Policy

Company Paid Time Off (PTO) and Leave Policy

Effective date: [Insert date]

Applies to: All employees working in California; employees outside California receive at least the protections of their local laws. Where laws differ, the policy most favorable to the employee applies.

Purpose and Commitment

We provide equitable, inclusive time-off benefits that meet or exceed California law and support our diverse workforce. We prohibit discrimination, harassment, or retaliation for requesting or taking time off. We accommodate religious observances and culturally significant dates via flexible and floating holidays.

Quick Reference Summary

• PTO (Vacation/Personal): Company benefit; accrual or frontload options; accrued balances are paid out at separation in CA.
• California Paid Sick Leave (PSL): Minimum 40 hours (5 days) per year; accrues at least 1 hour per 30 hours worked; annual use minimum 40 hours; accrual cap 80 hours if using accrual method; carryover required unless frontloaded.
• CFRA Family & Medical Leave: Up to 12 weeks unpaid, job-protected; applies to employers with 5+ employees; includes “designated person.”
• Pregnancy Disability Leave (PDL): Up to 4 months job-protected for pregnancy-related disability.
• CA Paid Family Leave (PFL) and State Disability Insurance (SDI): State wage replacement benefits (not job-protected); benefit percentage increases for lower-wage workers beginning 2025.
• Bereavement Leave: 5 days per qualifying death of a family member (unpaid unless company-paid; employees may use accrued leave).
• Reproductive Loss Leave: Up to 5 days per qualifying event (unpaid; may use accrued leave), capped at 20 days/year.
• Organ/Bone Marrow Donor Leave: Up to 30 business days paid (organ) and 5 business days paid (bone marrow).
• School/Childcare Activities Leave: Up to 40 hours/year (max 8 hours/month) for employers with 25+ employees.
• Domestic Violence/Sexual Assault/Stalking Leave: Reasonable time off; safety accommodations for employers with 25+.
• Voting Leave: Up to 2 hours paid.
• Jury/Witness Duty: Time off required; pay per company policy (see below).
• Military Leave: Job protections under USERRA and California law.
• Emergency Conditions: Right to leave or refuse to report in certain emergencies; no retaliation (limited exceptions).

PTO (Vacation/Personal Days)

3.1 Eligibility and Accrual (choose one approach)

• Accrual Method (example): Non-exempt: Accrue 1.54 hours per week (approx. 80 hours/10 days per year) or set tiered accruals based on tenure. Exempt: Accrue monthly at a rate equivalent to 10–20 days/year depending on tenure.
• Accrual Cap: Reasonable cap permitted (e.g., 1.5–2x annual accrual). Accrual resumes when balance falls below cap.
• Frontload Method (example): Provide 10–20 days on January 1 (or hire date for new hires, prorated).

3.2 Use and Scheduling

PTO may be used for vacation, personal needs, cultural/religious observances, mental health days, or to supplement unpaid leaves. Request PTO in [system/process] with reasonable advance notice; we balance business needs and fairness.

3.3 Carryover and Payout

Accrued, unused PTO carries over subject to cap if accrual method is used. In California, accrued unused PTO is treated as wages and paid out upon separation at the final rate of pay.

California Paid Sick Leave (PSL)

4.1 Entitlement

• Minimum: 40 hours or 5 days per year for all employees who work in CA for the same employer for at least 30 days in a year.
• Accrual: At least 1 hour per 30 hours worked. Employers may cap accrual at 80 hours and annual usage at 40 hours.
• Frontload Option: Provide 40 hours each year; no carryover required if fully frontloaded annually.

4.2 Permitted Uses

• Employee’s or family member’s diagnosis, care, treatment, or preventive care.
• Needs related to domestic violence, sexual assault, or stalking.
• School/childcare closure or need to attend to child-related activities in emergencies.
• Kin Care: Employees may use their sick leave to care for family members (including a “designated person”).

4.3 Requests, Verification, and Pay

Provide notice as soon as practicable for unforeseeable needs; advance notice for foreseeable appointments. We may request reasonable documentation only where permitted by law and not in a manner that deters use. Sick leave is paid at the employee’s regular rate per California law. Available sick leave balances are provided on wage statements or a separate writing each pay period.

Family and Medical Leave

5.1 CFRA (California Family Rights Act)

• Coverage: Employers with 5+ employees. Eligibility: 12 months of service and 1,250 hours worked in the prior 12 months (counting time worked for your company).
• Duration: Up to 12 workweeks in a 12-month period, unpaid and job-protected, with continuation of group health benefits.
• Qualifying Reasons: Employee’s own serious health condition; care for child, parent, parent-in-law, grandparent, grandchild, sibling, spouse, registered domestic partner, or a designated person; bonding with a new child (by birth, adoption, foster).
• Interaction: CFRA generally runs concurrently with FMLA where both apply; pregnancy disability is covered by PDL, not CFRA.

5.2 Pregnancy Disability Leave (PDL)

• Coverage: Employers with 5+ employees.
• Duration: Up to 4 months per pregnancy-related disability (e.g., severe morning sickness, prenatal care, childbirth/recovery, related complications).
• Benefits: Job protection and continuation of group health benefits under the same terms.
• Interaction: After PDL, eligible employees may take CFRA baby-bonding leave (up to 12 weeks), potentially providing more than 16 weeks total across both.

5.3 CA Paid Family Leave (PFL) and State Disability Insurance (SDI)

Administered by the California EDD; provides wage replacement (not job protection).

• SDI: For employee’s own non-work-related disability or pregnancy-related disability.
• PFL: Up to 8 weeks of wage replacement to bond with a new child or care for a seriously ill family member. Beginning 2025, benefit percentages increase for lower-wage workers under recent legislation.

