Paid time off (PTO) for hourly employees typically accrues based on hours worked. A company may establish a rate of accrual, such as earning one hour of PTO for every 30 hours worked. This accumulated time can then be used for vacation, sick leave, or personal days, providing employees with paid time away from work. For example, an employee working 40 hours per week might accrue roughly 1.33 hours of PTO weekly.
Offering paid time off is crucial for employee well-being and retention. It allows individuals to take necessary breaks, fostering a healthier work-life balance and reducing burnout. Historically, paid leave was a benefit primarily offered to salaried employees. The increasing prevalence of PTO for hourly workers reflects a broader shift towards recognizing the importance of work-life balance for all employees, regardless of compensation structure. This can lead to improved morale, increased productivity, and reduced employee turnover.