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How does SF PPLO interact with vacation, sick time, or PTO?

Vacation, sick time, and PTO rules under San Francisco's ordinance

Quick answer
 Employers can apply up to 2 weeks of accrued, unused vacation toward the PPLO supplement, but only with the employee's agreement. Sick time cannot be used to cover PPLO. For undifferentiated PTO plans, employers can apply up to 2 weeks of accrued, unused PTO in excess of 72 hours, unless the employee doesn't allow it.

Who this applies to / Prerequisites

  • Employees using SF PPLO whose employer offers vacation, sick time, or PTO.

Key facts

  1. Vacation: Employers can apply up to 2 weeks of accrued, unused vacation leave value toward the PPLO amount owed, but only with the employee's agreement. If the employee doesn't agree, the employer isn't required to pay the PPLO supplement.
  2. Sick time: Employers may not use an employee's sick time to cover the cost of PPLO.
  3. PTO (undifferentiated plans): If the employer's PTO plan doesn't differentiate between vacation and sick time, employees must allow employers to apply the value of up to 2 weeks of accrued, unused PTO in excess of 72 hours. If the employee doesn't allow this, the employer isn't required to pay the PPLO supplement. Employers still cannot use any PTO time designated as sick time toward this obligation.
  4. PTO (differentiated plans): If the employer's PTO plan does differentiate between vacation and sick time, the vacation and sick time rules above apply separately.

What if it doesn't work

  • I don't want my employer to use my vacation or PTO toward PPLO: You can decline, but the employer is then not required to pay the PPLO supplement.
  • I'm not sure if my company's PTO plan differentiates between vacation and sick time: Check with your HR team, or contact your Leave Success Manager.
  • If none of these apply, contact your Leave Success Manager (employees) or Customer Success Manager (HR teams).

Limits and exceptions

  • Sick time, whether standalone or within an undifferentiated PTO plan, can never be applied toward the PPLO supplement.
  • The 72-hour PTO threshold applies only to undifferentiated PTO plans.

Related questions

  • How does the San Francisco Paid Parental Leave Ordinance (SF PPLO) work?