Pick your state
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Vacation and PTO payout rules at a glance
A short summary for each state. Open a state for the details, exceptions and sources.
| State | Must unused vacation be paid at separation? | Use-it-or-lose-it policies |
|---|---|---|
| AlabamaNo state law | No state law. Federal law does not require paid vacation or payout, so follow your written policy or agreement. Source: dol.gov↗ (opens in a new tab) | State law sets no rule on this. Federal law does not regulate vacation, so this is left to your written policy. Source: dol.gov↗ (opens in a new tab) |
| AlaskaNo state law | Only if you promised it by policy, promise or contract. The Labor Department enforces the employer's own rules on vacation pay. Source: labor.alaska.gov↗ (opens in a new tab) | State law sets no rule on this. The Department enforces your own written rules, so state any forfeiture clearly in your policy. Source: labor.alaska.gov↗ (opens in a new tab) |
| ArizonaNo state law | No specific state rule. Employees may file a wage claim with the Labor Department for vacation or PTO, so pay what your policy promises. Source: azica.gov↗ (opens in a new tab) | State law sets no rule on this. Federal law does not regulate vacation, so this is left to your written policy. Source: dol.gov↗ (opens in a new tab) |
| ArkansasNo state law | Not required by statute. To pursue a vacation pay claim, the employee must show a company policy promising that pay. Source: labor.arkansas.gov↗ (opens in a new tab) | State law sets no rule on this. Federal law does not regulate vacation, so this is left to your written policy. Source: dol.gov↗ (opens in a new tab) |
| California | Yes. All earned, unused vacation must be paid at the final rate of pay whenever employment ends, for any reason. Source: dir.ca.gov↗ (opens in a new tab) | Not allowed. Earned vacation cannot be forfeited; the Labor Commissioner will not recognize a use-it-or-lose-it policy. Source: dir.ca.gov↗ (opens in a new tab) |
| Colorado | Yes. If you offer paid vacation, all earned, determinable vacation pay must be paid when employment ends, whether fired or quitting. Source: cdle.colorado.gov↗ (opens in a new tab) | Not allowed. Any policy term that forfeits earned vacation pay is void. Source: cdle.colorado.gov↗ (opens in a new tab) |
| ConnecticutNo state law | Only if your policy or union agreement provides for payout. If it does, pay at no less than the earned average rate. Source: portal.ct.gov↗ (opens in a new tab) | State law sets no rule on this. Federal law does not regulate vacation, so this is left to your written policy. Source: dol.gov↗ (opens in a new tab) |
| DelawareNo state law | Only if your policy or agreement promises it. Vacation pay is a 'benefit or wage supplement' due within 30 days after it must be paid. Source: delcode.delaware.gov↗ (opens in a new tab) | State law sets no rule on this. Federal law does not regulate vacation, so this is left to your written policy. Source: dol.gov↗ (opens in a new tab) |
| District of ColumbiaNo state law | No specific rule. 'Wages' include cash fringe benefits and pay promised by contract, so promised vacation pay may be owed with final wages. Source: code.dccouncil.gov↗ (opens in a new tab) | State law sets no rule on this. Federal law does not regulate vacation, so this is left to your written policy. Source: dol.gov↗ (opens in a new tab) |
| FloridaNo state law | No state law. Federal law does not require paid vacation or payout, so follow your written policy or contract. Source: dol.gov↗ (opens in a new tab) | State law sets no rule on this. Federal law does not regulate vacation, so this is left to your written policy. Source: dol.gov↗ (opens in a new tab) |
| GeorgiaNo state law | No state law. Federal law does not require paid vacation or payout, so follow your written policy or contract. Source: dol.gov↗ (opens in a new tab) | State law sets no rule on this. Federal law does not regulate vacation, so this is left to your written policy. Source: dol.gov↗ (opens in a new tab) |
| HawaiiNo state law | Not required by statute. Court notes on the final pay law cite a 2005 Hawaii Supreme Court case holding unused vacation is not wages under that law. Source: data.capitol.hawaii.gov↗ (opens in a new tab) | State law sets no rule on this. Federal law does not regulate vacation, so this is left to your written policy. Source: dol.gov↗ (opens in a new tab) |
