When the payout is due
By the next regular payday or within 15 days of discharge or resignation, whichever comes first. Source: legis.la.gov↗ (opens in a new tab)
What a written policy must say
Payout follows your stated policy: vacation is owed when the employee is eligible for and has accrued the right to take it. A policy cannot forfeit vacation pay actually earned. Source: legis.la.gov↗ (opens in a new tab)
Penalties
Penalty wages up to 90 days' pay, or full wages from the demand until paid if less, plus mandatory attorney's fees for a well-founded suit. Good-faith disputes owe only wages plus interest. Source: legis.la.gov↗ (opens in a new tab)
Recent changes
R.S. 23:631 was amended by Acts 2025, No. 113, adding a rule on partnership profits interests. The vacation pay subsection was not changed. Source: legis.la.gov↗ (opens in a new tab)
The law and where to check
The law: La. R.S. 23:631-632 (opens in a new tab)
The agency: Louisiana Workforce Commission (opens in a new tab)
What federal law says
No federal law requires paid vacation or payout of unused vacation. These are matters of agreement between employer and employee, and state law. Source: U.S. Department of Labor↗ (opens in a new tab)
Vacation and PTO payout checklist for Louisiana employers
A simple order of work, based on the rules above. It is not a legal checklist.
- Read your written vacation or PTO policy against the rules above.
- Make any forfeiture or cap rule clear and in writing, where your state allows it.
- Track each employee's accrued, unused balance.
- When someone leaves, pay any vacation owed with the final paycheck on time.
- Keep a record of the balance paid out.
- See our final paycheck guide for your state's deadline.
More Louisiana employment law guides
- All Louisiana employment laws
- Louisiana final paycheck law
- Louisiana paid sick leave law
- Louisiana meal and rest break laws
- Louisiana overtime law
- Louisiana pay frequency law
- Louisiana new hire reporting
- Louisiana at-will exceptions
Vacation and PTO payout laws in other states
See every state on one page, or pick a 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
Sources
All official government sources, last checked October 19, 2026.
Disclaimer: This guide provides general information based on publicly available official sources and is for information only. It is not legal, tax, payroll or employment-law advice and does not guarantee compliance with federal, state or local requirements. Rules can depend on your location, industry, contracts and other circumstances, and laws change. Always check the official source, the relevant government agency or a qualified professional before making a decision. MadyHR.ai accepts no responsibility for any action taken based on this page.
Last checked: . Every rule and source link on this page was checked against the official government source on this date. Laws change, so always open the source link before you act.