What is PTO and How Do I Use It?
Updated: 20 hours ago
Paid time off (PTO) is one of the benefits employees tend to think about most, especially when they need a break, have an appointment, get sick, or have something unexpected come up.
Each employers sets its own rules on when, what type, and how much paid time off you can use. Your employer may have specific rules about how PTO is earned, when it becomes available, how much notice you need to give, and what happens to unused time. Those rules can be very different from one workplace to another.
Understanding your PTO policy can help you know what you actually have available and how to use it.
How PTO Is Earned
The first thing to find out is how your employer provides PTO. Some employers give employees their annual PTO allotment at the beginning of the year. Others have an accrual system where you earn a certain number of hours each pay period.
For example, an employer might provide 80 hours of PTO per year but add approximately 3 hours to your balance every two weeks. If you start the job in January, you will not necessarily have all 80 hours available in February.
New employees may also have a waiting period before they can use PTO. You could begin earning time immediately but have to wait 30, 60, or 90 days before using it, depending on the employer's policy.
There may also be a limit on how much PTO you can accumulate. If your employer allows you to have a maximum balance of 120 hours, you may stop earning additional hours once you reach that limit. In this case, using it before you lose it is key.
Check your pay statements or employee portal periodically so you know whether your PTO balance matches what you expect. If the numbers do not look right, ask payroll or HR about it rather than waiting until you are trying to schedule time off. Most companies with PTO will have it listed within the job handbook or benefits documents.
Requesting Time Off
Having PTO in your account does not always mean you can take a particular day off.
Most employers have a process for requesting time away from work. You may need to submit a request through scheduling software, complete a form, or ask your supervisor directly.
There may also be a required amount of advance notice. A company might ask employees to submit vacation requests two weeks ahead of time, while another workplace may require even more notice for longer periods of time off. Some businesses may offer something called "Anytime PTO" where you can request time off any time, but this still may have restrictions for days like trainings, scheduled meetings, or other events.
Additionally, PTO may be subject to staffing needs. If three other employees have already requested that same Friday, your request may be denied even though you have enough PTO to cover the hours.
Some employers also have blackout periods when vacation requests are limited because of busy seasons. Retail businesses may have restrictions around major holidays, while other industries may have particularly busy months when taking extended time off is more difficult.
And submitting a request is not the same as receiving approval. If your request is still pending, do not assume the time off has been approved.
PTO, Sick Time, and Other Leave
The term PTO does not mean the same thing at every workplace.
Some employers combine vacation, sick time, and personal days into one PTO bank. You might have 120 hours that can be used for a vacation, doctor's appointment, illness, or personal matter. Other jobs may only offer 16 hours a year, or may allow you to earn PTO through the number of hours you work, like 8 hours per paycheck.
In the United States, there is no universally required amount of PTO. In some cases, PTO is not a requirement at all. Additionally, each state has different requirements for sick leave. In Florida, there is not a mandated separate time off bank for Paid Sick Leave. However, in Colorado, you may have the option of PTO or Paid Sick Leave (PSL).
There may also be types of leave that are completely separate from your PTO balance. Depending on your situation and where you work, you may have access to other forms of protected or employer-provided leave.
This distinction becomes important when something unexpected happens.
For example, if you wake up sick before work, your employer may expect you to use available sick time rather than vacation time. If you need several weeks away from work for a qualifying situation, using PTO may not be the only option available.
For extended absences, discussing with HR the available options can help to protect your employment. To find out more about the types of leave, check out Understanding FMLA and Workplace Accommodations.
What Happens to Unused PTO?
If you tend to save your PTO, pay close attention to what happens at the end of the year.
Some employers allow employees to carry unused PTO into the following year. Others limit how many hours can carry over, and some have policies under which certain time must be used by a deadline.
For example, you might have 100 hours available in December but only be allowed to carry 40 of those hours into the next year. If you wait until the last few weeks of the year to use the remaining time, you may have difficulty getting all of those days approved.
There can also be rules about what happens when you leave a job. Depending on the employer and applicable state law, unused accrued vacation or PTO may be paid out, forfeited, or handled in another way.
Do not assume that unused PTO automatically follows you out the door or that you will automatically receive a payout. Check your employer's policy and the laws that apply where you work. If you find out it will not be paid out, it's best to use it before you put in your notice, if you feel it will benefit you.
Using PTO Responsibly
PTO exists so employees can take time away from work, and actually using it can be important. Saving every hour because you are afraid you might need it later can leave you with a large balance that becomes difficult to use. At the same time, planning matters.
If you know you have a vacation coming up, check your balance and submit the request early. If you regularly use PTO for appointments or personal responsibilities, keep track of how quickly you are using your available hours. Additionally, providing notice for time you plan to take off gives the company more time to adjust staffing to meet the workload change. For high volume request days like holidays, weekends, or known popular events (Superbowl, World Cup, a religious day, etc) getting your request in early can help increase your likelihood of being approved.
Unexpected situations are different. You may have enough PTO available to cover an absence, but you still need to follow your employer's call-off procedure. Having PTO does not necessarily excuse failing to notify your employer properly.
If you believe your PTO balance is incorrect, your request was handled differently from the written policy, or you are unsure how a particular type of leave should be recorded, ask HR or payroll for clarification. Keep copies of your approved requests and pay statements when appropriate, particularly when a large amount of time or a significant issue is involved.
Final Thoughts
PTO is one of those benefits that is much easier to understand when you know the rules before you need to use it.
Find out how your employer calculates PTO, when you can begin using it, how requests are submitted, whether there are limits on when you can take it, and what happens to unused time. Those details can affect everything from planning a vacation to handling an unexpected absence.
And remember that PTO is only one type of time away from work. Depending on your employer and your circumstances, other leave options may be available as well.
Up Next: Knowing when and how to use your PTO is one part of being a responsible employee. How you conduct yourself while you are at work matters too. From how you communicate with coworkers to how you handle disagreements, professionalism shows up in everyday interactions.
Next, we’ll look at Work Etiquette and the small things that can make a big difference in how you are treated and remembered in the workplace.
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