PTO vs. vacation, sick & personal time off — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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PTO vs. vacation, sick & personal time off

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in The HR Specialist Forum

Question: "What are the pros and cons of a comprehensive paid-time-off (PTO) leave plan, compared to one that has separate accruals for vacation, sick and personal days? My company is considering changing, and we need to know the advantages and disadvantages of going with PTO." -- P.T., Tucson


One good thing about PTO is that generally an employee will use the leave judiciously and reserve it for vacation and illnesses, rather than taking sick days as "not feeling great/mental health" days. One negative is that in California PTO is treated like salary so at termination the entire balance must be paid out.

We use separate accruals along with a 24-pay-period year. I advocate the PTO model and 26-pay-period year because there's just less fooling around with calculations and...(register to read more)

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