While only a couple of states require that employees be provided with paid time off (PTO), many other states have specific requirements about how employees can lose unused paid vacation or PTO if an employer chooses to provide these benefits. This chart covers state law requirements to pay out vacation or PTO at termination. Note that most state laws don’t specifically address whether PTO and vacation are subject to the same rules. We recommend employers apply the vacation requirements shown in this chart to PTO, unless a distinction is noted.
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