Paid Time Off (PTO) with Accrual and Carryover Provisions

Purpose

[Company Name] believes that its employees are the key to what makes a great company. Although work makes up a large portion of an employee's life, we believe that a balance between work and nonwork activities is essential to maintain quality performance and a positive work atmosphere. To support this philosophy, the company has designed a paid time off (PTO) plan that incorporates vacation, personal and sick leave into one program.

Accrual Rate

All full-time employees will accrue PTO hours according to the following schedule:

Years of Service        Hours per Pay Period           Days per Year

0-2 years                     3.07 hours                              10 days

3-5 years                     4.61 hours                               15 days

6-10 years                    6.15 hours                              20 days

11+ years                      7.69 hours                              25 days

For purposes of this policy, the year begins on the employee's date of hire.

Procedures

PTO is designed to cover leave for vacation, personal sickness, family sickness, family activities and extra holiday time.

In general, foreseeable PTO must be preapproved by and prescheduled with the employee's supervisor and must be taken in full hour increments. Approval for all scheduled time away is subject to applicable workloads. In case of an emergency, however, employees shall be allowed to take up to [number of hours/days] unscheduled PTO with less than 24 hours' notice and regardless of applicable workload. 

A maximum of 40 hours of accrued and unused PTO time may be carried over from one calendar year to the next.

In the event an employee needs time away from work prior to accruing the necessary PTO hours, an employee may build up a negative balance with the prior approval of his or her supervisor.

Employees will be paid for all earned and unused PTO time upon termination of employment.

Final paychecks for nonexempt employees will include deductions for repayment of any negative PTO balance upon termination.