Unlimited PTO policies were all the rage for a while, but now they’re starting to lose their allure. Here, experts weigh in on why companies are shifting away from this once-popular benefit, what alternative solutions look like, and why other options can be more effective.

Unlimited paid time off policies are losing popularity because, in practice, they often fail to deliver the flexibility and wellness benefits they promise. While they sound progressive, the reality is that many employees end up taking less time off under these policies. Without a clear benchmark for what’s considered “normal” or acceptable, employees often hesitate to use their time, fearing it might reflect poorly on their work ethic or commitment. This lack of clarity creates anxiety and inadvertently fuels a culture of overwork—exactly what unlimited PTO is meant to prevent.

Another challenge is inconsistency. Some employees may feel empowered to take extended time off, while others are quietly discouraged, leading to inequities and resentment. In industries where consistent staffing is critical, the lack of structure makes planning difficult, and in some cases, managers may even override requests, further undermining the policy’s intent. Additionally, unlimited PTO can’t always be applied equally across salaried and hourly workers, potentially triggering claims of unfairness or noncompliance with local labor laws.

As a result, many companies are shifting toward mandatory vacation policies, which require employees to take a minimum number of days off each year. This approach removes the ambiguity, helps normalize taking time away from work, and actively combats burnout. It’s especially effective in high-pressure environments where employees may otherwise push through exhaustion or skip vacations entirely. By institutionalizing rest, companies see improved retention, better morale, and a more energized workforce. It’s a simple yet powerful shift—one that sends a clear message: rest isn’t a perk, it’s a priority.

Tyler Butler, founder, Collaboration for Good

Unlimited PTO once promised freedom and flexibility, but it’s increasingly clear that for many employees, especially those from underrepresented or historically excluded backgrounds, it’s more of a mirage than a benefit. In my work as a senior HR leader in Tech and a therapist and coach for underrepresented communities, I’ve seen how this policy, when poorly implemented, can erode psychological safety, blur boundaries, and increase inequity.

One major issue with unlimited PTO is that it lacks structure. Without clear norms or leadership modeling, employees may feel guilty or uncertain about taking time off. Research shows that in organizations with unlimited leave policies, people often take less time off than those with set vacation days. This perceived pressure to “prove” one’s commitment disproportionately affects women, caregivers, and marginalized employees who are already navigating imposter syndrome or subtle biases. It can make rest feel like a risk.

Instead, some companies are shifting to collective rest models, structured, trust-based systems that prioritize equity and well-being. One alternative I’ve seen gaining traction in hybrid workplaces is “company-wide reset weeks” or seasonal shutdowns, where the entire organization takes time off simultaneously. These initiatives remove the ambiguity and competition of unlimited PTO and foster psychological safety by normalizing rest for everyone, not just the bold or burnout-resistant.

This model supports all five elements of high-performing teams identified by Project Aristotle, Google’s Research on Effective Teams:

1. Psychological safety is boosted when everyone logs off at once, minimizing the fear of falling behind.

2. Dependability grows when teams can trust that their colleagues will take breaks and return replenished, not burned out.

3. Structure and clarity are enhanced when time off is explicitly defined and coordinated.

4. Meaning is reinforced as employees feel that their well-being is genuinely prioritized, not just promised.

5. And impact increases when people return from true rest more creative, collaborative, and focused.

In today’s hybrid reality, where boundaries are already blurred, the future of time off needs to be as thoughtful and inclusive as........

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