Paid Time Off (PTO) Policy
Combined vacation + personal + sick PTO bank. Tenure-based accrual, request procedure, payout at termination.
Every employee gets a seat — priced per employee in HR Operations, quoted with this template ready.
Rolled out to every employee at AutoZone (125,000), PetSmart (50,000+), A.S. Watson and Raley's (20,000) — and at larger retailers we are not permitted to name.
What's inside this template
Eligibility
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All regular full-time employees are eligible for PTO accrual starting on their first day of employment. Part-time employees who work 20+ hours per week accrue PTO at a prorated rate. Temporary, seasonal, and contract employees do not accrue PTO unless required by law.
Accrual Rates
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PTO accrues each pay period based on tenure: 0–2 years = 15 days/year (1.25/mo), 2–5 years = 20 days/year (1.67/mo), 5+ years = 25 days/year (2.08/mo). Accrual is prorated for partial pay periods.
Maximum Balance
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PTO balances are capped at 1.5× annual accrual (e.g., 22.5 days for a 15-day accruer). Once the cap is reached, no additional PTO accrues until balance is reduced. This encourages employees to use their time off.
Requesting PTO
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Submit PTO requests via the HRIS at least two weeks in advance for planned absences. Requests are reviewed based on business need, prior commitments, and equitable distribution among team members. Same-day requests for illness are permitted; notify your manager as early as possible.
Blackout Periods
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Some teams may have blackout periods (e.g., end-of-quarter close, peak retail seasons) during which non-emergency PTO requests will not be approved. Blackout schedules are communicated 60 days in advance.
Carryover & Payout
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Up to 5 days of PTO may carry over into the next calendar year; the rest is forfeited unless prohibited by state law. Upon termination, accrued unused PTO is paid out per state law (some states require payout, others do not).
Holidays
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PTO is in addition to recognized company holidays. The current holiday schedule is published annually on the employee intranet.
Common use cases
Frequently asked questions
Can I take PTO before I've accrued it?
With manager approval, you may take up to 5 days of PTO before it has accrued. If you separate from the company before earning it back, the negative balance is deducted from your final pay.
Does PTO carry over if I move to a different state office?
Yes — PTO is a federal-level benefit and follows you across U.S. offices. Note that some states have stricter accrual / payout rules; the policy will be applied as the more generous of state law or this policy.
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Ready to use this template?
Every employee gets a seat. Request pricing for HR Operations and we quote into a workspace with Paid Time Off (PTO) Policy ready.
Rolled out to every employee at AutoZone (125,000), PetSmart (50,000+), A.S. Watson and Raley's (20,000) — and at larger retailers we are not permitted to name.