PTO payout laws by state
Payout is required by law in 14 states. Elsewhere the employer's written policy decides.
| State | Rule | Detail | Source |
|---|---|---|---|
| Alabama | Per written policy | No statute. A written vacation policy controls and cannot be withdrawn without advance notice. | read the rulechecked October 29, 2026 |
| Alaska | Per written policy | The employer's written policy or contract governs payout of unused vacation. | read the rulechecked October 29, 2026 |
| Arizona | Per written policy | Payout is governed by the employer's policy. The final-wages statute does not expressly cover PTO. | A.R.S. 23-350checked October 29, 2026 |
| Arkansas | Per written policy | The employer's written policy or contract governs payout of unused vacation. | read the rulechecked October 29, 2026 |
| California | Required by law | Earned but unused vacation and PTO is earned wages and must be paid when you leave the job. Use-it-or-lose-it policies are not allowed. | Labor Code 227.3checked October 29, 2026 |
| Colorado | Required by law | All earned but unused vacation must be paid when you leave the job. Rules that take it away do not count. | C.R.S. 8-4-101(14)(a)(III)checked October 29, 2026 |
| Connecticut | Per written policy | The employer's written policy or contract governs payout of unused vacation. | Conn. Gen. Stat. 31-76kchecked October 29, 2026 |
| Delaware | Per written policy | The employer's written policy or contract governs payout of unused vacation. | 19 Del. C. 1109checked October 29, 2026 |
| District of Columbia | Per written policy | The employer's written policy or contract governs payout of unused vacation. | read the rulechecked October 29, 2026 |
| Florida | Not required | No state law requires payout. The employer's policy controls. | read the rulechecked October 29, 2026 |
| Georgia | Per written policy | No statute. Payout only if the employer's written policy or contract provides it. | read the rulechecked October 29, 2026 |
| Hawaii | Per written policy | The employer's written policy or contract governs payout of unused vacation. | read the rulechecked October 29, 2026 |
| Idaho | Per written policy | The employer's written policy or contract governs payout of unused vacation. | read the rulechecked October 29, 2026 |
| Illinois | Required by law | Earned but unused vacation must be paid when you leave the job unless a written agreement says otherwise. | 820 ILCS 115/5checked October 29, 2026 |
| Indiana | Required by law | Earned but unused vacation is wages and must be paid when you leave the job unless a written policy clearly provides otherwise. | case law under Ind. Code 22-2-5checked October 29, 2026 |
| Iowa | Per written policy | The employer's written policy or contract governs payout of unused vacation. | read the rulechecked October 29, 2026 |
| Kansas | Per written policy | The employer's written policy or contract governs payout of unused vacation. | read the rulechecked October 29, 2026 |
| Kentucky | Per written policy | The employer's written policy or contract governs payout of unused vacation. | read the rulechecked October 29, 2026 |
| Louisiana | Required by law | Earned but unused vacation must be paid when you leave the job. | La. R.S. 23:631(D)checked October 29, 2026 |
| Maine | Required by law | Private employers with 11 or more employees must pay all unused vacation when you leave the job. | 26 M.R.S. 626checked October 29, 2026 |
| Maryland | Required by law | Earned but unused vacation must be paid when you leave the job unless the employer has a written rule that unused time is lost given to the employee at hire. | Md. Code, Lab. & Empl. 3-505checked October 29, 2026 |
| Massachusetts | Required by law | Earned but unused vacation is wages and must be paid when you leave the job. | M.G.L. c. 149, s. 148checked October 29, 2026 |
| Michigan | Per written policy | The employer's written policy or contract governs whether earned but unused vacation is paid when you leave the job. | MCL 408.473checked October 29, 2026 |
| Minnesota | Per written policy | The employer's written policy or contract governs payout of unused vacation. | read the rulechecked October 29, 2026 |
| Mississippi | Per written policy | No statute. The employer's written policy or contract governs. | read the rulechecked October 29, 2026 |
| Missouri | Per written policy | Final wages do not include vacation unless the employer's policy or contract provides it. | read the rulechecked October 29, 2026 |
