PTO Payout When Quitting - Your Complete Guide
Learn how to get paid for your unused PTO when leaving a job. Understand your rights by state, what to check before resigning, and how to maximize your payout.
Your Right to PTO Payout
Whether you receive PTO payout when quitting depends on your state's laws and your employer's policy. In some states, accrued vacation must be paid out as earned wages. In others, employers can choose.
States That Require Payout
California, Colorado, Illinois, Louisiana, Massachusetts, Montana, Nebraska, and North Dakota generally require employers to pay out accrued vacation. In these states, unused PTO is treated as earned compensation.
Before You Resign
Review your employee handbook for the PTO payout policy. Check your state's laws. Calculate your accrued balance. Consider using PTO before resigning if it won't be paid out. Document everything.
Maximizing Your Payout
If your employer doesn't pay out PTO, consider: using vacation before giving notice, timing your resignation to avoid forfeiture deadlines, or negotiating payout as part of your departure.