Unlimited PTO vs. Fixed Leave: What’s Best for Your Company? – Employment Edge with Liz

 

Elizabeth Schlissel. Partner and Chair of the Labor & Employment Practice Group at Falcon Rappaport & Berkman, explores the pros and cons of unlimited PTO policies and compares them with traditional leave structures. Find out why employees often take less time off under unlimited PTO, and discover what every employer should consider when evaluating or updating their leave policy. Ensure your company’s practices support both your team and your business goals before issues arise. Contact us at frblaw.com.

Employment Edge with Liz is Falcon Rappaport & Berkman’s video web series hosted by Elizabeth Schlissel, Chair of the firm’s Labor & Employment Practice Group. Through the series, Liz provides timely, practical commentary on the labor and employment issues shaping today’s workplace, helping employers better understand legal developments and policy considerations. Episodes have covered a range of key topics, including employees leaving companies, employee classification, bonus policies, fixed leave versus unlimited PTO, and AI in the workplace.

Transcript:

**This transcript has been prepared automatically by AI and may contain inaccuracies**

Liz Schlissel:

This Liz Schlissel and this is Falcon, Rappaport and Berkman’s The Employment Edge with Liz.

What is your company’s leave policy? Do you have a designated number of vacation days and then sick days? Do you lump all the days together as PTO time? Or do you have an unlimited PTO policy?

Many employers are surprised to learn that when they have an unlimited PTO policy, their employees actually take less time off than companies who have a designated number of days.

The reason is because when you have an unlimited PTO policy, many employees don’t know what is the industry standard or appropriate or what that company usually considers an appropriate amount of time to take off.

As a result, many employees with unlimited PTO policies, especially newly hired employees, actually don’t utilize their PTO and don’t use as many days as employees who have a strict designated number of days.

As we approach the end of the year, it’s a great time for companies to review their current policies to make sure that they reflect current practices as well as what the company would like going forward.

If you have any questions regarding your leave or PTO policies, please contact your employment attorney at Falcon Rappaport & Berkman.