| IdahoNo state law | No statute covers this. Idaho's definition of wages does not mention vacation; payout depends on your policy or agreement. Source: legislature.idaho.gov↗ (opens in a new tab) | State law sets no rule on this. Federal law does not regulate vacation, so this is left to your written policy. Source: dol.gov↗ (opens in a new tab) |
| Illinois | Yes. Earned, unused vacation must be paid with final compensation at the employee's final rate of pay, unless a union contract says otherwise. Source: ilga.gov↗ (opens in a new tab) | Allowed only if employees get a reasonable chance to use the time and clear notice of the rule. Earned vacation can never be forfeited at separation. Source: labor.illinois.gov↗ (opens in a new tab) |
| IndianaNo state law | No statute. Indiana's labor department says accrued vacation is compensation and a pro rata share may be owed at separation, unless your policy sets conditions that were not met. Source: faqs.in.gov↗ (opens in a new tab) | No state rule. Indiana's labor department says vacation policies are generally left to the employer's discretion. Source: faqs.in.gov↗ (opens in a new tab) |
| IowaNo state law | Only if your policy or agreement makes it due. Vacation then counts as wages; pro rata accrual policies require payout for the part of the year worked. Source: legis.iowa.gov↗ (opens in a new tab) | State law sets no rule on this; follow your written policy. Federal law does not regulate vacation. Source: dol.gov↗ (opens in a new tab) |
| KansasNo state law | No statute. Vacation pay is owed only if a contract or policy promises it; policy conditions like giving notice can apply, per court cases on the statute page. Source: ksrevisor.gov↗ (opens in a new tab) | State law sets no rule on this; follow your written policy. Source: dol.gov↗ (opens in a new tab) |
| Kentucky | Yes, for vested vacation. Kentucky's wage law counts vested vacation pay as wages, so it is due with final pay. Your policy decides when time is vested. Source: apps.legislature.ky.gov↗ (opens in a new tab) | The statute does not define when vacation is vested; check with a lawyer before using forfeiture rules. Source: apps.legislature.ky.gov↗ (opens in a new tab) |
| Louisiana | Yes. Vacation the employee is eligible for and has accrued under your policy, and has not used or been paid for, must be paid with final wages. Source: legis.la.gov↗ (opens in a new tab) | The statute bars forfeiture of vacation pay actually earned under your policy. Official guidance doesn't say whether yearly use-it-or-lose-it rules are allowed. Source: legis.la.gov↗ (opens in a new tab) |
| Maine | Yes, for private employers with more than 10 employees: unused paid vacation accrued on or after January 1, 2023 must be paid at separation. Public employers are exempt. Source: legislature.maine.gov↗ (opens in a new tab) | A covered employer cannot bar payout of accrued unused vacation at separation. The law does not require year-to-year rollover. Source: maine.gov↗ (opens in a new tab) |
| Maryland | Yes, unless you have a written policy limiting payout, told the employee about leave benefits at hiring, and the policy says no payout at termination. Source: mgaleg.maryland.gov↗ (opens in a new tab) | No statute addresses it directly. Payout at termination can be limited only by a written policy disclosed at hiring. Source: mgaleg.maryland.gov↗ (opens in a new tab) |
| Massachusetts | Yes. Earned vacation owed under an oral or written agreement counts as wages and must be included in the final paycheck. Source: mass.gov↗ (opens in a new tab) | Allowed only with advance notice and a reasonable chance to use the time; otherwise it may be an illegal forfeiture of earned wages. Source: mass.gov↗ (opens in a new tab) |
| MichiganNo state law | Only if your written contract or written policy provides it. Vacation is a fringe benefit that must be paid as those written terms say. Source: michigan.gov↗ (opens in a new tab) | No separate state rule; your written contract or policy terms control. Source: michigan.gov↗ (opens in a new tab) |
| MinnesotaNo state law | No statute requires it. Minnesota's final pay laws do not mention vacation or PTO; follow your written policy or contract. Source: revisor.mn.gov↗ (opens in a new tab) | State law sets no rule on this; follow your written policy. Source: dol.gov↗ (opens in a new tab) |
| MississippiNo state law | No state law. Federal law does not require paid vacation or payout; follow your written policy or contract. Source: dol.gov↗ (opens in a new tab) | No state rule. Follow your written policy. Source: dol.gov↗ (opens in a new tab) |
