Unpaid time off is time away from work an employee can take without pay. Employees can use the unpaid time off if they’re sick, want to take a vacation, or have other obligations. Additionally, an employee can take an unpaid leave of absence, which is an extended period of time away from work. 

Employers can offer unpaid time off in addition to, or instead of paid time off.

It’s important to familiarize yourself with paid sick leave laws per state before deciding to offer unpaid time off. There are currently 12 states that require certain employers to offer employees a specific number of paid sick days. These states include Arizona, California, Connecticut, Maryland, Massachusetts, Michigan, New Jersey, Oregon, Rhode Island, Vermont, and Washington. 

In addition, there are certain cities and counties with mandatory paid sick leave laws. Employers should check with their locality for more information and details.

Related Terms: PTO, Time Off