{"attribution":{"name":"InterObservers Employer Desk","url":"https://interobservers.com/desk/"},"license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/","applies_to":"The compilation: selection, structure, summaries and field names, by InterObservers Employer Desk.","official_sources":"Quoted statutes and agency text are reproduced verbatim from official government sources and remain the works of those governments. U.S. federal government works are in the public domain; state and local government material is quoted for reference with a link to the source.","attribution_required":"Credit \"InterObservers Employer Desk\" with a link to https://interobservers.com/desk/."},"disclaimer":"General information, not legal advice. Laws change; check the official source linked.","generated_at":"2026-09-24T23:28:24Z","api_version":"1.0.0","topic":"pto_payout","name":"Payout of unused vacation or PTO","page_url":"https://interobservers.com/desk/laws/pto-payout-laws-by-state/","api_url":"https://interobservers.com/api/v1/rules/pto_payout.json","counts":{"states":51,"states_verified":25},"states":[{"state":"AL","name":"Alabama","rulebook_url":"https://interobservers.com/desk/states/alabama/","records":[{"state":"AL","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://adol.alabama.gov/faq/i-have-questions-about-pay-unpaid-wages-breaks-vacation-pay-fmla-etc/"}]},{"state":"AK","name":"Alaska","rulebook_url":"https://interobservers.com/desk/states/alaska/","records":[{"state":"AK","topic":"pto_payout","case":"standard","rule":"Alaska law does not require vacation pay by itself: an employer only has to pay vacation pay if it has a policy to pay it, or has made a promise or a contract with the employee to pay it. The Department enforces the employer's own rules for these payments.","values":{"payout_required":"per_policy_or_contract"},"law":"Alaska Dept. of Labor, Wage and Hour FAQ","source_url":"https://labor.alaska.gov/lss/whfaq.htm","source_quote":"Only if the employer has promised that you will receive these payments. Vacation pay and severance pay are benefits provided to an employee, allowing them to be paid while not working. Therefore, an employer only has to pay these benefits if he/she has a policy to pay such benefits, or has made a promise or has a contract with you to pay these benefits.","second_source_url":"https://labor.alaska.gov/lss/forms/2025_employee_faq.pdf?q=050925","second_source_quote":"Only if the employer has promised that you will receive these payments. Vacation pay and severance pay are benefits provided to an employee, allowing them to be paid while not working. Therefore, an employer only has to pay these benefits if he/she has a policy to pay such benefits, or has made a promise or has a contract with you to pay these benefits.","verified_at":"2026-09-24","status":"verified"}]},{"state":"AZ","name":"Arizona","rulebook_url":"https://interobservers.com/desk/states/arizona/","records":[{"state":"AZ","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://www.azleg.gov/ars/23/00350.htm"}]},{"state":"AR","name":"Arkansas","rulebook_url":"https://interobservers.com/desk/states/arkansas/","records":[{"state":"AR","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://labor.arkansas.gov/labor/labor-standards/wage-claims/"}]},{"state":"CA","name":"California","rulebook_url":"https://interobservers.com/desk/states/california/","records":[{"state":"CA","topic":"pto_payout","case":"standard","rule":"In California earned vacation is wages. When employment ends for any reason, all earned and unused vacation must be paid at the final rate of pay (unless a collective bargaining agreement provides otherwise), and a policy cannot make vested vacation forfeit at termination.","values":{"vacation_is_wages":"yes","payout_required":"always","forfeiture_allowed":"no"},"law":"Cal. Labor Code § 227.3","source_url":"https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=227.3","source_quote":"Unless otherwise provided by a collective-bargaining agreement, whenever a contract of employment or employer policy provides for paid vacations, and an employee is terminated without having taken off his vested vacation time, all vested vacation shall be paid to him as wages at his final rate in accordance with such contract of employment or employer policy respecting eligibility or time served; provided, however, that an employment contract or employer policy shall not provide for forfeiture of vested vacation time upon termination.","second_source_url":"https://www.dir.ca.gov/dlse/faq_vacation.htm","second_source_quote":"Under California law, unless otherwise stipulated by a collective bargaining agreement, whenever the employment relationship ends, for any reason whatsoever, and the employee has not used all of his or her earned and accrued vacation, the employer must pay the employee at his or her final rate of pay for all of his or her earned and accrued and unused vacation days.","verified_at":"2026-09-24","status":"verified"}]},{"state":"CO","name":"Colorado","rulebook_url":"https://interobservers.com/desk/states/colorado/","records":[{"state":"CO","topic":"pto_payout","case":"standard","rule":"In Colorado, earned vacation pay counts as wages. If an employer provides paid vacation, it must pay all earned vacation at separation. Policies may cap accrual, but they may not forfeit any earned (accrued) vacation pay.","values":{"vacation_is_wages":"yes","payout_required":"always","forfeiture_allowed":"no"},"law":"C.R.S. § 8-4-101(14)(a)(III), as quoted in Wage Protection Rules 7 CCR 1103-7, Rule 2.17 (effective February 1, 2026)","source_url":"https://www.coloradosos.gov/CCR/GenerateRulePdf.do?ruleVersionId=12405&fileName=7+CCR+1103-7","source_quote":"“Vacation