Determining use of unpaid leave when paid time off is available

Q         Our company has a paid time off (PTO) policy entitling employees to paid vacation and sick leave. When they request time off, can they choose to use unpaid leave instead if they still have a PTO balance?

A   In Wisconsin, an employer isn’t obligated to offer PTO to their employees, including paid vacation or sick leave. Federal law also doesn’t require employers to provide PTO or paid or unpaid vacation time or sick leave.

Likewise, a Wisconsin employer isn’t obligated to offer unpaid time off—excluding federal and state law-mandated leave, such as the Family and Medical Leave Act (FMLA) and the Wisconsin Family and Medical Leave Act (WFMLA) or unpaid disability accommodation leaves. If an employer elects to offer its employees PTO or unpaid leave as an employment benefit, however, it may impose certain limitations or restrictions on its use, subject to the aforementioned FMLA and WFMLA (for qualifying medical or family leaves).

If an employer voluntarily elects to offer either PTO or unpaid vacation time (in an at-will employee relationship), it will typically have an established policy outlining how much leave an employee is entitled to and how she can use it. The policy will typically include other terms, such as: