>\n<meta name=\"description\" content=\"Paid time off (PTO) is an employee benefit program that is becoming increasingly adopted into company policy across the United States. 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