pay earned in accordance with the terms of any agreement. If an employer provides paid vacation for an employee, the employer shall pay upon separation from employment all vacation pay earned and determinable in accordance with the terms of any agreement between the employer and the employee.”","second_source_url":"https://www.coloradosos.gov/CCR/GenerateRulePdf.do?ruleVersionId=11748&fileName=7+CCR+1103-7","second_source_quote":"2.17.2 The “earned and determinable in accordance with the terms” provision does not allow a forfeiture of any earned (accrued) vacation pay","verified_at":"2026-09-24","status":"verified"}]},{"state":"CT","name":"Connecticut","rulebook_url":"https://interobservers.com/desk/states/connecticut/","records":[{"state":"CT","topic":"pto_payout","case":"standard","rule":"If an employer policy or collective bargaining agreement provides for paying accrued fringe benefits (including paid vacation) at termination, a terminated employee must be paid them as wages in accordance with that policy or agreement.","values":{"payout_required":"per_policy_or_contract"},"law":"Conn. Gen. Stat. § 31-76k (CT DOL Wage Payment Laws summary)","source_url":"https://portal.ct.gov/dol/-/media/dol/2022-new-design-system/divisions/wage-and-workplace-standards/wagepaymentlaws_update12-2023.pdf","source_quote":"If an employer policy or collective bargaining agreement provides for the payment of accrued fringe benefits upon termination, including but not limited to paid vacations, holidays, sick days and earned leave, and an employee is terminated without having received such accrued fringe benefits, such employee shall be compensated for such accrued fringe benefits exclusive of normal pension benefits in the form of wages in accordance with such agreement or policy","second_source_url":"https://portal.ct.gov/dol/-/media/DOL/2022-New-Design-System/Divisions/wage-and-workplace-standards/dol-74.pdf","second_source_quote":"If an employer policy or collective bargaining agreement provides for the payment of accrued fringe benefits upon termination, including but not limited to paid vacations, holidays, sick days and earned leave, and an employee is terminated without having received such accrued fringe benefits, such employee shall be compensated for such accrued fringe benefits exclusive of normal pension benefits in the form of wages in accordance with such agreement or policy","verified_at":"2026-09-24","status":"verified"}]},{"state":"DE","name":"Delaware","rulebook_url":"https://interobservers.com/desk/states/delaware/","records":[{"state":"DE","topic":"pto_payout","case":"standard","rule":"Delaware treats vacation pay as a 'benefit or wage supplement', not as wages. An employer that is party to an agreement to provide vacation pay must pay it under that agreement (see notes for the deadline). A vacation pay claim to the Department of Labor must include a copy of the employer's policy.","values":{"vacation_is_wages":"no","payout_required":"per_policy_or_contract"},"law":"19 Del. C. § 1109","source_url":"https://delcode.delaware.gov/title19/c011/index.html","source_quote":"(b) As used herein, “benefits or wage supplements” means compensation for employment other than wages, including, but not limited to, reimbursement for expenses, health, welfare or retirement benefits, and vacation, separation or holiday pay","second_source_url":"https://industrialaffairs.delaware.gov/hubfs/Landing%20Page%20PDFs%20+%20Attachments/Wage%20Payment%20Claim%20Form.pdf?hsLang=en","second_source_quote":"If you are claiming vacation pay or holiday pay, attach a copy of the employer’s policy and describe the benefit you are seeking compensation.","verified_at":"2026-09-24","status":"verified"}]},{"state":"DC","name":"District of Columbia","rulebook_url":"https://interobservers.com/desk/states/district-of-columbia/","records":[{"state":"DC","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://does.dc.gov/sites/default/files/dc/sites/does/page_content/attachments/FAQs%20for%20OWH-Final.pdf"}]},{"state":"FL","name":"Florida","rulebook_url":"https://interobservers.com/desk/states/florida/","records":[{"state":"FL","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://www.dol.gov/agencies/whd/state/contacts"}]},{"state":"GA","name":"Georgia","rulebook_url":"https://interobservers.com/desk/states/georgia/","records":[{"state":"GA","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://dol.georgia.gov/faqs-individuals/individuals-faqs-fair-labor-standards-act"}]},{"state":"HI","name":"Hawaii","rulebook_url":"https://interobservers.com/desk/states/hawaii/","records":[{"state":"HI","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://labor.hawaii.gov/wsd/vacation-and-sick-leave/"}]},{"state":"ID","name":"Idaho","rulebook_url":"https://interobservers.com/desk/states/idaho/","records":[{"state":"ID","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://www.dol.gov/agencies/whd/state/contacts"}]},{"state":"IL","name":"Illinois","rulebook_url":"https://interobservers.com/desk/states/illinois/","records":[{"state":"IL","topic":"pto_payout","case":"standard","rule":"In Illinois, an employer that provides vacation under an employment contract or policy must pay the monetary equivalent of all earned, unused vacation to an employee who resigns or is fired. A policy cannot forfeit earned vacation at separation. Vacation pay is part of final compensation, which is due by the next regularly scheduled payday.","values":{"payout_required":"always","forfeiture_allowed":"no"},"law":"Illinois Dept. of Labor, Vacation FAQ (820 ILCS 115/5; 56 Ill. Adm. Code 300.520)","source_url":"https://labor.illinois.gov/faqs/vacation-faq.html","source_quote":"If an employment policy states that an employer does not have to pay at the time of separation all unused vacation, the employment policy is not allowed to provide for a forfeiture of earned time upon separation. The employer is required to pay the monetary equivalent of all earned vacation to an employee who resigns or is terminated without having taken all vacation time earned in accordance with such individual employment contract or policy.","second_source_url":"https://labor.illinois.gov/faqs/wage-payment-faq.html","second_source_quote":"All final compensation, including bonus payments, vacation pay, wages and commissions must be paid on your next regularly scheduled payday. 