Employee Leave Types: A Detailed Breakdown

Although the concept of an all-inclusive PTO policy has gained popularity in recent years, the idea of paid leave has been around much longer. Nowadays, it’s common for organizations to combine multiple types of paid leave, such as vacation, sick leave, and personal days, into a single pool called PTO.

Back in the 1940s, as the United States was recovering from the Great Depression, paid leave was first introduced through state-administered temporary disability insurance (TDI) programs, which provided paid leave to workers to care for themselves when they were seriously injured or ill. Over time, these programs expanded to include state-paid family and medical leave, as well as military leave, among others. Different states implemented these policies in different years, and the durations of paid leave offered also varied. Fast forward to now, particularly in the last two decades, there has been continuous and rapid expansion of paid leave. Today, not all states and not all employers in the US offer the same types of paid leave, but many include medical, family, safe leave, and pregnancy-related medical care.

In this section, we will explore the various types of employee leave and clarify how they differ from PTO. Understanding these differences is crucial for both employees and employers, as it ensures that time off is used appropriately and effectively. Although some companies prefer a combined PTO policy, others stick to the traditional approach with distinct categories of paid leave. We will delve into these categories, highlighting their purposes and distinctions, and demonstrating how companies might structure these benefits. Let’s dive right in and explore the most common types of employee leave, providing a clear and comprehensive overview that will help you navigate these policies with confidence.

Types of Employee Leave

Employee leave and PTO are closely related concepts that often overlap. Both terms refer to time off from work for employees. However, in terms of purpose and pay, they may differ. While PTO (Paid Time Off) always refers to paid leave, not all types of employee leave are paid. Some employee leave is paid, some partially paid, and others unpaid. The specifics ultimately depend on the type of leave, state and local labor laws, as well as the company policy.

Keep in mind that some companies may combine multiple types of employee leave (sick leave, vacation, holidays) into a single PTO policy. Other companies may offer PTO with an allocated number of days per paid time off. Either way, whether PTO is combined or has a set number of days per year, it’s important to know the most common types of employee leave.

Let’s explore the different types of employee leave that companies might offer:

Vacation Days

Vacation days are time off granted to employees for personal leisure and relaxation. Employees can use these days to travel, spend time with family, engage in personal activities, or simply take a break from work to recharge. These days are typically planned in advance and require approval from the employer.

Vacation Days offer numerous benefits for both employees and employers. For employees, taking time off can significantly reduce stress and improve mental and physical health. A well-rested employee is more likely to be productive and engaged when they return to work. For employers, providing Vacation Days can enhance employee satisfaction and retention, as well as boost overall productivity and morale within the workplace.

Vacation policies can also vary widely between companies. Common elements of these policies include accrual rates, which determine how quickly employees earn vacation days, and rollover provisions, which dictate whether unused vacation days can be carried over to the next year. If you’re unsure how your company’s PTO works, look at your employee handbook or ask your HR for the specifics.

For employees: Whether you’re a new hire or an existing employee, it’s crucial to understand and evaluate the vacation days offered by your company. Consider how these days fit into your overall compensation package and compare them with other job offers or your current job. Planning your vacation days wisely can help you have sufficient time for personal leisure and relaxation throughout the year.

For employers: Attractive and flexible vacation policies enable you to recruit and/or retain top talents while keeping your salaries at par with the marketplace.

Sick Leave

Sick leave is time off when an employee is ill or needs medical care. More than 70% of all companies have sick leave as part of their employee benefits . This ensures that employees can recover from illness or attend medical appointments without worrying about losing pay, promoting a healthier workplace. Sick leave policies vary by company and are often accrued based on the length of service. Providing sick leave ensures that employees can take care of their health effectively, without worrying about losing pay. On average, the private industry in the U.S. offers 7 days of sick leave .

Depending on the state of residence, sick leave may be mandated. For instance, in California, Paid Sick Leave (PSL) is a permanent law requiring employers to provide their workers with at least 40 hours (equivalent to 5 days) of paid time each year for treatment, diagnosis, or preventative care for themselves or their family members starting on January 1, 2024. This is mandated by Senate Bill No. 616 (SB 616). This comes with some conditions, such as the employee must have worked for that employer for at least 30 days within a year and must have completed a 90-day employment period prior to taking any sick leave. In New York, the amount of sick leave will depend on the employer's size: for example, employers with 100 or more employees must provide 56 hours of paid sick leave per year, employers with 5-99 employees must provide 40 hours of paid sick leave per year, and employers with 0-4 employees and a net income of greater than $1 million must also provide 40 hours of paid sick leave per year . If an employer in New York has a net income of $1 million or less, they must provide 40 hours of sick leave, but it is unpaid. So, check your state legislation and local labor laws to stay up to date!

