Use this sample PTO policy as a guide when you develop your own policy
You need a paid time off (PTO) policy in your organization so that the employees understand your rules and expectations about the amount of time they need to spend at work. The policy assures that misunderstandings about the amount and type of PTO are minimized.
The PTO policy also ensures that, as an employer, you have a published framework which provides guidance for you for making decisions that ensure the fair and equitable treatment of employees. Both of these goals are a win for both employers and employees.
Following is the sample PTO policy.
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Purpose of Paid Time Off (PTO)
The purpose of Paid Time Off (PTO) is to provide employees with flexible paid time off from work that can be used for such needs as vacation, personal or family illness, doctor appointments, school, volunteerism, and other activities of the employee's choice. The company's goal is to reduce unscheduled absences and the need for supervisory oversight.
The PTO days you accrue, effective (date) replace all existing vacation, sick time, and personal business days that you have been allotted under prior policies. The vacation time you accrued in the past will carry over, in excess of the PTO policy, per the company's guidelines at the time.
Guidelines for PTO Use
Each full-time employee will accrue PTO bi-weekly in hourly increments based on their length of service as defined below. PTO is added to the employee's PTO bank when the bi-weekly paycheck is issued. PTO taken will be subtracted from the employee's accrued time bank in one-hour increments.
Temporary employees, contract employees, and interns are not eligible to accrue PTO.
Eligibility to accrue PTO is contingent on the employee either working or utilizing accrued PTO for the entire bi-weekly pay period. PTO is not earned in pay periods during which unpaid leave, short or long term disability leave, or workers' compensation leave are taken.
Employees may use time from their PTO bank in hourly increments. The time that is not covered by the PTO policy, and for which separate guidelines and policies exist, include company paid holidays, bereavement time off, required jury duty, and military service leave.
To take PTO requires two days of notice to the supervisor and Human Resources unless the PTO is used for legitimate, unexpected illness or emergencies. (Use the Paid Time Off form to request PTO.) In all instances, PTO must be approved by the employee's supervisor in advance.
Your Company appreciates as much notice as possible when you know you expect to miss work for a scheduled absence.
Paid Time Off (PTO) Exceptions
- Employees who miss more than three consecutive unscheduled days may be required to present a doctor's release to the Human Resources department that permits them to return to work.
- PTO taken in excess of the PTO accrued can result in progressive disciplinary action up to and including employment termination. This time off will be unpaid. The only possible exception to this policy must be granted by the company president.
- PTO accrued prior to the start of a requested and approved unpaid leave of absence must be used to cover hours missed before the start of the unpaid leave.
- Under the company's Family and Medical Leave Act (FMLA) policy, all accrued PTO time is taken before the start of the unpaid FMLA time.
- Unscheduled absences, due to illnesses of four hours or more, that result in consecutive days absent from work, are considered one absence incident in relation to potential disciplinary action.
Progressive disciplinary action relative to incidents of absenteeism is administered on a rolling 12-month calendar as follows:
--One - three incidents: No disciplinary action. Supervisory coaching.
--Fourth incident: Verbal warning with a documented coaching session
--Fifth incident: Written warning in the employee's file
--Sixth incident: Employment termination
An employee who receives a second written warning in a rolling 24 month time period will have his or her employment terminated.
- An employee who has used all of his or her FMLA and Short Term Disability benefits, and is still unable to return to work, will have his or her employment terminated.
- Any employee who misses two consecutive days of work without notice to their supervisor may be considered to have voluntarily quit their job.
Specific Eligibility for Paid Time Off (PTO)
PTO is earned on the following schedule based on a 40 hour work week. PTO is prorated based on the number of hours worked on an employee's regular schedule. Thank you to Amy Casciotti of the TechSmith Corporation for the sample numbers.
Years of Service
- 1-2: 144 working hours per year, earned at a rate of 2.7693 hours for each full work week in a calendar year.
- 3-4: 152 working hours per year, earned at a rate of 2.9231 hours for each full work week in a calendar year.
- 5-6: 160 working hours per year, earned at a rate of 3.077 hours for each full work week in a calendar year.
- 7-8: 168 working hours per year, earned at a rate of 3.2308 hours for each full work week in a calendar year.