820 ILCS 115/5.","verified_at":"2026-09-24","status":"verified"}]},{"state":"IN","name":"Indiana","rulebook_url":"https://interobservers.com/desk/states/indiana/","records":[{"state":"IN","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://faqs.in.gov/hc/en-us/articles/115005216848-When-I-leave-my-employment-is-my-former-employer-required-to-pay-me-for-any-accrued-vacation-time"}]},{"state":"IA","name":"Iowa","rulebook_url":"https://interobservers.com/desk/states/iowa/","records":[{"state":"IA","topic":"pto_payout","case":"standard","rule":"Iowa law does not require vacation pay. An employee is paid for accrued, unused vacation when employment ends only if the employer has a contract, policy or procedure to pay vacation to departing employees.","values":{"payout_required":"per_policy_or_contract"},"law":"Iowa Division of Labor (DIAL), Wages page","source_url":"https://dial.iowa.gov/hearings/wage-and-child-labor/wages","source_quote":"Am I entitled to be compensated for my accrued unused vacation when my employment ends? Only if the employer has a contract, policy or procedure to pay vacation to departing employees.","second_source_url":"https://dial.iowa.gov/i-need/claims/how-do-i-wage-claim/wage-claims-faq","second_source_quote":"Am I entitled to my unused vacation when I am fired or if I quit? Only if the employer has a contract, policy or procedure to pay vacation to departing employees.","verified_at":"2026-09-24","status":"verified"}]},{"state":"KS","name":"Kansas","rulebook_url":"https://interobservers.com/desk/states/kansas/","records":[{"state":"KS","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://www.ksrevisor.org/statutes/chapters/ch44/044_003_0015.html"}]},{"state":"KY","name":"Kentucky","rulebook_url":"https://interobservers.com/desk/states/kentucky/","records":[{"state":"KY","topic":"pto_payout","case":"standard","rule":"In Kentucky, vested vacation pay is part of \"wages\" under the state wage statute, and an employee who leaves or is discharged must be paid in full all wages earned. Whether vacation is vested depends on the employer's agreement or established policy.","values":{"vacation_is_wages":"yes"},"law":"KRS 337.010(1)(c)1.","source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56806","source_quote":"\"Wages\" includes any compensation due to an employee by reason of his or her employment, including salaries, commissions, vested vacation pay, overtime pay, severance or dismissal pay, earned bonuses, and any other similar advantages agreed upon by the employer and the employee or provided to employees as an established policy.","second_source_url":"https://apps.legislature.ky.gov/law/acts/25RS/documents/0022.pdf","second_source_quote":"\"Wages\" includes any compensation due to an employee by reason of his or her employment, including salaries, commissions, vested vacation pay, overtime pay, severance or dismissal pay, earned bonuses, and any other similar advantages agreed upon by the employer and the employee or provided to employees as an established policy.","verified_at":"2026-09-24","status":"verified"}]},{"state":"LA","name":"Louisiana","rulebook_url":"https://interobservers.com/desk/states/louisiana/","records":[{"state":"LA","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://legis.la.gov/Legis/Law.aspx?d=83945"}]},{"state":"ME","name":"Maine","rulebook_url":"https://interobservers.com/desk/states/maine/","records":[{"state":"ME","topic":"pto_payout","case":"standard","rule":"In Maine, when the terms of employment or the employer's established practice include paid vacation, vacation pay at cessation of employment has the same status as wages earned. All unused paid vacation accrued under the employer's policy on and after January 1, 2023 must be paid at cessation of employment. Exceptions: employers with 10 or fewer employees and public employers; a collective bargaining agreement that addresses vacation payout supersedes the rule.","values":{"vacation_is_wages":"yes","payout_required":"always","exempt_employer_max_employees":10},"law":"26 M.R.S. § 626","source_url":"https://legislature.maine.gov/statutes/26/title26sec626.html","source_quote":"Whenever the terms of employment or the employer's established practice includes provisions for paid vacations, vacation pay on cessation of employment has the same status as wages earned. All unused paid vacation accrued pursuant to the employer's vacation policy on and after January 1, 2023 must be paid to the employee on cessation of employment unless the employee is employed by an employer with 10 or fewer employees or by a public employer.","second_source_url":"https://www.maine.gov/labor/labor_laws/faq/index.shtml","second_source_quote":"All unused paid vacation accrued pursuant to the employer's vacation policy on and after January 1, 2023 must be paid to the employee on cessation of employment unless the employee is employed by an employer with 10 or fewer employees or by a public employer.","verified_at":"2026-09-24","status":"verified"}]},{"state":"MD","name":"Maryland","rulebook_url":"https://interobservers.com/desk/states/maryland/","records":[{"state":"MD","topic":"pto_payout","case":"standard","rule":"Accrued