this post was submitted on 02 Oct 2025
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While you are correct, the actual reason this started is much simpler.
CA has a law that all unused vacation must be paid out at separation. All the silicon valley CEOs loophole this law by claiming unlimited PTO, therefore no payout because nothing is accrued.
In my country, if you offer unlimited PTO, and there's seperation, you will have to pay out what was contracted: Unlimited PTO. I guess, in most cases that would be interpreted as 365 days a year
Hence, nobody is dumb enough to offer unlimited PTO.