Human Resource Blog

Florida - PTO

Hi! Can you please explain in detail how PTO works?

Thanks!

Many employers give workers PTO or Paid Time Off rather than separate vacation pay and sick leave. As with other types of paid leave, the employer establishes the rules regarding a PTO program, so we can only discuss how such programs are usually administered. If you are new to HR in your company, read the employee handbook or written policies to learn more about PTO.

Typically an employee may be granted 15 days of PTO instead of the more traditional 10 work days of vacation plus 5 paid sick days. The employee can use the PTO as he or she likes, although usually leave must be approved in advance whenever possible. So an employee who is seldom sick can use all her PTO for 3 weeks of vacation per year. An employee with health problems can use 15 days per year of PTO as sick days.

PTO basically rewards employees for good attendance, and removes any incentive to call in sick simply to get an extra day off. Employers also use PTO to limit the amount of time an employee can take off. Suppose Tina uses all 15 days of PTO, and then calls in sick on an additional day. The employer may permit Tina to take the day unpaid, but in many cases Tina would be disciplined for excessive absenteeism.

If you are contemplating switching to a PTO system, there are several pros and cons. Some companies include holidays in PTO, but this can be a source of friction. Normally, the hourly employee has the choice of being off without pay on a holiday, or using a day of PTO to be off with pay. Many employees resent this choice — which is why some employers offer both PTO and paid holidays.

Florida law does not require that a terminated employee be paid for any unused vacation pay or PTO.