Take Your Time Off! 10 Reasons Americans Forfeit PTO Instead of Getting Paid

I’m baffled by how many Paid Time Off (PTO) days are left on the table and forfeited in America. In 2023, the average American employee was allocated 15 days of PTO, used only 10 days, and left 5 (33%) unused. Speak to just about anyone from Europe where they receive a lot more PTO and think we are bonkers for not taking all of it. My husband and I love to travel, and we never leave any PTO to expire; we negotiate extra comp time and take it; well, I’ve been a business owner for 14 years, and now all my PTO is unpaid, but I match my spouse’s. But when I led large teams of up to 300 employees, I pushed everyone to plan and take every day they earned. In 2018, American workers left 768 million PTO days unused, representing $65.5 billion in lost benefits. By 2022, the total liability for employers due to unused PTO had grown to over $318 billion. WTH (What The Heck) is wrong with Americans? We want work-life balance, so let’s start by taking every hour of PTO we earn.

Understanding PTO in the U.S.

📌 PTO is a benefit many workers receive as part of their employment package in the U.S., yet it remains one of the most underutilized perks. PTO typically encompasses vacation days, personal leave, and sometimes even sick days, offering employees a designated period to disconnect from work responsibilities without sacrificing their income. Despite its availability, many Americans take only part advantage of this benefit each year.

📌 The reluctance to fully utilize PTO may also be traced back to communication issues between employers and employees regarding work-life balance expectations. In some environments, there’s a lack of visible management encouragement or clear policies promoting time away from work—which can lead employees to second-guess taking leave without repercussions. Some states, such as North Carolina, do not require employers to pay for unused PTO unless it is explicitly stated in the employer contract. On the other hand, states like Rhode Island mandate that unused vacation time be included in final wages, covering up to wages plus up to 30 days. Cultivating open discussions around PTO helps normalize its use and creates more productive workplaces where well-rested individuals contribute happier and healthier perspectives to their roles.

Top Ten Reasons for Unused PTO

📌 Several factors contribute to Americans not using their full PTO allocation: 49% worry about falling behind at work, and 43% feel bad about co-workers taking on additional work.

Understanding why Americans forfeit PTO requires examining cultural and organizational mindsets regarding work ethic and productivity. Traditionally, an unspoken belief equates longer hours and fewer absences with dedication and efficiency—an ethos deeply ingrained in the American workplace psyche. This results in self-imposed guilt or anxiety about taking time off, often fueled by fear of judgment from peers or missing out on career advancement opportunities. However, research consistently disproves these anxieties by showing that regular breaks enhance creativity and improve overall job performance.

Many companies still adhere to policies that prohibit the use it or lose PTO accruals, meaning accrued vacation time is forfeited if not used by year’s end. While state laws vary, not all states require employers to provide a vacation payout when an employee leaves. Some states require pay out PTO payout laws by state, ensuring unused vacation time is preserved as a benefit.

1. Workplace Culture: Many workplaces subtly or overtly discourage taking time off, creating a culture where employees feel judged or undervalued for using their PTO.
2. Job Security: Employees worry that taking time off might make them appear less committed, potentially jeopardizing promotions, raises, or even their jobs during layoffs.
3. Heavy Workload: Some employees feel they can’t afford to step away due to the sheer volume of their responsibilities, fearing their work will pile up in their absence.
4. Guilt: A sense of guilt about leaving coworkers to cover their duties often prevents employees from taking time off, especially in small teams or high-pressure environments.
5. Lack of Coverage: Many workplaces must provide adequate backup or coverage for employees who are away, which can lead to stress about returning to a backlog of tasks.
6. Financial Constraints: Some employees may need help affording to travel or enjoy their PTO meaningfully, opting instead to bank their days for the future and not realizing they are losing them.
7. Unclear PTO Policies: Confusion or lack of communication about how PTO accrues, carries over or expires can discourage employees from planning and using their time off.
8. Desire for Advancement: High achievers might believe that consistently being available and working hard without breaks will enhance their career prospects.
9. Remote Work Dynamics: With the rise of remote work, employees may feel they don’t need a “break” since they can work flexibly or in a more comfortable environment.
10. FOMO (Fear of Missing Out): Employees may fear missing out on important decisions, projects, or meetings while away, especially in fast-paced or competitive industries.

This trend of unused PTO represents a significant loss for American workers regarding well-deserved rest and financial benefits. It also challenges employers in managing PTO liabilities and ensuring a well-rested, productive workforce.

Impact on Health and Well-being

📌 Forfeiting paid time off (PTO) can have significant repercussions on health and well-being, often more profound than many realize. When Americans forgo these much-needed breaks, they inadvertently invite chronic stress into their lives. This constant exposure to high stress levels has been linked to a myriad of health issues, including heart disease, insomnia, and depression. The absence of downtime means the body is deprived of essential recovery periods necessary to repair physical and mental fatigue.

📌 Regularly utilizing PTO is not just about resting; it’s critical for nurturing relationships and personal happiness. Time away from work allows individuals to immerse themselves in activities that boost joy—traveling with loved ones or devoting energies to hobbies—which fosters emotional resilience and improved life satisfaction. Skipping these leisure opportunities may jeopardize social ties and lead to feelings of isolation or disconnect.

📌 Perhaps more subtly, refusing to take PTO might perpetuate an unhealthy work culture where employees feel compelled to define their worth through relentless productivity—a rarely sustainable long-term narrative. Employees invest in their vitality by taking time off and challenging workplace norms that equate constant busyness with value. In doing so, they contribute to a healthier work environment where balance is prioritized over burnout guidelines embraced as beneficial for everyone involved.

Strategies to Maximize PTO Use

• Plan to take your PTO; don’t wait until Q4. This will give you time to save for or pay off vacation plans. It also gives you something to look forward to; we have two significant trips for 2025 and one for 2026 on our calendars, and we are putting them off like gifts on Lay-a-way.
• If you can’t afford an expensive vacation, plan a staycation and discover all your city or town has to offer, or visit a relative you like to eliminate hotel expenses.
• Many companies have a carry-over policy in their PTO policy, allowing time employees X days to be carried over to the following year. This is excellent for planning bigger trips in the future.
• If your boss has stacked heavy projects on your plate, you can negotiate NOW for special carry-over permission.
• Consider including an extra week of vacation in your package during new job negotiations, especially if you’re like me and know you need more time.

The Financial and Legal Impacts of Unused PTO

Unused PTO isn’t just a missed opportunity for rest—it carries significant financial and legal implications. For employees, forfeiting PTO means giving up earned benefits that could translate into monetary value, especially when leaving a job. Many states have varying rules on whether unused PTO must be compensated, and unclear policies can leave employees unsure of their rights. In some cases, this leads to workers unintentionally losing out on valuable benefits they’ve accrued.

For employers, unused PTO can represent a substantial liability. When employees stockpile PTO, the financial burden for companies grows, often resulting in unanticipated costs during payouts or upon employee departure. The administrative challenges of managing accrued time off can create additional complexity for organizations, particularly those with large workforces.

Encouraging employees to take their PTO on time can alleviate these challenges. It ensures that workers reap the benefits of their earned time off while helping employers maintain manageable financial obligations. Regularly revisiting and communicating PTO policies fosters a culture where time off is both valued and normalized, creating a more balanced and productive workplace for everyone involved.

Your time off is valuable—don’t let it go to waste! Whether you’re looking to advance your career or negotiate better benefits, Career Thinker can help. Take charge of your career and make the most of your PTO. Explore our career services today.

Tom Powner

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