By making it “unlimited” they don’t need to pay you out of you don’t use all of PTO days.
If you use it more than they think you’ve earned you get terminated.
Employees end up afraid of taking their PTO days and typically end up taking even less time off than if they knew there was a expectation of 3 weeks or whatever.
It depends on the jurisdiction, but in most cases if you have a salaried position with say 3 weeks of PTO but you only take 2 weeks of it. The employer is usually required to pay you over and above your salary for working during your “vacation time”.
If there’s an unlimited PTO policy, they don’t have an obligation to pay you extra for working during vacation time.
It’s a lie.
By making it “unlimited” they don’t need to pay you out of you don’t use all of PTO days.
If you use it more than they think you’ve earned you get terminated.
Employees end up afraid of taking their PTO days and typically end up taking even less time off than if they knew there was a expectation of 3 weeks or whatever.
I don’t think payout is a factor for salaried positions
It depends on the jurisdiction, but in most cases if you have a salaried position with say 3 weeks of PTO but you only take 2 weeks of it. The employer is usually required to pay you over and above your salary for working during your “vacation time”.
If there’s an unlimited PTO policy, they don’t have an obligation to pay you extra for working during vacation time.