Taking time off from work has many benefits.
But when you’re surrounded by job insecurity, hustle culture, and people with workaholic tendencies, it can be challenging to take a step back and put this knowledge into practice.
Beyond the workplace pressures, potential financial impacts also deter people from taking time away from the office. If your days off decrease your salary, choosing to rest may contribute to serious financial stress. But sometimes, you don’t have to take a financial hit for a day off. You just need to know your company’s answer to one question: is personal time off paid?
The answer is complicated. The Fair Labor Standards Act (FLSA) doesn’t require companies to provide paid time off (PTO), so it’s up to employers to offer it as a benefit. Some workplaces use various types of PTO to attract and retain talent, while others offer all time off unpaid.
If you’re looking for a new job or booking your first vacation at your current organization, you need to unravel the complexities of the company’s PTO policies. Fortunately, we’re here to help.
What’s personal time off?
Personal time off is when you’re away from work while receiving your regular salary or hourly pay per missed shift. This includes vacation and personal days — time for running errands, attending appointments and events, or looking after sick family members.
At most companies, sick leave isn’t included in personal time off. And the Bureau of Labor Statistics reported that 77% of full-time private sector employees received sick leave — meaning 23% don’t have any paid sick days. That number is even lower for part-time workers.
Based on the FLSA’s rules, personal time off can be paid or unpaid. Some reasons for taking unpaid leave are protected by law: the Family and Medical Leave Act (FMLA), for example, compels companies to offer unpaid medical leave to employees recovering from serious illness or taking care of family members. In certain states, additional laws offer more protections.
While companies may choose unlimited PTO or none at all, many employers offer both paid and unpaid time off. This allows employees to take additional time away as necessary, even after they’ve exhausted all of their paid days. However, should your company permit unpaid days, you must be mindful of the number you take — ensure you adhere to relevant policy and avoid letting absences become a performance issue.
Are personal days the same as paid time off?
PTO is typically an umbrella term that includes both personal time off and sick days. (People often use the acronym “PTO” to refer to both paid and personal time off.) Personal time off can be used to cover:
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Parental leave
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Jury duty
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Sick leave
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Bereavement leave
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Personal leave
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Disability leave
An increasing number of employers structure PTO as a set number of days to be used when employees are sick, overstressed, on vacation, or completing personal tasks. Because they’re drawing from a single pool, workers don’t need to supplement their sick time with vacation days.
When companies distinguish personal time off versus vacation, they usually stipulate that vacation days should be used for restful time off. In this case, workers often take their vacation days in blocks and have their managers authorize the absence well in advance. Some companies also offer extended PTO in the form of a sabbatical.
Employees can also request personal days with shorter notice for circumstances like jury duty, moving, or attending important events — as well as to support mental health and relieve burnout. If the company delineates between sick and personal days, workers may also use personal days if they’re unwell and have already used up their allotted time off for sickness.
How do personal time off policies work?
Each company develops its own PTO policy. If you’re unclear on any details of your employer’s policy, your first step should be checking the employee handbook. That said, there are a few key distinctions you should look out for.
Annual allotments versus PTO accrual banks
If your employer has an annual allotment (or “lump sum”) policy, you receive your whole PTO allocation at the start of the year and draw from it as you go. But if your employer has a PTO bank policy, you accrue PTO hours throughout the year based on the number of hours you’ve worked. For example, if your company offers 20 days of banked PTO per year, you gain five days every quarter (1.67 days per month).
Rolling over PTO
Some employers have rollover PTO policies that allow you to carry over unused PTO hours to the following year. Others wipe all remaining PTO at the end of the year, and workers start from scratch in the new year (sometimes called a “use it or lose it” policy). Workplaces that roll over PTO may allow unlimited rollover, while others cap the number of unused vacation days employees can carry over to the next year.
Paying out PTO
While US federal law doesn’t require companies to pay out accrued PTO if an employee leaves, some state laws do. Even in states that don’t require a payout, company policies vary, so check the employee handbook to clear up any doubts. However, the concept of accrued PTO doesn’t apply to unlimited PTO policies, even if your company encourages you to take a minimum number of days off.
Unlimited PTO
Companies with unlimited PTO policies allow employees to take as much PTO as they like — as long as they’re completing all of their required tasks.
Unlimited PTO systems have advantages and disadvantages. While they seem attractive in theory, in practice, many employees are reluctant to take their PTO because they don’t want to look lazy or let their colleagues down. And while combining different types of PTO like vacation time, parental leave, bereavement leave, sick time, and floating holidays simplifies the system for the Human Resources department, it also relies on an environment of strong workplace trust to avoid abuse or absenteeism.
Example PTO policies
Learning how to decipher a company’s rules surrounding time off can take some practice. Let’s explore two simple examples of PTO policies:
Example #1
“Our company understands that high-performing and satisfied employees have good work-life balance. In order to facilitate rest and self-care, we provide staff with unlimited paid time off (PTO). PTO encompasses sick leave, parental leave, bereavement leave, personal leave, and vacation time. All requests for PTO should be submitted as early as possible and are subject to approval from a manager.
