Q: Should I have a waiting period before an

employee can use PTO? If so, how long

should it be?
A: Some employers choose to impose waiting periods before an employee can use paid time off
benefits. When establishing a waiting period, consider what makes sense for your business and

the potential impact on morale. Note: Most paid sick leave laws require that employees begin

accruing time off on their first day of employment and allow them to start using their time after

90 days. Check your applicable law to ensure compliance.

Q: We find that offering paid time off to our

employees instead of paying overtime is more
cost-effective. Are we allowed to do this?
A: This practice is commonly known as "comp time" and it is prohibited in the private sector.
Non-exempt employees who work more than 40 hours in a workweek must receive overtime

pay. Employees cannot waive their right to overtime, even if the employee would prefer comp

time instead.

Conclusion:
When drafting, implementing, and enforcing your paid time off policies, consider what makes

sense for your business and comply with all applicable laws.