States That Require Vacation Payout
Comparison of state laws regarding vacation and PTO payout requirements upon employee termination.
States Requiring Payout (0)
These states require employers to pay out accrued, unused vacation time upon termination, regardless of company policy.
States With No Requirement (50)
These states allow employers to set their own policies. Payout may be required if promised in employment agreements or company policy, but it's not mandated by state law.
AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming
Important Notes
- Even in states without mandatory payout, employers must honor any promises made in employment contracts or employee handbooks.
- Some states distinguish between "earned" and "granted" vacation time, with different rules for each.
- Use-it-or-lose-it policies are prohibited in states that require payout.
- Always consult your state's specific regulations and consider professional legal or HR advice for your situation.