PTO Payout at Termination - Getting Paid for Unused PTO
Complete guide to PTO payout when you leave a job. Learn which states require payout, how much you should receive, when payment is due, and what to do if you're not paid.
PTO Payout Requirements by State
Some states require employers to pay out unused PTO at termination, while others don't. States requiring payout include: California, Colorado, Illinois, Massachusetts, Montana, Nebraska, North Dakota, and more. Federal law doesn't require payout unless promised.
How PTO Payout is Calculated
PTO payout = Accrued PTO Hours × Hourly Rate. For salaried employees: Hourly Rate = Annual Salary ÷ 2080 hours. Your final paycheck should include payout within the timeframe required by state law (often within hours or days of termination).
When Payout Applies
Voluntary resignation: Depends on state law and company policy. Involuntary termination: Usually required in payout states. Retirement: Often treated more favorably. Check your employment agreement and state laws.
What to Do if Not Paid
Review your employment agreement and company policy. Check your state's labor department requirements. Request payout in writing with calculation. File a wage claim if payment is due but not received. Consult an employment attorney if needed.