Vermont vacation and PTO payout law

When the payout is due

Final wages are due within 72 hours of discharge, or on the last regular payday for employees who quit. Source: legislature.vermont.gov↗ (opens in a new tab)

What a written policy must say

Handbooks, memos and correspondence providing vacation, sick leave, holidays or severance are treated as binding written agreements, so word them carefully. Source: labor.vermont.gov↗ (opens in a new tab)

Penalties

An employer who violates wage payment rules owes twice the unpaid wages plus costs and attorney's fees (21 V.S.A. 347). Source: legislature.vermont.gov↗ (opens in a new tab)

The law and where to check

The law: 21 V.S.A. § 342 (final wages); 21 V.S.A. § 483 (earned sick time) (opens in a new tab)

The agency: Vermont Department of Labor, Wage and Hour Program (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 Vermont employers

A simple order of work, based on the rules above. It is not a legal checklist.

1. Read your written vacation or PTO policy against the rules above.
2. Make any forfeiture or cap rule clear and in writing, where your state allows it.
3. Track each employee's accrued, unused balance.
4. When someone leaves, pay any vacation owed with the final paycheck on time.
5. Keep a record of the balance paid out.
6. See our final paycheck guide for your state's deadline.

More Vermont employment law guides

• All Vermont employment laws
• Vermont final paycheck law
• Vermont paid sick leave law
• Vermont meal and rest break laws
• Vermont overtime law
• Vermont pay frequency law
• Vermont new hire reporting
• Vermont at-will exceptions

Vacation and PTO payout laws in other states

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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: October 19, 2026. 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.