Most employees expect their company to provide some type of paid time off. PTO is when employers compensate their employees during time away from work. 79% of businesses currently offer PTO to stay competitive. Offering PTO can be a great way to attract and retain employees. 

Here is everything you need to know about PTO:  

When can PTO be used?  

PTO is typically offered as a certain number of days per year that employees can take off and still be paid. Here are the various ways that your company can provide PTO:  

  • Personal: An employee can use PTO for any reason of their choosing.  
  • Family leave: An employee can take time off due to an important family matter. This includes, but is not limited to, birth, pregnancy, or illness.  
  • Sick days: If an employee is sick, they can use their PTO. This allows them to take time off to recover without losing pay.  
  • Vacation time: This type of PTO ensures that employees will still be paid even if they go on vacation. Companies vary between offering a certain number of days, weeks, or even months of paid vacation time.  
  • Holidays: For specific days throughout the year, employees are paid. For these days, employees are not required to take time off because employers already expect to pay them.  
  • Bereavement: If a death occurs in the immediate family of an employee, then they are given paid time off.  
  • Jury duty: PTO can be used for employees that are required to serve on a jury 


Is offering PTO legally required?  

In the United States, employers are not mandated by federal law to offer paid time off. However, in certain states, there are PTO laws. For example, in Arizona, companies with less than 15 employees must allow employees to use 24 hours of paid time off each year.   

While it is not legally required to offer PTO in many states, it is recommended to offer PTO, as it can help your company stand out in a competitive job market.  

Why should I offer PTO?  

89% of employees think that paid time off is important to have. Offering PTO has many benefits such as:  

  • Increased retention  
  • Higher morale 
  • Competitive advantage 
  • Employee loyalty  
  • Increased employee engagement  
  • Decreased burnout  

Many employees want PTO, so it is important for employers to understand what it is, when it can be used, if it is legally required, and why they should offer it. If you have any questions regarding PTO, reach out to us at