PTO accrual policy
Our company switched from an anniversary Vacation policy to a PTO accrual policy last March (prior to my employment here). There is no wording in the policy to provide a cap or "life" for the PTO time as it is accruing. I am looking for samples of policies that accrue PTO so I can update our policy to cover that end date or max appropriately.
It wasn't on the radar when COVID hit - for various reasons right after i started working here. However, I need to get this done now. My email address is email@example.com - any samples or recommendations are greatly appreciated!
Hi Kristy. Here is language from a sample policy that might help:
PTO is capped at one and a half (1.5) times the employee's annual PTO allotment. When an employee reaches the cap, no additional PTO leave will accrue until the PTO time used brings the accumulated hours below the cap. Accumulated PTO hours will carry over fiscal year to fiscal year but will always be subject to the aforementioned accumulation maximum.
Hi - here is our language:
For purposes of this policy, the year is interpreted to start on employee's date of hire. Thus, PTO begins to accrue upon date of hire and accrues on a bi-weekly basis. Two full years of accrued hours is the maximum amount of hours that may be accrued. When that point is reached, the employee must take PTO to begin accruing again or take cash in lieu.
At my company, our accrual PTO policy is based on years of service. In addition, we allow unused PTO to rollover into the next year, but have capped the maximum that can rollover. This is how we cap the maximum amount of PTO they can earn. For instance, a new employee can earn up to 144 hours per year, equivalent to 18 days off. Earning is calculated on up to 8 hours a day and up to 40 hours per week. The max they can rollover from one year to the next is 240 hours. Eventually, it's use it, sell it, or lose it. Yes, we allow our employees to sell back PTO if they chose. To sell back, they must sell a minimum of 40 hours , but we do not have a maximum amount that can be sold back. Our provisions also cover how PTO is handled when someone leaves the company. Terminated, no payout. Quit with less than a 2-week notice, no payout. Give a 2-week notice and work through the end, receive full PTO payout. Let me know if you are interested in the language.