Use-It-or-Lose-It
A policy where unused leave is forfeited at year-end.
Definition
A use-it-or-lose-it policy requires employees to use their accrued PTO or vacation by a certain date (usually year-end) or forfeit the unused time. While this helps manage leave liability and encourages time off, these policies are illegal or restricted in many states for earned vacation time.
Quick Facts
- Term
- Use-It-or-Lose-It
- Category
- Policies
Related Terms
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Front-Loaded PTO
Providing the full annual PTO allotment at the start of the year.
Accrual Cap
The maximum amount of leave an employee can accumulate.
Carryover
The ability to transfer unused leave from one year to the next.
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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LeavePlan Pro helps you track and manage all types of employee leave while staying compliant with regulations.