What States Require Employers to Pay Unused Vacation?

By Anna Duncan

If you’re an employee, vacation time is a valuable benefit that gives you a chance to rest and recharge. But what happens when you don’t use all of your vacation days?

In some states, employers are required to pay out any unused vacation time when an employee leaves the company. Here’s what you need to know about state laws and unused vacation pay.

States That Require Employers to Pay Unused Vacation Time

The following states have laws that require employers to pay out unused vacation time:

  • California: Employers are required to pay out all vested vacation time when an employee leaves the company.
  • Illinois: Employers must pay out unused vacation time as long as it is part of the company’s policy or agreement with the employee.
  • Massachusetts: If an employer has a policy or agreement that provides for payment of unused vacation time, they must honor it.
  • Nebraska: Employers must pay out all earned but unused vacation time upon separation from employment.
  • New York: Employers must pay out all earned but unused vacation time upon separation from employment if their policy or agreement with the employee provides for it.
  • Rhode Island: If an employer has a policy or agreement that provides for payment of unused vacation time, they must honor it.

Laws in Other States

In some states, there are no laws requiring employers to pay out unused vacation time. However, some companies have policies in place that provide for payout of this type.

In other states, there may be specific rules about how and when employers can make deductions from an employee’s final paycheck. Employers may be required to provide written notice to employees about the company’s policies regarding unused vacation pay.

What About Sick Time?

Sick time is not the same as vacation time. In most states, employers are not required to pay out unused sick time when an employee leaves the company. However, some states have laws that require employers to provide paid sick leave as a benefit to their employees.

Conclusion

If you’re planning to leave your job and have unused vacation time, it’s important to know your rights and your employer’s policies. Check with your HR department or employee handbook for information about payout of unused vacation time. If you live in one of the states listed above, you can expect to receive payment for any earned but unused vacation time when you leave your job.