ATLANTA — Companies are increasingly cutting back on paying employees for unused paid time off when they leave or retire, according to Channel 2 consumer advisor Clark Howard.
While many companies previously offered to pay employees for their unused vacation days upon quitting or retiring, this trend is changing.
Howard advises that taking the time off is a better option, as firms are either not paying for unused PTO or offering significantly reduced payouts.
“You need to use your PTO,” Howard said. “It’s no good for you never to take your vacation. Enjoy it. Take time off through the year, and make sure you leave a little bit in case you’re sick.”
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Howard explained that the shift from traditional vacation and sick leave to PTO was initially beneficial for employees who did not take much time off.
However, the landscape is changing as companies now reduce or eliminate payouts for unused PTO.
He emphasized the importance of utilizing PTO to avoid losing its value.
“Don’t leave those PTO hours behind, because what you may leave behind is a big fat nothing for your wallet,” Howard warned.
As companies continue to adjust their PTO policies, employees are encouraged to make the most of their time off to ensure they receive its full benefit.,