ModuleHireHR
POLICIES · KIT

Time off and leave, clear for everyone.

A time off policy that meets state sick leave laws, a simple request process, and the leave rules managers need to know before they say no.

Inside:PTO vs. separate vacation and sick leave · what to do when someone asks for leave · federal leave laws by headcount · state leave rules for CA, NY, IL, TX, and FL · 2 editable templates
2026 EDITIONHR.MODULEHIRE.COM
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Choosing a structure

Three common approaches.

Each works. What matters is that it meets the law in every state where you have employees.

StructureHow it worksWatch out for
Combined PTOOne bank of paid time for vacation, sick, and personal days.It must meet sick leave law requirements. In some states, unused PTO is paid out at separation.
Separate vacation and sickDistinct banks with different rules.More to track, but sick leave rules apply only to the sick bank.
Unlimited PTONo set balance. Time off approved as needed.Still needs to meet sick leave laws. Track usage, and make sure people actually take time.

Use-it-or-lose-it is illegal in California. Accrued vacation is treated as wages there. Use an accrual cap instead, which limits how much someone can build up.

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State notes

Sick and family leave by state.

Paid sick leave and family leave rules follow where the employee works.

StateWhat to know
California
  • Paid sick leave of at least 40 hours or 5 days a year. Family leave (CFRA) and pregnancy disability leave at 5 or more employees.
  • Accrued vacation is wages: no use-it-or-lose-it, and it's paid out at separation.
New York
  • Paid sick leave of 40 or 56 hours, depending on employer size. 20 hours of paid prenatal leave.
  • Paid Family Leave through insurance.
Illinois
  • 40 hours of paid leave for any reason under the Paid Leave for All Workers Act, unless Chicago or Cook County rules apply.
  • Victims' leave (VESSA) and family bereavement leave.
Texas
  • No state paid sick leave requirement. Jury duty protections apply.
Florida
  • No state paid sick leave requirement. Jury duty protections apply.

General guidance current as of October 2026. Confirm current rules with your legal counsel before acting.

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Full guide

6 more pages in the full guide

Plus 2 editable templates.