What Is Voluntary Time Off (VTO)?
VTO is unpaid time off your employer offers—not requires. See how it differs from PTO, your rights, and state laws that protect you.
What Is Voluntary Time Off (VTO)?
Your manager just announced VTO for the afternoon. Is that free time off? A polite way of saying “we don’t need you today”? Something that’ll hurt your paycheck?
Voluntary time off is unpaid leave that employers offer during slow periods. The key word is offer—you can say yes or no. If you accept, you go home early (or don’t come in at all) without pay, but you keep your PTO for when you actually want it.
Here’s the important part: VTO has to be truly voluntary. If your employer is “offering” VTO but everyone knows saying no means getting fewer hours next week, that’s not VTO—that’s pressure. Per DOL guidance, forced time off is a furlough with different legal implications.
The trade-off in plain English
VTO = unpaid day off you didn’t ask for, but also didn’t have to take. Good if you need a break. Bad if you need the money.
VTO vs PTO: What’s the Difference?
| VTO | PTO | |
|---|---|---|
| Who initiates | Employer offers | You request |
| Paid? | No | Yes |
| When | Slow periods | Whenever you want (approved) |
| Purpose | Company saves money | You get a break |
The key difference: PTO is a benefit you earned. VTO is an offer your employer makes when they’re overstaffed. You can say no to VTO without any penalty—or at least, that’s how it’s supposed to work.
When Companies Offer VTO
Slow periods: Post-holiday retail, off-season hospitality, manufacturing downturns. The work dried up, but you’re still scheduled.
Overstaffing: More people showed up than the workload requires. This happens a lot in warehouses and call centers where volume fluctuates.
Equipment downtime: The line is down for maintenance. Nothing to do until it’s fixed.
Budget pressure: The labor budget is almost blown. Management needs to cut hours somewhere.
The Real Pros and Cons
If you’re the employee:
Taking VTO means you keep your PTO for when you actually want time off. If you’re burned out and need a mental health day, VTO is a way to get one without dipping into your vacation bank.
But here’s the downside: no pay. If you’re living paycheck to paycheck, VTO isn’t really “voluntary”—it’s a choice between your rent and your sanity. And if VTO happens too often, your hours (and income) become unpredictable.
If you’re the employer:
VTO is a way to manage labor costs without layoffs. Instead of cutting staff, you offer people the option to go home. Workers who want the time take it; workers who need the money stay.
The risk? If you offer VTO too often, people start job hunting. Nobody wants to work somewhere where “voluntary” time off is a weekly occurrence.
Legal Rules That Protect You
It has to be voluntary: If your employer forces you to take time off, that’s a furlough—not VTO. For companies with 100+ workers, forced time off triggers WARN Act requirements and may make you eligible for unemployment.
Reporting pay laws: In California, New York, and Massachusetts, if you show up and get sent home early, you’re owed minimum hours of pay regardless of VTO.
Salaried employees: If you’re exempt, partial-day VTO can mess with your exempt status. Most employers only offer full-day VTO to salaried workers.
Selection has to be fair: Who gets VTO should be based on objective criteria (seniority, rotation, first-come-first-served)—not who the manager likes.
Should You Take VTO?
Take it if: You need a mental health day, have something personal to handle, or genuinely want the time off. Your PTO stays intact for actual vacation.
Skip it if: You need the money, VTO is happening constantly (that’s a red flag about job stability), or you feel pressured to say yes.
Watch out for: Employers who “offer” VTO but retaliate against people who decline. That’s not VTO—that’s coercion with extra steps.
Sources
- U.S. Department of Labor – FLSA
- DOL – WARN Act
- California DLSE – Reporting Time Pay
- New York DOL – Call-In Pay
Frequently Asked Questions
What does VTO mean?
Voluntary time off—unpaid leave your employer offers during slow periods. You can accept or decline without using your PTO.
What’s the difference between VTO and PTO?
PTO is paid time off that you request and you earned. VTO is unpaid time off that your employer offers when they’re overstaffed. Different purposes, different initiators.
Can my employer force me to take VTO?
No. If it’s forced, it’s a furlough, not VTO. That comes with different legal rules—including potential unemployment eligibility.
Does VTO affect unemployment benefits?
Usually no, since you chose to take it. But if VTO is so frequent that your income drops significantly, you might qualify for partial unemployment in some states. Check your state’s rules.
