This handy Vacation payout table should provide the basic information, but check state labor departments for specific guidelines effective January 2022. Companies with a policy that states they will pay out Vacation are generally legally enforceable, regardless of the PTO payout laws listed below.

State  Statutory Requirements Addressing Vacation Pay  Payment of Accrued Vacation on Separation 
Alabama  No Not explicitly addressed by state law.  However, if an employer has a formal Vacation policy, it may not unilaterally rescind that policy.  Employers must notify employees in advance if they decide not to continue paying accrued, unused Vacation upon separation.
Alaska  No Not explicitly addressed by state law.  But, an employer’s policy or agreement determines whether earned and unused Vacation is paid on separation.
Arizona  Earned Vacation time is considered wages when an organization has established policies or precedents of paying employees for this time. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
Arkansas  No An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
California  Earned Vacation time is considered wages. Employees cannot be deprived of earned and unused Vacation time, no matter the reason for separation, unless both parties have met a willful agreement.
Colorado  Earned Vacation time is considered wages. All Vacation pay must be accurately paid upon employment separation and delivered to the appropriate parties.
Connecticut  Wages do not include Vacation time. However, should an employer elect to offer Vacation pay, the employer must honor the terms of its policy or employment contract. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
Delaware  Vacation pay is negotiated between employers and their employees. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.  If they do, the value of the accrued time must be paid within 30 days of separation.
District of Columbia  No An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
Florida  No No
Georgia  No No
Hawaii  No An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.  If an employer generally provides this, it must be paid on an employee’s last day.
Idaho  Should an employer elect to offer Vacation pay, it must honor the terms of its policy or employment contract. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
Illinois  Earned Vacation is monetized in “final compensation”. Unless both parties have met a willful agreement, an employer’s policy or agreement determines whether earned and unused Vacation is paid on separation.
Indiana  When an employer provides paid Vacation, it’s considered deferred compensation in place of wages. An employer’s policy or agreement determines whether earned and unused Vacation is paid on separation.  Employees are entitled to all earned and unused Vacation pay without a written policy.
Iowa  Earned Vacation time is considered wages. Additionally, employers that elect to provide Vacation pay must comply with their established policies or employment contract. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
Kansas  No Employers may restrict the payment of accrued Vacation if their policy, for example, states that: Employees will only earn Vacation time when passing their anniversary date.  Employees who separate before their anniversary dates will not be entitled to compensation.  Employers must provide the Vacation pay established in their policy and practice.
Kentucky  Earned Vacation time is considered wages when an organization has established policies or precedents of paying employees for this time. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
Louisiana  For payment of unused Vacation time, an employee must: Hold accrued Vacation time and be eligible to take a Vacation at separation. Employers are required to pay employees any accrued, unused Vacation time at separation.
Maine  Earned Vacation time is considered wages when an organization has established policies or precedents of paying employees for this time. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
Maryland  Employers that elect to provide Vacation pay must comply with their established policies or employment contract. Without a written policy highlighting the forfeiture of pay for accrued, unused Vacation to a separating employee, the employee must be paid a cash value for such Vacation.
Massachusetts  Earned Vacation time is considered wages, and employers must compensate employees for Vacation pay. Employers are liable to pay separating employees any earned and unused Vacation time.
Michigan  Willfully contracted Vacation pay is considered a fringe benefit, not wages. Employers are liable to pay fringe benefits if stated in their written policy or contract.  However, employers cannot revoke or withhold payments due at an employee’s separation.
Minnesota  Earned Vacation time is considered wages when an organization has established policies or precedents of paying employees for this time. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
Mississippi  No An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
Missouri  No No
Montana  Earned Vacation time is considered wages when an organization has established policies or precedents of paying employees for this time. If Vacation has been “contracted for” (i.e., promised, in writing or verbally), it must be paid out on separation.
Nebraska  Vacation pay is a type of fringe benefit and is considered wages. Employers are liable to pay separating employees any earned and unused Vacation time.
Nevada  No Employers may restrict the payment of accrued, unused Vacation pay at the time of separation.  However, employers should maintain a consistent policy.
New Hampshire  Earned Vacation time is considered wages when an organization has established policies or precedents of paying employees for this time. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
New Jersey  Accrued and unused Vacation are not considered wages. Earned and unused Vacation will not be considered wages unless an employer’s policy, agreement, or union contract states otherwise.
New Mexico  No An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
New York  Should an employer elect to offer Vacation pay, it must honor the terms of its policy or employment contract. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
North Carolina  Should an employer elect to offer Vacation pay, it must honor the terms of its policy or employment contract. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
North Dakota  Earned Vacation time is considered wages when an organization has established policies or precedents of paying employees for this time. Employers are liable to pay a separating employee for earned and unused Vacation time before separation. Private employers may revoke payment for accrued Vacation time if 1) The employer gave the employee written notice at the time of hiring about this policy, 2) the employee has been employed for less than one year, and 3) the employee gave fewer than five days’ notice before separation.
Ohio  No An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
Oklahoma  Earned Vacation time is considered wages when an organization has established policies or precedents of paying employees for this time. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
Oregon  Earned Vacation time is considered wages when an organization has established policies or precedents of paying employees for this time. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
Pennsylvania  Earned Vacation time is considered wages when an organization has established policies or precedents of paying employees for this time. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
Rhode Island  Earned Vacation time is considered wages after one year of service when an organization has established policies or precedents of paying employees for this time. Employers are liable to pay separated employees accrued Vacation pay if they have served one year or more at their organization.
South Carolina  Earned Vacation time is considered wages after one year of service when an organization has established policies or precedents of paying employees for this time. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
South Dakota  No No
Tennessee  Employers are not liable to create a written Vacation policy if they elect to provide Vacation time. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
Texas  Should an employer elect to offer Vacation pay, it must honor the terms of its policy or employment contract. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
Utah  Should an employer elect to offer Vacation pay, it must honor the terms of its policy or employment contract. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.  If employers do not pay for accrued days upon separation, this must be stated explicitly in the contract or policy.
Vermont  Employers who elect to provide paid Vacation time are liable to their employees for these benefits. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
Virginia  Employers are not liable for establishing a policy regarding Vacation pay. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
Washington  Should an employer elect to offer Vacation pay, it must honor the terms of its policy or employment contract. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.
West Virginia  Earned Vacation time is considered wages when an organization has established policies or precedents of paying employees for this time. If an employer has a written policy stating that accrued Vacation time will not be paid at separation, they will not be liable to pay an employee.
Wisconsin  Earned Vacation time is considered wages when an organization has established policies or precedents of paying employees for this time. Employers are not required to pay employees upon separation.
Wyoming  Should an employer elect to offer Vacation pay, it must honor the terms of its policy or employment contract. An employer’s policy or employment contract governs whether earned and unused Vacation is paid on separation.

*This information simplifies complex Acts as it is understood by Time Equipment Company. It is not to be taken as legal advice. The regulations for this program are changing. For further information, contact your state or local Department of Labor.