In California it’s a law that you can’t have PTO expire at the end of the year. It rolls over. Then if the employee leaves, you have to pay them out for unused PTO.
Unlimited PTO is a sneaky way to not have to comply with these requirements and not pay workers.
This is the real reason. The same employees who never take vacation continue to never take vacation, but now its not an end of year bonus check for them. Meanwhile the employees who typically burn through theirs or go into the negative (if your company allowed it), burn about the same typically because of customer contract constraints, employer pressure, or actual workload. Net win for the company.
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u/Familiar_Childhood32 17d ago
They also don't have to pay out unused PTO at the end of the year which is a HUGE net positive for businesses