What is a Mandatory PTO Day in Public Accounting?

One of the better things about public accounting is that in order to attract talent to work a significant number of hours, a firm must have a good overall compensation package. In many cases, public accounting firms offer a generous amount of vacation compared to their industry counterparts. However, there are times when these benefits are restricted more than you would like. One common restriction I’ve noticed lately is the concept of “Mandatory PTO,” and it’s important to understand how it works so you can make the most out of your very valuable PTO.

What is a Mandatory PTO Day?

A Mandatory PTO day is where a firm requires its employees to use their PTO. On these days, practically everyone in the firm with few exceptions will be required to take time off to relax and recharge. Most firms would simply call this a firm holiday, and not bother incorporating the use of PTO into the description. However, the firms that employ this methodology have found it more fitting to provide employees with PTO days that are required to be used on certain dates that the firm has determined to be appropriate. 

When Do Companies Usually Enforce Mandatory PTO?

Companies enforce Mandatory PTO policies when most of their employees would be taking time off anyways, typically around the 4th of July and the last two weeks of December. They do this because a good number of employees would not be at work anyways, so it makes more sense to have more people burn their PTO during these periods.

Is there any way to get out of Mandatory PTO?

Many professional services firms have an internal policy to prioritize client service in certain circumstances, which can include working on a holiday or mandatory PTO day if employees are willing to do so. Some firms have the policy that mandatory PTO days can only be skipped for work if 8 billable hours are charged on that day. Remember, every firm will be different with policies, so make sure you learn what your management team will and won’t allow!

John, Why Do You Sound So Salty About Mandatory PTO?

This is a great question, and the answer is simple: these policies are confusing and don’t work for everyone. PTO is understood to be paid time off to be used at the employee’s direction (within reason), and to me it’s disingenuous to force an employee to use their PTO on a day where they may not want to use it. I know many people that only want to use their PTO to travel or see family, and their travel timings don’t line up with those common weeks in July and December. Under a mandatory PTO system, these people would simply not be able to enjoy their PTO to the fullest. Also, calling these dates a firm holiday or a firm shutdown gets the same objective done without the confusion around how the term PTO is conventionally used. In my opinion, the term and the system is simply misleading and we would be better off if firms did not use such a convoluted system.