What is VTO?

VTO can stand for voluntary time off or volunteer time off. These are separate workplace policies: one generally provides employer-approved unpaid leave, while the other provides paid time for eligible volunteer activities. Define both terms clearly in your employee handbook so employees understand which policy applies.

Voluntary time off

Voluntary time off is employer-approved unpaid leave that employees can choose to request. Employers may offer it during temporary slowdowns or allow eligible employees to request time away for personal reasons beyond available paid leave.

Approved voluntary time off may give employees additional flexibility to manage work-life balance without using available PTO. Depending on the policy, unpaid VTO may affect PTO accruals, benefits, attendance records and other employment-related calculations.

Employers can offer VTO during business lulls or allow employees to request it for personal reasons. How unpaid VTO applies may differ for hourly, salaried nonexempt and salaried exempt employees. The federal salary-basis regulation addresses pay deductions for certain absences. Employers can review current federal and state rules before changing pay.

Volunteer time off

Volunteer time off is paid leave employees may use to volunteer with an organization or activity that meets the employer’s written eligibility criteria. An employee volunteer program can support community involvement without reducing the employee’s regular pay for the approved hours.

As an employee benefit, volunteer time off may provide a set number of paid hours each year or designated volunteer days. A policy can explain eligible activities, request procedures, documentation and whether employees may volunteer individually or through company-sponsored events.

The pros and cons of a VTO policy

Both types of VTO may benefit employers and employees, but each also has potential drawbacks.

Benefits of voluntary time off

When employees can request approved unpaid time away, potential benefits for employers include:

• Greater schedule flexibility for employees
• Potential support for employee satisfaction and employee retention
• Potential support for workplace morale
• Improved workforce efficiency during periods of lower work volume

Voluntary time off may also give employers more staffing flexibility when work volume fluctuates. During a temporary slowdown, eligible employees can decide whether to request unpaid time rather than remain scheduled when limited work is available.

Disadvantages of voluntary time off

A voluntary time off policy may also create challenges, including:

• Fewer available employees if work volume increases unexpectedly
• Coverage or scheduling gaps when multiple requests overlap
• Potential confusion if employees don’t understand when VTO is available or how to submit requests
• Possible effects on PTO accruals, benefits and attendance records

Benefits of volunteer time off

Volunteer time off can give employees opportunities to support community organizations and practice workplace skills. Depending on the program, it may also:

• Support recruiting efforts for candidates who value community involvement
• Demonstrate the company’s approach to corporate social responsibility
• Support employees’ personal development and skill building
• Give employees a structured way to contribute to eligible organizations

Disadvantages of volunteer time off

Volunteer time off may support employee and community goals, but employers can consider potential drawbacks such as:

• Wage costs for paid time away from regular duties
• Lost productivity or scheduling conflicts when employees volunteer
• Administrative work for approving and tracking volunteer hours
• Multiple employees requesting the same volunteer dates

How does voluntary time off work?

A voluntary time off process can fit within your broader time-off policies while remaining a separate unpaid leave category. Define when the option is available, who is eligible and how employees submit requests.

For example, a business with seasonal fluctuations might announce that VTO is available for a day or period. Eligible employees can then choose whether to request the unpaid time off. Another policy might allow requests for personal reasons, subject to approval and staffing needs.

The VTO policy you have for your business can include guidelines for:

• When employees can request VTO
• How much VTO they can take
• How far in advance they should submit requests
• Who reviews and approves VTO requests
• How the company communicates when VTO is available
• How the company records VTO for attendance and payroll purposes
• Whether VTO affects PTO accruals, employee benefits or other calculations

Considerations for creating a VTO policy

To create either type of VTO policy, document clear eligibility, request and approval rules. Written criteria can help managers administer requests consistently. Consider questions such as:

• Who is responsible for approving time off requests?
• How much advance notice should an employee give when requesting time off?
• How will employees submit their time off requests?
• How will managers direct requests that may involve protected leave or a reasonable accommodation?

A clear request and approval path can help employees identify which policy applies. A general VTO policy is separate from legally protected leave. The U.S. Department of Labor explains that the FMLA may provide eligible employees of covered employers with unpaid, job-protected leave for qualifying family and medical reasons.

The U.S. Equal Employment Opportunity Commission also notes that unpaid leave can be a reasonable accommodation under the ADA in some circumstances. Because federal, state and local requirements vary, consider having legal counsel review the policy before implementation.

Considerations for a voluntary time off policy

A voluntary time off policy can define the details employees and managers use to request, approve and record leave. Consider the following:

• What limits, if any, apply to voluntary time off each year?
• Which manager or HR contact receives requests?
• When can employees request VTO?
• How much advance notice must employees provide when the need is foreseeable?
• How will overlapping requests be evaluated consistently?
• When might staffing levels or workloads make unpaid time off difficult to approve?
• How will VTO affect PTO accruals, benefits and attendance records?

Considerations for a volunteer time off policy

A volunteer time off policy can specify what documentation employees submit, such as a time-off request form, and how managers approve and track paid volunteer hours. Consider:

• How will employees verify that an organization or activity meets the policy’s eligibility criteria?
• Which written criteria determine eligible and ineligible organizations or activities?
• How much paid volunteer time can the company offer each year?
• How much advance notice is requested?
• How will employees document the hours they spend volunteering?

After answering these questions, you can outline separate policies for voluntary time off and volunteer time off, including definitions, eligibility and approval steps. Periodic reviews of usage, scheduling effects and employee feedback can identify where the policies may need clarification or adjustment.

This article is for informational purposes only and does not constitute legal advice. Wage-and-hour, leave and benefits rules vary. Employers may want to review current agency guidance and consult qualified counsel about their policy.