Employee Benefits & Retirement Plan Insights for Employers | TruePlan

Navigating Compliance Risks of Unlimited PTO Policies

Written by Amanda Humphrey | May 19, 2025

Unlimited PTO has become a popular perk for attracting and retaining talent — but don’t let its simplicity fool you. Beneath the surface lies a web of compliance considerations that vary by state and can create hidden legal risks for well-meaning employers. 

Is your unlimited PTO policy putting your organization at risk? 

In our latest guide, Compliance Considerations for Unlimited PTO Policies, we unpack the top legal pitfalls like state-mandated leave accrual rules, conflicting payout laws and the nuances of “use-it-or-lose-it” regulations.
 

 

From California’s sick leave accrual tracking to Colorado’s payout exemptions, state laws aren’t one-size-fits-all. This resource is essential for any HR leader or compliance officer considering — or already offering — unlimited PTO.