PTO Payout & 'Use It or Lose It': What Your State Requires
Whether unused PTO must be paid out when you leave a job: the four states that require it, and how to value your accrued vacation.
4 min read
When you leave a job with unused vacation, do you get paid for it? It depends on your state and your employer's policy.
States that require payout
California, Colorado, Montana and Nebraska treat earned vacation as wages. It cannot be forfeited, and unused, accrued PTO must be paid out when you leave. California, Colorado and Montana also ban true "use it or lose it" policies that wipe out earned time.
Everywhere else
Most states leave PTO payout to company policy. If your handbook says unused PTO is paid out, that promise is generally enforceable. Value your balance with the PTO payout calculator (hours × hourly rate).
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