US PTO Accrual Rules - How PTO Accumulates
Understand how PTO accrues for US employees, including common accrual methods, caps and limits, waiting periods, and state-specific regulations that affect your earned time off.
How PTO Accrual Works in the US
PTO accrual is the process of earning paid time off over your employment period. Most US employers use one of several accrual methods: per hour worked, per pay period, monthly, or annual front-loading. The method used affects how quickly you can use your time off.
Common Accrual Methods
Per-hour accrual: You earn a fraction of an hour of PTO for each hour worked (e.g., 0.0385 hours PTO per hour worked). Per-pay-period: You earn a set amount each pay period (e.g., 3.08 hours bi-weekly). Annual front-loading: Your full PTO allowance is available at the start of each year.
Accrual Caps and Limits
Many employers set accrual caps that limit how much PTO you can bank. Once you reach the cap, you stop accruing until you use some PTO. This is legal in most states and encourages employees to take regular time off.
Waiting Periods
Some employers have waiting periods before you begin accruing PTO or before you can use it. Common waiting periods are 30, 60, or 90 days from your start date. Check your employee handbook for your company's specific policy.