PTO for Salaried vs Hourly Employees
Understand the differences in PTO for salaried and hourly employees, including how accrual, tracking, and payout calculations work for each type.
Accrual Differences
Hourly workers typically accrue PTO per hour worked. Salaried workers often accrue per pay period or receive an annual lump sum. The total amount may be similar, but tracking methods differ.
Tracking and Usage
Hourly workers usually track PTO in hours. Salaried workers may track in days or hours. For partial days, hourly workers use exact hours; salaried workers may use half-days or have more flexibility.
Payout Calculations
Hourly: PTO payout = accrued hours × hourly rate. Salaried: Calculate hourly rate first (annual salary ÷ 2080), then multiply by hours. Some employers use different methods for salaried staff.
Legal Considerations
Exempt (salaried) employees may have different rules under FLSA. Some employers can dock PTO for partial day absences but not pay. Consult your policy and state laws.