Under federal law, no. Employers are required to pay their nonexempt (hourly) employees at time and one-half their regular rate of pay only if the employee worked over 40 hours in a workweek (key word is “worked”).
Generally, the regular rate includes all pay. However, there are some exclusions. Employers don’t have to include payments for time when no work is performed due to vacation, holidays, or illness.
Thus, nonwork hours — such as PTO — are not included in an employee’s regular rate of pay.