What leave policies should I choose for my organization?

Last updated: August 25, 2026

Alpaca does not prescribe a leave policy — it gives you the settings to express whatever you and your state require. This article is a decision guide: the questions to answer before you create a policy, and the trade-offs behind each setting. For the mechanics of each field, see Configuring leave time accruals.

This is operational guidance, not legal advice. Paid sick leave is mandated in many states with specific accrual rates, caps and carryover rules. Check your state's requirements — and every state you employ people in — before you set anything up.

Question 1: how many policies do you need?

Start with the leave types you actually offer. A common shape is:

  • PTO — general paid time off

  • Paid sick leave — often legally required, and often with different rules from PTO

  • Unpaid leave

  • Paid holidays

You need a separate policy per leave type. You also need separate policies if the same leave type has different rules for different groups — for example full-time staff on a lump-sum grant and part-time staff accruing per hour. That is exactly what the eligibility setting is for.

Question 2: which accrual method fits?

If you want to...

Use

Give everyone the same annual allowance, available up front

Fixed per year

Have leave build steadily and predictably alongside pay

Fixed per pay period

Tie leave to how much someone actually works — the natural fit for part-time and variable-hours staff, and how most state sick-leave laws are written

Based on hours worked

Track a balance you top up by hand, or block calendar time with no pay effect

No accrual

For ABA clinics with a lot of part-time BTs and RBTs, based on hours worked is usually the least painful choice: it self-adjusts as someone's caseload changes, and it maps cleanly onto state sick-leave rules like "one hour per thirty worked".

Question 3: clinical hours only, or all hours?

If you accrue on hours worked, decide whether admin, training and drive time earn leave. Counting only clinical hours is simpler to explain and cheaper; counting all hours worked is usually closer to what state law means by "hours worked". If your state mandates the leave, lean toward all hours.

Question 4: waiting period

Days before accrual start delays eligibility from the hire date. A short wait is common; a long one is a retention problem in a market where BTs and RBTs have options. Note that some states cap or prohibit waiting periods for mandated sick leave.

Question 5: caps and carryover

Two separate decisions:

  • Maximum hours accrued per year and maximum time off balance limit your liability — an uncapped balance is a growing number on your books.

  • Roll over vs reset to zero at year end. Rolling over (with a rollover cap) is friendlier and is required for mandated sick leave in several states. Reset-to-zero encourages people to actually take their leave, but is not always lawful.

Question 6: contractors

1099-NEC contractors are generally not entitled to employer leave, and assigning them to a leave policy can undermine the classification. The worker assignment drawer shows each person's W2/1099 status for exactly this reason — use it.

Before you go live

  1. Remember that policies do not backfill. Anyone with an existing balance needs it seeded — see Manual leave entries and corrections.

  2. Set the effective period to start at a clean pay period boundary.

  3. Check the Accrual Summary by Period after the first period closes and confirm the numbers are what you expected.

  4. Tell your team what changed. A balance that appears or moves without explanation generates more questions than the policy saves.

Still stuck? Email support@alpacahealth.io and we will take a look.