What is Hourly Leave?

Hourly Leave, or Hourly PTO Tracking, is a flexible approach to managing paid time off where employees can request leave in hourly increments rather than full or half-day blocks. This type of leave allows employees to take shorter periods off for personal matters, appointments, or urgent tasks without committing to a whole day away from work.

Who Does Hourly Leave Apply To?

Covering All Types of Employees

Hourly leave is especially beneficial for those whose schedules don’t fit full-day leave policies, including:

• Hourly workers
• Part-time employees
• Non-exempt employees

However, it can also apply to full-time employees who need short breaks during the workday, such as for doctor’s appointments, childcare responsibilities, or personal errands.

Shift Workers and Remote Teams

Shift workers and remote teams benefit from hourly PTO tracking as it offers flexibility that aligns with variable schedules and diverse working hours. This approach empowers employees to manage their time effectively without disrupting their work commitments. 

Hourly Tracking in the US

Many state leave laws in the US mandate paid leave to be accrued by the hour, making hourly tracking a necessity. States like California, New York, and Washington have specific requirements for hourly accrual. Hourly tracking is mainly mandated for sick leave, currently required by 22 states and the District of Columbia. This approach is useful for employees to take care of their health and use leave in a way that best suits their needs.

How Does Hourly Leave Differ from Regular Leave?

Flexible Time Management

Hourly leave differs from regular leave by offering greater flexibility. Instead of taking a full day or half-day off, employees can request time off in smaller chunks, such as one or two hours, making it ideal for personal tasks that don’t require extended absence.

Streamlined Approval and Tracking

Once an employee submits and a manager approves a leave request, the system deducts the requested hours from their available time off. The leave balance is displayed in both days and hours, providing a clear and accurate view of remaining leave for employees and managers.

Paid vs. Unpaid Hourly Leave

Hourly leave can be either paid or unpaid, depending on the company’s policy. Some employers offer paid hourly leave as part of their PTO, while others may allow unpaid hourly leave, especially for personal errands or short absences.

Importance of Hourly Leave

More Accurate Leave Balances

Hourly PTO tracking provides a precise record of leave usage, reducing the chance of discrepancies and ensuring that employees use their allotted time fairly. This kind of fine-tracking helps employers manage resources effectively while giving employees a transparent view of their available leave.

Enhances Work-Life Balance

Hourly leave supports a better work-life balance by allowing employees to handle personal matters without sacrificing a full day of work.

Increases Employee Satisfaction

Offering hourly leave options can lead to increased employee satisfaction as it provides the flexibility many modern workers seek. By accommodating personal needs with minimal disruption, employers demonstrate a commitment to employee well-being.

Supports Efficient Workforce Management

Hourly PTO tracking enables employers to manage workforce availability more effectively. With clear insights into when employees are taking time off, managers can plan staffing needs better, minimizing the impact on business operations.