vacation must be paid at termination unless the employer has a written policy limiting payout of accrued leave, notified the employee of its leave benefits at hiring, and the employee is not entitled to payment under that written policy.","values":{"payout_required":"unless_written_policy_says_otherwise","forfeiture_allowed":"yes_if_policy_communicated"},"law":"Md. Code, Lab. & Empl. § 3-505(b)","source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle&section=3-505","source_quote":"(b) An employer is not required to pay accrued leave to an employee if: (1) the employer has a written policy that limits the compensation of accrued leave to employees; (2) the employer notified the employee of the employer’s leave benefits in accordance with § 3–504(a)(1) of this subtitle; and (3) the employee is not entitled to payment for accrued leave at termination under the terms of the employer’s written policy.","second_source_url":"https://labor.maryland.gov/labor/wagepay/wppayonterm.shtml","second_source_quote":"For example, if an employer informs employees in writing at the time of hiring that unused vacation leave will be lost or forfeited upon termination, then an employee will not be able to claim it. On the other hand, where the employer does not have a written policy that limits the compensation for accrued leave to a terminated employee, that employee is entitled to the cash value of whatever unused earned vacation leave was left -- provided it was otherwise usable.","verified_at":"2026-09-24","status":"verified"}]},{"state":"MA","name":"Massachusetts","rulebook_url":"https://interobservers.com/desk/states/massachusetts/","records":[{"state":"MA","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://www.mass.gov/doc/attorney-generals-advisory-on-vacation-policies/download"}]},{"state":"MI","name":"Michigan","rulebook_url":"https://interobservers.com/desk/states/michigan/","records":[{"state":"MI","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://www.michigan.gov/leo/-/media/Project/Websites/leo/Documents/WAGE-HOUR/whd-98xx-Brochures/WHD-9801-Brochure-390/Brochure-Act-390.pdf"}]},{"state":"MN","name":"Minnesota","rulebook_url":"https://interobservers.com/desk/states/minnesota/","records":[{"state":"MN","topic":"pto_payout","case":"standard","rule":"In Minnesota, company policy determines when benefits such as vacation are due, including at separation. Once due under the policy or agreement, benefits must be paid within 30 days.","values":{"payout_required":"policy_dependent","benefits_payable_within_days":30},"law":"Minnesota Dept. of Labor and Industry, Employment termination (Minn. Stat. 181.74)","source_url":"https://www.dli.mn.gov/business/employment-practices/employment-termination","source_quote":"Company policy can determine when any benefits are due, such as vacation, sick leave and severance packages. Benefits are payable within 30 days of when they become due.","second_source_url":"https://www.revisor.mn.gov/statutes/cite/181.74","second_source_quote":"Any employer required under the provisions of an agreement to which the employer is a party to pay or provide benefits or wage supplements to employees or to a third party or fund for the benefit of employees, and who refuses to pay the amount or amounts necessary to provide such benefits or furnish such supplements within 30 days after such payments are required to be made under law or under agreement, is guilty of a gross misdemeanor.","verified_at":"2026-09-24","status":"verified"}]},{"state":"MS","name":"Mississippi","rulebook_url":"https://interobservers.com/desk/states/mississippi/","records":[{"state":"MS","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://www.dol.gov/agencies/whd/state/contacts"}]},{"state":"MO","name":"Missouri","rulebook_url":"https://interobservers.com/desk/states/missouri/","records":[{"state":"MO","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://labor.mo.gov/faqs/knowledge-base/my-employer-required-pay-me-unused-vacation-if-i-lose-my-job-or-quit"}]},{"state":"MT","name":"Montana","rulebook_url":"https://interobservers.com/desk/states/montana/","records":[{"state":"MT","topic":"pto_payout","case":"standard","rule":"Montana does not require private employers to provide vacation, but once vacation is earned under the employer's policy it is wages and is due and payable like regular wages, including at termination. The Department of Labor & Industry says 'use it or lose it' policies are not permitted in Montana, although caps on accumulation are allowed. PTO payout depends on the employer's policy.","values":{"vacation_is_wages":"yes"},"law":"Montana Dept. of Labor & Industry, Wage and Hour FAQ (citing Attorney General Opinion 56, Volume 23)","source_url":"https://erd.dli.mt.gov/labor-standards/wage-and-hour-payment-act/wage-and-hour-faq","source_quote":"There is no requirement in state or federal law that requires private sector employers to provide vacation pay. However, if provided, once vacation has been earned according to the employer’s policy, it is then considered wages and is due and payable in the same manner as regular wages – based on Attorney General Opinion 56, Volume 23. So called ‘use it or lose it’ policies are not permitted in Montana.","second_source_url":"https://courts.mt.gov/external/ag-opinions/23/56.pdf","second_source_quote":"1. Vacation pay which has been earned and is now owing is considered to be wages and is collectable in the same manner and under the same statutes as any other kind of