When an employee leaves your company, whether they quit or are terminated, you must ensure you meet your state’s legal requirements for:
When you’re legally required to issue their final paycheck
Whether you need to pay out unused vacation hours
Most states set specific timelines for when final pay must be provided. In some cases, these deadlines differ depending on whether the employee quit or was terminated.
Stay Compliant
While many employers assume it's fine to include final pay in the next regular payroll cycle, this is often too late. If that scheduled pay date falls after your state’s legal deadline, you may be in violation.
Late final pay can lead to:
State-imposed penalties
Extra damages owed to the employee
In some states, even criminal consequences
What to Do
Use the table below to check your state’s requirements.
Look at both paycheck timing and vacation payout rules.
Visit your state’s Department of Labor website for the most up-to-date regulations.
If you're unsure whether your dismissal process is compliant, consult a qualified employment attorney.
State-by-State Requirements
The full table below includes:
State
Dismissal Paycheck Deadline(s)
Requirements for Paying Out Unused Vacation
Additional Information
📅 This table was last revised: January 15, 2025
State | Dismissal Paycheck Deadline(s) | Vacation Payout Requirement | Additional Information |
AL | No statute | No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
AK |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
AZ |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
AR | You're required to pay the employee by the next scheduled payday. | No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
CA |
| Yes | Employers are required to pay employees any accrued, unused vacation time upon termination. |
CO |
| Yes | Earned vacation time is considered wages required to be paid out upon termination. |
CT |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
DE | You're required to pay the employee on the next scheduled payday, or within 3 business days, whichever is later. | No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
FL | No statute | No | No state statute addresses the payment of accrued vacation on termination. |
GA | No statute | No | No state statute addresses the payment of accrued vacation on termination. |
HI |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
ID |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
IL |
| Yes | An Illinois company cannot put in place a company policy that does not pay out PTO upon termination. |
IN | You're required to pay the employee by the next scheduled payday. | Yes (unless otherwise stated) | Accrued vacation pay is considered a form of compensation. An employee may be entitled to accrued unused vacation time if they've met any certain conditions of a company policy or employment contract. |
IA | You're required to pay the employee on or before the company's next regular payday. | No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
KS | You're required to pay the employee on or before the company’s next scheduled payday. | No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
KY | You're required to pay the employee on the next scheduled payday, or within 14 days, whichever is later. | No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
LA | You're required to pay the employee on the next scheduled payday or within 15 days, whichever is sooner. | No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
ME | If you have more than 10 employees, you're required to pay the employee on or before the company's next regular payday. | Yes | You're required to pay out all unused PTO with their final paycheck. |
MD |
| Yes (unless otherwise stated) | Employers are required to pay employees any accrued, unused vacation time upon termination unless the employer's written policy states that vacation time will be forfeited upon termination. |
MA |
| Yes | Employers are required to pay employees any accrued, unused vacation time upon termination. |
MI | You're required to pay the employee on or before the company’s next scheduled payday. | No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
MN |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
MS | No statute | No | No state statute addresses payment of accrued vacation on termination. |
MO |
| No | Employers are not required to pay employees for earned, unused vacation upon termination. |
MT |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
NE | You're required to pay the employee on the company's next regular payday or within two weeks, whichever is sooner. | Yes | All earned and unused vacation and PTO benefits must be paid to the employee with their final wages. |
NV |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
NH |
| No | You can pay out unused PTO if you'd like, but you are not required to. |
NJ |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
NM |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
NY | You're required to pay the employee by the next scheduled payday. | Yes | An employer must pay the employee for accrued unused vacation if there's no written forfeit policy. |
NC | You're required to pay the employee by the next scheduled payday. | Yes | An employer must pay the employee for accrued unused vacation if there's no written forfeit policy. |
ND | You're required to pay the employee by the next scheduled payday. | Yes, in most cases | Must pay accrued time off unless employee is leaving voluntarily and all of the following apply:
|
OH | You're required to pay the employee by the next scheduled payday. | No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
OK | You're required to pay the employee by the next scheduled payday. | No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
OR |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
PA | You're required to pay the employee by the next scheduled payday. | No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
RI | You're required to pay the employee by the next scheduled payday. | Sometimes | If the employee has been working for the company for more than one year, you're required to pay out all unused PTO with their final paycheck.
If the employee has been working for the company for less than one year, you are not required to pay out unused PTO. |
SC |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
SD |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
TN |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
TX |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
UT |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
VT |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
VA | You're required to pay the employee by the next scheduled payday. | No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
WA |
| No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
WA DC |
| Yes (unless otherwise stated) | You're required to pay out all unused PTO with their final paycheck unless your company has a written policy that indicates unused PTO will not be paid out when an employee leaves the company. |
WV | You're required to pay the employee by the next scheduled payday. | No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
WI | You're required to pay the employee by the next scheduled payday. | Yes (unless otherwise stated) | You're required to pay out unused PTO if your company's PTO policy does not include a written PTO forfeit policy. If your PTO policy includes forfeiture, then you are not required to pay out unused PTO. |
WY | You're required to pay the employee by the next scheduled payday. | No (unless otherwise stated) | An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. |
🛟 Need more help?
Explore our Help Center articles for answers. Contact us for further assistance.