A Guide to Florida Paid Time Off Laws for Employees
Paid Time Off in Florida: An Overview
Paid time off (PTO) is a general term used to describe policies that allow employees to take time off for health or personal reasons, with pay for all or a portion of that time. It encompasses vacation days, sick time, personal days, or any other day off with pay. PTO can be explicitly stated in an employment contract, or in policy manuals or other employee handbooks outlining benefits. Not all employers choose to provide paid time off for their employees, or the payment for PTO may be limited or restricted in some way. Florida law does not mandate that an employer provide any PTO. Unless expressly required by an employment contract , employees are not entitled to receive payment for any vacation time upon termination of employment in Florida. Florida vacation pay laws do not require that payment for such time be given immediately upon termination. Under Florida law, the payment for accrued sick leave upon termination is left to the discretion of the employer. In some cases it may be spelled out in an employment contract, and in others may simply be a matter of company policy. Whether an employer is required to pay for PTO will depend on the unique circumstances of each case, such as the terms set forth in any employment contract, company policy, or other governing rules. It is important to understand what benefits are required to be provided, and which are provided voluntarily, by the employer.
Must Florida Employers Provide Paid Time Off?
Florida employers are not required by law to provide paid vacation days to their employees. In fact, PTO is not addressed at all by state or federal employment laws. Florida does not have any separate labor boards, like those of some other states, that would oversee PTO. Instead, the U.S. Department of Labor (DOL) lists paid time off, both sick and vacation leave, as a fringe benefit that is completely up to employer discretion. Employers can choose if they will provide PTO, how many days they will prescribe, and how the benefit will be enacted across all employees.
The parameters for PTO are even more flexible than what applies to PTO that is specifically defined as mandated sick leave, vacation, or holiday time. These types of PTO are clearly defined to mean that the employee has the legal right to take off work and still earn regular pay. PTO, on the other hand, is commonly given as part of a benefits package to reward employees with pay while they do not work. The days off are essentially a bonus that employees are entitled to if they have accrued enough sick, vacation, or holiday days. However, outside of this defined usage, PTO does not grant extra powers to employees. For example, If Kevin takes off three days for vacation, he cannot come back after two days and ask for no-pay to be granted. There is no legal precedent for a company offering a partial day "off," so Kevin’s two days of vacation must be recognized.
Regarding unused PTO, the amount that Kevin can accrue and carry over is also left up to the employer. PPE, sick leave, and vacation do not necessarily carry a cash value, so the employer does not have to compensate Kevin for it. However, if the employer does choose to cash out the employee’s PTO, as is allowed with Florida law, there are certain parameters they must use. The employer can determine the monetary amount of each sick, vacation, or PTO hour (common rate is 1-2 times the employee’s normal hourly wage) and the total allowable hours. If Pepe can only accrue up to 320 hours of PTO, that number cannot be exceeded if the employer decides to cash out his unused time.
Sick Leave and Vacation Time in Florida
Florida law does not address the accrual of sick leave or vacation time. Sick leave and vacation time offered in Florida is a matter of private agreement between the employer and employee. The Family and Medical Leave Act ("FMLA") is the only federal law that impacts sick leave and vacation policies as it relates to Florida employers. Under the FMLA, an eligible employee may take up to 12 workweeks of unpaid, job-protected leave for certain family and medical reasons. Employers may require employees who take FMLA leave to use accrued paid leave, such as sick leave, vacation, or paid time off, or accrued paid personal time during the period of leave, subject to certain conditions.
Vacation Time and PTO Accrual
The accrual of PTO may be provided to employees in a variety of different ways:
- Employees are provided a certain number of hours at the beginning of each year of employment or on their employment date;
- Employees accrue PTO on a pro rata basis according to hours worked up to a certain predetermined limit; or
- Employees accrue PTO on an incremental basis as they work and receive a specific amount of PTO for each hour worked.
There are no federal or state laws in Florida that govern how employers must provide or require employees to use accrued PTO, but in the absence of policy, common practice or applicable law, PTO is considered property that must be returned to the employee upon termination. It is common for employers to require the use of PTO during non-productive work days per pay period, such as weekends or holidays, when the business would not be required to pay the employee and they would otherwise not be required to use PTO or take leave without pay. Employers frequently allow employees to use accrued PTO prior to exhaustion − putting the appropriate policies in place can help avoid having to determine the amount of accrued PTO an employee has remaining. Employers may also require the usage of PTO to offset FMLA leave.
