When the payout is due
Fired: generally within 24 hours of a written demand, otherwise the regular payday. Quit: next regular payday (second payday if within 5 days), no later than 20 days after the last day. Source: dli.mn.gov↗ (opens in a new tab)
Penalties
If final pay is late after the employee's written demand, the employer owes the employee's average daily earnings for each day of delay, up to 15 days, plus the unpaid wages. Source: revisor.mn.gov↗ (opens in a new tab)
Recent changes
A 2025 special session law (1Sp2025 c. 6, art. 5, s. 13) amended the rule on PTO policies replacing earned sick and safe time. See the statute for the current text. Source: revisor.mn.gov↗ (opens in a new tab)
The law and where to check
The law: Minn. Stat. §§ 181.13, 181.14; 181.9448 (earned sick and safe time) (opens in a new tab)
The agency: Minnesota Department of Labor and Industry, Labor Standards Division (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 Minnesota 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 Minnesota employment law guides
- All Minnesota employment laws
- Minnesota final paycheck law
- Minnesota paid sick leave law
- Minnesota meal and rest break laws
- Minnesota overtime law
- Minnesota pay frequency law
- Minnesota new hire reporting
- Minnesota 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.