What States Require Payout of Accrued Vacation?

By Anna Duncan

Vacation days are an essential perk of any job. They provide employees with the much-needed rest and relaxation they need to recharge their batteries.

However, what happens to accrued vacation days when an employee leaves their job? The answer to that question depends on the state in which the employee works. Here is a breakdown of what states require payout of accrued vacation.

What is Accrued Vacation?

Before we delve into the states that require payout of accrued vacation, let’s first understand what accrued vacation means. Accrued vacation refers to the amount of paid time off (PTO) an employee has earned but has not yet used.

States That Require Payout of Accrued Vacation

  • California: In California, employers are required to pay out all accrued vacation time when an employee leaves their job. This includes both earned and unused vacation time.
  • Illinois: Employers in Illinois must pay out all earned and unused vacation time if their employment policy states so.
  • Massachusetts: In Massachusetts, employers are required to pay employees for any earned and unused vacation time upon termination.
  • Maine: Employers in Maine must pay employees for any earned and unused vacation time upon termination.
  • Nevada: Nevada requires employers to pay out all earned and unused vacation time when an employee separates from their job.
  • North Carolina: In North Carolina, employers must pay employees for any earned and unused vacation time upon separation from employment if their company policy states so.

States That Do Not Require Payout of Accrued Vacation

There are some states that do not require employers to pay out accrued vacation time when an employee leaves their job. These states include:

  • Alabama
  • Arizona
  • Arkansas
  • Colorado
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maryland: Employers in Maryland are not required to pay out accrued vacation time. However, if their company policy states so, they must comply with it.

The Bottom Line:

It is important for both employers and employees to understand the laws regarding vacation payouts in their state. This will ensure that both parties are aware of their rights and responsibilities when it comes to earned and unused vacation time. If you’re unsure about the laws in your state, it’s always a good idea to consult with an attorney or human resources professional.