We're not ones to beat around the bush so let's get right to it... Employers are not required by the federal government to offer paid time off to their employees.
However...
Here's a little excerpt right from the New York State Department of Labor...
Under the New York State Labor Law, payment for time not actually worked is not required unless an employer has established a policy to grant such pay. Holidays, sick time and/or vacations fall under 'time not worked.' When an employer does decide to create a benefit policy, that employer is free to impose any conditions they choose.
Here's a breakdown of the different categories of paid time off and what you as an employer may want to consider when creating your PTO policy.
Holidays
You are not required to offer paid holidays to your employees, but the common paid holidays are listed below.
The average employee in 2016 is likely going to expect to be given off on the days listed above. Other holidays sometimes include Martin Luther King Jr. Day, President's Day and the day after Thanksgiving.
Vacation
Once again (we're going to sound like a broken record just so you get the point), you are not required to offer paid vacation to your employees. Most employees, depending on their industry and skill level, will expect anywhere between 1 and 3 weeks paid vacation per year.
Also, when it comes to vacation, you may want to think about how its accrued. There are a few options...
Sick leave
The Family and Medical Leave Act requires you to offer up to 12 weeks of unpaid leave to cope with major illness and life events.
But adding in a few sick days as paid time off is never a bad thing. What healthy person wants to work beside a sick person for 8 hours?
Paid time off
Many employers will lump all their time together (vacation, sick time, other) into a bank of days and hours into a bank of paid time off. Sometimes that simplifies the process from an administrative perspective and it may be something to consider.
Unlimited paid time off?
Some companies provide unlimited paid time off to their employees, citing time away from work makes employees more productive - in addition to fostering a company culture with more freedom and trust. We stumbled upon an interesting article from The Hartford that explores this topic in more detail.
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