PTO Rollover Rules - Managing Unused PTO
Understand what happens to your unused PTO at year end. Learn about different rollover policies, state laws that protect your time off, and strategies for managing your PTO balance.
What is PTO Rollover?
PTO rollover is the ability to carry unused paid time off from one year to the next. Policies vary widely—some employers allow unlimited rollover, others cap it, and some have "use it or lose it" policies.
Common Rollover Policies
Full rollover: All unused PTO carries forward. Capped rollover: Only a portion carries over (e.g., up to 40 hours). Use-it-or-lose-it: Unused PTO expires at year end. Payout option: Employer pays for unused time instead of rollover.
State Laws on Rollover
Some states restrict or prohibit use-it-or-lose-it policies. California, Montana, and Nebraska treat PTO as earned wages that cannot be forfeited. Check your state's specific laws.
Strategies for Managing Rollover
Track your balance throughout the year. Plan vacations to use PTO before it expires. Understand your company's policy deadline. Consider the cash value vs. rest value of your time off.