PTO and Overtime - Understanding the Relationship
Learn how PTO interacts with overtime calculations under federal law and employer policies. Understand whether PTO hours count toward overtime and how to maximize your compensation.
Does PTO Count Toward Overtime?
Under the Fair Labor Standards Act (FLSA), overtime is calculated based on hours actually worked. PTO, vacation, holidays, and sick leave are not considered "hours worked" for overtime calculation purposes. This means if you take PTO during a week, those hours don't count toward the 40-hour threshold for overtime.
Example Calculation
If you work 32 hours and take 8 hours of PTO in a week, you have 40 total paid hours but only 32 hours worked. If you then work 10 more hours, you've worked 42 total hours. Under FLSA, only 2 hours would be overtime (42-40=2), not 10 hours (50-40=10).
Employer Policies May Differ
While FLSA sets the minimum standard, some employers have more generous policies that count PTO toward overtime calculations. Check your employee handbook or ask HR about your company's specific policy.
State Laws
Some states have overtime laws that differ from federal requirements. A few states may have different rules about how PTO interacts with overtime. Always check your state's labor laws for specifics.