Skip to content

PTO payout rules by state

Whether unused vacation or PTO is paid out when you leave generally depends on the state you work in. In California, Colorado, Illinois, Louisiana, Massachusetts, Montana, Nebraska, and North Dakota, accrued vacation is generally owed to you when the job ends. In Rhode Island, it generally depends on a condition, such as how long you worked there. Where no state rule requires payout, the employer's written policy generally decides. Required sick leave is usually treated separately and generally does not have to be paid out.

Check your own balance with the PTO payout checker.

Every state at a glance

9 states have a guide so far. Each of those rows sums up what that state’s guide says. The others are marked “Guide coming.”

PTO payout rules by state: one row for each of the 50 states and the District of Columbia
StatePaid out?The ruleWhen it is dueExceptionsGuide
AlabamaGuide coming
AlaskaGuide coming
ArizonaGuide coming
ArkansasGuide coming
CaliforniaYesAccrued vacation is generally treated as earned wages, owed at your final rate of pay; use-it-or-lose-it policies are generally unenforceable.With the final paycheck
  • Required sick leave generally does not have to be paid out unless the employer's policy promises it
  • A cap can generally pause future accrual but cannot erase time already earned
California guide
ColoradoYesAccrued vacation is generally treated as wages that cannot be forfeited at termination, including the vacation part of a combined PTO bank.Generally immediately after an involuntary termination; on the next regular payday after a quit
  • Required paid sick leave generally does not have to be paid out
  • A cap can generally limit future accrual but cannot erase vacation already earned
Colorado guide
ConnecticutGuide coming
DelawareGuide coming
District of ColumbiaGuide coming
FloridaGuide coming
GeorgiaGuide coming
HawaiiGuide coming
IdahoGuide coming
IllinoisYesAccrued vacation is generally treated as earned wages that cannot be forfeited at separation; a cap on future accrual is generally allowed.With final compensation
  • Paid leave under the Paid Leave for All Workers Act generally does not have to be paid out unless the policy promises it
  • Chicago and Cook County have separate local rules
Illinois guide
IndianaGuide coming
IowaGuide coming
KansasGuide coming
KentuckyGuide coming
LouisianaYesAccrued, eligible unused vacation is generally an amount due at separation; the policy sets eligibility and accrual but cannot claw back time already earned.Next regular payday or 15 days after separation, whichever comes first
  • The employer's policy generally decides who is eligible and how vacation accrues
  • Unused sick leave generally does not have to be paid out
Louisiana guide
MaineGuide coming
MarylandGuide coming
MassachusettsYesAccrued vacation is generally treated as wages under the Wage Act and typically has to be included in the final check.With the final check
  • Earned sick time generally does not have to be paid out unless the employer's policy promises it
  • A cap can generally pause future accrual but cannot erase vacation already earned
Massachusetts guide
MichiganGuide coming
MinnesotaGuide coming
MississippiGuide coming
MissouriGuide coming
MontanaYesEarned vacation is generally treated as wages due at separation, though no single statute says so expressly.Generally immediately after a discharge or layoff (a written policy can extend it to the next payday or 15 days, whichever comes first); next payday or 15 days after a resignation, whichever comes first
  • Unused sick leave generally does not have to be paid out
  • Changing future accrual is generally treated differently from erasing time already earned
Montana guide
NebraskaYesCourts generally treat accrued vacation as earned wages owed at termination; the rule comes from case law rather than a payout statute.Not stated in the guide
  • A forfeiture clause may reach vacation not yet earned
  • Sick-time payout is generally governed by the employer's policy
Nebraska guide
NevadaGuide coming
New HampshireGuide coming
New JerseyGuide coming
New MexicoGuide coming
New YorkGuide coming
North CarolinaGuide coming
North DakotaYesAccrued vacation is generally owed at separation by statute, with two narrow forfeiture exceptions.No later than the next regular payday after separation
  • Under one year of tenure, if the policy clearly states that payout is forfeited
  • Resigning without at least five days' notice, if the written policy specifies that condition
  • Sick leave is not covered by the statute; the employer's policy generally controls
North Dakota guide
OhioGuide coming
OklahomaGuide coming
OregonGuide coming
PennsylvaniaGuide coming
Rhode IslandDependsAccrued vacation generally becomes wages, payable in full, once you have completed one year of service; under a year, the policy typically controls.Next regular payday after separation; within 24 hours if the business is closing, merging, or relocating
  • Under one year of service, the statute generally does not apply
  • Unused paid sick and safe leave generally does not have to be paid out
Rhode Island guide
South CarolinaGuide coming
South DakotaGuide coming
TennesseeGuide coming
TexasGuide coming
UtahGuide coming
VermontGuide coming
VirginiaGuide coming
WashingtonGuide coming
West VirginiaGuide coming
WisconsinGuide coming
WyomingGuide coming

Sources

Each row cites what its state guide relies on. The guide has the detail and the current wording.

Colorado
Massachusetts
Nebraska
  • Roseland v. Strategic Staff Management (Neb.)
  • Nebraska Wage Payment and Collection Act, Neb. Rev. Stat. §§ 48-1228 to 48-1234
  • Neb. Rev. Stat. § 48-1229 (opens in a new tab)
  • Nebraska Healthy Families and Workplaces Act, Neb. Rev. Stat. § 48-3801 et seq.

Frequently asked questions

Does my employer have to pay out unused PTO when I leave?

It depends on your state. Among the states covered here, accrued vacation is generally owed when you leave in California, Colorado, Illinois, Louisiana, Massachusetts, Montana, Nebraska, and North Dakota. In Rhode Island, it generally depends on a condition, such as how long you worked there. Where no state rule requires payout, the employer's written policy generally decides.

Can a use-it-or-lose-it policy take away vacation I already earned?

In states that treat vacation as earned wages, generally no. A policy can usually cap how much more vacation you accrue, but it generally cannot erase time you have already earned. Where no such rule applies, the written policy generally controls.

Does unused sick leave get paid out too?

Generally not. In the states covered here, required sick leave usually does not have to be paid out when you leave unless the employer's policy promises it. A combined PTO bank that mixes vacation and sick time can be different: in California, Colorado, and Massachusetts, the full balance is generally treated as payable.

When does the payout have to arrive?

Generally with your final wages, so it follows your state's final paycheck deadline. The table shows the timing each state guide describes, and Final paycheck deadlines by state covers the deadlines in more detail.