In order to qualify for unlimited PTO, you must:
If you don’t qualify for unlimited PTO, you will instead accrue PTO days to be used at your discretion (subject to manager approval). You are entitled to 2 days of PTO per calendar month, available on the first day of the month. Any unused days are carried over to the next month.”
Here are the key takeaways of this sample policy:
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At this company, PTO applies to all types of leave, including vacation time.
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Employees who work for 30 or more hours per week and were hired a minimum of six months ago receive unlimited PTO.
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Anyone who doesn’t meet these requirements earns two days of PTO on the first day of each month, which they may choose to bank and carry forward to future months.
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In order to take time off, staff must have a manager approve their request for PTO.
Example #2
“We firmly believe that our employees do their best work when they have ample time to rest and recharge. At the beginning of each calendar year, staff are allotted 15 days of paid vacation, 15 days of unpaid vacation, and 10 days of paid sick leave. Please note that you cannot carry unused days to the following year.
All time off is subject to approval from a manager. Requests for paid and unpaid vacation must be submitted no later than 10 business days in advance in order to give leadership adequate time to plan around your absence. Paid sick leave can be used at any time.
Should you require additional paid time in the form of special leave to accommodate a long-term health condition or special life event, your manager will review your unique case. They may decide to grant you full PTO, partial PTO, or unpaid leave. With that said, we encourage you to reach out with requests for additional PTO should you need it — most are approved.”
Here are the key takeaways of this sample policy:
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This company separates time off into four categories: paid vacation, unpaid vacation, paid sick leave, and special leave.
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Staff are entitled to 15 days of paid vacation, 15 days of unpaid vacation, and 10 days of paid sick leave to use between January 1 and December 31 of each year.
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Employees can’t save sick leave and vacation days to use in the following calendar year, meaning they lose any days they haven’t taken by December 31 (when the system resets).
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In order to take time off, staff must have a manager approve their request for PTO. Employees must submit requests for paid and unpaid vacation time to their manager a minimum of 10 business days in advance, but they can take sick days on short notice.
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Workers who require additional time off beyond their allotted days can make their case to their manager, who may approve special leave. Special leave might be paid, unpaid, or a combination of the two.
How to ask for a personal day: 3 steps
Knowing how to request personal time off respectfully and cooperatively will help you maintain strong relationships with your colleagues and managers. When asking for a personal day:
1. Give as much advance notice as possible
Sometimes personal days must be used for emergencies, such as caring for a sick child or grieving the death of a loved one. In these cases, you won’t be able to provide much advance notice. Still, aim to request the leave as soon as possible so your boss can plan how to manage the team’s workload in your absence.
If the personal time is for non-urgent responsibilities or a planned event (like a wedding), request the time off at least two weeks before the anticipated date. Your employer may have a specific policy on advance notice, so check the employee handbook first.
2. Ensure someone will cover your work
Managers are more likely to grant time off if they know your absence won’t cause hiccups. If there are any planned tasks you won’t be able to complete while away, see if a coworker can cover for you. And if your work is flexible, get as much done ahead of time as you can.
3. Ask in writing
Send your manager a formal email to request time off or submit the request through the relevant company software, like Slack. Broadly outline the reason for the request and specify the exact date(s). You don’t have to divulge all of the details — especially if they’re personal — but provide enough context to justify your absence.
If your manager gets back to you promptly, put in motion any HR processes necessary for logging the time off. If you don’t receive a reply from your manager, wait a few days and either approach them in person or send a polite follow-up email.
How to get the most out of your personal days
The first step in optimizing your personal days is to drop any guilt you have about taking them. Remind yourself that in the long term, taking time off is usually the right choice for both you and your employer. Taking a mental health day now might improve your productivity upon return and reduce the risk you’ll need to take even more time off later.
Once you’ve done your diligence and requested the time away, use the time wisely. It’s tempting to check back in at work and handle a few tasks while you’re supposed to be resting, but doing so is actually counterproductive. You deserve to rest on your break — here’s how to make the most of it:
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Stop working: You won’t get the full benefits of a vacation if you check emails, answer calls, and stress about the tasks you must complete when you return. Forward your work phone to voicemail, set up an out-of-office auto reply in your email account, and log off completely. Your work will be there when you’re back on the clock.
Protect your health and well-being with strategic personal days
Yes, compensation is important. But don’t underestimate the value of benefits like paid time off and generous vacation policies, which can be crucial to maintaining work-life balance, protecting your mental health, and turning your dream career path into a reality.
Knowing an employer’s PTO policy is a key part of the job search process. Before job interviews, perform some research — if the information isn’t available online, consider connecting with an acquaintance at the organization or a non-hiring employee over LinkedIn.
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