Some employers have retooled the traditional method of setting paid time off in separate categories by folding vacation, personal, or sick leave entitlements into one "bank." These so-called paid time off (PTO) programs allow workers to use banked time without designating the reason for taking a day or multiple days off from work. PTO offers benefits for employers and employees alike, but there are some potential pitfalls if you are not careful.
Employers that have switched to PTO programs report administration is easier. Regardless of the reason for leave, absences fall under the same code. The headaches of deciding whether or not a worker is entitled to leave are eliminated. Also, the policy associated with a PTO program may be simpler to write and explain since it need only differentiate between scheduled and unscheduled absences.
Many companies that have converted to PTO programs report cost sa...(register to read more)