US PTO Laws - Complete Guide to Paid Time Off Laws by State
Comprehensive guide to PTO laws across all US states including payout requirements, use-it-or-lose-it policies, accrual rules, and employee rights. Understand how state laws protect your paid time off.
Overview of US PTO Laws
There is no federal law requiring employers to provide paid vacation or PTO in the United States. However, many states have enacted laws that affect how PTO must be handled, particularly regarding payout upon termination, accrual, and forfeiture policies. Understanding your state's specific laws is crucial for protecting your paid time off rights.
PTO Payout Requirements by State
Several states require employers to pay out accrued vacation time when employment ends, treating it as earned wages. These include California, Colorado, Illinois, Louisiana, Massachusetts, Montana, Nebraska, and North Dakota. Other states allow employers discretion, while some have no specific requirements.
Use-It-or-Lose-It Policies
Whether employers can implement use-it-or-lose-it policies varies by state. States that require payout typically prohibit forfeiture of accrued vacation. In states without payout requirements, employers may be able to set expiration dates if clearly communicated. Understanding your state's position is essential.
Accrual and Caps
PTO accrual rates are generally set by employer policy, not state law. However, once PTO is earned, state laws may protect it from forfeiture. Many employers set accrual caps to limit how much PTO can accumulate. These policies must be clearly communicated to employees.
Sick Leave Requirements
While vacation/PTO isn't federally mandated, several states and localities have mandatory paid sick leave laws. These are typically separate from vacation but may affect overall paid time off policies. States with mandatory sick leave include California, Connecticut, Massachusetts, Oregon, and Washington.