The practice of allowing salaried, exempt employees to use paid time off (PTO) in partial-day increments, often tracked by the hour, raises several considerations. For example, an exempt employee might use two hours of PTO to attend a child’s school event and then return to work for the remainder of the day.
Offering this flexibility can enhance work-life balance, potentially increasing employee morale and retention. It can also lead to more efficient use of PTO, as employees are not forced to use a full day for appointments or other commitments that require only a few hours. Historically, PTO was often granted in full-day blocks, reflecting a traditional view of work schedules. The increasing demand for flexible work arrangements, coupled with the rise of digital timekeeping systems, has made fractional PTO usage more feasible and desirable for both employers and employees. However, managing this practice requires careful attention to compliance with wage and hour laws, particularly regarding the salaried status of exempt employees.