[Company name] Paid Time Off (PTO) Policy

Sample template from https://simpleptotracker.netlify.app/guide/pto-policy-template-small-business/
Not legal advice. Sick leave, carryover and payout rules vary by state (and some cities). Check your state labor department before adopting this policy.

PURPOSE
[Company name] ("the Company") provides paid time off (PTO) so employees can rest, handle personal matters and recover from illness while still being paid. This policy explains who is eligible, how PTO is earned and how to request it. Effective date: [____].

1. Eligibility
  * Full-time employees (regularly scheduled [____] or more hours per week) earn PTO starting [on their first day / after [____] days of employment].
  * Part-time employees [earn PTO in proportion to the hours they work / are not eligible for PTO under this policy].
  * Temporary and seasonal employees [are / are not] eligible.
  * Employees may use PTO [as soon as it is earned / after [____] days of employment].

2. What PTO covers
Choose one option and delete the other:
  * Option A, one PTO bank: PTO may be used for vacation, personal days, the employee's own illness or medical care, or caring for a family member. There are no separate vacation and sick balances.
  * Option B, separate balances: PTO is for vacation and personal time. Sick time is covered in section 7 and tracked separately.
Company holidays are listed in [____] and are not deducted from PTO, including when a holiday falls during scheduled PTO.

3. How PTO is earned
Choose one method and delete the others:
  * Front-loaded: on [January 1 / the first day of the plan year] each eligible employee receives [____] days ([____] hours) of PTO for the year. Employees hired during the year receive a prorated amount for the part of the year remaining.
  * Monthly: employees earn [____] days of PTO for each full month worked.
  * Per pay period: employees earn [____] hours of PTO each pay period.
  * Per hour worked: employees earn [____] hours of PTO for every [____] hours worked. Overtime hours [do / do not] count.
  * Daily: the annual amount of [____] days is earned evenly across each calendar day of employment.
PTO increases with length of service:
    Length of service            PTO per year
    Less than [____] years       [____] days
    [____] to [____] years       [____] days
    [____] years or more         [____] days
The higher amount starts on [the employee's work anniversary / January 1 after the anniversary].

4. Maximum balance
[There is no maximum balance. / Employees may hold up to [____] days ([____] hours) of PTO. Once a balance reaches this amount, no more PTO is earned until some is used.]

5. Requesting PTO
  * Send requests to [your manager / name or role] by [email / the request form / other method] at least [____] days in advance for absences of [____] days or more, and at least [____] days in advance for shorter absences.
  * Requests are answered within [____] business days. When requests overlap, they are handled [in the order received / by seniority], taking staffing needs into account.
  * PTO may be taken in increments of [one hour / half a day / one full day].
  * PTO [is not / is only with manager approval] available during [____] (for example, peak season or inventory weeks).
  * If plans change, tell your manager as soon as possible so the request can be cancelled or moved.
  * Employees [may not use PTO before it is earned / may borrow up to [____] days of PTO against future accrual with manager approval].

6. Unplanned absences
If you need time off you couldn't plan for, notify [your manager / name or role] by [phone / text / email] [before your shift starts / as soon as you reasonably can]. The time is deducted from your [PTO / sick time] balance.

7. Sick time (Option B only)
Employees [earn [____] hours of paid sick time for every [____] hours worked / receive [____] days of paid sick time at the start of each year], up to [____] hours per year. Sick time may be used for the employee's own illness, injury or medical care, or to care for [____]. [The Company may ask for documentation after [____] consecutive days of absence.] Unused sick time [carries over, up to [____] hours / does not carry over] and [is / is not] paid out when employment ends.

8. Carryover
Employees may carry up to [____] days ([____] hours) of unused PTO into the next year. [PTO above this amount is forfeited on [____]. / There is no limit on carryover.] Carried-over PTO [must be used by [____] / does not expire].

9. Leaving the Company
  * Employees are asked to give [____] weeks' notice.
  * Earned, unused PTO [is paid at the employee's regular rate on the final paycheck / is not paid out, except where the law requires it].
  * PTO [may / may not] be used during the notice period.

10. Records and changes
[Name or role] keeps PTO records. Employees can ask for their current balance at any time.
The Company may change this policy with [____] days' written notice. Changes will not take away PTO an employee has already earned. This policy is not a contract of employment.

ACKNOWLEDGMENT
I have read and understand the PTO policy.
Employee name: ________________ Signature: ________________ Date: __________