What happens to the sick leave if it’s unused by the end of the year?

Sick leave policies for unused days can vary by company, state, and local labor laws. Common scenarios include companies allowing their employees’ unused sick leave to be carried over to the next year, sometimes with a carryover cap and sometimes without one. Other companies may require that unused sick leave be forfeited at year-end. In some cases, employees might receive a payout for unused days, convert them to other types of leave, or simply lose them. It’s important for employees to review their company’s handbook or consult with HR to understand these specific policies. You can read more about PTO rollover policies here: PTO Rollover Policies: A Complete Overview

For employees: To maximize your PTO, plan ahead, especially if your company combines sick leave with vacation or personal days. Balance your PTO usage to ensure you have days for medical reasons. Avoid using all your PTO for vacations early in the year, so you’re not left high and dry when you need time off from work for medical reasons. By doing so, you stay covered and stress-free. Discuss your plans with your employer to accommodate your needs.

For employers: As an employer, it’s important to know that employees always evaluate the benefits offered by a company before taking the job, including sick leave. When you have a clear and supportive sick leave policy, it promotes a healthy workspace in your company. When crafting sick leave policies, it’s very important to make it easy and straightforward so employees don’t need to jump through hoops and loops to get sick leave as they need.

A guide to Crafting a Supportive, Fair, and Compliant Sick Leave Policy is available in our Employers Guide to PTO section.

Personal Days

Personal days are time off granted to employees for personal matters, emergencies, or other urgent personal needs. If vacation days is intended for leisure activities, personal days are provided for various purposes such as personal appointments, family events, or other personal needs that require urgent attention during work hours. Personal days provide employees with the flexibility to handle unexpected personal issues or emergency situations without the stress of work obligations. By offering personal days, employers support a better work-life balance and demonstrate a commitment to the well-being of their employees.

Paid Holidays

Paid holidays refer to the time off designated for holidays where employees are not required to work but still receive pay. This allows employees to celebrate national or cultural holidays without losing income, ensuring they can enjoy these special days with family and friends, such as Christmas, New Year's Day, Independence Day, or other public holidays. Paid holidays don’t often affect an employee’s PTO balance.

There are instances when an employee works during a paid holiday. Depending on the company's policies and local labor laws, employers may offer double pay (sometimes referred to as "holiday pay"), which means the employee receives twice their regular hourly rate for the hours worked on the holiday. Some companies, instead of double pay, may offer additional time off (often called "compensatory time" or "time off in lieu"), allowing the employee to take an equivalent amount of time off at a later date. In some jurisdictions, working on a holiday may qualify as overtime, meaning employees may receive overtime pay rates, typically 1.5 times the regular rate for those hours. It's important to note that in some cases, employees may receive their regular pay rate for working on holidays, particularly if the holiday is not recognized by the company as a paid holiday.

It's important for employees to review their company's employee handbook or speak with their HR department to understand the specific policies regarding holiday work and compensation. Additionally, local labor laws may mandate certain pay rates or benefits for working on holidays, so it's crucial to be aware of any legal requirements in your area. Company calendars often specify the paid holidays that employees can enjoy, so if you're an employee, be sure to keep yourself aware of those dates.

For Employees: Plan ahead! If your company calendar doesn’t include a paid holiday that is important to your culture, and you really need to take that day off even though it’s a regular workday for your company, don’t hesitate to communicate with your manager. Let them know ahead of time so they can plan the workload accordingly. This not only shows your respect for the team’s schedule but also increases the chances of getting your PTO request approved. By planning in advance, you can enjoy your important cultural holidays without any stress. Additional tip is if you have three-day weekend and want to make the most of it, consider taking your PTO day to make it a four-day weekend.

For Employers: As an employer, providing paid holidays is a fantastic way to demonstrate to your employees that you value their cultural, religious, or national traditions. Imagine the joy and appreciation your team will feel knowing they can celebrate important holidays without worrying about work. To make this happen, create a holiday policy that clearly specifies which days are paid holidays and which ones are recognized, like federal holidays, state holidays, or company-specific holidays. Send out a yearly calendar at the start of the year, highlighting all the paid holidays. This not only helps in communicating with your employees ahead of time but also allows them to plan their time off and celebrations.

