Growth Strategies

Is an employer required to give full-time employees paid time off?

min read
Opinions expressed by Entrepreneur contributors are their own.
The federal Fair Labor Standards Act (FLSA) requires employers to pay non-exempt (hourly) employees for all time worked and includes overtime requirements for hours worked over 40 in a workweek. It requires employers to pay exempt (professional) employees their regular salaries for the jobs for which they are responsible.

There are many aspects of the FLSA that should be understood in order to follow it properly. For example, docking an exempt employee's pay for some missed time during a workweek may result in the company losing the exempt status on the job that employee fills--including everyone in that job, which could end up being pretty costly, as overtime pay would then be required for those workers going forward.

However, the FLSA does not require you to provide paid time off work, per se. Most companies do offer paid time off work in order to be competitive (attract and retain good employees).

Other considerations would be if yours is a unionized company or if your enterprise is located in a state that requires employees in certain circumstances be provided with paid Family Medical Leave (i.e., California). Also, if you already have a policy in place that specifies that you do provide paid time off work, you should follow it consistently or else eliminate it and inform your work force accordingly.

More from Entrepreneur

Kathleen, Founder and CEO of Grayce & Co, a media and marketing consultancy, can help you develop a brand strategy, build marketing campaigns and learn how to balance work and life.
Book Your Session

For a limited time only, get this bundle of Entrepreneur PressĀ® titles for less than $30 (60% OFF) on our bookstore when you use "LEAP" at checkout.
Buy Now

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.