PTO Bank

System

We are looking into creating a PTO bank where employees could voluntarily contribute some of their PTO and employees who have used all of their time could draw on additional paid time off. Does anyone have experience or information regarding this type of program?

Sharon McKnight SPHR

Below is a draft of a plan that you can amend as you think appropriate. I hope it helps.

Sharon


[B]PTO Buy Back/Donation Plan[/B]

At the end of the calendar year, if an employee has not used all of the PTO days in his or her bank, he/she may elect to do one of the following:

1. Roll the remaining days (up to one half of annual allocation) over into the following year.

- Rolled over PTO days must be scheduled and used within the first quarter of the year they are rolled into. Otherwise, they must be
donated to the community PTO bank, or forfeited.

-Employees may not roll over more than one half of their annual allocation of PTO days. The other half must be used, sold back to the
company, donated to the community PTO bank, or forfeited.

2. Sell one half of the remaining days back to the company at the
employee’s regular rate of pay and roll over the remaining half.

3. Sell two thirds of the remaining days back to the company at the employee’s regular rate of pay and donate the remaining one third of days to a community bank.

PTO days that have been donated to the community PTO bank may be used as follows:

1. If available, community PTO bank days may be used by new employees who have not accrued sufficient leave time to cover absences due to a family emergency during their first six months of employment with the company.

2. If available, community PTO bank days may be used by employees who have no days available in their personal PTO bank to cover their pay during FMLA Leave.

3. If available, community PTO bank days may be used by employees who have no days available in their personal PTO bank to cover their pay during an unexpected emergency such as bereavement leave.

Note: Employees may not withdraw more than 5 PTO days from the community PTO bank in a calendar year period. Withdrawal of days from the community PTO bank requires approval from the employee’s Supervisor and Human Resources.