Over 70% of employees have access to vacation and sick days. These are all common programs that offer time off, but vacation days and sick leave aren’t time off work you can offer. Below are details about different types of paid time off.
Top 10 types of paid time off
Federal law does not require you to provide paid time off. However, employees need to be able to take time off from work in order for them to live a full life. Offering paid time off can be a way to encourage engagement and morale.
Businesses may offer employees a set number of days off that they can use to take time off work. Some businesses allow employees to take a set number of days off per type of time off. With attendance and time tracking software, you can manage your paid time off as well as time-off requests.
Your paid time off policy must be included in your employee handbook. You should state which employees are eligible to receive which types of paid leave, how much they get, whether they receive their regular rate for time off, and when they can use it. Also, what happens to any unused time at year’s end?
Consider the following types of paid time off policies when creating your policy.
1. Vacation days
Vacation pay refers to time off employees receive to travel, visit family and friends, or take a break from work 77% of employees get paid vacation days.
There are many vacation days offered by businesses. A typical vacation policy will outline rules regarding when and how employees may take a vacation. This is an example: You may ask employees to provide you with ample notice before you use vacation days.
2. Sick leave
Paid sick leave is time that employees can take when they are ill or injured. Providing sick pay can help reduce the likelihood of illness in your small business. It encourages sick employees to stay at home.
It depends on the location of your business, and whether you offer sick pay. Make sure to check with your state for mandatory sick leave laws.
3. Personal time
Employees have the option to use their personal time off for things such as doctor’s appointments, car checkups, attending events (e.g. parent-teacher conferences), and other tasks that don’t fall under sick time or vacation time.
It doesn’t necessarily have to be for a specific purpose. Employees can have personal time, even if they don’t use their vacation days.
Employees who receive holiday pay are compensated for their time off during holidays. According to the BLS employees who receive holiday pay get an average of eight pay holidays each year.
When determining when employees are allowed to take time off, you might use the federal holiday schedule. Some examples of federal holidays are Christmas Day, Thanksgiving Day, and Memorial Day.
Employees may be offered floating holidays, which can be used at any time of the year.
Employees are entitled to paid bereavement time when a loved one dies. Employees may use bereavement as a way to grieve, plan and attend funeral services.
Depending on the relationship between the deceased and the employee, some businesses offer different amounts of bereavement leave. When creating your policy on bereavement leave, make sure you are clear. You may also ask employees to submit proof such as a funeral program or obituary.
6. Parental Leave
Paid parental leave is time off from work that employees can use for paternity, maternity, and adoption leave.
Depending on the size of your business, federal law may require you to offer unpaid parental leaves. Your state may have stricter parental leave laws.
7. Jury duty
You might offer jury service pay to employees who are called to serve on juries. If your state has jury duty laws, you must offer jury duty paid.
Your employee will be summoned to jury duty by a federal, state, or local court. Before you offer them paid jury duty, it is possible to ask employees to show you their jury summons letter.
8. Voting time
Paid voting is the time that employees are allowed to use to vote in local and presidential elections. Paid voting is usually limited as employees only need to vote for a few hours.
One SHRM study found that 44% of employers offer paid time off for employees to vote. You might be required by your state to provide paid or unpaid voting time.
9. Leave for military personnel
Employees may also be eligible for paid military leave for active duty, inactive duty training, or active duty training.
All employers are required to follow USERRA, the Uniformed Services Employment and Reemployment Rights Act. USERRA mandates that you offer an unpaid leave of absence for military personnel for up to five consecutive years.
10. Compensatory time
Comp time is the time that employees get in return for overtime pay. In many cases, however, compensatory time can be illegal.
You cannot give comp time to nonexempt employees if you are a private, not profit business. Use compensatory time-off rules to avoid FLSA violations.