Vacation Payout at Termination by State 2025

Many states offer vacation payout at termination, although these payout are typically contingent on other criteria, e.g., time of employment, etc. In other states, the vacation payout at termination by state protocols put the option of vacation payouts in the hands of employers. What does your state say about vacation payouts after you get your final check?

Breakdown

While it is common for many states and employers to offer vacation payouts at the end of an employee’s tenure with an organization, there are often stipulations and guidelines that dictate when, how much and so on. It is always advisable to check with your employer to understand the terms of your employment contract.

State-by-State Vacation Payout Laws

Alabama

Statutory provisions regarding vacation pay:
Alabama does not have any state statute governing the payment of vacation time (see Amoco Fabrics and Fibers Co. v. Hilson, 669 So. 2d 832, 835 (Ala. 1995)).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Not expressly provided for by state statute. However, if an employer communicates a paid vacation policy to employees, it may not unilaterally revoke that policy after performance by employees. For example, employees must be specifically notified in advance if the employer decides it will no longer pay accrued, unused vacation at termination. (Amoco, 669 So. 2d at 835.)

Alaska

Statutory provisions regarding vacation pay:
Alaska law does not specifically address treatment of accrued, unused vacation pay. The issue is a contractual relationship between the employer and employees.

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Not expressly provided for by state statute. However, if an employer has a policy, promise, or contract to provide paid vacation, the Alaska Department of Workforce Development enforces the employer’s own rules for those payments. (Alaska Department of Workforce Development: Employee FAQs).

Arizona

Statutory provisions regarding vacation pay:
Wages include vacation pay when the employer has a policy or practice of paying employees for this time (Ariz. Rev. Stat. Ann. § 23-350(6)).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Wages due on separation include vacation pay if the employer has a policy or practice of making those payments (Ariz. Rev. Stat. Ann. §§ 23-350(6) and 23-353).

Arkansas

Statutory provisions regarding vacation pay:
None.

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Earned, unused vacation must be paid to departing employees if the employer provides paid vacation according to an accrual plan and vacation is earned according to that plan (Oil Fields Corp. v. Hess, 186 Ark. 241 (1932), Waymack v. KCLA, 664 S.W.2d 509 (Ark. Ct. App. 1984)).

California

Statutory provisions regarding vacation pay:
Earned vacation time is considered wages. Vacation time is earned as work is performed. (Cal. Lab. Code § 227.3; Suastez v. Plastic Dress-Up Co., 647 P.2d 122, 128 (Cal. 1982).)

Use it or lose it policy:
Prohibited. However, employers may impose a reasonable cap the amount of vacation employees can accrue. (California DLSE: Vacation FAQs).

Payment of accrued vacation on termination:
Earned, unused vacation time cannot be forfeited, regardless of the reason for termination, unless a collective bargaining agreement provides otherwise (Cal. Lab. Code § 227.3).

Colorado

Statutory provisions regarding vacation pay:
Employers may establish a vacation pay policy in writing or by custom and practice. Employees must be made aware of the policy. Employers and employees must follow the policy until it changes. Colorado Division of Labor Advisory Bulletins: Vacation.)
“Wages” and “compensation” include vacation pay that is earned under the terms of any agreement. If the employer provides paid vacation, then on the employee’s separation the employer must pay vacation pay earned and determinable under the terms of the agreement. (Colo. Rev. Stat. § 8-4-101(14)(a)(III) and Colorado Division of Labor Advisory Bulletins: Vacation).

Use it or lose it policy:
Not prohibited.

The Colorado Division of Labor (CDOL) provides that a use-it-or-lose-it policy is permissible if:

• The policy is included in an agreement between the employer and employee.
• The policy does not deprive an employee of earned vacation time or the wages associated with that time.
• Any vacation pay “earned and determinable” must be paid on employment separation.
• The agreement determines when vacation pay is “earned.” (Colorado Division of Labor Advisory Bulletins: Vacation.)

Payment of accrued vacation on termination:
Any vacation pay “earned and determinable” must be paid on employment separation. The parties’ agreement determines when vacation pay is “earned.” If the agreement is silent or ambiguous about when vacation becomes “earned,” the CDOL will consider:

• The employer’s historical practices.
• Industry norms and standards.
• The subjective understanding of the employer and employee.
• Other relevant factors. (Colo. Rev. Stat. § 8-4-101(14)(a)(III) and Colorado Division of Labor Advisory Bulletins: Vacation.)

