⚖️ US Employment Law Compliance: Our FREE State PTO Payout Laws Checker 2026 provides comprehensive analysis of paid time off payout requirements across all 50 states. Used by employees, HR professionals, and attorneys for termination compliance, final paycheck calculations, and wage claim preparation. Updated with 2026 state labor law changes.
| State | Payout Required | Deadline | Sick Leave | Use-it-or-Lose-it | Penalties |
|---|
Mandatory States: By law, employers MUST pay out accrued PTO/vacation at termination (CA, CO, IL, MT, etc.). Discretionary States: Employers can choose whether to pay based on their written policy (TX, FL, GA, etc.). No Law States: No specific law, common law may apply.
Generally NO, unless: 1) State law specifically requires it (rare), 2) Employer policy promises payout, 3) Sick leave is part of a combined PTO bank. Most states distinguish between vacation (earned wages) and sick leave (benefit for illness).
In mandatory payout states, use-it-or-lose-it policies for vacation are generally illegal (CA, CO, IL, etc.). In other states, they may be allowed if: 1) Reasonable notice given, 2) Not applied retroactively, 3) Clear policy in writing. Always check specific state law.
Varies by state: CA: 72 hours if quit, immediately if fired. CO: Immediately. IL: Next scheduled payday. TX/FL: Next regular payday. Many states impose penalties for late payment (CA: up to 30 days wages).
In mandatory payout states, yes - cause of termination doesn't matter. PTO is earned wages, not a reward for good behavior. In other states, check employer policy. Some allow forfeiture for termination for cause, but this is increasingly challenged in court.
Check your state's PTO payout laws and calculate what you're owed
Not Legal Advice: This State PTO Payout Laws Checker 2026 provides legal information, not advice. Laws change frequently and interpretations vary.
Attorney Consultation: For specific legal situations, consult with a licensed employment attorney in your state.
Accuracy: While we strive for accuracy, laws change. Verify with your state labor department or legal counsel.
Employer Policy: Company policies may provide more protection than state law but cannot provide less.
Collective Bargaining: Union contracts may have different provisions than state law.
Last Update: January 1, 2026 | Next Review: July 1, 2026