Paid Time Off (PTO)

Some employers choose to combine vacation and sick leave into a benefit called “paid time off” (PTO). Some employers include holidays and floating holidays in PTO as well. PTO allows employees a certain number of days off per year to use for illness, vacation, holidays and personal needs.

Although PTO is an acceptable benefit, the Labor Commissioner considers the entire sum of PTO as vacation because it is not connected to a specific event and can be taken whenever the employee chooses.¹

Exclamation content: PTO is considered wages and you must pay out the entire amount of accrued but unused PTO