From the Hotline: PTO Accrual During FMLA Leave
Question: Does paid time off (PTO) have to accrue while an employee is out on Family and Medical Leave Act (FMLA) leave?
Answer: FMLA regulations do not require an employer to continue paid time off (PTO) accruals while on leave unless they allow PTO to accrue for employees on other unpaid leaves. While an employer may have a policy of allowing vacation hours to continue to accrue while on a regulated leave, generally most employers do not. We recommend reviewing your company policy on PTO, as well as your leave policies to ensure the approach you take regarding vacation accruals is clearly outlined. We also recommend ensuring there is a process in place where payroll and HR are both aware when someone goes on a leave to confirm that any accruals are ceased in the HR/Payroll systems.