wageS.","verified_at":"2026-09-24","status":"verified"}]},{"state":"NE","name":"Nebraska","rulebook_url":"https://interobservers.com/desk/states/nebraska/","records":[{"state":"NE","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://www.nebraska.gov/apps-courts-epub/public/viewCertified?docId=N00004219PUB"}]},{"state":"NV","name":"Nevada","rulebook_url":"https://interobservers.com/desk/states/nevada/","records":[{"state":"NV","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://labor.nv.gov/uploadedfiles/labornvgov/content/employer/sb%20312%20paid%20leave%20english.pdf"}]},{"state":"NH","name":"New Hampshire","rulebook_url":"https://interobservers.com/desk/states/new-hampshire/","records":[{"state":"NH","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://www.gc.nh.gov/rsa/html/XXIII/275/275-43.htm"}]},{"state":"NJ","name":"New Jersey","rulebook_url":"https://interobservers.com/desk/states/new-jersey/","records":[{"state":"NJ","topic":"pto_payout","case":"standard","rule":"New Jersey state law does not require vacation or other fringe benefits. If an employer chooses to provide them, they must be administered uniformly according to its established policy or employment agreement, so payout of unused vacation at separation depends on that policy or agreement.","values":{"payout_required":"policy_dependent"},"law":"NJ Dept. of Labor and Workforce Development, Wage and Hour Employer FAQs","source_url":"https://www.nj.gov/labor/wageandhour/support/faqs/wageandhouremployerfaqs.shtml","source_quote":"A. No. Fringe benefits like vacation, severance, holiday, or any other type of benefit pay are not required by New Jersey State law. If the employer chooses to provide these benefits, they must be administered uniformly in accordance with the established policy or employment agreement. An individual may have a basis for a complaint if the employer fails to adhere to the policy or agreement.","second_source_url":"https://www.nj.gov/labor/wageandhour/support/faqs/wageandhourworkerfaqs.shtml","second_source_quote":"A. No. Fringe benefits like vacation, severance, holiday or any other type of benefit pay are not required by New Jersey State law. If the employer chooses to provide these benefits, they must be administered uniformly in accordance with the established policy or employment agreement. An individual may have a basis for a claim if the employer fails to adhere to the policy or agreement.","verified_at":"2026-09-24","status":"verified"}]},{"state":"NM","name":"New Mexico","rulebook_url":"https://interobservers.com/desk/states/new-mexico/","records":[{"state":"NM","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://www.dws.nm.gov/Portals/0/DM/LaborRelations/labor%20law%20FAQs.pdf"}]},{"state":"NY","name":"New York","rulebook_url":"https://interobservers.com/desk/states/new-york/","records":[{"state":"NY","topic":"pto_payout","case":"standard","rule":"New York does not require paid vacation. If an employer has a vacation policy, an employee who resigns or is discharged must be paid for earned, accrued vacation unless the employer told employees in writing of a forfeiture policy; forfeiture conditions must be written and explicit.","values":{"payout_required":"unless_written_forfeiture_policy","forfeiture_allowed":"yes_if_written"},"law":"NY Dept. of Labor, Wages and Hours FAQ (Labor Law 195.5, 198-c)","source_url":"https://dol.ny.gov/wages-and-hours-frequently-asked-questions","source_quote":"Whether an employer must pay for unused time depends upon the terms of the vacation and/or resignation policy. New York courts have held that an agreement to give benefits or wage supplements, like vacation, can specify that employees lose accrued benefits under certain conditions. [See Glenville Gage Company, Inc. v. Industrial Board of Appeals of the State of New York, Department of Labor, 70 AD2d 283 (3d Dept 1979) affd, 52 NY2d 777 (1980).] To be valid, the employer must have told employees, in writing, of the conditions that nullify the benefit.","second_source_url":"https://industrialappeals.ny.gov/system/files/documents/2020/02/pr-09-197.pdf","second_source_quote":"\"An employee must be paid for accrued vacation upon termination unless the employer has, through a written policy or agreement, specified that employees forfeit accrued vacation pay upon termination.\"","verified_at":"2026-09-24","status":"verified"}]},{"state":"NC","name":"North Carolina","rulebook_url":"https://interobservers.com/desk/states/north-carolina/","records":[{"state":"NC","topic":"pto_payout","case":"standard","rule":"North Carolina does not require vacation pay, but an employer that promises vacation (including PTO) must pay what is earned under its policy or practice. Earned vacation cannot be forfeited unless employees were notified in writing of a forfeiture policy; even then, payout at termination depends on the wording of the forfeiture clause and the reason employment ended.","values":{"payout_required":"unless_written_forfeiture_policy","forfeiture_allowed":"yes_if_written"},"law":"NC Dept. of Labor, Promised Wages Including Wage Benefits (N.C.G.S. 95-25.13)","source_url":"https://www.labor.nc.gov/workplace-rights/employee-rights-regarding-time-worked-and-wages-earned/promised-wages-including-wage-benefits","source_quote":"Earned vacation pay, commissions, and bonuses cannot be forfeited unless the employer has a written forfeiture clause in its vacation, commission, or bonus policy or termination policy pursuant to N.C.G.S. 95-25.13(2) of the WHA.","second_source_url":"https://www.labor.nc.gov/federal-and-state-labor-law-posters-english/open","second_source_quote":"If the employer provides vacation pay plans to employees, the employer shall give vacation time off or payment in lieu of time off, as required by company policy or practice. Employees must be notified in writing of any company policy