How much time off do I get? When can I start taking time off? How do I request time off?
Those questions are often top of mind when an employee starts a new job.
To minimize confusion, employers should take time to communicate the company’s time off policy with new employees. This might also include emphasizing the difference between paid time off (PTO) and unpaid time off.
As a small business owner, you also may have questions about what type of time off to offer your workers.
Read on for an overview of the several types of paid and unpaid time off you could consider including in your time off policy.
Do I Have to Offer Paid Time Off?
While the U.S. Department of Labor’s Fair Standards Labor Act (FLSA) does not require payment for time for vacations, sick leave, or holiday, some states and local jurisdictions have implemented their own PTO requirements.
It’s wise to consult with an HR specialist as you develop your PTO policies to help make sure you are following the guidelines for the states and local jurisdictions where your employees work.
Types of Time Off
1. Vacation Days
One of the most popular forms of PTO, vacation gives employees the chance to take a break from work. Employees may accrue vacation time based on their tenure with the company, hours worked, or as specified by their employer.
Employers can decide how much vacation time to provide and determine how employees will accrue it. Employers can also decide if the vacation time will be frontloaded, along it many other policy provisions. Certain provisions may be dictated under state law.
These common service requirements for paid vacation in private industry from the Bureau of Labor Statistics (BLS) can offer some options.
- 5 to 9 days after one year of service
- 15 to 19 days after 5 years of service
- 15 to 19 days after 10 years of service
- 24 days or more after 20 or more years of service
2. Sick Leave
Sick leave may be another part of an employer's PTO policy. Sick time generally allows employees to take time off when they are ill or need to attend medical appointments. State or local law may require additional reasons for use of this leave.
Many states and local jurisdictions have specific regulations regarding sick leave policies, so it's essential to be aware of local laws.
3. Personal Days
Personal days, when provided, can give employees the flexibility to take time off for matters that don't necessarily fall under their employer's vacation or sick leave policies. Employees are generally not required to provide the reason for their request to use personal days.
4. Paid Holidays
Paid holidays are generally those days when the business observes a national or cultural holiday, and employees receive their regular pay even when they are not scheduled to work. Some employers follow the federal holiday schedule and include paid holidays like Memorial Day, Labor Day, Thanksgiving, and Christmas Day in their schedule. Businesses that need to have employees working on holidays would pay the employees for hours worked plus holiday pay.
5. Floating Holidays
You can use floating holidays to give employees the flexibility to take a day off for a holiday not recognized by the company or for personal reasons. This type of PTO allows employees to celebrate cultural or religious events important to them.
6. Family and Medical Leave
Family and Medical Leave (FMLA) allows covered employees to take unpaid, job-protected leave for family or medical reasons. While FMLA itself is unpaid, employers can choose to offer paid leave options to support their staff during significant life events, such as the birth of a child or caring for a sick family member. Some states have established family and medical leave programs.
7. Bereavement Leave
Employers can provide paid or unpaid bereavement leave to employees who have experienced the loss of a loved one. It allows them the time to grieve and manage funeral arrangements without the stress of financial loss. State law may dictate the amount of leave and covered family members for bereavement leave time.
8. Jury Duty
While laws vary by state (and in some cases by county) about paying employees for time spent serving on jury duty, employers may establish policies to pay employees for this time away from work.
9. Voting Time
Most states require employers to allow employees time off to vote. While other states may not have specific requirements, they may have protections in place for employees. Many state voting leave laws require that employers pay for some or all the time off. Employers should take time to familiarize themselves with the requirements where they employ workers.
10. Military Leave
Under the Uniformed Services Employment and Reemployment Rights Act (USERRA), employers must provide leave and protect the job rights of employees engaged in military service. Supporting employees in fulfilling their military commitments reflects respect and appreciation for their service and sacrifice. Some states also have military leave laws.
Conclusion
Understanding the wide range of paid and unpaid time off options and laws that may apply to your company, will help you create time off policies that meet the needs of your business and your employees.
* This content is for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney or other professional. The information may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct, or up to date.