Connecticut

Statutory provisions regarding vacation pay:
If an employer offers vacation time, the amount of vacation time an employee is entitled to is governed by the terms of the employment contract or collective bargaining agreement. “Wages” do not include vacation time (Fulco v. Norwich Roman Catholic Diocesan Corp., 609 A.2d 1034, 1037 (Conn. App. Ct. 1992)).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
If employment is terminated, employers that offer vacation time must pay the employee’s accrued, unused vacation time and other fringe benefits as wages as specified under the contract or agreement (Conn. Gen. Stat. Ann. § 31-76k).

Delaware

Statutory provisions regarding vacation pay:
Vacation benefits are a matter of contract between the employer and the employee (Del. Code Ann. tit. 19, § 1109(a)).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
If the employer’s policy is silent on the issue of paying accrued, unused vacation on termination, the employer is not obligated to pay. However, if the employer’s policy or an employment agreement between the employer and employee provides for vacation pay on termination, the employer must follow the terms of that policy or agreement. (Del. Code Ann. tit. 19, §§ 1103 and 1109(a)).

District of Columbia

Statutory provisions regarding vacation pay:
None.

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Unused vacation is payable on termination if:

• The employer provides vacation time as part of employee compensation.
• There is no agreement to the contrary. (See NRA v. Ailes, 428 A.2d 816 (D.C. App. 1981) and Jones v. Dist. Parking Managers, 268 A.2d 860 (D.C. App. 1970).)

Florida

Statutory provisions regarding vacation pay:
None.

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
No state statute addresses payment of accrued vacation on termination.

Georgia

Statutory provisions regarding vacation pay:
None.

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
No state statute addresses payment of accrued vacation on termination.

Hawaii

Statutory provisions regarding vacation pay:
None.

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Whether an employer must pay for any unused vacation time depends on the terms of any express agreement between the employer and employee or uniform custom (Casumpang v. ILWU Local, 121 P.3d 391, 401 (Haw. 2005)).

Idaho

Statutory provisions regarding vacation pay:
If an employer chooses to provide paid vacation benefits, the employer must comply with the terms of its established policy or employment contract (Idaho Department of Labor: Wage & Hour FAQs).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
An employer must pay accrued vacation to an employee after separation from employment if the employer’s policy or contract requires it (Ferguson v. City of Orofino, 131 Idaho 190 (1998) and Jackson v. Minidoka Irrigation Dist., 98 Idaho 330 (1977)).

Illinois

Statutory provisions regarding vacation pay:
“Final compensation” includes “the monetary equivalent of earned vacation” (820 Ill. Comp. Stat. 115/2).

Use it or lose it policy:
Not prohibited. However, employees must have a reasonable opportunity to take the vacation and notice of the policy. Employers are also free to determine whether to permit carry-over of unused vacation days year to year, and if so, how many days may be carried over. (Ill. Admin. Code tit. 56, § 300.520(e).)

Payment of accrued vacation on termination:
If an employment contract or employment policy provides for paid vacation, separated employees are entitled to earned, unused vacation time, unless a collective bargaining agreement provides otherwise (820 Ill. Comp. Stat. 115/2 and 115/5).

Indiana

Statutory provisions regarding vacation pay:
If an employer provides paid vacation, it is considered a type of deferred compensation in lieu of wages and is subject to the state’s Wage Payment Statute (Naugle v. Beech Grove City Sch., 864 N.E.2d 1058, 1067 (Ind. 2007)).

Use it or lose it policy:
Not prohibited (Comm’r of Lab., et al v. Int’l Union of Painters, 991 N.E.2d 100 (Ind. 2013)).

Payment of accrued vacation on termination:
Unless an Indiana employer has an arrangement or policy placing limitations on receipt of vacation pay, a discharged employee is entitled to any earned and unused vacation pay (Ind. Heart Assocs., P.C. v. Bahamonde, 714 N.E.2d 309, 311-12 (Ind. Ct. App. 1999)).

Iowa

Statutory provisions regarding vacation pay:
If an employer chooses to provide paid vacation benefits, it must comply with the terms of its policy or employment contract. Paid vacation benefits are considered “wages” (Iowa Code § 91A.2(7)(b)).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
An employer must pay a terminating employee for unused vacation only if the employer has a contract, policy, or procedure to pay vacation to departing employees (Iowa Division of Labor: Wage FAQs).

Kansas

Statutory provisions regarding vacation pay:
No state law requires the provision of vacation (Sweet v. Stormont Vail Reg’l Med. Ctr., 647 P.2d 1274 (Kan. 1982)).

