Accrual Cap
The maximum amount of leave an employee can accumulate.
Definition
An accrual cap (or accumulation limit) is the maximum amount of PTO or leave time an employee can have in their leave bank at any given time. Once an employee reaches the cap, they stop accruing additional time until they use some leave. This encourages employees to take time off and limits employer liability.
Examples
- • A company with a 240-hour cap stops accrual when an employee banks 6 weeks of PTO
- • State sick leave laws may set maximum accrual (e.g., California allows capping at 80 hours)
Quick Facts
- Term
- Accrual Cap
- Category
- Policies
Related Terms
Helpful Resources
Explore More Terms
Front-Loaded PTO
Providing the full annual PTO allotment at the start of the year.
Carryover
The ability to transfer unused leave from one year to the next.
Use-It-or-Lose-It
A policy where unused leave is forfeited at year-end.
Unlimited PTO
A policy with no set limit on paid time off.
Waiting Period
Time before an employee can use accrued leave.
Leave Year
The 12-month period used for calculating leave entitlements.
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