State Laws

Michigan PTO Payout Laws 2025: What Happens to Unused Vacation?

Michigan PTO payout is usually tied to your employer’s written policy. Learn what to check before you resign, how forfeiture clauses work in practice, and how to estimate payout.

Michigan generally does not require private employers to provide PTO or vacation. When you leave a job, payout is often determined by the employer’s written policy and any agreements you accepted.

Quick answer

  • Michigan PTO payout is usually policy-dependent.
  • Your handbook/offer letter often controls whether unused vacation is paid.

Common patterns

  • Payout provided: Some employers pay out accrued vacation in the final paycheck.
  • Payout denied: Some employers use forfeiture clauses.
  • Conditional payout: Some employers require notice or “good standing.”

What to do before leaving

  • Save the PTO policy.
  • Confirm your balance.
  • Ask HR how the payout is calculated.

Calculate your PTO value

Related

Disclaimer: This guide is for informational purposes only and does not constitute legal advice.

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