Accruals (Leave)

Paid time off accrual is a method many businesses use to distribute paid time off, or PTO, to their employees. This time can be used towards vacations, personal time, or sick days (though some businesses offer sick days as a separate benefit).

Employers often give their workers the option to cash out on the unused time, allow a certain amount of time off to roll over to the next year, or do a mix of the two options. Alternatively, employers can enact a “use it or lose it” policy that would expire previous accrued time to encourage employees to take the time off.

When employees leave a business, the employer may need to cash out the remaining unused accruals in their final pay. Employers do not have a responsibility to cash out on time off that wasn’t accrued or earned otherwise.

Accruals (Leave)

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