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Paid time off, planned time off, or personal time off (PTO), is a policy in some employee handbooks that provides a bank of hours in which the employer pools sick days, vacation days, and personal days that allows employees to use as the need or desire arises.
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The following holidays are observed by the majority of US businesses with paid time off: New Year's Day, New Year's Eve, [2] Memorial Day, Independence Day, Labor Day, Thanksgiving, the day after known as Black Friday, Christmas Eve and Christmas. There are also numerous holidays on the state and local level that are observed to varying degrees.
Other federal holidays are less widely observed by businesses. Most federal holidays are celebrated on a Monday or Friday to create a three-day weekend. Christmas is the only religious holiday that is a federal holiday. Some businesses allow religious employees to take paid time off for religious observances.
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