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Time Off: Paid Time Off

Whether you're recovering from an illness or you just need to relax and re-energize, we know it's important to have time for yourself and your family. Our Time Off programs featured in your Total Rewards package are generous and flexible. Several options are even offered in hourly increments, so you can use your time off however you need to, whenever you need it.

General Information

Paid Time Off (PTO) is a bank of hours that provides benefits-eligible employees paid time away from work to be used for leisure, personal illness, family illness, medical appointments or other time off not eligible in another Time Away from Work policy.

  • Benefits-eligible employees receive accrued PTO hours at the end of each completed pay period.
  • Employees should schedule PTO in advance.
  • PTO taken for reasons other than unforeseen personal or family illnesses requires management approval, unless the absence is otherwise protected by law or State Farm is required by law to provide such leave.

New Employees

Newly hired benefit-eligible employees begin accruing PTO at the start of their employment. Some business areas may limit scheduled PTO use during training periods unless the absence is otherwise protected by law or State Farm is required to provide such leave.

Hourly Accrual Rate

A benefits-eligible employee accrues PTO based on an hourly accrual rate. The hourly accrual rate is based on:

  • Completed years of service on the first day of the pay period.
  • Hours paid per pay period:
    • Nonexempt (Timesheet) employees accrue PTO based on hours paid each pay period, with a maximum of 80 hours.
    • Exempt (Salary) employees accrue PTO based on standard hours entered in PeopleSoft. Standard hours can also be viewed in the T2 Time Management Tool.

Employees accrue PTO while on any type of paid leave.

New Hires and Employees are eligible for the following:

Years of Service Hourly Accrual Rate
0 - 4 0.0769
5 - 14 0.0962
15+ 0.1154

Maximum PTO Hours

PTO is capped at the following Maximum PTO Hours. Once the Maximum PTO Hours have accrued, no additional PTO will accrue until the PTO balance is reduced below the Maximum PTO Hours.

Years of Service Maximum PTO Hours
0 - 4 232
5 - 14 290
15+ 348

Disclaimer

This brief overview of the State Farm Paid Time Off policy is not intended to be a complete explanation of the program. For more detailed information, please refer to the online Human Resources Policy Manual for U.S. employees.