PTO Terminology Guide - Glossary & Definitions
Comprehensive glossary of PTO terms and definitions. Understand accrual, rollover, payout, buyout, and all the terminology related to paid time off.
Basic PTO Terms
PTO (Paid Time Off): Combined bank of days for any purpose. Accrual: Process of earning PTO over time. Accrual Rate: Amount of PTO earned per unit (hour, day, pay period). Balance: Current available PTO hours/days.
Accrual & Accumulation Terms
Front-Loading: Giving full PTO balance at start of year. Prorated: Adjusted proportionally (for partial year/part-time). Cap: Maximum PTO that can be accumulated. Accrual Cap: When accrual stops until PTO is used.
Usage & Policy Terms
Use-It-or-Lose-It: Policy where unused PTO expires. Rollover: Carrying unused PTO to next year. Carryover: Same as rollover. Blackout Period: Times when PTO cannot be taken. Comp Time: Time off instead of overtime pay.
Payout & Value Terms
Payout: Cash payment for unused PTO. Buyout: Employer purchasing unused PTO. Cashing Out: Employee trading PTO for cash. Final Pay: Payout upon termination.