A vacation policy or practice must be provided in writing or posted if requested by an employee (Kan. Stat. Ann. § 44-320(c)).

Use it or lose it policy:
Not prohibited (Kansas Department of Labor: Workplace Laws and Requirements: Fringe Benefits).

Payment of accrued vacation on termination:
Employers may restrict vacation policies by, for example, providing that:

• Employees only earn vacation on reaching their anniversary date.
• Employees who separate before their anniversary date are not entitled to a pro-rata payment. (Kansas Department of Labor: Workplace Laws and Requirements: Fringe Benefits.) Employers must provide vacation pay according to their policy or practice (Dillard Dep’t Stores, Inc. v. Kan. Dep’t of Human Res., 13 P.3d 358 (Kan. Ct. App. 2000)).

Kentucky

Statutory provisions regarding vacation pay:
Vacation benefits are a matter of contract between the employer and employee. (Berrier v. Bizer, 57 S.W.3d 271, 281-82 (Ky. 2001).) “Vested vacation pay” is treated as wages (Ky. Rev. Stat § 337.010(1)(c)).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
If an employer offers “vested vacation pay,” employers must pay departing employees the vested, unused vacation pay, whether the employee is terminated or leaves voluntarily. Vested vacation pay is treated as wages. (Ky. Rev. Stat § 337.010(1)(c).) However, if and when vacation vests is a matter of policy or contract between the employer and employee. Employers are not required to pay for vacation time that has not vested under a policy or contract (or possibly an established practice). (See Berrier, 57 S.W.3d at 281-82.)

Louisiana

Statutory provisions regarding vacation pay:
To be paid for unused vacation time, an employee must, according to the employer’s stated vacation policy, both:

• Have accrued vacation time.
• Be eligible to take the vacation at discharge or resignation. (La. Rev. Stat. § 23:631(D).)

Use it or lose it policy:
Not prohibited (Wyatt v. Avoyelles Parish Sch. Bd., 831 So. 2d 906 (La. 2002)).

Payment of accrued vacation on termination:
Under the statute, employees must be paid for all accrued unused vacation time on termination regardless of the reason for an employee’s termination (Beard v. Summit Inst. for Pulmonary Med. and Rehab., 707 So. 2d 1233 (La. 1998)). However, one Louisiana Court of Appeals court found that termination for cause may invalidate an employee’s claim for unused vacation pay (Avila v. Sanofi-Aventis, 90 So. 3d 1132 (La. Ct. App. 2012)).

Maine

Statutory provisions regarding vacation pay:
Paid vacation time will be treated as wages if, under the terms of employment, the employee is entitled to the vacation pay (Richardson v. Winthrop Sch. Dep’t., 983 A.2d 400, 402-03 (Me. 2009)).

Use it or lose it policy:
Not prohibited. Employees have no right to paid vacation except as provided by the terms of their employment. (Gibson v. Power Maint. Int’ l, Inc., 2002 WL 31399791, at *6 (D. Me. Oct. 24, 2002)).

Payment of accrued vacation on termination:
On termination of employment, employers must follow the terms of their established vacation policy (Maine Department of Labor: FAQs: Question 6).

Maryland

Statutory provisions regarding vacation pay:
If an employer chooses to provide paid vacation, it must comply with the terms of its established policy or employment contract.

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
If an employer does not have a written policy that limits pay for accrued, unused vacation to a departing employee, the employee is entitled to the cash value of whatever earned, unused vacation is left. The employer is not required to make these payments if the employer has both:

• Established a written policy.
• Notified employees in writing at the time of hire that unused vacation is forfeited. Maryland Department of Labor, Licensing and Regulation: Unused Vacation at Termination.)

Massachusetts

Statutory provisions regarding vacation pay:
Paid vacation time is considered wages. Employers must compensate employees for earned vacation time. (Mass. Gen. Law. ch. 149, § 148.)

Use it or lose it policy:
Not prohibited, but employers must give employees:

• Adequate notice of the policy.
• Enough time to use the accumulated vacation time before the employer’s cut-off date. Employers may also place a cap on vacation accrual. (Elec. Data Sys. Corp. v. Att’y Gen., 907 N.E.2d 635 (Mass. 2009).)

Payment of accrued vacation on termination:
An employer must pay terminating employees all earned, unused vacation.