| MissouriNo state law | Not required. Vacation, holiday and severance pay are at the employer's discretion unless a contract provides them. Source: labor.mo.gov↗ (opens in a new tab) | State law sets no rule on this; follow your policy or contract. Source: dol.gov↗ (opens in a new tab) |
| Montana | Yes. Earned vacation counts as wages and must be paid at separation. Source: dli.mt.gov↗ (opens in a new tab) Source: erd.dli.mt.gov↗ (opens in a new tab) | Not permitted. The Montana Department of Labor says use-it-or-lose-it policies are not allowed. Source: erd.dli.mt.gov↗ (opens in a new tab) |
| Nebraska | Yes. The Nebraska Department of Labor says all earned, unused vacation must be paid with final wages, and there is no exception. Source: dol.nebraska.gov↗ (opens in a new tab) | Earned vacation cannot be forfeited at separation, even if a handbook says so. Official guidance doesn't say whether a year-end use-it-or-lose-it rule is lawful. Source: nebraskalegislature.gov↗ (opens in a new tab) |
| NevadaNo state law | No. No state law requires vacation payout. For Nevada's required paid leave, employers may, but do not have to, pay unused leave at separation. Source: leg.state.nv.us↗ (opens in a new tab) | State law sets no rule on this. Nevada's required paid leave must carry over to the next benefit year, though carryover can be capped. Source: leg.state.nv.us↗ (opens in a new tab) |
| New HampshireNo state law | Depends on your policy or practice. Vacation, personal days, holiday pay and sick pay given under your policy or practice count as wages when due. Source: gc.nh.gov↗ (opens in a new tab) | No state statute addresses it. Follow your written policy and apply it consistently. Source: gc.nh.gov↗ (opens in a new tab) |
| New JerseyNo state law | No state law requires it. If you offer vacation, follow your established policy or agreement uniformly; employees may claim if you don't. Source: nj.gov↗ (opens in a new tab) | No state rule. You decide how vacation works, but must apply your policy, agreement or union contract uniformly. Source: nj.gov↗ (opens in a new tab) |
| New Mexico | Treat it as owed. In Wolf v. Sam's Town Furniture (1995), the Court of Appeals treated unpaid accrued vacation like wages and upheld the late-pay penalty. Source: nmonesource.com↗ (opens in a new tab) | No state statute covers this; follow your written policy. Source: dol.gov↗ (opens in a new tab) |
| New YorkNo state law | Depends on your policy. Vacation pay is a wage supplement you must pay as promised. A policy can bar payout for a stated reason, such as quitting without notice. Source: dol.ny.gov↗ (opens in a new tab) | No state statute bans it. Your vacation policy must be given in writing or posted; the state labor department will not take claims your written policy excludes. Source: nysenate.gov↗ (opens in a new tab) |
| North Carolina | Yes, unless you have a written forfeiture clause disclosed in advance. Even then, payout may be owed depending on the clause's wording and why the job ended. Source: labor.nc.gov↗ (opens in a new tab) | Allowed only if employees were notified in advance of the forfeiture policy. Employees who were not notified cannot lose vacation. Source: ncleg.gov↗ (opens in a new tab) |
| North Dakota | Generally yes. On a voluntary quit you may withhold accrued PTO only with written notice at hire, under one year of service, and under five days' notice. Source: ndlegis.gov↗ (opens in a new tab) | The statute lets you withhold PTO awarded but not yet earned, if you gave written notice before awarding it. Source: ndlegis.gov↗ (opens in a new tab) |
| OhioNo state law | No state rule. Federal law does not require paid vacation or payout; it is a matter of agreement. Follow your written policy. Source: dol.gov↗ (opens in a new tab) | No state rule. Federal law leaves vacation terms to agreement between employer and employee. Source: dol.gov↗ (opens in a new tab) |
| OklahomaNo state law | Only if promised. If a written policy such as a handbook promises payout of vacation or sick leave, those amounts are legally wages. Source: oklahoma.gov↗ (opens in a new tab) | State law sets no rule on this. Oklahoma has no mandatory benefits law, so your own policy controls. Source: oklahoma.gov↗ (opens in a new tab) |
| OregonNo state law | No legal requirement. But you must honor any established policy or agreement to pay accrued vacation at termination. Source: oregon.gov↗ (opens in a new tab) | No state rule for vacation. Follow your established policy or agreement. Source: oregon.gov↗ (opens in a new tab) |
