Time off basics

What is PTO?Paid time off, and how it actually works.

Petar SlovićPetar SlovićUpdated 3 min read

PTO stands for paid time off: days you're paid for while you're not working. It covers vacation, and depending on the company, sick days and personal days too. In the US there's no federal law that requires private employers to offer it, so every company sets its own rules, within whatever its state requires.

Here's how PTO works in practice: the main kinds of policy, how it builds up, what happens at the end of the year, and how to ask for it.

PTO in one line

PTO is a paid day away from work that your employer gives you, either as a bank you draw from or as time off with no fixed number, and the rules for earning, using and keeping it are set by your company and your state.

  1. The main kinds of PTO policy

    One PTO bank. Vacation, sick and personal days all come from the same pool. Simple, and you decide how to use it. The downside is that people come to work sick to save days.

    Separate banks. Vacation days in one bucket, sick days in another, sometimes personal or floating days in a third. Sick days are usually only for illness and appointments. See PTO vs sick leave.

    Unlimited or discretionary PTO. No fixed number: you take what you need with your manager's agreement. See unlimited PTO for how much people actually take.

  2. How PTO builds up: accrual

    Most fixed PTO accrues: you earn a slice each paycheck or for each hour worked, instead of getting the whole year on January 1. Fifteen days a year at eight hours is 120 hours, or about 4.6 hours every two weeks. The PTO accrual calculator works it out for your pay schedule and shows when you'll have enough for a trip.

  3. Carryover, caps and payout

    Companies decide what happens to unused PTO at the end of the year: it rolls over, rolls over up to a cap, or expires (use it or lose it). Some states, like California, don't allow PTO to expire once earned. When you leave, some states require earned vacation to be paid out. The PTO payout calculator shows what a balance is worth.

  4. How to ask for PTO

    Ask early, in writing, with exact dates and who covers your work. Two to four weeks ahead is normal for a week off, more for popular weeks like the holidays. Check the team calendar first so you're not asking for the same week as two teammates. Our time off request emails have wording you can use.

Getting the most from your PTO

  • Use bridge days

    A day next to a holiday turns it into a long weekend. The PTO planner finds them.

  • Know your carryover rule

    Check what happens on December 31 before you save days.

  • Check the cap

    If your balance is capped, a full balance stops earning.

  • Book popular weeks early

    The holidays and summer go first.

  • Hand over before you go

    A short handover note makes the time off actually restful.

  • Take it

    Unused PTO is a raise you didn't collect.

Your PTO is personal.The team's PTO is a calendar.

For a team, the question isn't how much PTO each person has, it's who's out when. Here's a team's time off at the end of the year on a Forgot board. It's live.

  • Everyone's time off in one place

    Vacations, sick days and holidays on one row per person.

  • Key dates warn you

    A release date names who's away on it.

  • Requests without logins

    Your team sends time off requests through a link.

A team's PTO on one calendar, liveOpen full screen
  • Everyone's time off on one board
  • Release dates warn who's away
  • Holidays per person's country
  • Drag across a row to add time off

See your team's time off next to the dates that matter.

Forgot puts everyone's PTO, sick days and public holidays on one timeline, with a warning when someone is out on a release date.

  • Everyone's time off on one timeline
  • A warning when someone's out on a release date
  • Public holidays for each person's country
  • Your team sends dates without signing up

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Questions

What does PTO stand for?

Paid time off: time away from work that your employer pays you for, such as vacation, sick days and personal days.

Is PTO the same as vacation?

Not always. Vacation is one kind of PTO. Some companies put vacation, sick and personal days in one PTO bank, others keep them separate.

Is PTO required by law in the US?

No federal law requires private employers to give paid vacation. Several states and cities require paid sick leave, and some require earned vacation to be paid out when you leave.

How much PTO is normal?

In US private industry, the Bureau of Labor Statistics reports an average of 11 paid vacation days after one year of service, 16 after five years, 18 after ten and 20 after twenty (March 2026), plus paid holidays.

Do you get paid for PTO?

Yes, that's the point: PTO days are paid at your normal rate. Some states also require unused earned vacation to be paid out when you leave.