Paid time off (PTO) is a benefit program offered by many companies which allows employees to take off for a specific number of days and still receive compensation. This generally includes absences related to vacation, illness or personal circumstances. Under federal law, there is no minimum requirement for PTO benefits in the United States. As a result, each employer has the power to implement their own plan and accrual policies. Additional provisions, such as rollover terms or PTO banks, vary significantly as well, but many organizations calculate paid time off based on length of employment or the average number of hours worked in one pay period.
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