Thank you to CO–U.S. Chamber of Commerce for providing the content on Unlimited PTO vs. Earned PTO: Which Should You Offer?
Here are the pros and cons of unlimited PTO versus earned PTO to consider for your business and its employees.
By: Kaytlyn Mroz, Contributor
Paid time off (PTO) is an important benefit that helps employees maintain a healthy work-life balance. As an employer designing a PTO policy, it’s vital to know the legal requirements of PTO, the advantages and disadvantages of unlimited PTO versus earned PTO, and what will work best for your business.
Legal PTO requirements
Currently, there is no nationwide statute regarding PTO, and it is not a federally protected right employees have in the United States. Businesses are not required to offer PTO as a benefit unless it is mandated by state law and/or is part of a negotiated agreement, like in executive contracts or unions.
While PTO isn’t a mandatory benefit nationwide, businesses should follow their state guidelines regarding employee PTO. There are 24 states with PTO laws covering a variety of employer requirements, from mandatory paid sick leave accrual to payouts upon employee termination….
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CO–by the U.S. Chamber of Commerce.
