|
Jurisdiction |
Use-It-Or-Lose-It Policies |
PTO Payout Requirement(s) |
|
Alabama |
No regulations |
Based on the employer's policy. If the employer communicates a paid vacation policy to employees, it may not unilaterally revoke the policy after performance by employees. |
|
Alaska |
No regulations |
Based on the employer's policy. If the employer has a policy, promise, or contract to provide paid vacation time, the state will enforce the employer's rules for those payments. |
|
Arizona |
No regulations |
The wages due upon separation must include vacation pay if the employer has a policy or practice of making those payments. |
|
Arkansas |
No regulations |
Earned, unused vacation time must be paid to terminated employees if the employer provides paid vacation time according to an accrual plan and the vacation time was earned according to that plan. |
|
California |
Prohibited |
Earned, unused vacation time can’t be forfeited, regardless of the reason for termination, unless a collective bargaining agreement provides otherwise. |
|
Colorado |
Allowed if:
- the policy is included in an agreement between the employer and employee
- the agreement determines when vacation pay is "earned"
- the policy doesn’t deprive an employee of earned vacation time or the wages associated with that time
- any "earned and determinable" vacation pay is paid upon employment separation
|
Any "earned and determinable" vacation pay must be paid upon employment separation.
The parties' agreement determines when vacation pay is "earned.” If the agreement is silent or ambiguous about when vacation pay is earned, the state will consider:
- the employer's historical practices
- industry norms and standards
- the subjective understanding of the employer and employee
- any other relevant factors
|
|
Connecticut |
No regulations |
If employment is terminated, employers who offer vacation time must pay the employee's accrued, unused vacation time and other fringe benefits as if they’re wages, as specified under the contract or agreement. |
|
Delaware |
No regulations |
If the employer's policy or an employment agreement between the employer and employee provides for vacation pay upon termination, the employer must follow the terms of that policy or agreement. |
|
District of Columbia |
No regulations |
Unused vacation time is payable on termination if:
- the employer provides vacation time as part of employee compensation
- there’s no agreement to the contrary
|
|
Florida |
No regulations |
Not required by state law. |
|
Georgia |
No regulations |
Not required by state law. |
|
Hawaii |
No regulations |
Based on the employer's policy. |
|
Idaho |
No regulations |
Based on the employer's policy. |
|
Illinois |
Allowed if employees have a reasonable opportunity to both use the vacation time and take notice of the policy. |
Accrued, unused vacation time must be paid out upon termination. |
|
Indiana |
Allowed |
Based on the employer's policy. |
|
Iowa |
No regulations |
Based on the employer's policy. |
|
Kansas |
Allowed |
Based on the employer's policy. |
|
Kentucky |
No regulations |
If an employer offers "vested vacation pay," employers must pay departing employees the vested, unused vacation pay, regardless of whether the employee is terminated or leaves voluntarily.
Conversely, employers aren’t required to pay for vacation time that hasn’t vested under a policy or contract (or possibly an established practice).
Vested vacation pay is treated as wages, but if and when vacation vests is a matter of policy or contract between the employer and employee. |
|
Louisiana |
Allowed |
Employees must be paid for all accrued, unused vacation time upon termination, regardless of the reason for the termination. |
|
Maine |
Not expressly prohibited or allowed. Employees can carry over up to 40 hours of earned paid leave (which can be used for vacation time off) from one defined year to the next. |
A private employer with 10 or more employees must pay any accrued vacation pay they owe upon an employee’s termination. |
|
Maryland |
No regulations |
If an employer doesn’t have a written policy that limits pay for accrued, unused vacation time to a departing employee, the employee is entitled to the cash value of whatever earned, unused vacation time is left.
The employer isn’t required to make these payments if the employer has established as such in a written policy and notified employees in writing at the time of hire that unused vacation time is forfeited. |
|
Massachusetts |
Allowed if employers give employees adequate notice of the policy (i.e., enough time to use the accumulated vacation time before the employer's cutoff date). Employers may also place a cap on vacation accrual. |
An employer must pay terminating employees all earned, unused vacation time. |
|
Michigan |
No regulations |
Based on the employer's policy. |
|
Minnesota |
No regulations |
Based on the employer's policy. |
|
Mississippi |
No regulations |
Based on the employer's policy. |
|
Missouri |
No regulations |
Wages don’t include vacation time as a part of final paycheck requirements. |
|
Montana |
Prohibited, but employers may have a policy placing a cap on vacation time accrual. When the earned vacation hours drop below that cap, the ability to earn vacation time pay restarts. |
Based on the employer's policy. |
|
Nebraska |
Prohibited |
All earned, unused vacation time must be paid to terminated employees. |
|
Nevada |
Not expressly prohibited or allowed. The state’s paid leave requirements allow employees to carry over up to 40 hours per year. |
Based on the employer's policy. |
|
New Hampshire |
Allowed |
Based on the employer's policy. If there is no employer policy, vacation pay must be paid out upon termination. |
|
New Jersey |
No regulations |
Based on the employer's policy. |
|
New Mexico |
No regulations |
Accrued, unused paid leave must be paid out upon termination. |
|
New York |
Allowed if employers give employees prior notice of the policy. |
Based on the employer's policy. |
|
North Carolina |
Allowed if employees are notified in writing of any policy that requires or results in loss or forfeiture of vacation time or pay. Employees who aren’t notified, aren’t subject to the loss or forfeiture. |
Based on the employer's policy. |
|
North Dakota |
Allowed if employees have a reasonable opportunity to both use the vacation time and take notice of the policy. |
An employer must pay a terminating employee for earned PTO at the regular rate of pay earned by the employee before separation.
An employment policy or agreement can’t include forfeiture of earned PTO at separation. However, if an employee voluntarily separates from employment, a private employer may withhold payment for accrued PTO if:
- the employer gave the employee written notice at the time of hiring of the limitation on payment of accrued PTO
- the employee has been employed for less than one year
- the employee gave less than five days' written or verbal notice
|
|
Ohio |
No regulations |
Based on the employer's policy. |
|
Oklahoma |
No regulations |
Based on the employer's policy. |
|
Oregon |
No regulations |
Based on the employer's policy. |
|
Pennsylvania |
No regulations |
Based on the employer's policy. |
|
Rhode Island |
No regulations |
After one year of service, employers must pay separated employees their accrued vacation time that was awarded by either:
- a collective bargaining agreement
- a written or verbal company policy
- any other written or verbal agreement between the employer and employee
|
|
South Carolina |
No regulations |
Based on the employer's policy. |
|
South Dakota |
No regulations |
Not required by state law. |
|
Tennessee |
No regulations |
Based on the employer's policy. |
|
Texas |
No regulations |
Based on the employer's policy. |
|
Utah |
No regulations |
Employers must pay employees for any accrued, unused leave upon the employee’s termination, unless the employer specifically implements a use-it-lose-it policy explicitly stating that leave doesn’t accrue and employees aren’t paid for unused leave. |
|
Vermont |
No regulations |
Based on the employer's policy. |
|
Virginia |
No regulations |
Based on the employer's policy. |
|
Washington |
No regulations |
Based on the employer's policy. |
|
West Virginia |
No regulations |
Based on the employer's policy. |
|
Wisconsin |
No regulations |
Not required by state law. |
|
Wyoming |
No regulations |
Based on the employer's policy. |