Michigan

Statutory provisions regarding vacation pay:
Vacation provided under a written contract or policy is considered a fringe benefit and not wages (Mich. Comp. Laws § 408.471(e)).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Employers must pay fringe benefits according to the terms of their written contract or policy and cannot withhold any payments due at an employee’s termination unless the employee agrees in writing of his own free will (Mich. Comp. Laws §§ 408.473 and 408.474).

Minnesota

Statutory provisions regarding vacation pay:
If employers grant vacation pay, paid time off or vacation pay constitutes “wages” for wage payment purposes (Minn. Stat. Ann. § 181.13). Employers and employees may contract to the conditions under which employees receive accrued vacation wages in the form of paid time off or a payment (Lee v. Fresenius Med. Care, Inc., 741 N.W.2d 117, 124-126 (Minn. 2007)).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
The employer’s policy determines what vacation pay is due (Minn. Stat. Ann. § 181.74; Minnesota Department of Labor & Industry: Labor Standards: Termination).

Mississippi

Statutory provisions regarding vacation pay:
None.

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Employment policy or contract determines vacation pay on termination. For example, an employee who is contractually due vacation pay at the time of his involuntary dismissal has a valid claim for the value of his accrued vacation time (Fuselier, Ott & McKee, P.A. v. Moeller, 507 So. 2d 63 (Miss. 1987)).

Missouri

Statutory provisions regarding vacation pay:
None.

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
The definition of wages for purposes of determining final wages due on termination does not include vacation pay (Monterosso v. St. Louis Globe Democrat Publ’g Co., 368 S.W.2d 481, 488-89 (Mo. 1963); Doores v. Intercontinental Eng’g-Mfg. Corp., 670 S.W.2d 65, 67 (Mo. Ct. App. 1984)).

Montana

Statutory provisions regarding vacation pay:
Accrued and earned vacation time is similar to wages (see Langager v. Crazy Creek Products, Inc., 954 P.2d 1169, 1173-1177 (1998)).

Use it or lose it policy:
Prohibited. However, employers may have a policy that limits the employee’s ability to earn vacation pay at a designated level of hours (a maximum cap). Once the employee’s earned vacation hours drop below that limit, the employee’s ability to earn vacation pay restarts. (Montana Department of Labor & Industry: FAQs.)

Payment of accrued vacation on termination:
Employer’s policy determines if vacation pay is due on termination (Montana Department of Labor & Industries: Employment Laws, Question 14).

Nebraska

Statutory provisions regarding vacation pay:
Paid vacation is a type of fringe benefit, which is considered wages subject to the Nebraska Wage Payment and Collection Act (Neb. Rev. Stat. §48-1229).

Use it or lose it policy:
Prohibited (see Roseland v. Strategic Staff Mgmt., Inc., 272 Neb. 434 (2006); Fisher v. PayFlex Sys. USA, Inc., 285 Neb. 808 (2013)).

Payment of accrued vacation on termination:
All earned, unused vacation must be paid to departing employees (Neb. Rev. Stat. §48-1229(6); Roseland., 272 Neb. at 439; Fisher, 285 Neb. at 819; Nebraska Department of Labor Standards: FAQs).

Nevada

Statutory provisions regarding vacation pay:
None.

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Employers are not required to pay employees for accrued but unused vacation at the time of voluntary or involuntary termination. However, employers should ensure that their approach complies with existing policies and past practice. (Nevada Office of the Labor Commissioner: FAQs.)

New Hampshire

Statutory provisions regarding vacation pay:
If an employer offers vacation pay or other fringe benefits to employees, those fringe benefits are considered wages when due (N.H. Rev. Stat. § 275:43(V)). Employers offering vacation pay and other fringe benefits must notify employees in writing, such as either:

• A notice posted in the workplace.
• As part of the employee handbook. (N.H. Rev. Stat. § 275:49(III).)

Use it or lose it policy:
Not prohibited.

Payment of accrued vacation on termination:
If a policy does not specify whether an employee must be paid for accrued, unused vacation, the employer generally must pay the employee for this time when the employee separates from employment (see N.H. Code Admin. R. Lab. 803.03).

New Jersey

Statutory provisions regarding vacation pay:
The New Jersey wage laws do not prescribe that accrued and unused vacation constitutes wages and do not establish any requirements about accruing vacation or carrying it over from year to year.