- 9-10: 176 working hours per year, earned at a rate of 3.3847 hours for each full work week in a calendar year.
- 11-12: 184 working hours per year, earned at a rate of 3.5385 hours for each full work week in a calendar year.
- 13-14: 192 working hours per year, earned at a rate of 3.6924 hours for each full work week in a calendar year.
- 15-16: 200 working hours per year, earned at a rate of 3.8462 hours for each full work week in a calendar year.
- 17+: 208 working hours per year, earned at a rate of 4.0 hours for each full work week in a calendar year.
Each employee may carry 80 hours of accrued PTO over into a new calendar year. Employees are responsible for monitoring and taking their PTO over the course of a year so that they do not lose time accrued when the current calendar year ends. (PTO is subject to supervisory approval and not every employee can take accumulated time in December; the company must continue to serve customers.)
If extenuating business circumstances prevented the employee from taking scheduled PTO, this PTO may be carried over and taken in the first half of the next calendar year with the approval of the department head and Human Resources.
Employees are paid for the PTO they have accrued at employment end. If an employee has used PTO time not yet accrued, and employment terminates, the PTO taken is deducted from the final paycheck. Employees who give two weeks notice of employment termination must work the two weeks without utilizing PTO.
Employees who are rehired will receive credit for former time worked and accumulate current PTO for the combined time.
Understand the Ramifications of Emergencies for Employers and Employees
You may adapt this inclement weather and other emergency sample policy for your organization and your organization's culture. But, keep in mind the potential disasters that you may experience in your city or region as you customize this inclement weather and emergency policy for your organization.
You want your policy to cover all of the types of weather and other emergencies that can affect your workplace, your employees, your vendors, and your customers. Your goal is to keep them all out of harm's way.
Weather and other emergencies range from hurricanes to tornadoes to snow and sleet. You must prepare your business for closure when employees would experience dangerous conditions trying to report to their place of employment.
You also need a policy that will alert your clients and customers when you close due to weather or other emergencies. You don't want them trying to reach you under dangerous conditions either.
Wondering about the rationale and the factors that were considered in creating this policy? Take a look at the article from which this policy was developed.
Inclement Weather Policy
Your company recognizes the fact that inclement weather and other emergencies can affect the company’s ability to open for business and the employee’s ability to get to work. The safety of our employees is paramount in an emergency.
No policy can cover every potential emergency, so this policy covers the most common.
Fortunately, emergencies and inclement weather days are infrequent, but these are the guidelines for when they occur.
Company Closure
When an emergency such as these examples occurs, the company is closed.
- over a foot of snow falls,
- electricity is out,
- heat in the winter is not available,
- flooding affects transportation, or
- the governor declares a weather emergency and asks people to stay off the roads.
We will keep the company closed for the briefest period of time possible.
Pay for Employees
During the time when the company is closed, exempt employees will receive their full salary for their normal hours worked for up to one work week.
Nonexempt employees and interns will receive their hourly pay for their normally scheduled hours for up to one work week. (This means that if an employee's normal work hours are 40 in one workweek, the employee will receive their hourly pay for 40 hours. If an intern's normal schedule calls for 16 hours, the employer will pay for 16 hours.) No overtime will be paid to any employee.
Phone number for yahoo. For an unlikely emergency that extends beyond one work week, at the end of the one work week, employees will be expected to use paid time off (PTO) to cover additional days that the company may be closed to ensure that they continue to receive their pay. No overtime will be paid during this time period.
In return for this pay during the paid work week while the company is closed, employees are expected to work at home if feasible. Exempt employees will likely have the opportunity to catch up on paperwork or work online ((if power is available), They might even schedule remote meetings if other needed participants have access to a computer with power.
Employees who have jobs that usually require their physical presence at work can do such tasks as developing an up-to-date job description or improving their workflow. Also, thinking about how to do your job so that your work continuously improves is another. Reading journals and books related to your work is also a fair exchange.
Employees who had taken the day off will have the day subtracted from their allotted PTO as would have occurred if the company did not close.
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Benefits Coverage for Employees
During the company closure, the employer will continue to provide coverage for all employees with the company’s standard health insurance plan and other benefits such as life insurance and short and long-term disability insurance for up to 30 days. The regulations of the insurance companies may alter the number of days and/or by Federal or state law.