or practice that results in the loss or forfeiture of vacation time or pay. Employees not so notified are not subject to such loss or forfeiture.","verified_at":"2026-09-24","status":"verified"}]},{"state":"ND","name":"North Dakota","rulebook_url":"https://interobservers.com/desk/states/north-dakota/","records":[{"state":"ND","topic":"pto_payout","case":"standard","rule":"In North Dakota, once paid time off is made available, unused PTO is generally considered wages at separation. A private employer may withhold it only on a voluntary quit if it gave written notice of the limitation at hiring, the employee worked there less than one year, and the employee gave less than five days' notice; or for PTO awarded but not yet earned, if the employer gave written notice of that limitation before awarding it.","values":{"payout_required":"yes_with_limited_exceptions","exception_employed_less_than_years":1,"exception_notice_less_than_days":5},"law":"N.D. Dept. of Labor and Human Rights, Wage and Hour FAQ (N.D. Admin. Code § 46-02-07-10; N.D.C.C. § 34-14-09.2)","source_url":"https://www.nd.gov/labor/wage-and-hour-faq","source_quote":"Limitation 1: If an employee separates from employment voluntarily, a private employer may withhold payment for accrued paid time off if the following three conditions are all met: a. At the time of hiring, the employer provided the employee written notice of the limitation on payment of accrued paid time off; b. The employee has been employed by the employer for less than one year; and c. The employee gave the employer less than five days’ written or verbal notice.","second_source_url":"https://ndlegis.gov/cencode/t34c14.pdf","second_source_quote":"1. If an employee separates from employment voluntarily, a private employer may withhold payment for accrued paid time off if: a. At the time of hiring, the employer provided the employee written notice of the limitation on payment of accrued paid time off; b. The employee has been employed by the employer for less than one year; and c. The employee gave the employer less than five days' written or verbal notice.","verified_at":"2026-09-24","status":"verified"}]},{"state":"OH","name":"Ohio","rulebook_url":"https://interobservers.com/desk/states/ohio/","records":[{"state":"OH","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://codes.ohio.gov/ohio-revised-code/section-4113.15"}]},{"state":"OK","name":"Oklahoma","rulebook_url":"https://interobservers.com/desk/states/oklahoma/","records":[{"state":"OK","topic":"pto_payout","case":"standard","rule":"Oklahoma has no mandatory benefits law. If the employer has a written policy (like an employee handbook) that promises payout of vacation, that vacation payout is legally considered wages; eligibility depends on the employer's policy.","values":{"payout_required":"policy_dependent","vacation_is_wages":"policy_dependent"},"law":"Oklahoma Dept. of Labor, Protect Your Pay","source_url":"https://oklahoma.gov/labor/workplace-rights/protect-your-pay.html","source_quote":"If your employer has a written policy (like in an employee handbook) that promises payout of vacation, sick leave, or bonuses—those are legally considered wages.","second_source_url":"https://oklahoma.gov/labor/workplace-rights/wage-hour/faqs---wage-and-hour.html","second_source_quote":"Oklahoma has no mandatory benefits law. However, if the employer has an established policy providing for benefits, the employee may or may not be eligible depending upon the employer’s eligibility criteria.","verified_at":"2026-09-24","status":"verified"}]},{"state":"OR","name":"Oregon","rulebook_url":"https://interobservers.com/desk/states/oregon/","records":[{"state":"OR","topic":"pto_payout","case":"standard","rule":"Oregon law does not require employers to offer vacation pay, but an employer must honor any established policy or agreement on paying accrued vacation at termination. If the worker qualifies under the policy, it must be paid at termination.","values":{"payout_required":"policy_dependent"},"law":"Oregon BOLI, Benefits, holiday and vacation pay","source_url":"https://www.oregon.gov/boli/workers/pages/holiday-and-vacation-pay.aspx","source_quote":"Vacation pay, holiday pay, bonuses, and severance pay are examples of wage agreements which may be made between employers and employees as a part of the employee’s total compensation. There is no legal requirement to offer these benefits. Your employer is required to honor any established policy or agreement relating to the payment of benefits such as accrued vacation or severance pay upon termination.","second_source_url":"https://www.oregon.gov/boli/workers/pages/paychecks.aspx","second_source_quote":"You are, however, required to honor any established policy or agreement relating to the payment of benefits such as accrued vacation or severance pay upon termination. If the worker qualifies for payment of benefits under your policy, you should pay these upon termination.","verified_at":"2026-09-24","status":"verified"}]},{"state":"PA","name":"Pennsylvania","rulebook_url":"https://interobservers.com/desk/states/pennsylvania/","records":[{"state":"PA","topic":"pto_payout","case":"standard","rule":"No Pennsylvania law requires an employer to provide vacation pay. An employer only has to pay vacation if it has a policy or a contract to pay it, and must follow its own rules. Vacation pay owed under an agreement is a 'fringe benefit or wage supplement' under the Wage Payment and Collection Law.","values":{"payout_required":"policy_dependent"},"law":"Pennsylvania Dept. of Labor & Industry, Wage FAQs","source_url":"https://www.pa.gov/agencies/dli/resources/compliance-laws-and-regulations/labor-management-relations/pennsylvania-s-minimum-wage-act/wage-faqs","source_quote":"There