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Unused vacation will not be not considered wages unless an employment agreement, union contract, or company policy provides that vacation will be cashed out on termination of employment, in which case an employee may have a claim for vacation pay if the terms of the agreement, contract, or policy are not followed (Chrin v. Cambridge Hydrodynamics, Inc., 2003 WL 25754809 (N.J. App. Div. Dec. 30, 2003); see New Jersey Department of Labor & Workforce Development: Wage and Hour Compliance FAQs).

New Mexico

Statutory provisions regarding vacation pay:
None.

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Not required by state law; depends on employer policy.

New York

Statutory provisions regarding vacation pay:
If an employer chooses to provide paid vacation, it must comply with its policy or employment contract (N.Y. Lab. Law § 198-c).

Use it or lose it policy:
Not prohibited, but employers must give employees prior notice of the policy (Glenville Gage Co. v. Indus. Bd. of App. of N.Y., 417 N.E.2d 1009 (N.Y. Ct. App. 1980); N.Y. Lab. Law § 195(5)).

Payment of accrued vacation on termination:
An employer’s policy determines whether earned, unused vacation is paid on termination (New York Department of Labor: FAQs). An employer policy may specify that employees lose accrued benefits under certain conditions, as long as employees are given prior notice of the policy (Glenville, 417 N.E.2d at 1009).

North Carolina

Statutory provisions regarding vacation pay:
North Carolina employers are not required to provide vacation pay plans for employees (N.C. Gen. Stat. § 95-25.12). However, if an employer does adopt a vacation policy, that policy must address:

• How vacation is earned.
• How much vacation time may be carried forward from one year to another, if any.
• When vacation time must be taken.
• Under what conditions vacation pay will be forfeited upon termination of employment. (13 N.C. Admin. Code rule 12.0306(a).)

Use it or lose it policy:
Not prohibited. Employees must be notified in writing of any policy that requires or results in loss or forfeiture of vacation time or pay. Employees who are not notified are not subject to the loss or forfeiture. (N.C. Gen. Stat. § 95-25.12.)

Payment of accrued vacation on termination:
An employer’s policy determines whether earned, unused vacation is paid on termination.

North Dakota

Statutory provisions regarding vacation pay:
Employers may provide paid time off, which is considered wages, and includes:

• Annual leave.
• Earned time off
• Personal days.
• Any other provisions intended to provide compensation as vacation. (N.D. Admin. Code 46-02-07-02(12).)

Use it or lose it policy:
Not prohibited, if employees:

• Are given a reasonable opportunity to take the vacation.
• Have notice of the provision. (N.D. Admin. Code 46-02-07-02(12).)

Payment of accrued vacation on termination:
An employer must pay a terminating employee for earned paid time off at the regular rate of pay earned by the employee before separation. An employment policy or agreement cannot include forfeiture of earned paid time off at separation. (N.D. Admin. Code 46-02-07-02(12).) However, if an employee voluntarily separates from employment, a private employer may withhold payment for accrued paid time off if:

• The employer gave the employee written notice at the time of hiring of the limitation on payment of accrued paid time off.
• The employee has been employed for less than one year.
• The employee gave less than five days’ written or verbal notice. (N.D. Cent. Code § 34-14-09.2.)

Ohio

Statutory provisions regarding vacation pay:
None.

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
An employer’s policy determines whether earned, unused vacation is paid on termination (see Winters-Jones v. Fifth Third Bank, 1999 WL 342215 (Ohio Ct. App. May 27, 1999)).

Oklahoma

Statutory provisions regarding vacation pay:
Vacation pay is considered wages under Oklahoma law (Okla. Stat. tit. 40, § 165.1(4); Okla. Admin. Code § 380:30-1-8(d)). If an employer offers paid vacation benefits, it must follow the terms of its employment policy or contract (Okla. Admin. Code § 380:30-1-8).

Use it or lose it policy:
Not prohibited (Okla. Admin. Code § 380:30-1-5).

Payment of accrued vacation on termination:
An employer is required to provide vacation pay to departing employees if its contract or policy specifically requires it (Okla. Admin. Code § 380:30-1-5(4)).

Oregon

Statutory provisions regarding vacation pay:
Paid vacation, if offered, is considered wages (see State ex rel. Nilsen v. Or. State Motor Ass’n, 432 P.2d 512 (Or. 1967)).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Not required by state law; depends on employer’s written policies, agreements and past practices (Oregon Bureau of Labor and Industry: Technical Assistance for Employers: Benefits).

Pennsylvania

Statutory provisions regarding vacation pay:
Wages include fringe benefits, such as vacation pay (43 Pa. Stat. Ann. § 260.2a; Harding v. Duquesne Light, Co., 882 F. Supp. 422 (W.D. Penn. 1995)).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
An employer’s policy or agreement determines whether earned, unused vacation is paid on termination.

