PTO Payout Laws by State (2025): Which States Require Vacation Payout?
A state-by-state overview of PTO/vacation payout rules when you leave a job. Learn which states require payout, where employer policy controls, and how to protect your final paycheck.
If you’ve earned Paid Time Off (PTO) or vacation days at work, a common question is: Do I get paid for unused PTO when I leave my job?
In the U.S., there’s no federal law requiring private employers to offer PTO. So in many states, the payout question comes down to one thing: your employer’s written policy (handbook, offer letter, or employment agreement).
This guide focuses on vacation/PTO payout at termination (quit, layoff, or fired). It’s not legal advice—laws change and the details matter.
Quick answers
- If your state treats accrued vacation as earned wages, employers generally must pay it out.
- In many states, payout is policy-dependent: if the policy promises payout, it may be enforceable; if it clearly says PTO is forfeited, payout may be denied.
- The safest move is to get the policy in writing and keep a copy.
Phase 1: State pages (Free PTO Calculator)
We’re publishing a conservative first batch of states (Phase 1). Pick your state:
- California PTO payout laws
- New York PTO payout laws
- Texas PTO payout laws
- Florida PTO payout laws
- Illinois PTO payout laws
- Ohio PTO payout laws
- North Carolina PTO payout laws
- Georgia PTO payout laws
- Michigan PTO payout laws
- Pennsylvania PTO payout laws
- New Jersey PTO payout laws
- Washington PTO payout laws
PTO payout rules by state (Phase 1 summary)
| State | PTO required by law? | Is payout required? | What usually decides? |
|---|---|---|---|
| California | No | Often treated as required for accrued vacation | Earned-wages style rule (vacation treated like wages) |
| New York | No | Usually policy-dependent | Written employer policy / handbook |
| Texas | No | Usually policy-dependent | Written employer policy / agreement |
| Florida | No | Usually policy-dependent | Written employer policy / agreement |
| Illinois | No | Often policy-dependent | Written employer policy / agreement |
| Ohio | No | Usually policy-dependent | Written employer policy / agreement |
| North Carolina | No | Usually policy-dependent | Written employer policy / agreement |
| Georgia | No | Usually policy-dependent | Written employer policy / agreement |
| Michigan | No | Usually policy-dependent | Written employer policy / agreement |
| Pennsylvania | No | Usually policy-dependent | Written employer policy / agreement |
| New Jersey | No | Usually policy-dependent | Written employer policy / agreement |
| Washington | No | Usually policy-dependent | Written employer policy / agreement |
What to check in your handbook (the 60-second checklist)
- Does the policy say PTO is earned or accrued?
- Does it explicitly say PTO is paid out when employment ends?
- Does it contain a forfeiture clause (“unused PTO is forfeited upon separation”)?
- Does it require notice (e.g., 2 weeks) to qualify for payout?
- Is there a cap on accrual?
Estimate how much PTO is at stake
Use our calculators to estimate your accrued time and what it could be worth:
Disclaimer: This guide is for informational purposes only and does not constitute legal advice. For official guidance, consult your state labor agency or an employment attorney.