When the payout is due
Pay final wages, including any vacation your policy promises, by the regular payday for the pay period in which employment ended. Source: forms.labor.ny.gov↗ (opens in a new tab)
What a written policy must say
Notify employees in writing or by posting your policy on sick leave, vacation, personal leave, holidays and hours. Source: nysenate.gov↗ (opens in a new tab)
Penalties
Failing to pay wage supplements such as vacation within 30 days of the due date is a misdemeanor; corporate officers can also be liable. Source: nysenate.gov↗ (opens in a new tab)
Recent changes
Since 1 January 2025, all private employers must give 20 hours of paid prenatal leave per year, on top of sick leave. It does not have to be paid out at separation. Source: ny.gov↗ (opens in a new tab)
The law and where to check
The law: N.Y. Lab. Law §§ 195(5), 198-c, 196-b (opens in a new tab)
The agency: New York State Department of Labor, Division of Labor Standards (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 New York 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 New York employment law guides
- All New York employment laws
- New York final paycheck law
- New York paid sick leave law
- New York meal and rest break laws
- New York overtime law
- New York pay frequency law
- New York new hire reporting
- New York 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.
- https://dol.ny.gov/unpaidwithheld-wages-and-wage-supplements
- https://www.nysenate.gov/legislation/laws/LAB/195
- https://www.dol.gov/general/topic/workhours/vacation_leave
- https://www.nysenate.gov/legislation/laws/LAB/196-B
- https://forms.labor.ny.gov/WP/LS271.pdf
- https://www.nysenate.gov/legislation/laws/LAB/198-C
- https://www.ny.gov/new-york-state-paid-prenatal-leave/paid-prenatal-leave-information-employers
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.