Floating Holidays

Floating holidays are a type of paid leave that employees can use at their discretion, often to observe personal or cultural holidays not covered by the standard paid holiday schedule. Unlike traditional holidays fixed to specific dates, floating holidays provide flexibility for personal or cultural events that are important to employees, such as birthdays, anniversaries, religious observances, or to extend a vacation or long weekend.

Bereavement Leave

Bereavement leave, also known as grievance leave, is a type of leave granted to employees who have experienced the death of a close family member. This leave allows them to grieve, make funeral arrangements, and handle personal matters related to the loss without the added stress of work obligations. Bereavement leave can be either paid or unpaid, depending on the employer’s policy. For instance, in the United States, there is no federal law mandating bereavement leave, so it’s on the employer’s discretion whether to offer it and whether it will be paid.

Companies often have specific policies regarding the types of relationships that qualify for bereavement leave. Typically, these policies include immediate family members such as a spouse or partner, children (including stepchildren), parents (including stepparents), siblings (including stepsiblings), grandparents, and grandchildren. Some companies may also extend bereavement leave to include other relatives or close relationships, such as in-laws, aunts, uncles, or close friends. It's important for employees to review their company's bereavement leave policy or consult with HR to understand the specific guidelines and eligible relationships.

For Employees: Consider that sometimes employers request proof which may include flight, death certificate, etc. Be sure to check your corporate policy.

For Employers: Obviously, this is an upsetting time for your employees. As an employer, it's important to avoid making this process difficult and confusing. Make sure your company supports a compassionate and straightforward process for bereavement leave. You can do so by clearly defining what is required to take bereavement leave. This may include specifying the relationship the employee has to the deceased, the requirements you need (like a death certificate and/or proof of relationship), the duration of paid or unpaid leave allowed, and clearly communicating this to the employees.

Parental Leave

Parental leave includes both maternity and paternity leave, allowing new parents to take time off to care for their newborn or newly adopted child. This supports family bonding and adjustment to new routines and responsibilities during a critical time. The duration for parental leave varies by company policy and local laws, but the most typical parental leave can range for several months to a year.

A good parental leave policy significantly enhances employee well-being by allowing time for physical and mental recovery, reducing stress, and fostering family bonding. It improves work-life balance by providing the necessary adjustment period for new family dynamics. Such policies increase employee loyalty and retention, as employees feel valued and supported, leading to lower turnover rates. Additionally, it boosts morale and productivity, as employees return to work more focused and motivated. A supportive parental leave policy also reflects a positive company culture, attracting top talent and ensuring compliance with legal and ethical standards. Overall, it contributes to a more satisfied and productive workforce.

Maternity vs. Paternity Leave

While both maternity and paternity leave aim to provide parents with time to bond with their newborns, they differ in terms of eligibility, duration, health considerations, and legal protections.

Eligibility and Duration: Maternity leave is generally longer and includes time both before and after the birth. This allows mothers to rest and prepare for their baby’s arrival. In contrast, paternity leave usually begins after the birth and is shorter, focusing on the immediate post-birth period to support the mother and bond with the newborn.

Health Considerations: Maternity leave often includes a recovery period for the mother, which is essential for her physical and emotional health after childbirth. Paternity leave, on the other hand, does not involve recovery from childbirth and is typically shorter, emphasizing bonding time and support for the mother.

Legal Protections: Both types of leave are often protected by national or regional laws, ensuring job security during the leave period. However, the specifics can vary widely depending on the country and employer policies. Some employers allow their employees to extend their leave periods. Some may offer paid paternity leave, while others provide unpaid leave. For instance, in the United States, the Family and Medical Leave Act (FMLA) provides eligible employees with up to 12 weeks of unpaid, job-protected leave for the birth and care of a newborn.

How does Parental Leave work in the US

In the United States, parental leave is primarily governed by the Family and Medical Leave Act (FMLA). This federal law allows eligible employees to take up to 12 weeks of unpaid leave per year for the birth and care of a newborn, adoption, or foster care placement, as well as caring for a spouse, child, or parent with a serious health condition. This law promotes equal employment opportunities for both men and women, ensuring that all eligible employees, regardless of gender, can take advantage of its provisions. During this time, employees are guaranteed job protection, meaning they can return to the same job or position after their leave.

Although FMLA sets a federal standard, it is important to remember that whether maternity or paternity leave are paid depends on your state laws and individual employer policies. Many states and companies provide more generous benefits than the federal standard. For instance, some states, like California and New York, have their own paid family leave programs that provide partial wage replacement benefits to eligible workers who need time off work for family leave. California’s Paid Family Leave (PFL) program provides up to 8 weeks of partial wage replacement for eligible workers that can be taken all at once or split over a 12-month period, while New York’s Paid Family Leave (PFL) program offers up to 12 weeks of paid leave, with a percentage of the employee’s average weekly wage.

