Unlimited PTO became a popular benefit right after the COVID-19 pandemic, but data suggest employers are now phasing it out.

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Unlimited paid time off means employees can take days off whenever they want, but typically with manager approval. Around 7% of employers offer unlimited vacation days as an employee benefit.

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“Unlimited PTO is the concept that your employer gives you an endless bank of time without limitations,” Vicki Salemi, a career expert at Monster and former U.S. News contributor, said in an ...

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Because there is not a cap in place for unlimited PTO, bigger financial problems arise when the employee’s employment is terminated and a policy is found not to be a bona fide unlimited policy.

Unlimited risk may make it sound like making certain trades or certain investments is not worthwhile. For instance, since short selling has theoretically unlimited risk, certain traders may avoid it.