Paid time off (PTO) is a valuable benefit for employees. Not offering PTO may leave your company at a disadvantage in recruiting top talent. You may even find yourself breaking state law in some states if you do not provide PTO.
Understanding the laws surrounding employees’ time off is crucial. Failing to do so may affect your operations and open your business to potential legal problems.
No paid time off laws in Alaska
Fortunately, Alaska wage and hour laws do not require you to provide PTO. State laws also do not require paid days for the following:
- Sick leave
- Vacation or holiday leave
- Parental leave
- Jury duty leave
Alaska laws only require paid time off voting leave. However, if employees have a two-hour time window between their start or end of shift and the opening or closing of the polls, you can choose not to provide a paid leave day without any problem.
No payouts for unused time off
You may choose to offer paid leave days as you see fit – in fact, many employers offer this as part of their benefits package. If you provide PTO, the law still doesn’t require you to pay out any unused time off. Unless your workers’ contract explicitly includes that you will pay for any unused PTO, you have protection against legal action from disgruntled employees for not doing so.
Unpaid and job-protected leaves
Federal laws require Alaska employers to offer unpaid, job-protected leaves for private employees under the Family and Medical Leave Act (FMLA). Alaska also has a state-law counterpart, the Alaska Family Leave Act (AFLA), for public employees.
Unpaid and job-protected leaves under FMLA are only available for private employees who worked for:
- At least 1,250 hours over a 12-month period
- A covered employer for at least a year
- A company with at least 50 employees
Leave policies at the employer’s discretion
Employers in Alaska can implement their own leave policies at their discretion. As long as you uphold your leave policy, you can avoid employee issues regarding PTO and maintain a positive work environment. Seeking legal assistance when drafting employee contracts and benefits can help you ensure everything is legitimate and according to the law.