Paid time off is a crucial benefit to allow employees to take time off of work for medical, personal, religious, and other reasons without being penalized or missing pay. In fact, more than 70% of employees in the United States have access to paid days off from work for sick leave or vacation leave. Although these are the two most common forms of paid time off, they aren’t the only ones. We’ll go over the 10 PTO types in this post, from sick leave to vacation days and the lesser-known ones in between.
Are you struggling to keep up with PTO policies, benefits, and other HR policies? America’s Back Office is here for you. We are a Professional Employer Organization (PEO) that handles the back office administrative tasks to allow small business leaders to focus on their customers and growing their businesses. Read more about the benefits of partnering with a PEO here.
10 Paid Time Off (PTO) Types
#1. Vacation Days
Vacation days are one of the most common PTO types. As the name suggests, this kind of PTO is used to travel, spend time with loved ones, or just take a break from work. 76% of American workers receive paid vacation days. The number of vacation days may vary from business to business, but most businesses offer at least two weeks. At some companies, employees must be employed for at least six months or a year before they are entitled to vacation leave, while other companies have no such requirements.
A vacation leave policy should explain the rules surrounding when and how employees can take vacation days. For example, how many days they can take off in a row, how much notice they should give their manager, and so forth.
#2. Sick Leave
It seems pretty unfair to withhold pay from employees who fall ill as it is likely out of their control. For this reason, 91% of unionized workers and 73% of non-union workers have access to paid sick leave. Offering paid sick leave is a very smart choice that can reduce the chances of illness spreading around the office by encouraging sick employees to stay home without worrying about not getting paid for their time off. Some states even require organizations to offer paid sick leave. You can check out the laws in your state here.
#3. Bereavement
Paid bereavement leave is time off employees can use when a relative or close friend dies. Bereavement leave is typically used to allow the employee time to cope with the loss, make funeral arrangements, and attend funeral services. Some companies may offer different amounts of bereavement time off based on the employee’s relationship with the deceased.
#4. Personal Time
Things pop up in life, and personal time allows employees time to handle their responsibilities without being penalized for missing work. Personal time can be used for doctor’s appointments for the employee or their children or other loved ones, car checkups, parent-teacher conferences, and anything else that doesn’t fall under the other PTO types.
#5. Parental Leave
Parental leave can be used for maternity leave, paternity leave, or adoption. Under federal law, some businesses are required to offer unpaid parental leave — depending on the size of the business.
#6. Holidays
Holiday pay compensates employees for days they miss due to holidays. Some employers choose to follow the federal holiday schedule and automatically offer Memorial Day, Thanksgiving, Christmas, etc. off, while others like news organizations and hospitals may not automatically offer these days off. Instead, employees have to request to use holiday leave.
#7. Military Leave
Paid military leave is offered to active duty employees or those who are in active duty or active duty training. All employers are required to follow the Uniformed Services Employment and Reemployment Rights Act (USERRA), which requires them to offer up to five years of unpaid leave to employees in the military.
#8. Voting time
Paid voting time off is used so that employees can vote in local and presidential elections. Paid voting time is limited as it doesn’t take very long to vote. 44% of employers offer paid time off to vote. Some states require employers to offer paid or unpaid voting time.
#9. Jury Duty
Some employers offer jury duty pay for employees who get called to serve on a jury. Some states have jury duty pay laws that require employers to offer paid jury duty time.
#10. Compensatory Time
Comp time, or comp days, are paid days off given to employees instead of overtime pay. Compensatory time is a bit tricky to navigate as it can sometimes be illegal, especially when it’s given to nonexempt employees in private businesses.
A PEO can help with a wide array of administrative duties, from PTO policies to compliance and recruitment. To hear firsthand from America’s Back Office clients about how we’ve helped them get organized and better focus on essential business tasks, read our client success stories here.
How America’s Back Office Can Help
If you have any other questions about the 10 PTO types or about managing your employees and administrative tasks, contact America’s Back Office today. We are an IRS-certified PEO — something that only 3% of PEOs in the U.S. can say.
