Create and manage PTO policies

You can now create PTO policies with flexible accrual methods, detailed rollover rules, tenure-based earning, and automated approval controls—all in one place.

This guide walks through everything you can configure.

What’s changed

We’ve redesigned PTO policies to give you more control and clarity.

• Your existing policies remain unchanged

• You can edit any current policy to use the new features.

• New fields are marked with a 💡 icon, so you can quickly see what’s been added

Editing a policy only impacts future accruals—existing worker balances stay as-is.

What’s included in the new flow

• Balance controls: Initial balance, Max balance, Yearly allowance limit, Starting Balance)

• Custom rollover functionality: Unused balance options, Year reset options, Negative balance options, Termination balance options

• Requests auto approval custom options

• Assignments by worker, department or job title

• Policy preview always on the right side

• Better, easier policy building experience with more guidance

How it works

1. Policy Details:

Give your policy a name. This is a new field, so you'll see a lightbulb next to the field.

Select PTO or Sick as your policy type.

Define accrual type:

Hours per hour worked: Workers earn PTO based on time worked or paid. Options:

• Hours worked (only hours worked)

• Hours paid (includes vacation, sick, holiday, etc.)

• Optional: Include overtime hours in accrual

Set accrual rate:

• “For every X hours worked, earn 1 hour of PTO”

Days per year: A fixed yearly allowance. Example: 10 days of PTO per year.

Choose how it’s distributed:

• Distributed weekly (auto-calculated per period)

• Given as a lump sum

Set:

• Days per year

Initial balance only: Grant a fixed amount with no ongoing accrual.

• Best for one-time grants or manual policies.

Select:

• How much time is granted.

• When the balance is granted: Instantly, After eligibility, Custom date or on Worker hire anniversary

• If it repeats annually

• If and when the balance expires, and if its paid out on termination

Step 2: Balance limits & eligibility

Control how balances behave:

• Initial balance

  • Granted on first day of eligibility.

• Yearly allowance

  • Total amount that a person can use per year.

• Maximum balance

  • Cap where accrual stops.

You can display all balances in:

• Hours

• Days

Eligibility period

Define when workers can start accruing:

• Immediate (0 days)

• After a set number of days from hire

Step 3: Rollover & year-end rules

Define what happens to unused PTO.

Year-end behavior

Choose one:

• Use it or lose it (no rollover)

• Roll over (no cap)

• Roll over (with cap): Set max rollover amount and when carried over expires.

• Roll over (% of balance): Set percentage that carries over and when carried over expires.

• Paid out at year end

Reset timing

Choose when balances reset:

• Jan 1st

• Worker’s hire anniversary

• Custom date: Set month and day

Negative balance handling

Control what happens if a worker requests more time than they have:

• Block request

• Allow (mark as unpaid)

• Allow up to a limit: Set a negative balance limit

Termination behavior

When a worker leaves:

• Forfeit unused balance

• Pay out at standard rate

Step 4: Advanced rules

Add automation and guardrails:

Auto-approve time off

Automatically approve requests based on conditions:

• Balance doesn’t go negative

• No conflicts with scheduled shifts

• Optional: only if request is more than X days away

PTO pay rate

Define how PTO is paid:

• Select rate (or default behavior)

Optional:

• Exclude union benefits from PTO earnings

Step 5: Tenure tiers (This step is entirely optional and can be skipped)

You can increase accrual rates based on worker tenure. Workers automatically move to the next tier based on tenure. Define:

• Tenure ranges (e.g., 0–1 year, 1+ years)

• Accrual rate per tier

• Optional: Max balance per tier

When a worker moves to a new tier

Choose how balances behave:

• Keep as-is

• Reset to new tier’s initial balance

• Add new tier’s initial balance

• Pay out then reset

Also define when the new rate takes effect:

• Anniversary date

• Start of next pay period

• Start of next month

Step 6: Assign the policy

Apply the policy to:

• Workers

• Job titles

• Departments

Preview panel

As you build your policy, the right-hand panel shows a live summary:

• Accrual method

• Rate

• Initial balance

• Rollover rules

• Reset timing

• Tenure tiers

• Assignments

Summary

The new PTO policy flow gives you:

• Multiple accrual methods (hourly, annual, fixed)

• Flexible rollover and reset rules

• Negative balance and payout controls

• Tenure-based earning

• Automated approval rules

• Clear assignments and live preview

All in one place, with no impact to your current balances.