| PennsylvaniaNo state law | Only if promised. Paid leave and other unworked hours are protected only if expressly promised in official business documents, like a handbook or memo. Source: pa.gov↗ (opens in a new tab) | State law sets no rule on this. Your written policy controls. Source: pa.gov↗ (opens in a new tab) |
| Rhode Island | Yes, for employees who have worked for you at least one year. Paid vacation is optional, but accrued vacation must then be paid out. Source: dlt.ri.gov↗ (opens in a new tab) | No rule on use-it-or-lose-it during employment, but accrued vacation of employees with 1+ year of service must be paid at separation (R.I. Gen. Laws § 28-14-4). Source: webserver.rilegislature.gov↗ (opens in a new tab) |
| South CarolinaNo state law | Only if your policy or contract says it is owed. Vacation, holiday and sick pay due under employer policy or contract count as wages. Source: llr.sc.gov↗ (opens in a new tab) | No statute covers this. Payout follows your policy terms, so a clear written forfeiture rule controls what is owed. Source: llr.sc.gov↗ (opens in a new tab) |
| South DakotaNo state law | No state rule. South Dakota Department of Labor says paid leave is a matter of employer policy. Source: DLR.SD.GOV↗ (opens in a new tab) | State law sets no rule on this. Follow your written policy; federal law does not regulate vacation. Source: dol.gov↗ (opens in a new tab) |
| TennesseeNo state law | Only if your company policy or labor agreement requires it (Tenn. Code Ann. 50-2-103(a)(3)). The law does not require vacation. Source: lwdsupport.tn.gov↗ (opens in a new tab) | A 2006 Attorney General opinion says a use-it-or-lose-it policy is effective, but the Department of Labor has taken a different view. Check with the Department before relying on one. Source: tn.gov↗ (opens in a new tab) |
| TexasNo state law | Only if a written agreement or written policy says it is owed. Then it counts as wages under the Payday Law. Source: twc.texas.gov↗ (opens in a new tab) | Allowed if set out in a written policy. If no written policy promises payout, unused leave is not owed. Source: efte.twc.texas.gov↗ (opens in a new tab) |
| UtahNo state law | Only if an agreement or policy says so. The Labor Commission's wage claim form says there must be an agreement or policy to pay accrued time off. Source: laborcommission.utah.gov↗ (opens in a new tab) | State law sets no rule on this. Follow your written policy; federal law does not regulate vacation. Source: dol.gov↗ (opens in a new tab) |
| VermontNo state law | Not required by law, but a handbook or written agreement providing vacation or severance makes you liable for those benefits. Source: labor.vermont.gov↗ (opens in a new tab) | State law sets no rule on this. Your written policy terms govern; federal law does not regulate vacation. Source: labor.vermont.gov↗ (opens in a new tab) |
| VirginiaNo state law | Not required by state law. DOLI says vacation, sick leave and PTO are fringe benefits, not wages, and it does not enforce them. Source: doli.virginia.gov↗ (opens in a new tab) | State law sets no rule on this. Follow your written policy; federal law does not regulate vacation. Source: dol.gov↗ (opens in a new tab) |
| WashingtonNo state law | No state rule. L&I says it cannot help with unpaid vacation, holiday or severance pay; payout follows your policy. Source: lni.wa.gov↗ (opens in a new tab) | No state rule for vacation. But PTO used to meet paid sick leave must let at least 40 unused hours carry over. Source: lni.wa.gov↗ (opens in a new tab) |
| West VirginiaNo state law | Depends on your policy. Earned fringe benefits payable at separation are final wages unless a written policy or agreement says otherwise. Source: labor.wv.gov↗ (opens in a new tab) | No statute covers this directly. A written agreement can require conditions to be met before benefits become payable. Source: labor.wv.gov↗ (opens in a new tab) |
| WisconsinNo state law | Generally yes if you have a written vacation policy without a written forfeiture policy; otherwise follow your policy. Source: dwd.wisconsin.gov↗ (opens in a new tab) | Allowed if written. Employers may set any conditions; a written forfeiture policy can avoid payout. Source: dwd.wisconsin.gov↗ (opens in a new tab) |
| WyomingNo state law | Depends on your policy. Accrued vacation is not wages at termination if a written forfeiture policy was acknowledged in writing by the employee. Source: wyoleg.gov↗ (opens in a new tab) | Allowed for termination only with a written forfeiture policy acknowledged in writing by the employee. Source: wyoleg.gov↗ (opens in a new tab) |