is no Pennsylvania labor law which requires an employer to pay an employee not to work. Benefits like sick leave, vacation pay and severance pay are payments to an employee not to be at work. Therefore, an employer only has to pay these benefits if the employer has a policy to pay such benefits or a contract with you to pay these benefits. An employer must follow its own rules for these kinds of payments.","second_source_url":"https://www.pa.gov/content/dam/copapwp-pagov/en/dli/documents/documents/regulations/llc/wpclaw.pdf","second_source_quote":"Act of 1974, 29 U.S.C. §1001 et seq.; as well as separation, vacation, holiday, or guaranteed pay; reimbursement for expenses; union dues withheld from the employes' pay by the employer; and any other","verified_at":"2026-09-24","status":"verified"}]},{"state":"RI","name":"Rhode Island","rulebook_url":"https://interobservers.com/desk/states/rhode-island/","records":[{"state":"RI","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://webserver.rilegislature.gov/Statutes/TITLE28/28-14/28-14-4.htm"}]},{"state":"SC","name":"South Carolina","rulebook_url":"https://interobservers.com/desk/states/south-carolina/","records":[{"state":"SC","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://www.scstatehouse.gov/code/t41c010.php"}]},{"state":"SD","name":"South Dakota","rulebook_url":"https://interobservers.com/desk/states/south-dakota/","records":[{"state":"SD","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://dlr.sd.gov/employment_laws/publications/what_need_know_laws.pdf"}]},{"state":"TN","name":"Tennessee","rulebook_url":"https://interobservers.com/desk/states/tennessee/","records":[{"state":"TN","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://lwdsupport.tn.gov/hc/en-us/articles/203081980-If-an-employer-s-policy-provides-a-paid-vacation-and-the-employee-s-employment-is-terminated-is-the-employer-required-to-compensate-for-any-vacation-time-I-have-accrued-but-not-used"}]},{"state":"TX","name":"Texas","rulebook_url":"https://interobservers.com/desk/states/texas/","records":[{"state":"TX","topic":"pto_payout","case":"standard","rule":"Texas requires a payout of accrued leave only if the employer promised it in a written policy or agreement, and the payout is controlled by the wording of that policy. Vacation pay owed under a written agreement or written policy counts as wages under the Texas Payday Law. With no such policy, no payout is owed.","values":{"payout_required":"policy_dependent","vacation_is_wages":"policy_dependent","forfeiture_allowed":"policy_dependent"},"law":"Texas Workforce Commission, Accrued Leave Payouts","source_url":"https://efte.twc.texas.gov/accrued_leave_payouts.html","source_quote":"Payouts of accrued leave are required under the Texas Payday Law only if such a payment is promised by the employer in a written policy or agreement. The payout would be controlled by the wording of the policy or agreement. If no such policy exists, the company would not owe such a payment.","second_source_url":"https://tcss.legis.texas.gov/resources/LA/htm/LA.61.htm","second_source_quote":"(B) vacation pay, holiday pay, sick leave pay, parental leave pay, or severance pay owed to an employee under a written agreement with the employer or under a written policy of the employer.","verified_at":"2026-09-24","status":"verified"}]},{"state":"UT","name":"Utah","rulebook_url":"https://interobservers.com/desk/states/utah/","records":[{"state":"UT","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://laborcommission.utah.gov/divisions/utah-antidiscrimination-and-labor-uald/wage-claim/"}]},{"state":"VT","name":"Vermont","rulebook_url":"https://interobservers.com/desk/states/vermont/","records":[{"state":"VT","topic":"pto_payout","case":"standard","rule":"Vermont does not require employers to provide paid vacation or to pay vacation when an employee leaves. Employers that have a written agreement (including an employee handbook, memorandum or correspondence) providing for vacation time are liable to their employees for that benefit.","values":{"payout_required":"policy_dependent"},"law":"Vermont Dept. of Labor, A Summary of Vermont Wage and Hour Laws (2019)","source_url":"https://labor.vermont.gov/sites/labor/files/doc_library/WH-13-Wage-and-Hour-Laws-2019%20.pdf","source_quote":"However, employers who are parties to written agreements, which can be in the form of an employee handbook, memorandum, correspondence, etc., providing for vacation time, sick leave, holidays and/or severance pay are liable to their employees for these benefits.","second_source_url":"https://labor.vermont.gov/sites/labor/files/doc_library/WH-13-Wage-and-Hour-Laws-2009.pdf","second_source_quote":"However, employers who are parties to written agreements, which can be in the form of an employee handbook, memorandum, correspondence, etc., providing for vacation time, sick leave, holidays and/or severance pay are liable to their employees for these benefits.","verified_at":"2026-09-24","status":"verified"}]},{"state":"VA","name":"Virginia","rulebook_url":"https://interobservers.com/desk/states/virginia/","records":[{"state":"VA","topic":"pto_payout","case":"standard","rule":"Under Virginia's payment of wage laws, vacation leave and paid time off are 'fringe benefits', not wages, and the Department of Labor and Industry does not enforce them. An employee who believes a fringe benefit is owed may file a civil suit against the employer.","values":{"vacation_is_wages":false},"law":"Virginia DOLI, Payment of Wage Claim Form and Instructions (LL-POW-01)","source_url":"https://doli.virginia.gov/wp-content/uploads/2025/07/LL-POW-01-POW-Claim-Form-062024.pdf","source_quote":"Under Virginia’s payment of