What is paid leave (PTO)?

Paid time (also called PTO or personal leave) is compensated time away from work that is provided by an employer to employees to use as they wish. PTO is often measured in hours and classified for different types of absences such as illness, vacation time, and personal time.

Paid leave is not the same as maternity leave, FMLA leave, furlough, unpaid leave, or any other government or state-mandated leave.

Paid leave policies generally fall into two categories:

• traditional
• Unlimited (or discretionary)

Traditional PTO policies typically issue time to new employees at intervals (e.g., monthly or quarterly), the limit of which may increase as the employee spends more time with the organization. PTO balances are then tracked by a manager or administrator, either manually on paper or in a spreadsheet, or with software designed for the purpose of leave tracking or time tracking (see:  time tracking  ).

Unlike traditional PTO, unlimited or discretionary PTO policies typically do not involve issuing trackable hours to an employee; rather, they usually state that leave is available at the discretion of the employer (often the employee's manager), who is expected to approve the request if they determine the employee is in good standing and does not have any conflicts that would impede their absence.

Some organizations that use unlimited PTO policies still track the number of hours or days taken by an employee for accounting or approval reasons; this, as well as the fact that personal leave requires manager approval, leads some to prefer ""discretionary"" as a more accurate name for this type of PTO policy, since ""unlimited"" can be confusing.

Research shows that employees of organizations with unlimited PTO policies actually use less vacation time on average than employees with limited PTO; this may be due to peer pressure or self-imposed pressure to appear dedicated. While some organizations may view the reduction in vacation time used as a benefit of an unlimited PTO policy, others believe that PTO is important to the mental and physical health of employees, and cite this as a reason for instituting a limited PTO policy.

Is personal leave the same as paid leave?

Personal leave and paid leave are often used interchangeably, but the terms are slightly different. Paid leave usually includes sick days and personal leave, so really, personal leave is just one aspect of PTO. Some companies also include other leave in their PTO, such as time for appointments and time for work-related education.

Can a personal day be denied?

While it is generally against the law for an employer to refuse sick leave to someone who is actually unable to work due to illness or another medical condition, an employer can legally refuse to grant someone personal leave. However, they must have a good reason to refuse the leave, such as if another employee has already requested the leave, or if the employee has already agreed to work on those dates. The employee can only dispute these circumstances if he or she has signed a contract stating that he or she is allowed to take this type of leave.

Can your boss ask you why you are taking a personal day?

There is no law that requires employees to tell their boss what they are doing on their personal days. As the name suggests, personal days  are private.  The boss can ask what the employee is doing on the day off, but the employee is under no obligation to divulge the details. It is also against the law for a boss to ask an employee for a doctor's note to take sick leave.