Paid time off in the United States
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Paid time off (PTO) is a chiefly American term for any employee benefit that provides an amount of hours off from typical work, while still providing income. In the United States, this policy differs significantly from the annual and sick leave of most countries, as there are no federal legal requirements for a minimum number of paid days off, regardless of illness or years worked. Instead, U.S. companies determine the amount of paid time off that will be allotted to employees, often with a "bank" of hours separated into categories of vacation, sick or personal time off.
Availability of paid time off varies by type and profession. While 78% of private-sector workers have access to any amount of paid sick leave through PTO programs, 28 million U.S. workers lack access, especially part-time workers and those employed in the food service industry. Some PTO plans may also accommodate unexpected or unforeseeable circumstances such as jury duty, military service, and bereavement leave. PTO bank plans typically do not include short-term or long-term disability leave, workers compensation, family and medical leave, sabbatical, or community service leave.
Consolidated PTO plans include all categories of leave, such as vacations to sick days, and are becoming more prevalent in the field of human resource management. As of 2012, it is unclear whether these plans result in more or less total hours off for subscribing workers. Upon employment, the company determines how many PTO hours will be allotted per year and a "rollover" policy. Some companies let PTO hours accumulate for only a year, and unused hours disappear at year-end.
It is unclear as to when PTO bank-type plans were first implemented in the workforce. In a 2010 study conducted by WorldatWork, 44% of 387 companies surveyed said they started using PTO bank-type plans prior to year 2000.
Supporters of PTO argue that such breaks have various benefits such as increasing worker productivity and reducing stress, along with allowing for longer parental care.