Pear lets workers choose PTO or cash before the benefit year starts

Pear launched a paid time off model that lets employees elect cash for future PTO while leaving already banked time untouched. The San Diego fintech is targeting about 25,000 eligible employees by the next open enrollment cycle as employers look for more flexible benefits and better forecasting.

Why it matters: - Pear is trying to turn PTO from a fixed benefit into a choice employees can use for immediate needs. - The model gives workers more flexibility without forcing employers to change their existing PTO programs. - Employers may also get earlier visibility into future PTO payouts, which can help with planning and liability management.

What happened: - Pear, a San Diego-based fintech company, announced a PTO model that lets employees choose, before the benefit year begins, whether future accrued PTO stays as time off or becomes cash. - Employees who do not enroll in Pear see no change. - Pear said it is working with employers in manufacturing, retail, financial services and healthcare. - The company is targeting about 25,000 eligible employees by the next open-enrollment cycle.

The details: - An employee expecting to earn 120 hours of PTO could keep 40 hours for time off and elect the value of 80 hours as cash. - As those hours are earned, Pear converts the elected portion to cash through payroll, subject to applicable payroll taxes and withholdings. - Previously banked PTO remains untouched. - Employees receive the full value of the portion they elect, with zero conversion fee. - Employers keep control over eligibility, election limits, timing and program rules. - Pear is designed without a monthly recurring platform fee. - Pear is starting with PTO, but the company frames the platform as a broader benefits-flexibility model.

Between the lines: - The pitch is as much about financial wellness as it is about employee choice. - Pear is positioning the product for both HR and finance leaders, with HR getting a more flexible employee experience and finance getting more predictable obligations. - The company is also arguing that a benefit can be more valuable without adding another standalone perk. - Pear founder and CEO Asif Huda said the company built the product around the idea that benefits should adapt to real life, and that even a few hundred dollars can matter when a worker faces an immediate expense. - An early client, Tri-Valley Neurofeedback CEO Amy Nadimi, said the program improved employee satisfaction and morale.

What's next: - Pear plans to onboard roughly 25,000 eligible employees by the next open-enrollment cycle. - The company will continue rolling out the platform with employers across multiple industries. - Pear appears to be aiming beyond PTO toward a wider set of flexible employee benefits.

The bottom line: - Pear is betting that workers will value cash access and employers will value predictability, making PTO more adaptable for both sides.