The 30-second version
- This sample PTO policy is designed for small businesses that want a practical starting point.
- Customize the bracketed fields before adding it to a handbook.
- Review state and local requirements before publishing payout, carryover, or sick leave language.
- Pair the policy with a clear approval workflow so it does not become shelfware.
- For broader context, read the complete PTO policy guide.
This is one complete PTO policy, written out in full and ready to copy. Not three models to compare — a single document you can paste into a handbook and edit.
Use it as a starting point, not a final legal document. If you'd rather compare structures before committing to one, the PTO policy examples piece sets three side by side. If you'd rather answer a few questions and have the document written for you, use the policy generator.
Before using any sample: Waiting periods, advance notice, manager discretion, expiry and full-time-only eligibility describe discretionary vacation only. They must not restrict statutory sick leave, any-reason paid leave or other protected absences. A combined PTO bank must preserve every applicable statutory right. Verify current requirements directly with the state and local agency for each work location.
Copyable sample PTO policy¶
[Company Name] Paid Time Off Policy¶
Effective date: [Month Day, Year]
Purpose
[Company Name] provides paid time off so employees can rest, handle personal needs, and take planned time away from work while maintaining business coverage.
Eligibility
Full-time employees are eligible for PTO after [30/60/90] days of employment. Part-time employees working at least [X] hours per week are [eligible for prorated PTO / not eligible for PTO except where required by law].
Annual PTO allowance
Eligible full-time employees receive [10/15/20] days of PTO per calendar year. Employees hired mid-year receive a prorated PTO balance based on their start date.
How PTO is earned
PTO is [granted as a lump sum on January 1 / accrued each pay period / accrued monthly]. Employees may not use more PTO than they have available unless approved in writing by [manager/HR].
Requesting PTO
Employees should submit PTO requests at least [two weeks] in advance when possible. Requests should include the dates requested and any coverage notes needed for the employee's role.
Approval
PTO requests are reviewed by the employee's manager. Approval depends on business needs, team coverage, prior approved absences, and the timing of the request.
Carryover
Employees may carry over up to [X] unused PTO days into the following year. Unused PTO above the carryover cap is forfeited where permitted by applicable law.
Payout when employment ends
Unused PTO is [paid out / not paid out] when employment ends, except where applicable law requires a different result.
Holidays and other leave
Company holidays are separate from PTO. Sick leave, parental leave, bereavement leave, jury duty, and legally protected leave are handled under separate policies where applicable.
Policy questions
Questions about PTO should be directed to [manager/HR contact].
How to customize the sample¶
Start with the allowance. If you are unsure what to offer, review average PTO for small businesses. Most teams can start with 10 to 15 days, plus holidays.
Then choose the earning method. A lump sum is easier to administer. Accrual is better if you want balances to build over time.
Finally, decide how requests get approved. This should be more specific than "ask your manager." State where requests are submitted and where approved absences are visible.
Common edits for small businesses¶
If your team is remote, add language about time zones and coverage.
If your business has seasonal busy periods, add blackout dates or extra advance notice requirements.
If you operate in multiple states, confirm payout, carryover, and sick leave rules before publishing the policy.
Where this fits with your vacation policy¶
Some companies use "vacation policy" and "PTO policy" interchangeably. Others separate vacation, sick time, and personal days. Either approach can work if the document is clear.
If you want a vacation-specific version, use the small business vacation policy examples or the free vacation policy template.
Keep reading
How Cabana handles this
Create a policy without rewriting this by hand.
Cabana's free PTO policy generator turns your choices into a clean policy draft you can copy into your handbook.
30 days · No credit card
Bottom line¶
A sample policy is useful because it removes the blank page. The real work is choosing the rules you can apply consistently.
Keep the language plain, review the legal pieces, and make the request workflow easy enough that employees actually use it.