The benefits that are associated with physically attending work such as free beverages, free Friday lunches, and family events will not be offered during a company closure.
Payment of salary or hourly wages to employees who are not at work and who have no approved management approved teleworking plan ends the day the company reopens.
Notification
In an emergency, managers will make every effort to notify employees by phone of the closure through departmental call trees. Local radio and television stations will announce the closing, employees will be emailed, and the closing will be posted on the website.
All of these assume that all or some employees have access to electricity and phones. Employees are encouraged to own, for example, a radio that runs on batteries so that they do not lose contact with the outside world. But, in a regional power outage, recognize that the employer’s best efforts to notify employees of the closure may not work.
When the employer is unable to notify employees of the closure, employees are asked to use common sense and make their best assessment of the safety and practicality of the situation. In a regional power outage, for example, employees will know that the company is likely to have no power. If 18” of snow falls, employees should come into work only if they can make it safely.
No pressure is extended from this employer, at any time, that would encourage employees to take unsafe chances to attend work.
Extending Employee Leave
When the company closure ends, all employees are expected to report to work whether the closure ends on day two or after that. Payment of salary or hourly wages ends on the day the company reopens if the employee does not show up for work or telework, whatever is the employee's normal working arrangement.
Certain jobs can be worked from home if chaos continues in the region, but teleworking for exempt employees must be arranged, on an individual basis, with the employee’s manager. Teleworking is not available as an option for nonexempt employees.
Walmart Employee Policies And Procedures
Employees who cannot return to work at the end of the company closure must arrange additional time off with their manager. If the employee has used up PTO, he or she will be required to apply for an extended unpaid leave of absence.
The company recognizes that some employees may need additional time off to repair extensive home damage, for mass transit to be available for transportation to work, and a variety of other emergencies. These will be assessed on a case-by-case basis and decisions will also be affected by the employee’s job requirements.
Part-Day Closure
If an emergency event such as inclement weather or a power outage occurs, the executive team may determine that the company will close mid-day. When the company closes mid-day, employees are encouraged to leave immediately so that the conditions do not further deteriorate and affect their ability to safely travel.
Exempt employees who were, working at home with prior permission, or at the office on the day of the partial day closure, will be paid their normal salary. Nonexempt employees and interns will be paid for their scheduled hours of work. No overtime will be paid.
Employees who had taken the day off will have the day subtracted from their allotted PTO as would have occurred if the company did not close.
The Company Is Open, and the Employee Cannot Get to Work
Individual employee circumstances may affect an employee’s ability to come to work. The key to assessing the situation on a case-by-case basis is the communication between the employee and his or her manager.
The company recognizes that in a severe national or regional disaster, all methods of communication may be unavailable, but employees should persist, by any method possible, to reach their manager to discuss individual circumstances.
All pay, leave, and attendance policies included here will apply, regardless of the circumstances of the absenteeism.
The Employee Needs Time for Repairs
The company is aware that in emergencies or inclement weather emergencies, employees may lose family members. They may lose their home and all regular activities such as school and daycare. In any circumstances, all pay, leave, and attendance policies included here will apply, regardless of the circumstances of the absenteeism.
The company bereavement policy will apply in the case of the death of a family member. Extended unpaid leaves of absence are available, depending on the need. Employees should communicate with their manager or his or her supervisor to make arrangements.
Disclaimer: Please note that the information provided, while authoritative, is not guaranteed for accuracy and legality. A worldwide audience reads the site and employment laws and regulations vary from state to state and country to country. Please seek legal assistance, or assistance from State, Federal, or International governmental resources, to make certain your legal interpretation and decisions are correct for your location. This information is for guidance, ideas, and assistance.
Two years after raising minimum wages for store employees to $9 an hour, Wal-Mart Stores Inc. is making adjustments to the way it dispenses pay increases and trains store employees.
The retailer will abbreviate a training program that new employees must complete to earn $10 an hour. The six-month program introduced last year will now take three months to complete, company executives said.
Wal-Mart..
![Walmart Walmart](https://www.pymnts.com/wp-content/uploads/2017/09/walmart.jpg)
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