# HR-POL-002: Paid Time Off (PTO) Policy

**Effective Date:** 2025-01-01
**Revision:** 1.1
**Owner:** Human Resources

## 1. Purpose and Scope

This policy outlines the provisions for paid time off (PTO) for all eligible employees. Our PTO program is designed to be flexible, combining vacation, sick leave, and personal days into a single bank for employees to use as they see fit.

## 2. Eligibility

All full-time, salaried and hourly employees are eligible to accrue and use PTO. Part-time employees working a consistent schedule of 20 hours or more per week will accrue PTO on a pro-rata basis. Temporary employees and contractors are not eligible for PTO.

## 3. PTO Accrual

PTO is accrued each pay period and is credited to the employee's PTO bank on their pay date. The accrual rate is based on years of service with the company.

| Years of Service | Annual Accrual (Days) | Annual Accrual (Hours) | Hourly Accrual Rate |
| ---------------- | --------------------- | ---------------------- | ------------------- |
| 0-2              | 15                    | 120                    | 0.0577              |
| 3-5              | 20                    | 160                    | 0.0769              |
| 6+               | 25                    | 200                    | 0.0962              |

The maximum accrual balance an employee can hold is 1.5 times their annual accrual rate. Once this balance is reached, no further PTO will be accrued until the employee uses some of their banked time.

## 4. Using PTO

### 4.1. Requesting Planned PTO

For planned time off (e.g., vacations), employees must submit a request through the HR portal at least two weeks in advance. Approval is subject to manager discretion and departmental scheduling needs.

### 4.2. Unplanned Absences

For unplanned absences due to illness or emergencies, employees must notify their manager via email or Slack as soon as possible, preferably before their scheduled start time. If an absence lasts for more than three consecutive days, a doctor's note may be required.

### 4.3. Minimum Increments

PTO can be used in increments of one hour.

### 4.4. Blackout Periods

Certain periods, such as the last two weeks of a fiscal quarter or major project deadlines, may be designated as "blackout periods" where PTO requests are subject to business needs and may be denied. These periods will be communicated by department heads in advance.

## 5. PTO and Holidays

The company observes 10 paid holidays per year, which are separate from PTO. If a company holiday falls during an employee's scheduled PTO, the day will be treated as a holiday, and PTO will not be deducted.

## 6. PTO Payout and Carryover

### 6.1. Carryover

Employees may carry over up to 40 hours of unused PTO into the next calendar year. Any excess balance above 40 hours will be forfeited if not used by December 31st.

### 6.2. Payout upon Termination

Upon separation of employment, accrued, unused PTO will be paid out in accordance with state law.

## 7. Related Policies

- **Employee Handbook (HR-POL-001)**
- **Parental Leave Policy (HR-POL-010)**

## 8. Revision History

- **v1.1 (2025-10-12):** Added more detail on accrual, usage, and holidays.
- **v1.0 (2025-01-01):** Initial version.