New ways to support your workforce, wherever they work.

Summer. More fun. More PTO requests. And a bit more payroll complexity. When your team is taking time off to recharge, travel, or spend time with family, it's important to make sure your pay practices stay compliant and clear. With the right policies in place, you can keep your team happy and your business protected. Here's some info to help.

Compliance matters: Under the Fair Labor Standards Act (FLSA), salaried employees must receive their full weekly pay if they work any part of the week. Once PTO is exhausted, salary deductions are allowed under certain circumstances, but only with a clear, well-communicated policy. State laws may also affect PTO and deductions, so check your local regulations.

Keep your policy clear: A solid PTO policy should:

• Differentiate rules for salaried versus hourly employees, if appropriate
• Outline how PTO is tracked and deducted
• Specify what happens when PTO runs out
• Set minimum and maximum blocks of PTO
• State the circumstances under which a PTO request may be denied, such as business needs
• Be included in your employee handbook and updated regularly

Transparent communication prevents confusion. Remind employees that frequent time off could lead to unpaid days if PTO is depleted.

Practical steps:

• Review each employee's work obligations before approving PTO
• Use reliable tools to track PTO and manage requests
• Communicate policy updates and reminders as summer approaches