So, if you’re planning on taking parental leave soon, it’s best to check your state laws or talk with HR to understand your company’s parental or family leave options.

Jury Duty Leave

Jury duty leave is a type of PTO that allows employees to serve on a jury without facing financial difficulties. This type of leave is crucial as it supports the judicial system by ensuring that citizens from all economic backgrounds can participate in the legal process. Employers provide this leave to ensure that employees can fulfill their civic responsibilities without the fear of losing their job or income. When an employee is summoned for jury duty, they are required to attend court sessions and contribute to the decision-making process in legal cases. Employees are typically required to notify their employers as soon as they receive a jury duty summons. This advance notice helps employers plan and adjust work schedules accordingly, minimizing disruptions to the workplace. In some cases, employees may need to provide proof of their duty service, which can usually be obtained from the court.

For federal employees, the policy is even more supportive, as they are entitled to paid time off for jury duty without having to use their annual leave. This ensures that federal employees can serve on juries without any financial or professional repercussions.

Military Leave

Military leave allows employees who are members of the armed forces or military reserves to take time off from their civilian jobs to fulfill their military duties. This type of leave is provided by employers to support service members as they balance their civilian careers and their commitments to national defense. Employers may offer different types of compensation for military leave. Some employers provide full pay, while others offer partial pay, or even unpaid leave. The specifics can vary based on company policies and state laws. For federal employees, military leave is typically paid.

Under the Uniformed Services Employment and Reemployment Rights Act (USERRA), employees are entitled to return to their civilian jobs after completing their military service, with the same status, pay, and seniority. This law ensures that service members are not disadvantaged in their civilian careers due to their military obligations. Nevertheless, while federal laws like USERRA provide protection for employees, individual employers may have specific policies regarding military leave. Employees should familiarize themselves with their company’s policies and procedures for requesting military leave.

When Should You Request Military Leave?

Knowing when to request military leave is crucial for both the employee and the employer to ensure smooth operations and compliance with legal requirements. Military leave can be requested for various types of duty, including:

• Active Duty: This is a full-time duty in the active military service of the United States. This includes members of the Army, Navy, Air Force, Marine Corps, Coast Guard, and Space Force who are on duty 24/7, ready to respond to any mission or task assigned by their superiors. Active duty personnel are stationed at military bases (both domestic and international), and can be deployed to various locations around the world as needed.

• Active Duty Training (ADT): This is a category of Active Duty which is used to provide structured training to members of the reserve components. This training is essential for reservists to acquire or maintain the skills necessary for their military roles. ADT includes initial basic training, advanced individual training, annual training, and full-time attendance at military schools. It ensures that reservists are prepared to integrate seamlessly with active duty units when called upon.

• Inactive Duty Training (IDT): This involves training performed by members of the reserve components while not on Active Duty. This typically includes weekend drills, unit training assemblies, and other training periods that occur regularly but do not require full-time commitment.

• Emergency Duty: This is performed in response to emergencies such as natural disasters, civil disturbances, or other crises. Members of the National Guard and reserve components can be called to Active Duty to assist in disaster relief efforts, provide security, and support local authorities during emergencies.

Additionally, the duration of military leave depends on the nature of the military duty. If it is only a short-term duty like weekend drills, employees should notify their employers as soon as they receive their training schedule. However, if it is an extended duty such as deployments or long-term training, employees should provide notice as soon as they receive their orders, which may be several months in advance. Employees may also be required to provide documentation of their military orders when requesting leave. This documentation verifies the authenticity for the military leave and ensures compliance with both company policies and legal requirements. Employees should discuss their military leave plans with their supervisors to ensure a mutual understanding of the leave duration and any potential impacts on their work responsibilities.

Volunteer Time Off

Volunteer Time Off is a type of paid leave that allows employees to engage in volunteer activities or community service without sacrificing their regular income. This benefit is increasingly offered by companies as part of their Corporate Social Responsibility (CSR) initiatives, reflecting a commitment to social impact and community engagement. Common volunteer activities employees can participate in include environmental clean-ups, assisting in food banks, and supporting disaster relief efforts. While communities receive valuable support and resources through volunteering, both employees and employers also benefit from VTO programs.

