PTO State Laws Overview - US Guide
Comprehensive overview of PTO laws across US states. Understand which states require vacation payout, allow use-it-or-lose-it policies, and mandate sick leave.
Federal vs State PTO Laws
There is no federal law requiring employers to provide PTO. Each state sets its own rules for vacation payout, accrual, and forfeiture. This creates a patchwork of regulations across the country.
States Requiring PTO Payout
These states generally require payment of accrued vacation upon termination: California, Colorado, Illinois, Louisiana, Massachusetts, Montana, Nebraska, and North Dakota. In these states, accrued vacation is considered earned wages.
Use-It-or-Lose-It States
Many states allow use-it-or-lose-it policies if properly disclosed in writing. However, even in these states, employers often must pay out time already accrued before the policy was communicated.
Sick Leave Mandates
Some states mandate paid sick leave separate from vacation: California, Washington, Oregon, New Jersey, Connecticut, and others. City-level mandates also exist in many areas.