Clark Howard: It’s better to use paid time off rather than banking the time

Consumer advisor Clark Howard advises workers to use their paid time off (PTO) rather than banking it, as many companies are reducing or eliminating payouts for unused PTO.

Historically, some companies have offered to pay employees for unused vacation days when they quit or retire. However, this practice is changing, with many workplaces now paying significantly less or nothing at all for unused PTO.

“You need to use your PTO,” Howard advises. “It’s no good for you never to take your vacation. Enjoy it.”

Howard explains that when employers initially switched to a PTO system, it benefited employees who rarely took time off, as they could cash out their accumulated days upon leaving the company. However, this is no longer the case at many companies.

He recommends that employees take their vacation throughout the year and keep some PTO in reserve for potential sick days, rather than risk losing it altogether.

Download the FREE WPXI News app for breaking news alerts.

Follow Channel 11 News on Facebook and Twitter. | Watch WPXI NOW