PTO Policy Templates & Best Practices
Guide to creating PTO policies including common structures, accrual schedules, and best practices. Understand what makes a competitive and compliant PTO policy.
Elements of a PTO Policy
A complete PTO policy should include: eligibility requirements, accrual rates and schedule, maximum accrual/caps, rollover rules, request procedures, payout provisions, and any blackout periods.
Common Policy Types
Traditional: Separate vacation, sick, and personal days. Combined PTO: One bank for all purposes. Unlimited PTO: No set limit (with guidelines). Flexible Time Off: Similar to unlimited with minimum requirements.
Accrual Schedules
Entry-level (0-2 years): 10-15 days. Mid-career (3-5 years): 15-20 days. Senior (5-10 years): 20-25 days. Executive (10+ years): 25-30 days. These ranges vary significantly by industry and company.
Best Practices
Be clear and specific. Comply with state laws. Apply consistently. Communicate changes in advance. Document everything. Review annually for competitiveness.