For many employers – especially those that have flexible scheduling – appropriate policies and procedures governing accrual and use of PTO are critical to employer compliance with applicable law.
Florida Limitations and Caps on PTO and Vacation Benefits
Certain employers, although not required to provide any paid leave time to employees, may choose to do so. Employers should keep in mind that Florida law does not require Florida employers to provide any paid time off to employees. Thus, rates for time off incentives, such as PTO, holiday pay, bereavement leave, or sick/personal leave, will likely vary based on what is advantageous to the particular employer and the employee. If negotiated, the amount of time to be accrued by employees must be determined by employers and employees at the discretion of the parties.
Employers, like in many states, can limit the amount of time an employee may accrue or use for PTO, holiday pay, bereavement leave, or sick/personal leave, provided that the limitation is reasonable. Employers must simply comply with the terms of the written policy document provided to employees detailing the limitation , i.e., caps, or loss of benefits. Importantly, if an employer places a cap on said benefits, either in increments that will accrue together or on an annual basis, an employee cannot lose his or her PTO balance. Further, employers may not impose a cap on PTO or similar benefits that is intended to discourage the use of earned PTO, for instance, by accumulating balances that would pay out at a higher rate or in an ensured lump sum.
The policy also does not have to provide leave solely for illness, thereby allowing an employer to be flexible with the policy. However, minimum sick leave must be at the discretion of the employer and can be different than any additional sick leave the employer provides and that is guaranteed by law. If an employee in Florida is subject to a union contract, then all policies would be subject to the terms of the contract.
Unused Vacation Time and Resignation
As discussed in this blog, an employee in Florida is not entitled to any paid time off for vacation. However, if an employer has a policy of providing PTO to employees, it is at the employer’s discretion to require unused PTO be paid out upon termination of employment or to limit accrual of PTO. If the employer has a policy of paying out upon termination, the accrual should be stated in the form of a written policy. Likewise, if the employer has a policy that states an employee loses accrued PTO time when separated from employment, that policy should also be stated in writing.
Employment Rights for Employees
Employees have rights under the Fair Labor Standards Act, and they also have rights under Florida’s laws. This section outlines what those rights are as related to PTO, how disputes over those rights may be resolved, and what happens if those rights are violated.
What if a paid time-off right is violated? If an employee has accrued PTO that they have not used and in some way attempt to use that PTO, only to find out that their right has been violated (i.e. terminated when they believe they should not have been, paid for less than the amount of vacation they have accrued, etc.), then they may have other legal rights. When they have exhausted their dispute resolution options at work, and if it would provide a benefit, they can file a complaint with the United States Department of Labor and/or the Florida Department of Labor. Certain requirements must be met before filing either complaint: If a complaint is filed with the United States Department of Labor, upon its completion, that department will issue to the employee a determination. If the determination finds that violation of the Act did occur, the employee will then receive certain paperwork establishing that right. This paperwork is often called a right-to-sue letter. This paperwork indicates to the employee that they may now file suit against their employer to recover the unpaid wages owed.
If a complaint is filed with the Florida Department of Labor, the employer will have a right to contest the requested relief. If there is no dispute about the right at that point, the Florida Department of Labor will recommend all disputed amounts. If the parties reach an accord, the employee may commence an action to enforce that accord. If they do not, the Florida Department of Labor cannot issue a right-to-sue letter like the United States Department of Labor does.
Again, this paper is not legal advice and is simply for information only.
Florida Best Practices for Employers
Employers who choose to implement PTO policies in Florida as an alternative to sick, vacation, and personal days should consider the following best practices: If you already have paid time off policies in effect, you should evaluate them for compliance now. Since terminating a PTO policy without proper notice may create a paid leave entitlement , you will want to make sure that your policy is written clearly enough so employees do not confuse PTO days as sick days or vacation days. For instance, you could include statements like: You cannot change your termination policy to only pay out unused PTO days on some terminations, such as retirements or voluntarily resignations, without providing proper notice to employees that indicates that you are changing the consequences of their decision to leave the business.