| Montana | Required by law | Earned vacation is wages and must be paid when you leave the job. General PTO banks follow the written policy. | MCA 39-3-201checked October 29, 2026 |
| Nebraska | Required by law | Earned but unused vacation is wages and must be paid when you leave the job. | Neb. Rev. Stat. 48-1229checked October 29, 2026 |
| Nevada | Per written policy | The employer's written policy or contract governs payout of unused vacation. | read the rulechecked October 29, 2026 |
| New Hampshire | Per written policy | The employer's written policy or contract governs payout of unused vacation. | RSA 275:49checked October 29, 2026 |
| New Jersey | Per written policy | Unused vacation is wages only if the employer's policy, agreement or union contract says so. | read the rulechecked October 29, 2026 |
| New Mexico | Required by law | Earned vacation is treated as wages by the state supreme court and must be paid when you leave the job. | case law under NMSA 50-4-1checked October 29, 2026 |
| New York | Per written policy | Governed by the employer's written policy. Without a written rule that unused time is lost, unused vacation must be paid out. | Labor Law 198-cchecked October 29, 2026 |
| North Carolina | Required by law | Earned but unused vacation must be paid when you leave the job unless the written policy has a clear rule that unused time is lost that was given to the employee in advance. | N.C.G.S. 95-25.12, 95-25.13checked October 29, 2026 |
| North Dakota | Required by law | Earned vacation must be paid when you leave the job. Limited exceptions apply to employees who quit within the first year or without 5 days' notice. | N.D. Admin. Code 46-02-07-02(12)checked October 29, 2026 |
| Ohio | Per written policy | Courts treat earned vacation as deferred wages payable when you leave the job unless the written policy says otherwise. | case lawchecked October 29, 2026 |
| Oklahoma | Per written policy | The employer's written policy or contract governs payout of unused vacation. | 40 O.S. 165.1checked October 29, 2026 |
| Oregon | Per written policy | The employer's written policy or contract governs payout of unused vacation. | read the rulechecked October 29, 2026 |
| Pennsylvania | Per written policy | No statute. The employer's written policy controls. | read the rulechecked October 29, 2026 |
| Rhode Island | Required by law | Employees with at least one year of service must be paid all earned vacation when you leave the job. | R.I. Gen. Laws 28-14-4(b)checked October 29, 2026 |
| South Carolina | Per written policy | The employer's written policy or contract governs payout of unused vacation. | read the rulechecked October 29, 2026 |
| South Dakota | Per written policy | No statute. The employer's written policy or contract governs. | read the rulechecked October 29, 2026 |
| Tennessee | Per written policy | The employer's written policy or contract governs payout of unused vacation. | Tenn. Code 50-2-103(a)(3)checked October 29, 2026 |
| Texas | Per written policy | Paid out only if the employer's written policy or agreement provides for it. | Texas Payday Lawchecked October 29, 2026 |
| Utah | Per written policy | The written policy or contract governs. If earned vacation will not be paid, the policy must say so explicitly. | Utah Admin. Code R610-3checked October 29, 2026 |
| Vermont | Per written policy | The employer's written policy or contract governs payout of unused vacation. | read the rulechecked October 29, 2026 |
| Virginia | Per written policy | The employer's written policy or contract governs payout of unused vacation. | read the rulechecked October 29, 2026 |
| Washington | Per written policy | Vacation is a voluntary benefit. Payout only if the employer's policy or agreement provides it. | read the rulechecked October 29, 2026 |
| West Virginia | Per written policy | Paid when you leave the job unless a written policy provides for forfeiture. | W. Va. Code 21-5-1(c)checked October 29, 2026 |
| Wisconsin | Per written policy | Paid when you leave the job unless a written policy says earned vacation will not be paid. | read the rulechecked October 29, 2026 |
| Wyoming | Per written policy | The employer's written policy or contract governs payout of unused vacation. | Wyo. Stat. 27-4-507checked October 29, 2026 |
Federal baseline: Every rule row carries the page it was read from and the date it was read. Federal baseline: Federal law overtime after 40 hours in a work week at 1.5x your true hourly rate (29 U.S.C. 207). No federal daily overtime, meal, rest, final-pay deadline or PTO payout rule. Verified October 29, 2026.