Rhode Island

Statutory provisions regarding vacation pay:
Accrued vacation time is considered wages after one year of completed service (R.I. Gen. Laws § 28-14-4(b)).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
After one year of service, employers must pay separated employees accrued vacation time awarded by either:

• A collective bargaining agreement.
• Written or verbal company policy.
• Any other written or verbal agreement between the employer and employee. (R.I. Gen. Laws § 28-14-4(b).)

South Carolina

Statutory provisions regarding vacation pay:
“Wages” includes vacation pay (S.C. Code Ann. § 41-10-10(2)). Employers must notify employees in writing of the wages and hours agreed upon, and other related information (S.C. Code Ann. § 41-10-30).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
An employer’s policy determines whether earned, unused vacation is paid on termination (South Carolina Department of Labor: FAQs).

South Dakota

Statutory provisions regarding vacation pay:
None.

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Not required by state law.

Tennessee

Statutory provisions regarding vacation pay:
Employers are not required to establish a written vacation policy if they choose to provide paid or unpaid vacation (Tenn. Code Ann. § 50-2-103(3)).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Employer’s policy or labor agreement determines payment of earned, unused vacation on termination of employment (Tenn. Code Ann. § 50-2-103(3); Op. Tenn. Att’y Gen. 06-169 (2006)).

Texas

Statutory provisions regarding vacation pay:
If an employer chooses to provide paid vacation, it must comply with its written policy or agreement (Texas Lab. Code § 61.001(7)(B); 40 Texas Admin. Code § 821.25(a)).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Required if promised by employer in a written policy or agreement, subject to conditions imposed in the policy or agreement (Texas Workforce Commission: Accrued Leave Payouts).

Utah

Statutory provisions regarding vacation pay:
If an employer chooses to provide paid vacation, it must comply with its policy or agreement (Utah Admin. Code r. 610-3-4(B)(1)).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Unless the employer specifically implements a use-it- or-lose-it policy explicitly stating that leave does not accrue and employees are not paid for unused leave, the employer must pay the employee for any accrued, unused leave on the employee’s termination. (Utah Admin. Code r. 610-3-4.)

Vermont

Statutory provisions regarding vacation pay:
Employers who choose to provide paid vacation time, as stated in an employee handbook, memorandum, or other correspondence are liable to their employees for these benefits (Vermont Department of Labor: Summary of Vermont Wage & Hour Laws: Benefits and/or Wage Supplements).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
An employer’s policy determines whether earned, unused vacation is paid on termination.

Virginia

Statutory provisions regarding vacation pay:
Employers may establish any or no policy regarding vacation benefits (Virginia Department of Labor & Industry: Labor and Employment Law).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
An employer’s policy determines whether earned, unused vacation is paid on termination.

Washington

Statutory provisions regarding vacation pay:
There is no state law requiring employers to grant vacation time to employees. If an employer offers paid vacation time, the terms of the employer’s policy or employment contract governs the amount of vacation time to which the employee is entitled. (Walters v. Ctr. Elec., Inc., 506 P.2d 883, 887 (Wash. Ct. App. 1973).)

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
An employer’s policy determines whether earned, unused vacation is paid on termination (see Washington Department of Labor & Industry: FAQs: Final Paycheck).

West Virginia

Statutory provisions regarding vacation pay:
Accrued vacation and similar benefits constitute “compensation for work performed,” which must be paid to an employee (Farley v. Zapata Coal Corp., 281 S.E.2d 238, 241 (W.Va. 1981)).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Accrued vacation does not constitute “wages” within the statutory definition to be paid on discharge if the employer has a written policy stating that accrued vacation will not be paid in cash on termination.

Wisconsin

Statutory provisions regarding vacation pay:
Wage payment includes holiday and vacation pay (Wis. Stat. § 109.01(3)). The statute does not specify how vacation time must be administered.

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
Not required by state law.

Wyoming

Statutory provisions regarding vacation pay:
If an employer chooses to provide paid vacation benefits, it must comply with its policy or employment contract (Wyo. Stat. § 27-4-507).

Use it or lose it policy:
Not addressed by state statute.

Payment of accrued vacation on termination:
An employer must provide terminating employees with accrued, unused vacation pay earned according to the employer’s policy (Wyoming Department of Workforce Services: Labor FAQs).