wage laws, “wages” are specifically moneys earned for work performed. Sick leave, vacation leave, paid time off, and severance are considered “fringe benefits” and the Department DOES NOT have enforcement over them.","second_source_url":"https://www.doli.virginia.gov/wp-content/uploads/2022/02/2022-Updated-POW-Claim-Form-and-Instructions-English.pdf","second_source_quote":"Note: Sick Leave, Paid Holidays, Vacation Leave, Severance Benefits, Per Diem and Expense Reimbursements are NOT “wages” within the meaning of the wage statute.","verified_at":"2026-09-24","status":"verified"}]},{"state":"WA","name":"Washington","rulebook_url":"https://interobservers.com/desk/states/washington/","records":[{"state":"WA","topic":"pto_payout","case":"standard","rule":"Washington does not require employers to pay vacation: vacation time is a voluntary benefit negotiable between employer and employee, and employers can choose to pay it out on the final paycheck. L&I does not accept vacation pay complaints; an employee owed agreed-upon vacation benefits can contact an attorney or file in small claims court.","values":{"payout_required":"policy_dependent"},"law":"Washington L&I, Getting Paid","source_url":"https://lni.wa.gov/workers-rights/wages/getting-paid/","source_quote":"Severance, personal holidays, and vacation time are voluntary benefits. Employers can choose to pay out these benefits on a final paycheck. If you believe you are owed any of these agreed-upon benefits, you can contact an attorney or file in small claims court.","second_source_url":"https://www.lni.wa.gov/forms-publications/F700-153-909.pdf","second_source_quote":"No. Holiday, vacation and severance pay are benefits that are negotiable between you and your employer. L&I cannot accept these types of complaints.","verified_at":"2026-09-24","status":"verified"}]},{"state":"WV","name":"West Virginia","rulebook_url":"https://interobservers.com/desk/states/west-virginia/","records":[{"state":"WV","topic":"pto_payout","case":"standard","rule":"West Virginia law does not require employers to provide vacation. Fringe benefits include vacation, and accrued fringe benefits that are capable of calculation and payable directly to the employee are wages under the Wage Payment and Collection Act. Whether vacation is owed at separation depends on the terms of the employer's written policy, which the Division of Labor enforces as written.","values":{"payout_required":"policy_dependent","vacation_is_wages":"policy_dependent"},"law":"W. Va. Code § 21-5-1(c)","source_url":"https://code.wvlegislature.gov/21-5-1/","source_quote":"As used in §21-5-4, §21-5-5, §21-5-8a, §21-5-10, and §21-5-12 of this code, the term “wages” shall also include then accrued fringe benefits capable of calculation and payable directly to an employee: Provided, That nothing herein contained shall require fringe benefits to be calculated contrary to any agreement between an employer and his or her employees which does not contradict the provisions of this article.","second_source_url":"https://labor.wv.gov/media/47/download?inline","second_source_quote":"Accrued fringe benefits are those benefits that are earned and payable directly to an employee based on the terms and conditions of written company policy.","verified_at":"2026-09-24","status":"verified"}]},{"state":"WI","name":"Wisconsin","rulebook_url":"https://interobservers.com/desk/states/wisconsin/","records":[{"state":"WI","topic":"pto_payout","status":"no_verified_answer","message":"No verified answer. Check the official source.","check_url":"https://dwd.wisconsin.gov/er/laborstandards/wages.htm"}]},{"state":"WY","name":"Wyoming","rulebook_url":"https://interobservers.com/desk/states/wyoming/","records":[{"state":"WY","topic":"pto_payout","case":"standard","rule":"In Wyoming, wages include fringe benefits, and accrued vacation is paid at termination unless the employer's written policy provides that accrued vacation is forfeited at termination and the employee acknowledged that policy in writing. An employer can deny vacation payout only on that basis.","values":{"payout_required":"policy_dependent","vacation_is_wages":"policy_dependent","forfeiture_allowed":"policy_dependent"},"law":"Wyo. Stat. § 27-4-501(a)(iii)","source_url":"https://wyoleg.gov/statutes/compress/title27.pdf","source_quote":"(iii) \"Wages\" means compensation, including fringe benefits, for labor or services rendered by an employee, whether the amount is determined on a time, task, piece, commission, or other basis, but does not include the value of vacation leave accrued at the date of termination if the written policies of the employer provide that accrued vacation is forfeited upon termination of employment and the written policies are acknowledged in writing by the employee;","second_source_url":"https://dws.wyo.gov/dws-division/labor-standards/employers/faq/","second_source_quote":"Vacation: You can deny payout only if your written policy clearly states it and the employee acknowledged it.","verified_at":"2026-09-24","status":"verified"}]}],"dataset":{"@context":"https://schema.org","@type":"Dataset","name":"Payout of unused vacation or PTO by state (Employer Desk)","description":"Payout of unused vacation or PTO: rules for all 50 states and DC, each verified against official sources, or marked as not verified with the official place to check.","url":"https://interobservers.com/desk/laws/pto-payout-laws-by-state/","license":"https://creativecommons.org/licenses/by/4.0/","isAccessibleForFree":true,"creator":{"@type":"Organization","name":"InterObservers","url":"https://interobservers.com/"},"dateModified":"2026-09-24","spatialCoverage":{"@type":"Place","name":"United 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