Employees apply directly to EDD; HR will provide claim information.

Bereavement and Reproductive Loss Leave

6.1 Bereavement Leave (AB 1949)

Up to 5 days per death of a covered family member (as defined by law and policy). Must be taken within 3 months of the death; days may be non-consecutive. Unpaid unless otherwise stated by company policy; employees may use accrued PTO/PSL. Confidentiality maintained; reasonable documentation may be requested.

6.2 Reproductive Loss Leave (SB 848)

Up to 5 days per qualifying event (miscarriage, stillbirth, failed adoption, failed surrogacy, unsuccessful assisted reproduction), taken within 3 months of the event. Annual cap: 20 days in a 12-month period. Unpaid unless otherwise stated; employees may use accrued PTO/PSL. Confidentiality maintained; no retaliation.

Other Protected Leaves and Time Off

7.1 Organ and Bone Marrow Donor Leave

Paid Leave: Up to 30 business days for organ donation and up to 5 business days for bone marrow donation, with medical certification. Job-protected; does not run against accrued PTO.

7.2 School and Childcare Activities Leave (Labor Code 230.8; employers with 25+ employees)

Up to 40 hours per year, max 8 hours per month, for school/childcare activities such as enrollment, parent-teacher conferences, school emergencies, or disciplinary meetings. Verification may be requested.

7.3 Domestic Violence, Sexual Assault, or Stalking Leave (Labor Code 230/230.1)

Reasonable time off to seek legal relief, medical care, safety planning, counseling, or related services. Employers with 25+ employees must provide reasonable safety accommodations. Confidentiality and anti-retaliation apply.

7.4 Voting Leave

Up to 2 hours of paid time at the beginning or end of shift when the employee does not have sufficient time to vote outside of working hours. Provide at least 2 working days’ notice where possible.

7.5 Jury Duty and Witness Duty

Employees are permitted time off for jury service or when subpoenaed as a witness.

• Non-exempt pay: Not required by law; company policy: [State if paid or unpaid]. Employees may use PTO if unpaid.
• Exempt employees: will receive full salary for any workweek in which they perform work, with lawful deductions for full-week absences only.

7.6 Military Leave

Protected under USERRA and California Military & Veterans Code; reinstatement rights apply. Provide orders as soon as practicable.

7.7 Emergency Conditions and Workplace Safety

In certain “emergency conditions,” employees may have the right to leave or refuse to report to work if they reasonably believe the workplace is unsafe, subject to legal exceptions (e.g., first responders). No retaliation for good-faith safety concerns or for using leave rights.

7.8 Lactation Accommodation

Reasonable break time and a private, non-bathroom space for expressing milk; break may run concurrently with paid rest breaks; additional time may be unpaid.

Floating Holidays and Religious/Cultural Observances

We provide [X] floating holidays annually to support diverse cultural, religious, and heritage observances. Flexible scheduling and swaps are available, subject to manager approval and business needs. We provide reasonable accommodations for sincerely held religious practices unless undue hardship.

Remote and Multi-Jurisdictional Employees

Employees outside California will receive at least the protections of their local/state laws (e.g., sick leave ordinances in certain cities). HR will maintain location-specific addenda where required.

Requesting Leave and Documentation

• How to Request: Submit requests in [system/email] to [manager/HR] with advance notice when foreseeable. For emergencies, notify as soon as practicable.
• Documentation: We may request documentation only as permitted by law and consistent with privacy. Medical information is kept confidential and stored separately.
• Coordination: HR will coordinate concurrent leaves (e.g., CFRA/FMLA/PDL) and benefits continuation.

Pay, Benefits, and Job Protection

• Benefit Continuation: During job-protected leaves (e.g., CFRA, PDL), we continue group health coverage on the same terms; employees must continue their premium share.
• Job Restoration: Employees returning from job-protected leaves are reinstated to the same or a comparable position unless exceptions permitted by law apply.
• PTO Use During Unpaid Leaves: Employees may elect or be required to use accrued PTO as allowed by law and policy; sick leave may be used for qualifying reasons.

Anti-Retaliation and Non-Discrimination

We strictly prohibit retaliation for requesting or taking leave or for raising concerns about leave rights. Report concerns to HR or via [hotline]; investigations will be prompt and impartial.

Record keeping and Notices

We provide all required state notices (e.g., paid sick leave notice, CFRA/PDL notices). Wage statements reflect available sick leave balances as required. Posters and policies will be updated to reflect changes in law.

Policy Administration and Updates

Laws evolve (e.g., California paid sick leave minimum increased to 40 hours in 2024; reproductive loss leave effective 2024; bereavement leave requirements; enhanced PFL/SDI benefit percentages for lower-wage workers starting 2025). We will update this policy accordingly. This policy does not create a contract of employment and may be modified to remain compliant.

Optional Company Customizations (fill in before rollout)

• PTO Accrual Rates and Caps:
• PTO Frontload Amount:
• Paid Holidays List + Floating Holiday Count:
• Jury Duty Pay Practice:
• CFRA/FMLA 12-month Tracking Method (rolling forward/backward, calendar year, etc.):
• Local Addenda (e.g., San Francisco, Los Angeles, San Diego):
• Leave Request Workflow (system links, forms, contacts):
• Contact for Leave Administration (HR email/phone):

Implementation Tips

• Train managers on scheduling, confidentiality, and anti-retaliation.
• Update handbooks, wage statements (sick leave balances), and required posters.
• Configure HRIS/Payroll to track accruals (PSL and PTO) with correct caps and carryovers.
• Communicate clearly about state programs (PFL/SDI) and how to file with EDD.