Benefits of Volunteer Time Off for Employees

Volunteering through VTO can have a profound impact on their mental health. Engaging in charitable activities often leads to reduced stress levels and increased happiness, as employees do something they’re passionate about. VTO also helps employees build stronger connections within their communities. By participating in local volunteer efforts, employees can establish meaningful relationships and a sense of belonging. Additionally, VTO provides employees with valuable opportunities for skill development. Through volunteer work, employees can acquire new skills and experiences that may not be available in their regular job roles. This not only enhances their personal growth but also brings new competencies and perspectives back to the workplace.

Benefits of Volunteer Time Off for Employers

Offering Volunteer Time Off (VTO) can significantly enhance employee satisfaction and retention. When employees are given the opportunity to engage in meaningful community service without sacrificing their pay, they tend to feel more valued and fulfilled in their roles. This sense of fulfillment can lead to higher job satisfaction and, consequently, better retention rates. VTO also positively impacts the company’s corporate image. By supporting and encouraging employees to participate in charitable activities, the company is seen as a socially responsible organization. This enhanced reputation can attract potential employees who prioritize working for companies with strong ethical values and community involvement. Moreover, VTO fosters team building within the organization. When employees volunteer together, they have the chance to bond outside the typical work environment. These shared experiences can strengthen relationships, improve teamwork, and create a more cohesive and collaborative workplace.

How Volunteer Time Off Differs from Voluntary Time Off

The acronym VTO can refer to two distinct types of leave: Voluntary Time Off and Volunteer Time Off. While both use the same abbreviation, they serve different purposes and have different policies. So, how does volunteer time off differ from voluntary time off?

Volunteer Time Off is a paid leave that allows employees to volunteer for charitable causes in their communities. This type of leave supports social responsibility and community engagement without affecting employees’ pay. On the other hand, Voluntary Time Off is an unpaid leave option used by some companies to manage staffing levels. It allows employees to take time off when there are more staff available than needed, helping to balance the workforce during low-demand periods.

See the guide for Understanding the Difference Between PTO, Voluntary Time Off (VTO), and Volunteer Time Off for more in-depth explanation.

Sabbatical Leave

Sabbatical Leave is an extended period of time away from work, typically offered to employees after they have worked with a company for a certain number of years, often five years or more. It’s a type of leave that allows employees to pursue personal or professional interests, including but not limited to traveling, writing, research, volunteering, or simply resting and recharging. Sabbaticals can be paid or unpaid, depending on the company’s policy. It’s also longer than a typical PTO, ranging from a few weeks to a year.

The primary purpose of a sabbatical is to provide employees with a significant break from their regular job duties. This time away can help prevent burnout, promote personal growth, and enhance professional development. Typically, paid sabbaticals are common in organizations that view this benefit as a way to attract and retain top talents.

Mental Health Days

Mental Health Days are specific days off that employees can take to rest and address any mental health issues. This can include relaxing at home, engaging in hobbies, or seeking professional mental health support. These days are designed to help employees manage stress and maintain overall mental health, contributing to a more balanced and productive work life.

From an employer’s perspective, encouraging the use of Mental Health Days can lead to a healthier, more engaged workforce. This support can reduce absenteeism and turnover, as employees feel more valued and capable of managing their well-being.

Many companies include Mental Health Days as part of their overall PTO policy, allowing employees to use their accrued PTO for mental health purposes, just as they would for vacation, personal days, or sick days. However, it’s important to understand your company’s specific PTO policy to know how Mental Health Days are handled.

Conclusion

Understanding the various types of employee leave is essential for both employees and employers. By recognizing the distinctions between vacation days, sick leave, personal days, and other types of leave, individuals can effectively manage their time off and ensure they receive the benefits they deserve. Employers can create comprehensive leave policies that support employee well-being, enhance job satisfaction, and promote a positive work environment. Whether your company offers a combined PTO policy or distinct categories of paid leave, knowing the purpose and benefits of each type of leave is key to navigating these policies successfully. By providing employees with the time off they need for rest, recovery, and personal matters, companies can foster a healthy and productive workforce.

In the next section, we will delve deeper into the differences between PTO and specific types of employee leave, exploring the advantages and challenges of each approach. How do they differ in terms of accrual, usage, and rollover? How does PTO compare with vacation and sick leave? What about Voluntary Time Off and Volunteer Time Off? While these terms might seem interchangeable, they have crucial differences. Let’s start by clearing up the confusion with the two common types of leave: PTO vs. Traditional Leave.

Recommended Readings

• Decoding PTO vs. Vacation: Clearing Up the Confusion
• PTO vs. Traditional Leave: Understanding the Difference
• Sick Leave vs. PTO
• Crafting a Supportive, Fair, and Compliant Sick Leave Policy: An Employer's Guide
• The Benefits of Offering Volunteer Time Off (VTO)