PTO When Laid Off - PTO Payout After Layoff
Complete guide to PTO when laid off. Learn about payout requirements, timing, your rights, and what to do if you don't receive proper payment for unused paid time off.
PTO Payout After Layoff
Involuntary termination (layoffs) typically triggers the same payout requirements as quitting. States requiring payout (CA, IL, MA, etc.) must pay unused PTO regardless of reason for termination. Payment is usually due immediately or within days per state law.
Timing of Payout
State laws vary on timing. Some require immediate payment (California: within hours), others within days or on next regular payday. Check your state's labor department for specific requirements. Federal law doesn't mandate timing unless state requires it.
Your Rights
You're entitled to payout if required by state law or company policy. Payout cannot be denied based on layoff reason. Amount should be based on accrued, unused PTO. Verify calculation is correct. File a wage claim if not paid properly.
What to Do
Review your final paycheck for PTO payout. Verify the amount matches your records. Check your state's payout requirements. Request written calculation if unclear. File a wage claim with state labor department if payment is missing or incorrect.