I also don't understand exactly how it is going to work... Though a lot of companies have gone that route. There IS a payout of unused time off - this one time when they move to it, anything existing employees have on the books will get paid out. Of note, not all states require PTO pay outs if you leave/get fired, so keeping too much on the books in some states is just time you'd lose and money you'd lose regardless of employer or policy.
Basically the idea is that if you can get your job done, and take time off, then go for it. But also, you have to get your time off approved still, so someone is going to make sure you aren't taking off 364 days a year and that your job is getting done.
Honestly, I think this kind of policy will make people LESS likely to take all the time off they deserve. Let's say you had 5 weeks of time off before and if you didn't use it, you lost it. Well, now you could still take 5 weeks off, but there's nothing to lose at the end of year. I've so often see coworkers who have to suddenly take the last 2 or 3 weeks of a year off because they need to use up PTO before it is lost. Now, if you don't have PTO accumulating or have to track in tools when time was taken, they'll come to the end of the year knowing they didn't really take enough time, but also not having a use it or lose it excuse to take a long leave at end of year. Except, you know, for the new young punks that think they should be paid a 7 figure salary straight out of grade school to do absolutely nothing for 5 hours a week. They'll take all the time they possibly can.
