Unused PTO & Vacation Pay Cash-Out Calculator at Termination
Calculate your mandatory final vacation payout and check whether your employer's 'Use-It-Or-Lose-It' forfeiture policy is illegal in your state.
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3. How the rule works
Who this is for
Employees leaving a job with unused vacation or PTO who want to know whether the employer must pay it out, and at what rate.
The answer depends heavily on the state, and in some states on the employer's written policy, so read both.
What to have ready
- A screenshot or printout of your accrued balance.
- The written vacation or PTO policy.
- Your final hourly rate.
- Your final paycheck and pay stub.
The rule
California treats earned vacation as wages. Labor Code § 227.3 requires all vested vacation to be paid at the final rate of pay when employment ends, and 'use it or lose it' forfeiture is not allowed, though employers may cap how much can accrue. Illinois (820 ILCS 115/5) also requires earned vacation to be paid as final compensation and does not allow forfeiture. Colorado and Massachusetts courts and agencies likewise treat earned vacation as wages due at separation.
Many other states, including New York, Texas and Florida, have no statute requiring payout. In those states the employer's written policy or agreement controls: New York Labor Law § 198-c and state guidance enforce a forfeiture policy if employees were given written notice of it, and Texas pays out only if a written policy or agreement promises it. 'Unlimited' PTO policies raise separate questions in states that require payout.
Read the official text:
- California Labor Code § 227.3
- Illinois Wage Payment and Collection Act, 820 ILCS 115
- California Labor Commissioner: vacation FAQ
Worked example: 56 unused hours
Ana leaves with 56 hours of accrued vacation. Her final hourly rate is $37.50 after a raise last month.
Payout in California = 56 x $37.50 = $2,100 (final rate, not the old rate) Due = with the final paycheck (§§ 201-203 deadlines) Texas, policy says forfeited on resignation = $0 owed Texas, policy promises payout = $2,100 under the policy
Common mistakes
- Accepting payout at an earlier, lower rate. California requires the final rate.
- Assuming sick leave is treated like vacation. California does not require payout of sick leave unless it is combined in a single PTO bank.
- Not saving a record of the balance before access to the HR system ends.
- Assuming a forfeiture policy is lawful everywhere. In payout states it is not.
Limits of this tool
- PTO payout rules vary by state, and some states depend on the employer's written policy.
- Union contracts can set different terms.
- The tool assumes your balance is correct; disputes about accrual need payroll records.
Sources were last checked in October 2026. Statutes are amended often; if the official text differs from this page, the official text controls.
4. Clear Next Steps & Statutory Action Plan
- Screenshot or print your accrued balance and the PTO policy before your last day.
- Check whether your state requires payout or follows the written policy.
- If the payout is missing, ask payroll in writing and note any final pay deadlines in your state.
5. Frequently Asked Statutory Questions (Cal. Lab. Code § 227.3; Ill. Wage Payment & Collection Act 820 ILCS 115/5; Mass. Gen. Laws c. 149 § 148)
Do I lose vacation if I was fired?
Not in California, Illinois or other payout states; earned vacation is owed regardless of the reason for leaving. In policy-based states, the policy may treat resignation and firing differently.
Are unlimited PTO policies paid out?
In California, a policy that is truly unlimited may not create vested vacation, but courts have looked at whether there is a practical cap. If time effectively accrues, payout may be required.
Does New York require payout?
Only if the employer's policy or agreement provides for it, or if the employer failed to give written notice of a forfeiture policy.
Is floating holiday pay treated like vacation?
In California, floating holidays that can be used at the employee's discretion are generally treated like vacation and must be paid out. Holidays tied to fixed dates usually are not.
Can my employer cap vacation accrual?
Yes, in California an employer may stop further accrual once a reasonable cap is reached. What it cannot do is take away vacation already earned.