PTO payout laws, by state.
Know whether your employer is legally required to pay out your unused PTO when you leave. The law varies dramatically by state — and the difference can be worth thousands of dollars.
16 states
require payout
Accrued PTO treated as earned wages
29 states
policy dependent
Payout follows your contract or policy
6 states
no requirement
Company policy is the only rule
Which states require vacation payout upon termination?
16 states treat accrued vacation as earned wages that must be paid out when you leave a job, whether you quit or are fired: Alaska, California, Colorado, Connecticut, District of Columbia, Illinois, Indiana, Louisiana, Maine, Massachusetts, Montana, Nebraska, New Hampshire, North Dakota, Rhode Island, West Virginia. Another 29 states require payout only when your employer's written policy provides for it, and 6 have no payout law. Find your state below.