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In this video, Katie from Gusto discusses setting up a PTO (Paid Time Off) plan, which encompasses sick days, holidays, and vacation days. She clarifies that the video does not cover FMLA, military leave, or other protected time off, focusing solely on paid time off policies. Katie addresses common questions about PTO: while federal law does not mandate PTO, local regulations in certain states, counties, and cities may require it. She emphasizes the importance of offering PTO for recruiting and retaining talent. The video proceeds to outline the steps for establishing a PTO plan, starting with step one.